Reimagining Investment Research with Digital Innovations
Transforming sell side research with digital technologies
The implementation of the Markets in Financial Instruments Directive (MiFID) II regulation in Europe has altered the research landscape for sell-side firms. With fees un-bundled from trade execution commissions, buy-side firms have to pay separately for research services. Cost and margin pressures are compelling buy-side firms to shrink research budgets and strengthen in-house research. The rise of independent research firms is also adding to the pressure on sell-side firms.
To retain an edge in such a challenging environment, sell-side firms must reinvent equity research by ushering in innovation in sell-side research. The way forward entails offering value-differentiated research services by adopting artificial intelligence (AI) tools and digital technologies for sell-side research by:
- Introducing new channels of access through application programming interfaces and new market platforms
- Designing differentiated offerings with features like personalization and self-service
- Revamping operational processes through AI-backed automation and analytics