2020 has been an out-of-control year for most of the companies. The fast change in the demands of the investors, clients, or prospects pressed the investment banks to spin their techniques continuously & resulted in historical modifications at a quicker speed. Clients had been served virtually, workers were effective, and compliance policies have been reassured. Let us Discuss the fashion which will dominate the year 2021 and beyond.
High-frequency trading is used by big investment banks. The companies which implement HFT are able to expect higher favorable returns on trades, providing a far more systematic strategy to active trading. Though it's an edge for big firms only, there'll be an increase of HFTs in the many years to come. The platforms use complicated algorithms, examine the market, and area emerging trends in a tiny proportion of a second. Based on the latest reports, the high-frequency trading market is going to nail bullish growth through the years 2020-2026.
The pandemic has forced businesses to choose virtual IPO. Traditionally, the roadshow as well as pricing of the IPO will get around 2 weeks and is reliant on face-to-face interactions among prospective investors and the management. Automation of the practice during pandemic decreased the time period to 50%. Also, lockdowns accelerated the need for remote connections & transactions. Goldman Sachs for example has created an AI program "Deal Link" to observe legal diligence and reports needed for a profitable IPO.
The COVID-19 atmosphere pressed for a 2nd wave of digital transformation, i.e., automation and consolidation of mid and back offices. Several of the digital technologies that will get introduced or even redefined in the season 2021 normally include Robotic Process Automation (RPA) to cut costs in functions, Mobile transaction techniques, Use of AI along with otherwise technologies to enhance existing programs, Major investments in the crossbreed cloud, Confidential computing to deal with data and communication privacy, Tracking and monitoring of compliance & upcoming regulations, as well as Increased safety measures by tapping the center of blockchain engineering in transactions.
A shift in hiring trends
As investment banks turn to these technologies, redesigning jobs as their first priority. They have to make certain that their skill profiles have knowledge of new technologies, regulations, risks, and changes that are new. Investment banks have begun hiring professionals from cross-industry, obtaining talent from tech businesses including IBM, Microsoft, and some. Investment banking experts have to upskill themselves and augment their comprehension of the systems. In brief, expense banking experts have to explore interpersonal, technical, and financial skills also to stay in the racing.
As the investment banking industry tunes up for the new decade and searches for new talents, where do you want to see yourself in the year 2021? The reward, risk, and opportunity lie in your answer or approach as an investment banker. It’s time to safeguard your position in the investment banking career. You not only need to accommodate yourself when competition and markets change but have a strategy to upskill and upgrade from the existing position. Also work on understand AI, Robotics, and other technologies in investment banking.
Start investing in your future and surely this year will bring all new opportunities, learnings, and achievements to accommodate yourself with the evolving trends.