The global capital markets industry is undergoing a consolidation spree as the potential for organic growth has become increasingly limited. The shift from active to passive investing and the rise of zero-commission trading are putting immense fee pressure across the value chain. Moreover, the sophisticated needs of customers and ever-increasing regulations are compressing margins.
Hence, mergers and acquisitions (M&A) have become an integral part of corporate strategy of capital market players as they seek to diversify their offerings, achieve economies of scale, and integrate new technology capabilities.
However, Wipro found that the majority of M&A transactions in capital markets sector fail to generate value for stakeholders within the planned timelines – not because the acquisition isn’t strategically sound, but because of suboptimal post-merger integration (PMI).
Wipro’s “M&A landscape in capital markets: The role of IT in post-merger integration” report answers several key questions of capital market firms seeking to improve and optimize PMI: