Global investment banking is now progressing to automating an information process which can be used to extract information from any source. This extraction can be done in any form, especially across a new range of products or services. However, even with such a progression, technology will not be the answer alone for such a form of banking.
This capital market is still undergoing a lot of chance. Factors like equities, complex derivatives, research ideas and post trade services are all undergoing a maturation. Even transparency is enforced due to greater regulations which is combined with changing investor behaviour. Investment banking strategies are evolving from a single asset view to complex portfolios which include multiple asset classes and agile accessibility to multiple products and services.
One can expect the next generation of investment banking to include a balance act between human capital and technological innovation. Over the last few months, ventures like Google and Apple have already taken transforming steps, providing the technological support of those who demand a wide access of choice and customized requirement as per their demands in real time.
One of the most recent progress in investment banking is the use of mobile technology. It enables participants to quickly access the information they require, while allowing them to pinpoint the exact result they desire as opposed to being buried in a deluge of data. By reducing the path to this insight, a deeper analysis can be conducted.
The changing focus on customer centricity will be the main focus of this progression. This will include mainly the idea generation through portfolio management. The cross asset execution process will now be standardized, in terms of pricing, routing and execution. Included in this a holistic view which will provide a more efficient risk management and regulatory compliance which will allow you a better data analysis.
In such a state, the main focus will be on optionality. Through this process, one can easily access the right information at the right time in the right format. This is a critical process as it will differ from client to client as well as one portfolio manager to another. In this aspect, technology will facilitate a smooth, efficient and portable access to information within the community. As technology will progress further and become fully embedded in this investment cycle, data analysis will improve thus ensuring the right access to the relevant research. This allows one to manage and avoid unnecessary risks thus resulting in a more effective interim and lower execution costs overall.
While technology alone may not be the answer, factors such as culture shifts and capital management will be imperative in creating profitable business models for the future in investment banking. No doubt, investment construction and service design will be the new concern for this capital market in the coming century. We are finally entering the new industrialized era of investment banking.
Source : articlesbase.com
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