Follow the "sensible money"
For the past 20 years, the financial markets industry has profited by capitalizing on "pockets of opacity," creating, buying and selling complicated products with limited regulatory oversight.
While this approach has allowed high returns, it has also introduced greater risk and market volatility. To move toward more sustainable returns, the industry needs to establish a new financial order by focusing on three imperatives:
- First, work with regulators to establish a financial system that balances stability with innovation
- Deliver on brand promises by focusing on the interests of clients
- Solve its identify crisis, which may involve a change in business models.
The firms that compete most successfully in this new environment will be those that specialize and form partnerships with other organizations to supplement their own areas of expertise, listen to their clients and provide offerings that are tailored to the needs of different client segments. They will, in essence, embrace transparency and follow the sensible money, rather than seeking inflated returns through unsustainable practices.
We're here to help
Easy ways to get the answers you need.
The yin yang of financial disruption
About the Author
Suzanne Duncan
Financial Markets Industry Leader
IBM Institute for Business Value
IBM Global Business Services
