Continued economic uncertainty will be the key business driver impacting the global securities and investments industry this year, according to a new series of TowerGroup research reports examining trends for 2008.
As firms begin the new year, the industry will continue to see upheaval as market structure further evolves, trading volumes spike, and alternative investments continue their torrid growth – despite the difficulties brought on by the subprime crisis. TowerGroup finds that the industry will also be strongly impacted by the changing needs of different demographic segments – led by the emergence of Millennials and Generation X, both as investors as well as employees.
In order for institutions to effectively address these issues, TowerGroup expects securities and investments firms to focus on the following: improving risk management capabilities; formulating a stronger IT governance strategy; developing real-time capacity and performance plans; increasing the use of derivatives; and exploiting new opportunities in emerging markets.
“The global securities and investments industry must continue adapting to a fast-changing environment, including grappling with the ongoing fallout of the subprime crisis and associated write-downs. The prior year served as a needed wake-up call for the industry and the firms best positioned for this adversity will benefit in 2008,” says Rob Hegarty, managing director, TowerGroup’s Securities & Investments practice.