Fortune Favors the Brave: The Five-year Outlook for Broker-Dealers

FORTUNE FAVORSTHE BRAVETHE FIVE-YEAR OUTLOOKFOR BROKER-DEALERS

BASED ON RESEARCH BYFIS AND LANTERN INSIGHTS

TECHNOLOGYIS LEADING TO FUNDAMENTAL CHANGES IN BROKERAGE

AT THE HUMAN LEVEL

34%

66%

21%

18%61%

Technology may start to replace large number of human analysts or enable skilled people to make quicker, smarter and more informed investment decisions.

Do you expect technology to replace or augment human analysts?

Do you expect algorithms to undertake an increased

share of trading and transactional activities in your

business?

All data is sourced from a July 2016 survey of 150 broker-dealer executives by FIS and Lantern Insights

YES

NO ReplaceAugment

Neither

AT THE COMPANY LEVELIt is becoming easier, cheaper and more secure to integrate outsourcing andto use technology to deal with new regulations and exploit new markets.

Expect automationto impact their business

75%

25%

78%

22%

78%75%

Considering outsourcing at least one of the front, middle and back offices

AT THE INDUSTRY LEVELThe pressure to reduce costs and the imminent introduction of stricter regulations, higher capital and leverage ratio requirements are driving firms to consider new strategies, models and ways of working.

Expect regulations to significantly change their revenue model

Expect increased regulation to severely impact their business

over the next 24 months

76%

24%

70%

30%

76%70%

CHANGE IS INEVITABLE

Electronification

Automation and outsourcing

Disruptive companies and technologies

THERE’S APERSONAL

EFFECT TOO

HOW IS TECHNOLOGY CHANGING YOUR PLANS FOR THE NEXT FIVE YEARS WITHIN YOUR BUSINESS?

None of the above

I'm expecting to work longer hours

I'm having to do more myself

I'm working with new departments or across silos

I'm worried about new competitors

I'm expecting to change roles more often

I'm automating repetitive tasks

I'm starting to use new sources of data

I'm learning how to use new technology

5%

11%

16%

18%

19%

22%

39%

42%

47%

SO, WHAT’STHE ANSWER?

EMBRACE CHANGE

Review your risk management,

business models and operations according to modern realities

Align your business strategy across all of your

activities

Identify which areas, roles and tasks

are suitable for being outsourced and which must remain in-house

SIMPLIFY, CONSOLIDATE

AND MODERNIZE

LEARN MOREIN OURNEW REPORT

getinfo@fisglobal.com

FORTUNE FAVORS THE BRAVE

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