New Accenture Study Forecasts End to ‘Lucrative Inefficiencies’ for $1 Trillion Capital Markets Industry as It Adapts to the Digital Age
Summary
But unlike in other sectors, the core business of capital markets accounts for a very small fraction of its cost bases — and in an era of rapid digital innovation, that leaves the industry ripe for disruption.”Nonetheless, the report suggests that to remain successful, all buy-side players — including asset and wealth managers — will need to industrialize their businesses and capture latent scale opportunities.“Adapting a trillion-dollar industry for the digital age while it’s entering an era of profound disruption is a complex and shape-shifting goal,” said Markus Boehme, a co-author of the report and managing director in Accenture Strategy.For the report, Accenture analyzed value pools bottom up — based on individual players’ results — creating a view on specific sector and subsector profitability, using FY2017 data as a baseline.The researchers then discussed the implications of this baseline and the likely development of these value pools with executives at leading capital markets firms and, during these conversations, identified key management challenges against this backdrop.