According to new research by FIS and Lantern Insights, at the company level, it is becoming easier, cheaper and more secure to integrate outsourcing and to use technology to deal with new regulations and exploit new markets, with 75 percent of bankers expecting automation to impact their business over the next five years. At the industry level, the 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. In our survey, 70 percent of brokers expect increased regulation to severely impact their business over the next 24 months, while 76 percent expect regulations to significantly change their revenue model. These trends are also having an impact at the human level. Learn more by downloading our slideshow.

1. FORTUNE FAVORS
THE BRAVE
THE FIVE-YEAR OUTLOOK
FOR BROKER-DEALERS
BASED ON RESEARCH BY
FIS AND LANTERN INSIGHTS

2. TECHNOLOGY
IS LEADING TO
FUNDAMENTAL
CHANGES IN
BROKERAGE

3. 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

4. AT THE COMPANY LEVEL
It is becoming easier, cheaper and more secure to integrate outsourcing and
to use technology to deal with new regulations and exploit new markets.
Expect automation
to impact their business
75%
25%
78%
22%
78%75%
Considering outsourcing at least one
of the front, middle and back offices

5. AT THE INDUSTRY LEVEL
The 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%

6. CHANGE IS
INEVITABLE

7. Electronification
Automation and
outsourcing
Disruptive companies
and technologies

8. THERE’S A
PERSONAL
EFFECT TOO

9. HOW IS TECHNOLOGY CHANGING YOUR
PLANS FOR THE NEXT FIVE YEARS
WITHIN YOUR BUSINESS?
5%
11%
16%
18%
19%
22%
39%
42%
47%
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

10. SO, WHAT’S
THE ANSWER?

11. 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

12. SIMPLIFY,
CONSOLIDATE
AND MODERNIZE

13. LEARN
MORE
IN OUR
NEW
REPORT
getinfo@fisglobal.com
FORTUNE FAVORS
THE BRAVE
TO REQUEST YOUR
COMPLIMENTARY
COPY, CONTACT US