Building a new financial order: How will the financial markets industry make money in the future?

Abstract

The global financial markets industry has been experiencing significant turbulence over the past 18 months, and executives in the sector are understandably nervous. The current crisis is transforming the competitive landscape, how the industry operates and the way in which its clients behave. Given these changes, many senior executives are wondering how their firms will make profits in the future. This is the question this paper sets out to answer. The current financial crisis has exposed the problems with creating and exploiting ‘pockets of opacity’ across the system. If the industry is to deliver sustainable returns, it will have to embrace change. It will need to begin by working with regulators to build a financial system that is stable while still allowing for healthy innov­ation. Individual firms will also have to specialise and learn to fulfil their brand promises.