How Automation Brings Change in Investment Banking Process

Investment Banking

Automation improves the efficiency of managing deals in the investment banking sector. A buyer or seller consider investment banking firm that has automated its processes and tasks because they handle a large amount of data in the deal process.

As a result, the investment banking industries are trading technical skills to hire someone creative with data. The investment banking professionals might become client-read from the beginning as capturing the data and knowing what to do is important to manage deals.

Investment banks: Before Automation

Data collection and processing was a tedious job before automation and the duty falls on the shoulders of junior investment bankers.

Any investment banking professional would say the part of their job they hate most is of data collection and its processing. The process of data searching, pulling, cleaning, or fast-checking was laborious and time-intensive. These tasks become more serious in the middle market because of numerous potential buyers for a deal. It lacked transparency as compared to the large-cap market.

Benefits of Automation in Investment Banks

A few of the benefits of automation in investment banks are as highlighted below.

  • The manual process takes time, while automation reduces manual effort. Automation makes the processes error-free by removing the human element.
  • The chances of fraud are reduced. They store the historical data and customer details for extended periods and cross-reference is made easy eliminating fraudulence.
  • The investment bankers can report regulatory and legal requirements to the respective regulators in a better and easier way.

Investment banks: After Automation

The investment banking profession is resistant to automation because automation creates more opportunities than it replaces in the industry.

The junior investment banking professionals’ jobs are getting elevated and not mooted out. The expectations from the junior ranks are changing and rising. They are expected to crunch numbers and remove ambiguity. In addition, they are expected to have well-rounded skills, creative thoughts, and bring new ideas.

The human-centered capacity to employ judgment is critical to achieving client success. While many procedures in mergers, acquisitions, and other categories might get automated, the majority of the tasks still need an incisive mind.

Use cases: Automation in Investment Banking

Swiss Bank:

By 2019, Swiss bank automated 40% of customer requests that are transactional and enabled resolutions in minutes using integrated cognitive software. The software also detects failing trades from email conversations and thus prevent operational risk. The platform is now scaled up to a complete enterprise solution.

UK Bank:

The onboarding of new clients and funds was creating friction between the front and back office. The automation vendor looked into a series of middle mailboxes and was able to pinpoint the pain points and breaks in the onboarding journey of a new customer. The cognitive tools were able to point out the exact cause of the problem. The tracking and measuring of conversational flows resulted in deriving insights into risks, misunderstandings, and process inefficiencies that led to workflow changes.

Wrapping up

Most of the investment banks are figuring out ways to scale by using humans and technology. The automation in an investment bank is a profitable deal.

Be the next to seal the deal.

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