- 82% of ISITC’s members say vision for the future of industry is “cloudy”
ISITC (The International Securities Association for Institutional Trade Communication), the industry trade group focused on standards in transaction processing and related communications, today announced the results from its annual member survey which focused on industry perspectives on the future of the financial services industry. Results revealed that while progress has been made, the vision for the future is still unclear.
The 2012 annual member survey polled executives from leading investment managers, broker/dealers, custodians and vendors on issues ranging from future priorities to IT spending. Findings revealed uncertainty within the financial services industry with 82% of respondents stating that the vision for the future of the industry is “cloudy” and that it’s unclear as to what the market will look like in 2020.
Survey results also showed that:
- The economic outlook is not positive – 45% of respondents said that the economy is not poised for recovery but for continued slow growth. Twenty four percent were uncertain.
- However, the financial crisis has prompted the industry to improve infrastructure and processes – with 68% of respondents confirming this trend.
- Nearly 90% of respondents stated that the industry has made some progress towards improving standards by adopting best practice – however, there is still room for improvement.
- 71% of firms expect IT spending at their firms to increase over the next two years.
- 40% stated that adhering to new regulations is their highest priority for 2012.
- 45% agreed that regulation will have the greatest impact on operational risk management.
- 43% believe that adhering to these new regulations will have the greatest impact on their firms’ overall operations as well as on derivatives clearing (29%).
“Our annual member survey has revealed that although we have emerged from the financial crisis, the future of our industry is still unclear,” comments Jan E. Snitzer, Chair of ISITC. “What is clear is that although progress has been made in improving our industry’s infrastructure and processes, there is still much room for us to improve. ISITC’s mission is to make the industry less ‘cloudy’ and more ‘clear’ through developing industry best practices and standards. We look forward to facilitating critical dialogue at our upcoming industry forum and hearing from all of our constituents.”