Investment Banks Stays Atop Current Tech Trends

Capital Markets CIO Outlook | Friday, August 02, 2019

With fundamental changes and refreshed perspectives, investment banks set sights on leveraging technologies.

FREMONT, CA: Technologies are advancing at a rapid rate, and investment banks are shaping up in accordance. Upon digging a little deeper, one can notice how different aspects and operations in these firms have responded to the shift. While some of the trends have been very apparent, others have been less visible; but all of them have had a role to play. The most significant ones among these are listed here.

•  Regulations get Better

The industry operates with a lot of regulations in place. Along with the changing dynamics, the regulatory framework is also seeing an evolution. This is necessary to maintain standard practices and security. With the adoption of technologies like artificial intelligence, automation, and machine learning, many of the regulations had become challenging to comply with. However, with time and better understanding, regulatory bodies are also introducing changes to the initial set of rules. Investment banks are seeing favorable developments like easing of policies and reduction in taxes. All of this will lead to a more competitive market.

•  Customers become the Kings

Investment banks prioritize customer experience. However, there has been a significant change in approach, and the companies are looking to address the ever-evolving customer demands. Focusing on a customer-centric mindset, banks are succeeding with assured customer satisfaction and retention. Improvement in communication technologies has helped companies engage customers in efficient ways.

•  Changing Role of the Workforce

As the levels of technological interventions grow, the banks have to stock up on employees with technical skills. Without the correct pool of talent, investment banks will not be able to take advantage of the advanced technologies that they are deploying. The current set of jobs in investment banks will gradually give way to posts with a different set of responsibilities as machines are being optimized to carry out the simpler, repetitive tasks.  Hence, upskilling will become crucial.

Apart from the above, the primary focus will be on investing in the right set of technologies. Digitalization has brought a sea of opportunities and a vast amount of data that investment banks can take advantage. Blockchain technology and cloud computing, artificial intelligence, and machine learning are set to revolutionize the sector. 

Machine Learning

Artificial Intelligence

Customer Experience

Cloud Computing