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Trends in Investment Banking

11/09/2018

Technology is beginning to shape every single industry and investment banking is

no exception. Between ntech and regulations, this sector is advancing perhaps
faster than ever. Therefore, to stay competitive, professionals must stay on top of
all the current trends in investment banking.

Here are the most signi cant trends in investment banking right now.

A Focus on the Customer

As with any industry, the customer is key. But in the past banks have not focused
on creating a positive customer experience. Only 37% of US banks even have a
customer service experience program. Their priority has instead been sales and
products.

But, that is slowly changing. Banks are realizing that 1) putting people rst results
in better business, and 2) that they are more successful with happy, thriving
customers. They’re using technology to better connect and communicate with
people, embracing the innovation and ease of access.

And when investment banks use this technology to exceed customers’

expectations, they reap the rewards.

Regulations
Though some may be excited about regulatory rollback, it is best to approach this
trend with cautious optimism. Even as some regulations are scaled back, others
are being put in place.

As technology evolves, arti cial intelligence and automation are stepping into the
fold with models, machine learning, and tools that help banks to detect fraud and
other risks. But with this advancement has come even more regulation.

Many similar restrictions were placed on businesses after the nancial crisis, but
things have stabilized since then. Therefore, regulations are expected to ease up
as time goes on. As this happens, taxes rates are moving in favor of banks, as are
interest rates. These trends could motivate banks to invest more and become
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increasingly competitive. 
However, compliance is still a hot topic around the world and some regulations
will stay in place. Professionals should not expect massive shifts involving
executive accountability or fair treatment of customers, for example.

Investing in Technology
While some in the industry are skeptical of technology, it is clearly bene cial to
investment banking. With the rise of cryptocurrency and cybersecurity, there is a
lot of innovation for the sector to adopt.

It’s estimated that banking will invest $219 billion on information technology this
year, which is a $20 billion increase from 2017. Some of this will be spent on
security measures against both human and AI fraud, digitization, and arti cial
intelligence that can better protect the customer.

The industry can use ntech to better assist customers, protect their data with
cloud computing, and more. The fact that these innovations are nally being
adopted far and wide makes tech one of the most signi cant trends in investment
banking. Fintech is de nitely a sector to watch for eager professionals in the
market.

A Shift in the Workforce

Tech will also have an impact on the way people in investment banking work. Just
as ATMs allowed people to move away from transactional tasks and into more
analytical roles, automation will continue to elevate jobs into more managerial
roles.

While some employees may be initially uneasy about this and similar trends in
investment banking, it is imperative to remember that face-to-face customer
service is very important in this eld. AI and automation will not eliminate jobs, but
simply alter the nature of day-to-day activities.

This means that professionals in investment banking will want to explore

technical skills as well as nancial and interpersonal ones. Upskilling could be a
wise tactic for both managers and employees in the eld.

If you’re looking to elevate your career in investment banking, explore our job
listings. If you choose to apply, one of our expert consultants will be in touch with
relevant opportunities. And if you’re looking for excellent professionals to join your
team, reach out to one of our recruitment consultants for aid with your search.

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