More than three in four financial institutions (FIs) are altering their business models following recent changes in regulation and market structure, according to a survey by the Economist Intelligence Unit (EIU) and sponsored by Broadridge Financial Solutions.
The global survey, which canvassed views from more than 400 executives, found that the trend has also elevated the status of chief operating officers (COO) within the C-suite.
According to the jointly-published report, 77% of executives have changed their business model and more than two-thirds of respondents cited new regulation and governance requirements (35%) or changes in market and industry structure (32%) as the primary forces driving business transformation – ahead of globalisation (17%) and technological advances (13%).
“The heightened volume and complexity of regulation and extensive industry restructuring have forced firms to rethink their business models on an unprecedented scale,” said Vijay Mayadas, senior vice president of strategy and mergers and acquisitions (M&A) at Broadridge.
“This trend is set to continue in force through the remainder of the decade. Firms that are more adaptable to creating a proactive response to the changing market needs are more likely to differentiate themselves and outperform.”
According to the report, “for the first time in the modern financial services-era…the majority of business leaders are eager to have the COO play a leading role in driving business model change.”
Among the leading set of companies surveyed, 83% of executives view their COOs as ‘fully engaged’ in the company’s strategy and planning process; 85% rated them as ‘very effective’ at making improvements that drive business value.
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