The business of investment research is changing. More than ever, independent research is the way forward for financial analysts and experts.
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The new normal
Independent Research
Investment banks used to be the primary source for investment research. With their resources, client connections, and access, they could offer research at scale. This made it very difficult for independent research firms and analysts to compete.
However, changes brought about by new regulation like MiFID II are leveling the playing field. This “new normal” highlights the advantages of being an independent research provider and analyst. Technology has made it possible for Research Providers to create their own market. Meanwhile, the buy-side can find unbiased research that addresses their specific needs.
A new opportunity
Unbundling
the world
The unbundling of research services means that the buy-side will likely be more frugal about the research they buy, resulting in decreasing revenue for independent Research Providers. So Independent Research Providers are called upon to leverage their strengths: being free of conflicts of interest that investment banks are usually saddled with, and differentiating themselves by producing in-depth, specialised research.
Disruption through technology
The power
of fintech
From buy-side firms taking research in-house to larger sell-side firms engaging in predatory pricing, there are many challenges for Independent Research Providers. Online Research Networks like Smartkarma can help them widen their scope and increase their reach. At the same time, the buy-side can access unbiased, high-quality independent research.
