Accenture: Investment Banks: A Client’s View – Volume 1
Posted: 21 May 2014
Despite the global financial crisis of 2007- 2008 and the scandals that have rocked the investment banking industry ever since, most investment banking clients have stayed with their investment banks and most would still recommend their primary investment banking provider.
These are among the findings that Accenture, working with the polling firm YouGov, has revealed in a survey of fund managers and corporate executives, designed to gauge their views on a range of services offered by investment banks.
Which services are of greatest value? Which services are seen as a natural part of any offering? Which additional services are clients willing to pay the most to receive? These and many more questions were put to 100 respondents across the United States and the United Kingdom.
Among key survey findings:
- Clients are generally satisfied: The vast majority of investment banking clients would recommend their main investment bank to others, although one third of those surveyed have changed their main investment bank in the last five years.
- Risk management is critical: Risk management services in all forms – including reporting, advice, tools, and trading – are a clear priority for investment banking clients of all types.
- Basic services are still in demand:Investment banking clients value basic trading services, execution performance, and analytics, although this follows a five-year, low-volatility bull market in equities.
- Provision of research is still central to investment banking relationships: Research remains a core product, although standard written reports are valued far less than access to analysts or corporate executives.
- Asset manager clients value electronic trading. Most asset managers use electronic trading in addition to traditional channels, and often specifically to pay for research.
- Opportunity for improvement of institutional client portals. About half of asset managers surveyed said their bank does not offer a website sufficiently useful for day-to-day communications.
- There is interest in big data and analytics: Of the Social, Mobility, Analytics and Cloud (SMAC) technologies, analytics/big data is of the most interest to clients at present.
- Some clients have noticed service cuts: Some clients have noticed certain cuts in differentiated services that investment banks have been forced to make due to expense reductions.
- Coordination of service is important: Most clients value investment banks’ coordination of services – and it appears that a majority of banks perform this function well.
- Clients are well aware of regulation: Clients do understand the costs their investment banks will incur in complying with increased regulation.