December 9, 2013
JERSEY CITY, N.J. - December 9, 2013 - Pershing LLC, a BNY Mellon company, today released a study that shows how elite broker-dealers are outperforming their peers by focusing on six key differentiators. The study, "Broker-Dealer of the Future II: Six Stunning Transformations That Are Creating the Broker-Dealer of the Future," consists of six guidebooks that focus on the transformations broker-dealers are employing. These transformations address how firms can become more profitable by responding to innovations in technology, service methods and shifts in demographics.
According to the report, while profitability has improved since the financial crisis, all firms surveyed reported that they still face headwinds in this crucial area. This, combined with elevated recruitment costs, has left many firms challenged to create growing and sustainable businesses. Yet despite the limitations of today's business environment, Pershing’s study shows the changes some broker-dealers have made to improve their profitability.
"Over the last five years, the primary focus of many firms was on survival. However, the next few years are going to be focused on how to position firms for future success—and there are a number of things to consider when doing so," says Jim Crowley, chief relationship officer at Pershing. "In a rapidly changing industry with rising operating, recruiting and compliance costs, it is essential for broker-dealers to stay relevant, deliver value to their clients and create a stable, yet fluid, business model that balances service offerings, profitability and growth strategies."
According to the report, profitability is more closely related to a firm's strategy than its size and capabilities. By transforming their business models, many broker-dealer firms may also increase their profits.
Pershing's qualitative and quantitative research identified six key transformations that will guide the broker-dealer of the future:
About BNY Mellon's Pershing
BNY Mellon’s Pershing and its affiliates provide advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers with a broad suite of global financial business solutions. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody, investment and retirement solutions, technology, enterprise data management, trading services, prime brokerage and business consulting. Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of 23 offices worldwide, Pershing provides business-to-business solutions to clients representing approximately 7 million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. Additional information is available on pershing.com, or follow us on Twitter @Pershing.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of March 31, 2018, BNY Mellon had $33.5 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.