Investment Banking

Investment banks constantly have to deal with new regulation and capital requirements, increased costs and reduced risk-taking capacity. In addition, with historically low interest rates, market conditions are generally unfavourable. The resulting pressure on costs has seen different sourcing models emerge across the globe, along with the use of bi-lateral outsourcing providers – neither of which have delivered sufficiently.

As pressures increase, we believe that investment banks stand to benefit from the mutualisation of those parts of the value chain that do not confer competitive advantage, as this will allow investment banks to make a structural change to their cost base in keeping with the return on equity demands of their shareholders. It will also allow investment to be concentrated on the things that matter most.

The speed and sophistication of technology development offers a wealth of opportunities, such as removing old legacy costs and moving to more variable or volume-driven costs, as well as revolutionising client journeys.

In addition, new revenue opportunities are abundant in the data that investment banks process. Evolving techniques to derive historical analysis and predictions can deliver real value to clients.

The journey starts by settling on a strategic identity that informs investment, partnership and divestment plans. This, in turn, demands a committed delivery programme.