After five years of tumultuous change, it is no surprise that capital markets firms have yet to find steady ground. However, heading into 2014, there is increasing evidence that they may have a chance to shift to a higher gear – or perhaps even accelerate.What’s ahead for capital markets firms as we look to 2014? Is it the best of times? Is it the worst of times? Or is it both? While the economy is showing some signs of life, challenges remain for industry executives. Margins are under extreme pressure and business models and product structures are becoming more standardized, mortgages and derivatives being two examples. And regulatory concerns have shifted, from uncertainty over direction to uncertainty over long-term outcomes. So how can firms begin to pivot toward growth amidst current pressures and challenges? How can they drive increased agility into their operations to take advantage of the ongoing uncertainty in the market, rather than simply waiting for more stable conditions to emerge? For more information - visit http://www.deloitte.com/view/en_US/us/Industries/Banking-Securities-Financial-Services/73e3415ec5e23410VgnVCM3000003456f70aRCRD.htm

1. 2014 Banking and Capital Markets Outlook
Repositioning for growth
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After five years of tumultuous change, it is no surprise that banking and capital markets firms have yet
to find steady ground. However, heading into 2014, there is increasing evidence that they may have a
chance to shift to a higher gear — or perhaps even accelerate.
Repositioning
for growth
M&A could be
spurred by
increased competition
• Large bank specialization and small bank
need for scale may drive M&A
• Diversification and slim margins may
lead to continued consolidation of
exchanges
• OTC derivatives reform may
increase competition and
reduce margins
CFOs take role in
strategy to the next level
• CFOs to take on a more strategic
role to improve capital efficiency
• Deploy capital management tools at the
business and transaction level
• Improving cost management via new
infrastructure will support
investment budgets
Customer experience
could hinge on new
ways to differentiate
• Leverage analytics to improve
segmentation and cross selling
• Optimize branch structures and
fully integrate delivery channels
• Fee-based products, especially
wealth management, will
remain a focus
• Technology investments are likely to
support growth, customer experience,
and security
• Priority to integrate fragmented
platforms for real-time insights
• Fully integrated mobile solutions
may be a key retail differentiator
Technology may
enable a new era
Re-regulation
is the
new norm
Agility
may drive
operational
efficiencies
• Increase efforts around
“getting to strong”
• Push for an enterprise-wide
view of customers and
counterparties
• Enhance management
and governance of
cyberthreats
• Agility will enable firms to respond to
uncertain and rapidly changing
environments
• Foster agility by focusing
on strategies, ecosystems,
and minds
• Exploring industrialization
of processes may unlock
new sources
of efficiency