Technology Trends Previsory: Capital Markets Buy Side 2024 Edition

In the face of ongoing uncertainty and constraints in the capital markets and investment landscape, we observe investment firms embracing a more guarded posture. Concurrently, market dynamics, competition, and technological advancements are driving significant shifts in client needs and investment strategies, reshuffling the balance across public, alternative, and private assets. Digitization and data-centricity are reshaping go-to-market strategies and client engagement, while fee pressures persist. These realities mean that doing the bare minimum and merely 'tinkering around the edges' are no longer viable options for the buyside industry.

In contrast, forward-thinking companies that are actively pursuing business-led transformational investments in technology and operational infrastructure are establishing foundational building blocks to underpin growth, increase efficiency, and butress operating margins.

Celent's recent surveys show that investment firms continue to prioritize the use of technology to facilitate product and proposition innovation, attain greater organizational agility, and deliver on mandatory regulatory obligations. As firms brace for more headwinds ahead, we expect ambitious buy-side firms will stay the course to execute multi-pronged product and operational strategies that are dexterous, defensive, data-driven, and differentiated.

This Previsory report specifically examines the business and technology dynamics through a buy-side lens, emphasizing emerging themes and changing playbooks for 2024. The themes have been identified by the Capital Markets team based on our ongoing research and forward-looking discussions with industry executives. We also highlight the key technologies relevant to each theme.

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For more in-depth research around buyside, sellside and market infrastructure trends and technology insights, please explore Celent's Capital Markets practice.

Celent clients can also access relevant buyside studies:

Author

Cubillas Ding

Research & Advisory