COOs are enjoying elevated statuses within financial institutions as they alter their business models in the wake of regulatory and market structure changes, according to a new survey.
The Economist Intelligence Unit found in a Broadridge-sponsored survey of more than 400 executives that 77 percent are changing their business models.
More than than two-thirds of respondents cited new regulations and governance requirements (35 percent) or changes in market and industry structure (32 percent) as the primary forces driving business transformation.
“The heightened volume and complexity of regulation and extensive industry restructuring have forced firms to rethink their business models on an unprecedented scale,” said Vijay Mayadas, senior vice president of strategy and M&A at Broadridge.
“This trend is set to continue in force through the remainder of the decade. Firms that are more adaptable to creating a proactive response to the changing market needs are more likely to differentiate themselves and outperform.”
Some 83 percent of executives view their COOs as fully engaged in the institution’s strategy and planning process, while 85 percent rated them as very effective at making improvements that drive business value.
“The majority of business leaders appreciate the transformative power of operations and increasingly look to the COO to play a role in driving business model change,” commented Steven Leslie, financial services analyst at the Economist Intelligence Unit.
