Navigating the COVID-19 Pandemic: Perspectives for Capital Markets Firms
Implementing digital models to future-proof and thrive in the post COVID world
The COVID-19 pandemic has caught most industries including the capital markets sector unawares. That said, the impact of COVID-19 on capital markets firms has been mixed, driven more by the products or operating models of individual entities. While higher market volatility and portfolio rebalancing by investment banks is pushing up revenue, the overall impact of the Corona crisis on the capital markets value chain has been negative. Assets under management of buy-side firms are eroding while merger and acquisition assessments and new client acquisition is witnessing a decline.
With the pandemic likely to persist into the medium term, new restrictions could well become the norm in the post pandemic phase. To flourish in such an environment and overcome the impact of COVID-19, capital markets firms must:
• Build resilient business models to ensure uninterrupted service
• Drive digital transformation and scale capabilities of COVID-specific offerings
• Leverage the larger ecosystem to reimagine business models
• Develop new offerings to meet post COVID customer needs