By pruning their product offerings, investment banks could distinguish themselves from competitors and clear the path for future growth. Learn more: https://www.accenture.com/us-en/insight-investment-bank-challenge-01-growth?c=fs_cmfy17sldshr_10000001&n=smc_0517

1. TOP 10
CHALLENGES

2. CHALLENGE 01 - Top 10 Challenges for Investment Banks
CHALLENGE 01
PRUNING FOR
GROWTH AND
DISTINCTIVENESS
TOP 10 CHALLENGES FOR
INVESTMENT BANKS 2017
#IBTOP10
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3. CHALLENGE 01 - Top 10 Challenges for Investment Banks
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10 GETTING FIT
AUTOMATION
LOCATION
STRATEGY
DIGITAL
TALENT
CLIENT EXPERIENCE
JOURNEY
TO CLOUD
INNOVATION
RESEARCH
FUNCTION
BLOCKCHAIN
PRUNING FOR GROWTH
AND DISTINCTIVENESS
3
PRUNING FOR GROWTH

4. PRUNING FOR GROWTH
AND DISTINCTIVENESS
INVESTMENT BANKS MUST ASK THEMSELVES:
In the post-financial crisis world, regulation,
market structure and technology continues
to change at an accelerated pace.
How is the
market evolving?
Where is
value migrating?
How can I regain
a competitive
advantage?
4CHALLENGE 01 - Top 10 Challenges for Investment Banks

5. CHALLENGE 01 - Top 10 Challenges for Investment Banks
PRUNING FOR GROWTH
AND DISTINCTIVENESS
As regulatory burdens grow, compliance costs
are stacking up. As volumes and margins
decline, revenue pools are shrinking.
IT’S TIME FOR INVESTMENT BANKS TO:
Prune product offerings
and business lines
Strengthen
core businesses
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6. CHALLENGE 01 - Top 10 Challenges for Investment Banks
PRUNING FOR GROWTH
AND DISTINCTIVENESS
In the past, investment
banks have focused on:
And set themselves
apart with:
When traditional routes to innovation are no longer
an option, what’s an investment bank to do?
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PROFESSIONAL
INVESTORS
FINANCIAL
INSTITUTIONS
CORPORATES
BESPOKE
PRODUCTS
NICHE HIGH-RISK
PRODUCTS

7. CHALLENGE 01 - Top 10 Challenges for Investment Banks
PRUNING FOR GROWTH
AND DISTINCTIVENESS
Reigniting growth by identifying
one’s strengths, aligning the business to
those strengths and developing business
and operating models that build on and
advance those strengths sounds
deceptively simple.
But it requires investment
banks to ask themselves
three difficult questions.
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8. CHALLENGE 01 - Top 10 Challenges for Investment Banks
QUESTION 1:
WHICH ELEMENTS OF OUR OFFERING
DO CLIENTS TRULY VALUE AND PAY FOR?
Pre-trade MiFID II will require
many investor clients
to pay for research.
Sales’ ability to add
color on flows is
increasingly limited.
Trading More products
are moving closer
to quasi-agency
territory.
The street is relying
more heavily on
buy-side liquidity
and platforms.
Post-trade End-to-end client
experiences, efficiency
and connectivity have
roles to play.
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9. CHALLENGE 01 - Top 10 Challenges for Investment Banks
QUESTION 2:
WHAT DOES THAT MEAN FOR CLIENT
FOCUS AND FRANCHISE?
Client value Does the balance between corporates and
investors need to shift?
Client service Can digital distribution and local partnerships
help absorb counterparty risk?
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10. CHALLENGE 01 - Top 10 Challenges for Investment Banks
QUESTION 3:
HOW DO WE RECONFIGURE OUR
OPERATING MODEL AND COOPERATE
ACROSS THE ECOSYSTEM?
Investment banks can enable small regional players, and leverage the
power of fintech and the surrounding ecosystem, in one of two ways:
Focus on advanced products
and solutions and effectively
outsource foreign exchange and
rates trading.
Become a platform player that
offers a full range of trade services
and lets other players plug in their
areas of value.
01 02
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11. CHALLENGE 01 - Top 10 Challenges for Investment Banks
PRUNING FOR GROWTH
AND DISTINCTIVENESS
THERE’S NO RIGHT
OR WRONG ANSWER
The decision won’t be black or white
THERE’S A CONTINUUM
OF OPTIONS
Where you choose to play will depend entirely on you
Some players are integrating core businesses
to deliver more services to more people
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12. CHALLENGE 01 - Top 10 Challenges for Investment Banks
WHERE WILL YOUR INVESTMENT
BANK BE AT HOME?
What makes most sense for you?
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EXCEL AT
THE CORE
FOCUS ON
CORPORATES
FOCUS ON
INVESTORS
PLATFORM
PLAYER
Focus on
sophisticated,
highly customized
solutions for large
and professional
investors, financial
institutions and
corporates
Fully-integrated,
seamless service
delivery to
corporate clients
across all products
Leverage digital to
service the
broader investor
universe beyond
traditional buy-
side clients
Offer best-in-class
products via peer
platforms,
connecting to the
core

13. CHALLENGE 01 - Top 10 Challenges for Investment Banks
PRUNING FOR GROWTH
AND DISTINCTIVENESS
Large Investment
Banks May Combine
MULTIPLE ELEMENTS
Small Investment
Banks May
NEED TO FOCUS
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14. CHALLENGE 01 - Top 10 Challenges for Investment Banks
PRUNING FOR GROWTH
AND DISTINCTIVENESS
Where to play and radically simplify
their operating models accordingly.
What’s most important is that
you choose a clear direction
and map your path there.
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15. TAKE THE
NEXT STEP
www.accenture.com/10challenges
CHALLENGE 01 - Top 10 Challenges for Investment Banks 15