What Technology means to Investment Banking

Banking CIO Outlook | Wednesday, July 31, 2019

To facilitate global trade and continue to be relevant, investment banks should grab the opportunity offered by technology to them.

FREMONT, CA: It is the technology that turns trading strategy into profit in today’s market. Investment banking industry flourishes on the flow, analysis, and interpretation of the technology which has the vast potential to facilitate competitive advantage and touches every part of the industry. Technology is fundamental to investment banking’s ability to operate and make profits.

One of the visible effects of the introduction of information technology in investment banking is the move from traders making their trades at physical stock exchanges to traders making trades directly and instantly from their computer from anytime, anywhere in the world. The investment banking sector functioning without I.T. would be dramatically different from the industry that exists today. Without technology, there would be limited international links and business practices.

Technology has become a cornerstone of the modern-day investment banking practices by providing a way of delivering data to traders, automated trading systems from exchanges, and consolidated views of data at a glance. It also offers all the methods for trading itself, and peripheral systems that may be found in other industries including access control, H.R., payroll and internal communications.

Each investment bank will have a different organizational structure, according to which technology roles are varied. Technology can cover everything from business continuity planning, system and storage administration, network and firewall management, security and messaging, and other development-focused roles, which involve creating tools and software directly for the traders.

Leading players in investment banking are under mounting pressure to embrace technology and get a return on their massive investment in it. They are using technology assets to drive down costs and increase revenues. The world is changing at a fast pace, and the highest performing investment banking can only emerge successful in leveraging their investment in technology.

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