Prime Brokerage Business Capabilities Model

U.S. $999U.S. $2,999

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Finantrix Prime Brokerage Business Capabilities Model (also known as Prime and Clearing Brokerage Business Capabilities Map) decomposes the prime brokerage functions into a set of multi-level and granular business capabilities. It features about 420 capabilities across three levels.

The prime brokerage business capability model is a must-have tool for business architects, enterprise architects, business executives, technology leaders, and project teams at prime brokers to fathom the overall enterprise context. A prioritized list of prime brokerage capabilities will help drive technology enablement and enterprise transformation. The Prime Brokerage Business Capability Map will function as an essential blueprint with a structurally sound and internally coherent list of business capabilities spanning all aspects of middle and back office functions of the prime and clearing brokers’ value chain.

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Prime Brokerage is Transforming. Rapidly.

In today’s rapidly evolving financial landscape, transformation has become an imperative for Prime Brokerage companies to remain competitive and successful. This is due to several factors, including changing market dynamics, increasing regulatory demands, and evolving client expectations. Embracing transformation allows Prime Brokerage firms to adapt to these changes, optimize their operations, and deliver value-added services to their clients.

One of the key drivers of transformation in the Prime Brokerage industry is the shifting market dynamics. Fierce competition, shrinking profit margins, and the emergence of new market players, such as FinTechs and digital asset providers, are forcing traditional Prime Brokerage firms to rethink their business models and strategies. To stay ahead in this competitive environment, these firms must invest in innovative technologies and explore new revenue streams, such as offering specialized services for digital assets and expanding their client base to include emerging hedge funds and asset managers.

Furthermore, increasing regulatory demands are significantly burdening Prime Brokerage companies. The post-financial crisis regulatory environment has brought about more stringent capital and reporting requirements, driving up operational costs and complicating risk management. In response to these challenges, Prime Brokerage firms must transform their operations to ensure compliance while maintaining efficiency. Leveraging advanced analytics, automation, and data management solutions can help firms streamline their processes, optimize risk management, and reduce the cost of compliance.

Evolving client expectations also necessitate transformation within the Prime Brokerage industry. Clients now demand greater transparency, real-time reporting, and personalized services to support their complex investment strategies. To meet these demands, Prime Brokerage firms must invest in advanced data analytics and reporting capabilities and enhance their client-facing platforms with user-friendly interfaces and sophisticated tools. By embracing digital transformation, Prime Brokerage companies can offer a seamless, integrated experience that caters to each client’s unique needs.

Business Capabilities are a Cornerstone for Transformation

For a Prime Brokerage to transform successfully into a digital age leader, it is essential to establish a structurally strong foundation to support change and innovation over time. This is where business architecture and business capabilities come into play. Business architecture is creating a structured model, including an abstraction of its operations, functions, systems, and resources. This model can help enterprises understand how their business operates, identify inefficiencies, and develop a plan to optimize and streamline operations. In addition, by creating a clear picture of their business architecture, companies can better understand how different business units and functions interact and how changes in one business area can impact other areas.

Business capabilities encapsulate and abstract the functions, skills, and resources a company needs to execute its business strategy successfully. By defining and organizing their business capabilities, companies can identify gaps and redundancies and develop a roadmap to address them. This helps ensure the firm has the necessary resources to execute its strategy and drive innovation over time.

Business architecture and capabilities provide firms with a framework to assess and optimize their operations, reduce costs, and drive innovation. By taking a structured approach to transformation, enterprises can build a foundation capable of supporting ongoing change and adaptation and position themselves for success in a rapidly evolving industry.

(NOTE: The current product provides a comprehensive business capability model. It does not include other business architecture artifacts.)

What is in the Prime Brokerage Business Capabilities Model?

The Prime Brokerage business capability map includes about 420 capabilities across three levels and comprises the following formats:

  • An Excel spreadsheet with the list of Prime Brokerage business capabilities.
  • A PowerPoint format with the top two levels of the Prime Brokerage capabilities represented in a nested visualization.
  • A Word document with the list of prime brokerage business capabilities in a multilevel list format.
  • Capability-aligned Key Performance Indicators
  • Capability Definitions
  • BONUS: Business Capabilities Modeling Overview

The Prime Brokerage Industry Business Capabilities Model Use Cases

A business capabilities model is a foundational artifact in the business architecture continuum. The Finantrix Prime Brokerage capabilities model captures and lists the end-to-end aspects of the overall functions with a detailed, multi-level capabilities list.
The principal advantages of capability modeling include, among others:

  • Capabilities act as a common language between business and technology and foster deeper alignment
  • Capabilities work as a glue – a structurally sound and internally coherent abstraction of business functions.
  • Business capabilities-centric roadmaps eliminate the typical issues such as ambiguity, redundancy, and replication and focus on capability evolution.
  • Juxtaposing capabilities and systems/applications provide a footprint analysis and can lead to better application portfolio rationalization decisions.

The Prime Brokerage business capabilities model is a decomposition of up to three levels.
Created by investment industry domain experts, the prime broker capabilities list is detailed, in-depth, and conforms to the construct of MECE (mutually exclusive and collectively exhaustive).

Stipulations:

  • As the Prime Brokerage Business Capabilities Model is a digital product, Finantrix will not accept any returns.
  • Depending on the size and complexity of your firm, the functional areas, and service lines, some or all of the capabilities may not be relevant to you.
  • Consultants, who may wish to use the capability model for several clients, have different terms and prices.
  • Sold on an as-is basis and no warranties
  • This sale does not include implementation help or support. If you need professional services assistance, please get in touch with us.
  • Please review our standard terms of service.

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What are the benefits of Business Capabilities?

There are several benefits a Prime Brokerage clearing firm shall derive by practicing the core tenets of business architecture and capability mapping. Here are a few:

  1. Bridge the ever-widening business and IT chasm
  2. Execute your strategy effectively by linking capabilities to strategic pillars
  3. Identify gaps and white space opportunities
  4. Minimize replication and redundancy
  5. Avoid project silos by crafting future needs as capability-centric roadmaps
  6. Influence the backend IT enablement with clusters of capabilities that can form a business service
  7. Make vendor selection decisions based on more structurally sound building blocks of functionality

Will a generic business capability model fit our needs?

It is generic but purpose-built for a company in the prime broker space, encompassing core investment functions and transactions. Hence, based on the specific nature of the prime brokerage functions of your firm, and the scope, breadth, and depth of brokering and clearing services, somewhere between 60-90% of the Finantrix Prime Brokerage business capabilities may fit your needs. Given this head start, you can accelerate the rest of the capabilities and have a customized Prime Brokerage business capability model in a matter of days, not months and years.

Can we not build a Prime Brokerage business capabilities model on our own?

Of course, you can! However, the question is whether you should. About 75-90% of the capabilities will look similar to those of other prime brokerage firms, with the rest of the divergence attributable to both stylistic and substantive reasons. So, why start from scratch and waste intellectual capital, time, and effort on something similar to many other prime brokerage firms?

What if we already have a capability model?

Congratulations! You are well ahead of several of your peers in the sector. You may still find the Finantrix Prime brokerage capability model to cross-reference and plug the gaps in your design.

Who would use the Prime Brokerage Business Capabilities Model?

  • Business architects – for defining the prime broker’s functions and abilities in a common language
  • Enterprise Architects – as an input into overall enterprise architecture
  • Product Managers – to define capability-centric product roadmaps and products as clusters of capabilities.
  • Business Analysts and project managers – draft requirements anchored to capabilities and manage a project as a way to evolve capabilities
  • M&A Strategists – to identify capability gaps and create a corporate development plan to bridge the gaps
  • Vendor management teams – use capabilities as building blocks to evaluate vendor functionality.

Why should we pay for a capability model when we can do it ourselves?

The cost of $999 for an enterprise license is about a) a Steak dinner without wine for a small team, b) 3 hours of a moderately priced consultant’s time, Or c) the occupancy cost of the conference room in a downtown setting over several sessions. Phew! Now, do you agree that the Finantrix prime brokerage business capabilities map is instead the best deal in town? Yes, you are welcome!

Prime Brokerage Business Capabilities Model

U.S. $999U.S. $2,999

Licensing Options
Product FAQs