IT Trends and Spending Implications for the Securities & Investments Industry

Finding Opportunities Amidst the New Realities
Industry Trends
Asia-Pacific, EMEA, North America

Abstract

In the next few years, market and technology trends will have major implications for IT spending across both wealth management and capital markets firms.

This report, IT Trends and Spending Implications for the Securities & Investments Industry: Finding Opportunities Amidst the New Realities, highlights these trends and developments so that institutions can consider making investments, and IT vendors and other service providers can consider making enhancements to their solutions or else develop brand new solutions. Celent examines the powerful restructuring taking place within the securities and investments industry, where firms are evolving more rapidly now than ever before.

“Given the highly regulated environment in wealth management, firms are changing their strategies,” says Isabella Fonseca, Research Director with Celent’s Securities & Investments Group and coauthor of the report. “Wealth managers are optimizing technology to create new service models and channels for different customer segments. In particular, they are focusing on adding technology for advisors and providing best-in-class service for investors through self-directed tools and improved advisor-client relationships.”

“In capital markets, the evolution of market structure will drive much of the agenda,” adds David Easthope, Research Director with Celent’s Securities & Investments Group and coauthor of the report. “Infrastructure providers are undergoing significant transformation based on regulatory and competitive drivers, where there are new opportunities to expand across the value chain.”

On the sell side, with the implementation of new regulations, many firms will not be able to leverage their balance sheet to maintain the full scope of their dealing operations, and therefore are already repositioning their business models. Buy side operations are also under pressure due to regulations and evolving market structure. Finally, risk management is very much in the spotlight, as firms are continuing to embark on multiyear initiatives to strengthen and upgrade risk management related practices and systems.

This 26-page report contains four figures and five tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

IT Trends and Spending Implications for Wealth Management

3

 

Key Technology Trends in Wealth Management

4

 

Implications for IT Spending in Wealth Management

7

IT Trends and Spending Implications for Capital Markets

13

 

The Evolution of the Securities & Investments Value Chain

13

 

Key Technology Trends in Capital Markets Infrastructure

14

 

Key Technology Trends on the Sell Side

17

 

Key Technology Trends on the Buy Side

20

Conclusion

22

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

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