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Saturday, July 24, 2021

How Artificial Intelligence Will Impact the Investment Banking Industry!

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Artificial intelligence has been making noises in the world of investment banks. The automation advantage of AI-enabled systems can help investment banks and banking professional save loads of time.

The investment banking industry is wired in traditional beliefs and way of operations. However, slowly and steadily the investment banks world over are waking up to the benefits of artificial intelligence and how it will impact the future of investment banking industry.

Artificial intelligence has become more than just a buzz in the investment banking industry. While the fear still lurks amid banking professionals in the investment banking industry, the research predicts otherwise.

Various researches by Gartner, Forrester Research have predicted that artificial intelligence will become the force reckon with in the world of investment banking.

Gartner in its research predicted that artificial intelligence will be generating more than $2.9 trillion in business value and will also recover about 6.2 billion hours of employee productivity by the coming year i.e. 2021.

In a separate research by Forrester Research it was predicted that companies that are driven by artificial intelligence will reap about $1.2 trillion profit more as compared to their counterparts who have not yet adopted artificial intelligence in their organization.

So how does artificial intelligence will impact the future of investment banks and how a banking professional leverage its benefits in her day-to-day banking activities.

Before we delve into hows of artificial intelligence’s impact on investment banking industry, let’s understand that investment banks have three major functional areas and the world of investment banks will see significant changes in these three areas

  1. Sales and Trading: Deployment of AI in the investment banks will greatly improve the workings of sales and trading department of the bank. Trading process will become more streamlined as Natural Language Processing (NLP) is introduced. You can imagine a more advanced avatar of Siri. With the introduction of algorithms and the previous data stored in the systems the sales and trading process automated thus giving more time to a banking professional to excel in more strategic tasks.
  2. Corporate Finance: The world of corporate finance is responsible for the tedious role of gathering information and files from the US Securities and Exchange Commission and various other documentation that will be entirely automated once AI has been deployed in the investment banks.
  3. Research: This is one of the most important functional area for any investment bank worth its salt in the market. Research forms the basis of an investment banks because this is where a banking professional examines different companies for various insights. With artificial intelligence deployment in the investment banking industry, the research department will also be streamlined.

These apart, artificial intelligence can impact the investment banking industry in numerous ways. AI deployed in the investment banking can impact the security division – both at equity trading desks and fixed income clearing corporation functions.

As artificial intelligence is deployed in the world of investment banking, the banking professionals will see a marked improvement in the performances and accuracies in the main divisions of investment banks like capital markets, merchant banking, and institutional advisory products and services.

While the impact of artificial intelligence on investment banking industry is clearly visible, it is important to understand if you wish to be a part of this highly competitive world, you need to possess competitive qualification as well.

In simple words, you need to have an investment banking certification from a reputed certification body that offers competitive certification program to the applicants and ensure that the candidates are up-to-date with all the latest trends of the investment banking industry. The world of investment banking is fiercely competitive and certified candidates are always preferred as compared to their non-certified peers.

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