why technology will shape the future of the sell side

WHY TECHNOLOGY WILL SHAPE THE FUTURE OF BANKINGPreparing for what lies ahead for banks and broker-dealers

The Sell Side Faces a Myriad of Challenges

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REGULATORY CHANGE, COSTS

AND RESTRICTIONS

RISK REQUIREMENTS

DIGITAL DISRUPTION

TECHNOLOGICAL INNOVATION

MACROECONOMIC UNCERTAINTY

Technology Will Be a Deciding Factor in Future Success

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TAKE ADVANTAGE OF DIGITAL INNOVATION

ACHIEVE COMPLIANCE AND GROWTH

NAVIGATE AN EVER

CHANGING, COMPLEX MARKET

EXPLORE NEW

OPPORTUNITIES

THREE STEPS

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PROTECT YOUR BUSINESSTake charge of risk and compliance

Or are you making the best of regulation?

Is Regulation Getting the Better of You?

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Through a more connected agile and transparent enterprise, you can manage your business more effectively within regulatory constraints.expect regulations to

significantly change their revenue model

79%

The Five-year Outlook for Sell-side Banking, July 2016, FIS and Lantern Insights

Liquidity, Solvency, Profitability:Are You Striking the Right Balance?

FIVE KEY STRATEGIES DRIVE OUTPERFORMANCE

Global at-scale universal

Balance sheet-light investment specialist

Distinctive customer franchise

Back-to-basics

Growth-market leader

McKinsey, Breakaway: How Leading Banks Outperform Through Differentiation

Regulatory requirements and low interest rates are challenging banks to balance liquidity and funding costs with capital and solvency

– and at the same time remain profitable.

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Can You Price Risk With Precision?

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New capital constraints make it more important than ever to not only

measure risk correctly but also price it accordingly.

The mispricing of risk was one of the major causes of the global

financial crisis… Driven by several forces: Competition, abundance of liquidity, lack of innovation ...

and low interest rates.

CSFI and PwC, Banking Banana Skins 2015 – The CSFI Survey of Bank Risk

Is Your Reputation Safe and Sound?

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Banks’ conduct is increasingly critical to reputation, as is the security of data.

rank cybersecurity as the trend that will be most important to their business over the next five years

41%

The Five-year Outlook for Sell-side Banking, July 2016, FIS and Lantern Insights

FIS Can Help

BUILD A ROBUST FRAMEWORK FOR MANAGING RISK AND REGULATION

Enterprise-wide risk management and pricing

Future-proof infrastructure to support regulatory change

SIMPLIFY COMPLIANCE

Packaged solutions and advisory services for individual regulations

Single platform for compliance risk management

LAY STRONG FOUNDATIONS FOR ACCURATE DATA

Centralized data management strategy and storage

Advanced enterprise platform for reconciliation

GAIN CONSISTENCY AND VISIBILITY

Highly automated modules for all types of risk calculation and pricing

Front-office trading risk management and centralized collateral management platforms

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BRING YOUR BANK TOGETHER

Comprehensive risk and performance and treasury management solutions

OPERATE WITH SCALEManage escalating costs and protect margins for sustainable growth

Are You Taking Charge of Your Costs?

With cost-income ratios unsustainably high in certain territories and sectors, banks and broker-dealers are looking to drive down their total cost of ownership for technology

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The cost-income ratio for many investment banks

70%

Accenture, Value Based Cost Reduction: Finding the Optimal Strategy for Revenue Growth

Is Regulation Reducing Your Margins?

As banks look to drive more value through their operations, business process outsourcing can reduce the pain and costs of regulatory reporting and supporting reconciliations.

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of large financial institutions are happy to delegate all of their reconciliations

to a fully managed service

52%

Aite Group, Reconciliation Centers of Excellence: An Assessment of Quality

Do You Need Scale on Your Side?

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on external technology services, compared to 17.7 billion in 2013.

By 2017, North American banks will spend

Without significant capital expenditure in-house, banks can take advantage of external infrastructure and cloud-based capacity that scales on demand. Those active in derivatives are especially keen to minimize the impact of regulation on post-trade processing, through outsourcing.

Celent, IT Spending in Banking – A Global Perspective

FIS Can Help

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FOCUS ON YOUR STRENGTHS

Full spectrum of services from hosting to managed utilities

Technology and expertise for managing data and generating standardized reports

In-depth knowledge of solutions and supporting processes

TRANSFORM DERIVATIVES CLEARING PROCESSING

Fully managed industry utility for post-trade futures and cleared OTC derivatives operations

Greater efficiency, less risk and lower total cost of ownership

Significant economies of scale in middle and back-office processing and technology

SIMPLIFY COMPLEXITYGet ahead of change with efficient processes and informed decision-making

Are You on Top Of Market Change?

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From new central clearing mandates for OTC derivatives to T+2 settlement cycles for securities processing, technology will

be key to managing the operational impact of market evolution.

Compliance with regulatory reforms has largely depended

on the introduction of new trade and risk reporting systems.

Accenture, Investment Banking Technology: Jettisoning Legacy Architectures

Could you Simplify Your Systems?

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As banks reduce silos, they are looking to bring systems

and functions together, consolidate operations – and introduce more multi-

asset platforms from fewer vendors.

Chartis, Key Trends, Drivers and Expenditure for Risk Management Software in Tier 1 and Upper Tier 2 Sell-side Banks

One large bank went from more than 40 market risk

management systems to two or three.

Is Your Treasury in Control?

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IN FAST MOVING, VOLATILE MARKETS, TODAY’S TREASURY

MUST

Ensure access to

liquidity while maximizing return

View and manage overall cash positions and risk exposures

A fragmented, complex IT landscape can stand in the way of the accurate,

up-to-the-minute data that treasuries require.

Are Your Calculations In Sync?

PwC, Will FRTB Sort out Front Office, Risk and Finance Data and Technology Alignment?

In most banks, across risk, treasury and finance there is little

integration to the front office.

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With the emergence of XVA valuations, there is already growing awareness of

how different risk classes interact. But under FRTB in particular, risk

and the front office will need to take a more joined-up approach

to risk calculations.

FIS Can Help

CONNECT AND CONSOLIDATE

Integration of previously siloed functions

Global, multi-asset solutions

INTEGRATE AND ALIGN

Entire ecosystem of front-, middle- and back-office solutions, supporting consistent calculations and connectivity to external infrastructure

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STREAMLINE BY DESIGN

Advisory services, provided in partnership with Capco, to create a more agile technology environment and improve efficiency, transparency and control

SIMPLIFY AND SYNCHRONIZE

Powerful risk analytics engine for derivatives pricing

Enterprise-wide risk management infrastructure

ARE YOU READY?

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