This paper from the IBM Institute for Business Value looks at how globalisation is playing out in the financial markets. As growth opportunities dry up in mature markets, meaningful future expansion will come from new markets.
IBM collaborated with the Economist Intelligence Unit to develop a macroeconomic forecast model and used it to trace the effect of globalisation across 35 of the world’s largest economies. It also surveyed 848 financial markets executives from around the globe and 107 of their corporate clients.
The resulting findings make for interesting reading. These include:
- 60% of future growth will come from so-called 'prospect' markets, outside the mature markets where the largest financial markets firms have traditionally operated.
- Many financial markets firms are not in a position to capitalise on this more geographically dispersed industry opportunity. More than 93% of the executives interviewed acknowledge that their firms are not operating in a globally integrated fashion.
- The business model executives generally believe is best may actually be the wrong bet. Specialists actually rate higher than universals on some critically important global capabilities.
- The people side of financial markets firms may be getting short shrift. Most barriers to becoming globally integrated are related to culture and associated intangible assets.
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