Updated Operating Models for Markets and Investment

The global pandemic has brought massive turbulence in the markets. Year-long lockdowns pushing businesses to shut or take a pause have reshaped the world's economies. We may have resumed 'normal' life, but it can never go back to normal because the world population is still facing the cold-war COVID-19 brought us. Society has been forced to evolve at a much faster rate. Systems have evolved, operations have a newer perspective now, and technology has been a fuel of our lives. On the other hand, money and finance are also critical aspects that have witnessed the harsh COVID wave.

Revenues declined, GDP fell, and money lost some value. Countries went into debt too. All because an epidemic pushed the world to stay still. Several world banks stated a decline in revenues for the third straight year. The primary reason is- fixed incomes.

But on the contrary, equities and investments witnessed great success. Their growing awareness resulted in good revenue growth in the past couple of years. Moreover, several national and international banks performed well, ultimately wooing clients and grabbing a prominent mark in the revenue industry market.

On the other hand, everything could be linked to technology. Rapid technological inventions and updates are expected to accelerate finance institutions amidst economic disruption. What happens to organisations that do not update themselves with trends? Or do they need to adapt technology as the core backend pillar of their institution? Will the public adjust to digital investment banking or asset management? There may be several questions in one's mind, but we must understand that technology remains to stay in the coming decades.

What are the operating model trends in the finance industry ?

According to GrowthJockey, several operating models in finance industry trends will be observed in the near future. A few of them are discussed below :

1. Digital practices that aim at fluent client interaction will remain in trend. Strategies that are based on updated technology will remain in use. Moreover, traditional client interactions and in-person processes will become outdated in future investment models. Capital market models for investment are expected to gain indefinitely. These institutions aim at providing a better customer experience and have improved upon their products and services.

2. Electronic placement of orders in the international bond market has accelerated. Hybrid or semi-traditional markets in investment banking and broker deals are expected to originate. These markets will play a significant part in the non-equity marketplace.

3. Technology based on Artificial Intelligence is expected to grow. AI is a trending technology in increasing business and banking, and capital markets are already making the most of it. AI has proved helpful in predicting and assessing loan risks. Moreover, it is used to improve loan underwriting and reduce the effects of financial risks or troubles. Cashflow agents and credit score adjustments can be made by implementing this technology.

The operating model for investment requires refinement for the quick positioning of hybrid working models. Product development, customer acquisition, talent management, delivery methodologies and overall investment marketplace require updates and improvements. A flexible workforce is the need of the hour. With the drastic changes in different nations' economies, financial institutions are keen on taking strategic steps regarding force and remote working conditions. Technology connects human resources from around the world and also makes operations more effective. Banks, however, have been stuck hard from the COVID aftermath. All operating models evaluate insourced arrangements and rely on the ethos of partnership.

Refining the business model

Here are a few implications that can be considered while refining the operating business model for markets and investment.

1. Financial institutions must consider logistics for aligning in-person presence for the workforce. Collaboration and connectivity play a crucial role in flexible operations; therefore, particular emphasis must be given to them.

2. Post-pandemic employee experience has gained momentum among leading financial and non-financial institutions. Integral aspects like employee flexibility, needs and requirements must be considered. Talent management must be carried out keeping the fast-pacing digital environments around us. At Growth Jockey, we aim to provide flexible external support to help run your businesses. With cost reduction as a critical deliverable, we aim to unlock your business' unlimited growth potential.

3. To curb the spending activities of financial institutions, several organisations are re-evaluating real estate footprints and future work methodologies. Cost-cutting methods must transform into revenue streams with the right plan of action. Moreover, with the backlogs received by financial institutions since the nationwide lockdown, this needs immediate attention.

What does the future of investment hold in the coming years? Will in-person experience melt into technology-driven applications? How can financial institutions prepare their workforce for the plunging digital wave upon them? These are a few questions that investment institutions must ask themselves from time to time.

Aiming at better customer experience

Operating models in business that aim at asset management focus primarily on innovation and strategic means. Front and backend processes are aligned using technological means. Different core abilities of a financial enterprise must be addressed to offer the best customer experiences in competitive times like these. This can be done in the following manner:

1. Emerging technological applications and products can be utilised to redesign and modify the current operations in financial institutions. Front, middle and back-office functions can be altered for better productivity. Technologies like DLT or distributed ledger technology can be opted for curating a clear and transparent model for transactions between different parties in an action.

2. Data Analytics can be employed to maintain a strong data foundation. This data can be further used to improve customer experience and create a modified product line per the needs of future customers. Data collection would eventually leverage the analytical systems of different departments, especially accounts.

3. Only a few of the workforce are equipped with modern-day technology. Addressing essential skill set requirements and operational skills in an organisation is crucial in making an institution fit for the coming years. Strategic means must be employed to upskill the present workforce. The best model for investment relies on its workforce.

Technology is a boon to financial institutions. With everyday transactions, payments, account set-up and loans getting updated into digital applications, investments are practised online too. Technologies like AI and Data Analytics are put to use by financial institutions to understand the growing trends in the finance sector. This, eventually, paves the way for future trends which are predicted by finance experts.

A rapid update to thrive in the future

Investment institutions that create operating models that result in flexibility are likely to stay in the markets in the coming years. The new age of transformation driven by technology pushes businesses to take practical and strategic steps to keep their firms intact. One must analyse their present operating models to understand significant loopholes. This must be done keeping in the technological advancements in the market and those expected to rule the markets in the coming decade. At last, changes in the management stream must be addressed by implementing a transformational operating model for market.

At GrowthJockey, you can explore opportunities that can accelerate your business. We believe in providing revenue growth with fast execution methodologies. Tackling business challenges by solving the correct problems at the right time makes us up in the game. We build technologies that best connect you with the right set of resources. Therefore, operate efficiently and watch your business grow with Growth Jockey.

At GrowthJockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions.
Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!