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Four steps to rethinking operations in the capital markets sector 

Pursuing large-scale operational transformation is an ambitious undertaking that requires a clear understanding of the associated risks, along with a strategic and detailed approach. KPMG’s approach is built around the four key pillars outlined in this section.

Pursuing large-scale operational transformation is an ambitious undertaking that requires a clear understanding of the associated risks, along with a strategic approach based on four key steps:


  1. Leverage operations, technology and data to make strategic business decisions

    As part of the process of expanding to new regions and introducing new services, it’s imperative for firms to leverage their current delivery models in operations, technology and data. They also need to find ways to differentiate their service offering and/or expand to other strategic areas of the value chain. As more firms see their traditional revenue sources erode, these moves into new service areas can serve as a defensive necessity.


  2. Pursue sustainable cost reduction opportunities

    There may be opportunities to transform what were once considered ‘one-off’ cost-reduction initiatives into sustainable, ongoing cost-management business capabilities. In addition to addressing short-term cost pressures, this can help position them favorably when market conditions improve. As such, providers can manage their operations and technology functions like standalone businesses, creating product differentiation models and reducing unit costs.


  3. Establish mechanisms to manage the transformation

    Providers are well-advised to establish governance models and deploy program management teams to support the C-suite stakeholders throughout the transformation process. Once the technology vendors have been identified, a detailed roadmap and delivery framework should be established, along with mechanisms to track progress and manage risks.


  4. Mitigate risk through improved data management

    Many firms are being forced to rethink their risk management models. One of the central themes in this area is data management. In order to support the intensive reporting requirements in the target operating model, firms will require strong, flexible information management systems that possess a high degree of data integrity. Data management will continue to become an increasingly important competitive advantage going forward.

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Atul Subbiah

Partner, KPMG US


Nick Urry

Partner, KPMG in the UK

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