HOW CAPCO DEFINED A MULTI-YEAR CAPITAL MARKETS PRODUCT EXPANSION STRATEGY

 

INTRODUCTION

A regional market leader sought a partner to help assess and bolster their current suite of capital markets product offerings. The client wanted to expand into product areas that would enable growth over a four-year execution period, align with both their financial and non-financial goals, and close product gaps against competitors. 

Between a sustained record-low interest rate environment and US tax and regulatory changes, capital markets firms were facing an opportunity to reassess their growth aspirations. Firms that wanted to capitalize on these opportunities required a clearly defined product strategy aligned with their vision and goals. The client needed to engage a partner firm to evaluate their current portfolio of products and services, identify opportunities for expansion based on the existing market landscape, and understand the capabilities needed to further develop meaningful relationships with their clients.  

HOW WE DID IT: 

Using our network of top capital markets SMEs and market researchers, Capco was exceptionally well-positioned to help the client gain an industry-wide perspective on how to set the stage for strategic business growth. This was achieved through three phases: 

1. Visioning and current-state assessment 

  • Capco conducted current-state discovery sessions to understand the product capabilities
  • Carried out working sessions to guide capital markets lines of business stakeholders to identify their financial and non-financial goals for product expansion. 

2. Competitive alignment and where-to-play 

  • Compared product offerings and capabilities across key competitors
  • Identified product offering gaps and prioritized opportunities with favorable market demand and competitive intensity.

3. Strategic recommendations and how-to-win 

  • Evaluated product opportunities against current state capabilities 
  • Identified all initiatives required to deploy additional products, including sequencing, and expected durations based off client input
  • Developed a high-level business case to demonstrate the increase in revenue associated with each product expansion effort. 

WHAT WE DELIVERED:  

Capco delivered a four-year product strategy roadmap for the client, detailing the sequence, duration, and level of effort for activities deemed necessary to roll out each incremental product recommendation. Each recommendation was supported by comprehensive market research, detailed competitor analysis, and an assessment of existing capabilities. 

Capco also produced a business case and roadmap demonstrating a path for the client to achieve over 11x multiplier on their ROI upon completion of the product strategy execution. We now look forward to working alongside the client throughout the execution phase. 

For more information about this project, or how we have delivered other product expansion strategies, please contact George Black and Tulsi Mehta.