The growing demand in the blockchain stream has invoked the sleeping technological giant that since 2009 had only existed in the form of cryptocurrency. This, coinciding with the diffusion of artificial intelligence has submerged businesses so deep into uncharted territory, that their survival instincts have begun kicking in. Take the investment banking industry for instance. Although algorithmic trading had been in use for some time now, yet the potential of chatbots has exposed far more profitable avenues for financial institutions. So whether its J.P Morgan launching a first-ever bitcoin future or Wells Fargo making the news for its automated investment option i.e., Intuitive investors, the impact of blockchain to that extent is unprecedented. And that’s not it, you have BAML coming up with their own robot-advisory services and Morgan Stanley pondering the same. These phenomenal changes are bound to change the face of the investment banking industry forever.
The financial industry is experiencing a technological revolution without a doubt and therefore, it becomes the duty of upcoming generations of investment bankers to prepare their mindset for an even more grueling time at their jobs. The following advancements are something to keep a good track of when it comes to future proofing a position at a top investment banking firm:
Not requiring a large amount of coding, these interactive programs are easy to design and relatively inexpensive to operate on. But what do the banks have to gain? Excellent question. They save banks the time and effort in doing wealth management for clients, underwriting loans and delivering data analysis. They can interact with clients to relay information regarding their finances at the same time handling the analysis as well as delivering analysis and aid messaging to retail clients for advisory. At this point, it needs to be said that chatbot development is still in its nascent phase and will take time to become mainstream.
They have the capability to cut infrastructural costs by up to $12 billion annually for the investment banking industry, by the year 2025. Of the few digital currencies that have proven their worth with real-world applicability is Ripple or XRP. Not just that, banks are joining forces too. Top 5 of the world’s largest investment banks have incorporated their rendition of digital cash, called the Utility Settlement Coin. Using the same, people could trade bitcoin without the involvement of a central ledger. The same could be leveraged for the exchange of financial instruments that includes the likes of securities, equities, and bonds. Needless to say, the efficiency of money transfer will, as a matter of fact, boost the profitability of the institutions involved.
As the wall street continues experiencing a technological revolution, future bankers need to acquire the latest skills in investment banking. They can get such top-of-the-league certifications from the Investment Banking Council of America, which specializes in preparing financial practitioners a master of their art.