The renewed confidence in financial markets by both institutional and retail investors has resulted in improved profitability for banks, securities houses, exchanges, and financial institutions active in this highly competitive, global sector. The need for fast, 24-hour transparent pricing from the markets, the use of technology to drive trading strategies, the need for efficient, real-time communication (both internally and with customers), and a more stringent regulatory and legal framework are key considerations driving the strategies of these firms. In addition, the increasing consolidation of the major players in the market through mergers and acquisitions puts pressure on senior management to provide enhanced value to their shareholders.
The big question on the minds of today's global financial services executives is: "How do we increase the share of our customers' businesses, while improving our profitability and return on equity?"
Firms are building in substantial operating leverage as a way to increase profits. Institutional volume has been more resilient, fuelled by short-term trading strategies. A possible credit crunch, regulatory and legal upheaval, the threat of terrorism, war, and global economic uncertainty are other external considerations that must be managed.
Under increasing pressure, firms active in the financial markets must improve operational efficiencies, control costs, identify new ways to serve customers, and manage risk. These firms rely on technology to:
- ensure compliance with stringent new government regulations for e-mail storage and transparency and documentation in financial reporting
- drive trading and e-commerce systems
- more effectively communicate valuable information to both staff and customers
- offer more tailored customer advice while selling a broader range of products
By offering new products and services, and improving and sharing knowledge about these, firms are strengthening customer relationships and gaining competitive advantage. Advanced communications solutions allow financial professionals to increase the value provided to customers through improved service quality, timeliness, and operations.
Cisco Thinking on Financial Markets
Cisco offers a comprehensive product portfolio that integrates intelligence into a company's network. The result is that financial institutions can work proactively, realize agility and productivity gains, increase profitability, and enhance customer satisfaction.
The Cisco® Internet Business Solutions Group (IBSG) helps customers turn their technology investments into strategic assets that increase productivity, reduce costs, and create new revenue sources. The IBSG Financial Markets Practice combines deep industry expertise in the sector with Cisco best practices and experience in using technology to transform existing business processes. The team also brings years of industry experience to every customer engagement, gained from direct client work in more than 50 major financial services firms across the global services market.
Cisco has a proven track record of working with executive management in major firms to identify and implement creative strategies that directly address the primary business issues and challenges faced today. Experience has shown that technology-driven solutions and processes can help firms increase their revenue and profitability, improve customer satisfaction, and strengthen customer relationships, while increasing shareholder value and providing huge opportunities for firms to break away from their competition.
