Ways Fintech Is Bringing Change In Investment Banking Industry

Banking CIO Outlook | Wednesday, December 01, 2021

The traditional investment banking industry has failed to adapt to outdated technology, but now is the time to make a change as the digital revolution sweeps across finance.

Fremont, CA: To stay competitive, investment firms will need to adapt and accept technological advancements.

FinTech and related services can be beneficial in the long and short term. So let's see how FinTech might change investment banking in this piece and how financial institutions can take advantage of these services.

  • •   The Union of Innovation and Efficiency

Compliance is one of the major roadblocks to efficiency in investment banking.

As finance teams strive to stay up with new compliance standards while maintaining current systems, the need to keep up with regulatory change can hinder innovation. As a result, a group of investment bankers may experience organizational fatigue and decreased productivity.

FinTech innovations like platform deployments and cloud migrations are, hopefully, altering how financial institutions view compliance.

•   Embracing Cloud Computing is Essential

Financial institutions may construct a more flexible and linked ecosystem using the cloud as the central database and network infrastructure. Cloud computing refers to a completely digital infrastructure that authorized users may use at any time and from any location.

•   Partnerships with Tech Companies

Despite the numerous advantages of embracing the newest innovations and technology, institutions without the proper FinTech partners can rapidly get overwhelmed by digital transformation.

•   Automation, Artificial Intelligence, and DevOps

Investment banks must carefully consider adding modern technologies and techniques like artificial intelligence and DevOps to their rosters to stay up with regulatory changes and maintain a high level of investor satisfaction.

•   Automation & AI

From a regulatory and customer satisfaction standpoint, how companies handle their data is critical. Consider how AI, cloud, and DevOps can help manage the data and decrease the risk of damaging data breaches.

With the help of a FinTech provider, a

n investment bank might rethink how it tackles essential needs like Know Your Customer (KYC) requirements and Anti-Money Laundering (AML) regulations.

Blockchain's distributed ledger technology and NFT's provide numerous significant advantages to investment banks regarding back-office processes. They might help store and transmit an extensive range of encrypted data while minimizing danger, for example.

Weekly Brief

Read Also