What role does technology play in investment banking? | HCL Technologies

TECHNOLOGY Q&A

Investment Banking

What role does technology play in investment banking?

Machines are likely to take up to 10-25 percent of work across all bank functions with AI and automation, according to a report by McKinsey.

Automation in banking will multiply capacity and allow employees with free bandwidth to concentrate on higher-value projects. Many banks are deploying cutting-edge automation technologies in order to deliver the next wave of cost savings, improvement in customer experiences, and enhanced productivity.

Regardless of some early setbacks in artificial intelligence (AI) and robotics application to banking processes, the future is undoubtedly bright. The technology is quick to mature, and domain expertise is emerging among both vendors and banks—some of which are shifting from the approach of one-solution-fits-all “hammer and nail” toward a more specialized solution. Banks are also discovering some critical lessons about workflow. For instance, how to effectively manage handoffs in between man and machine, and where typical process reengineering/redesigning can be skipped or put off in the favor of automation—specifically where systems are likely to be replaced.

Allowing better access to financial services

While tracking the performance of the past quarter and reporting about it, technology allows some of the traditional finance activities to be completed more efficiently and quickly, with minimum manual intervention. The process frees up human capacity so as to make better use of analytics and data to provide valuable insights on the important aspects of the business, such as permitting new sources of profitable growth and new revenue streams.

Here are some building blocks that define the strategic transformation to deliver the benefits of automation:

  • Develop a strategy. Banks reimagine a wide vision for the future, focusing on automating processes which are essential for their long-term competitiveness.
  • Create a small team. A center of excellence (COE) is critical to long-term automation. From building interfacing and capabilities to managing vendor relationships, COEs work to transform the business.
  • To succeed in the future, banks need to develop a detailed roadmap for implementing automation capabilities.

The future of investment banking will depend upon some external collaborations that improve day-to-day living, help plan for some long-term goals, and contribute to resilience and prosperity.

We, at HCL Technology, help enterprises keep up with investment banking customers' expectations while meeting regulatory requirements.