HfS Blueprint Report: Capital Markets Operations

WHAT THIS BLUEPRINT REPORT COVERS

The 2017 Capital Markets Operations Blueprint presents a comparative analysis of the innovation and execution capabilities of key service providers in this market. The scope of services within this Blueprint broadly includes front, middle and back office processes that service providers have taken on in the last 15 years for clients in asset management, investment banking, brokerage and wealth management.

KEY MARKET DYNAMICS

• Market Forces and Regulation Stimulating New Demand: With global regulatory bodies placing continual pressure on banks and capital markets firms, there are new areas of opportunity for service providers to step in to help clients meet regulatory compliance requirements in different ways. Regulatory data management and reporting and analytics modeling and model monitoring are some of the biggest areas of growth for service providers.
• Back Office Processes Continue to Dominate the Services Landscape: The capital markets operations market started a little over a decade ago with back-office BPO processes offshored to IT service providers. Today, these processes are the majority of work engagements, prominent in 63% of contracts in our analysis. Major service areas include clearing and settlement, corporate actions, reconciliations, fund accounting, collateral management, data management and reporting, investor operations, and product control.
• Industry Staring at Technology-Driven Change: We see multiple initiatives fighting for prioritization within client stakeholders and service providers’ strategies, all related to technology-enabled service delivery in capital markets’ operational processes. Platform-based services, provided as a utility, are sparking new interest from clients especially as these models promise consolidation and economies of scale across internal LOBs and asset classes. Similarly, clients are also driving automation initiatives within each business, led by robotic process automation and some level of machine learning and predictive analytics to improve operational performance for retained and outsourced functions.

WHO SHOULD READ THIS REPORT

BFS service provider executives, CXOs and operations leaders in capital markets segments including asset management, investment banking, brokerage and wealth management.

SERVICE PROVIDERS WE DISCUSS

Capgemini, Cognizant, EXL, Genpact, HCL, Hexaware, Infosys, NIIT Technologies, Syntel, TCS, Tech Mahindra, Wipro, WNS

WHAT YOU’LL KNOW AFTER READING

The capital markets operations landscape is gradually shifting and readers will learn more about the current state and major market factors. HfS also covers insights into the service provider landscape, through a comparative evaluation of the current capabilities and vision for innovation of key industry players. We also outline the strengths and challenges to take into consideration for these service providers. Finally, we present recommendations for enterprise buyers and service providers to progress their engagements towards driving more Intelligent Operations.