The role of technology in the investment banking industry has never been more significant and vital. Interpreting data based on the analytical details and flow of information is key to the investment banking industry. Needless to say, to stay ahead of the game, professionals must stay on top of all the current trends of technology within investment banking.
The investment banking industry evolved in India in the 19th century. In that period, trading industries were established by the European banks. At the same time, many international banks showed an interest in investment banking in India. Investment banks need a foundational transformation to deliver consistently from their main businesses and technology will play a major part in achieving the same.
The Major Trends Driving Investment Banking in the Future
While a few may be delighted about rollbacks in regulation, one must approach this new movement with measured caution and cheer. Though some of the regulations may be reduced and reversed, suffice to say that others will be put in their place.
With the advent of technology, automation and AI take centre stage with machine learning and other such important tools. These help in the detection of risks and scams. However, with this progress, many more regulations have come into force. Several limits were placed on industries soon after the financial calamity. Things have settled since then and so, the regulations are likely to be relaxed, eventually. When this happens, tax rates and interest rates will move in favour of the bank.
The evolution of technology will have a tremendous impact on shaping the future of investment banking in India. Technology helps to promote safer work environments, enhance customer experience and increase productivity. Digitalization, AI, big data, mobile technologies, and augmented and virtual reality will transform the investment banking course across all financial sectors. In recent times, E-trading has become the leading technology in financial areas, hence, there is an urgent requirement to improve multiple trading platforms and investment banking IT systems.
The shift in the Workforce
Technology influences the manner in which individuals perform day-to-day tasks in an investment bank. ATMs have resulted in the migration of roles from transactional to analytical, and automation will also follow suit by assisting the movement of resources to a more managerial level.
Initially, few employees will be edgy regarding these structural changes however, it is important to note that automation and AI will not do away with jobs but only alter everyday activities. Customer service will still remain a priority and should not be compromised.
Hence, upskilling is certainly a smart approach for employees and managers alike in this field.
In future, the entire traditional and historic ways of investment banking get replaced with the latest in technological infrastructure and analytics. Digitization of customer experience and AI will occupy the world of investment banking. To rise as a global leader in finance, India needs to be open to accepting these changing trends. These evolving facets of investment banking assure not only global success but also enable the citizens to overcome various socio-economic issues and rise with the country.
These are some of the major trends in the investment banking sector and all these trends are assumed to reshape the industry of banking and investment. The coming times will bring upon a revolution of sorts with historical changes in traditional models.