Many buy-side firms report a world of difference between expectations and reality when dealing with a vendor in the financial services industry, and Steve Dew-Jones of Waters Magazine, unearths the most important considerations to make before awarding a technology or service contract.
Since the introduction of MiFID and Dodd-Frank, investment in technology has risen and the relationship between vendor and buy-side firms has grown ever closer.
As buy-side firms are still coming to terms with having to pay for their technology, previously supplemented by their brokers, Ponzo highlights that to win the confidence of clients, product capability and competitiveness on price is key. Most importantly, trust is the factor which Ponzo claims ultimately governs vendor selection.
The article continues to assess the various pressures for the buy-side to invest in technology and looks at priorities of “schmoozing” versus consistency of service and trust.