What are the trends that will shape the future of Investment Banking?


Driven by COVID-19 pandemic, the investment banking industry is facing significant challenges due to the recent economic changes; where investment banks need to update their operational frameworks to stay up to the changing investment landscape.

Moreover, rapid improvements in technology, the shift to remote working, and the democratization of the market have pushed the investment banks to adapt to new consumer demands.

What are the trends that will shape the future of Investment Banking?


  1. A Client-Centric Approach

Investment banks are understanding that considering people’s needs first and having loyal and satisfied customers leads to great profitability. Using technology and embracing innovation simplifies the process for better client engagement & communication, that is key in today’s client-driven economy.


  1. Adoption of AI and Machine Learning

The rapid growth of digitalization in investment banks facilitates the transactions but unfortunately raises the risk of complex fraudulent behaviors.

Nowadays, the majority of investment banks are implementing AI Technology for fraud detection where AI plays a critical role in reducing fraudulent transactions and attempt.

In addition, Machine Learning Technology can be deployed across multiple channels other than in the transactions sphere, so AI can be used to detect fraud in more than one channel simultaneously.


  1. Adoption of Blockchain Technology

With the rise of blockchain adoption, there is a lot of innovation for the sector with the rising interest in DeFi ecosystems internationally. The international interest of consumers in the area of decentralized financial solutions will encourage leading Fintech players to move into the adoption of blockchain-based technologies to answer to the demands. 


  1. Big Data

Investment banks should be able to leverage the power of big data to enrich their understanding of client needs and behaviors, to develop more efficient growth strategies and expand into new products and services.

The Investment Banking sector in the future will be considerably different from what it is now. Banks need to start developing new plans now to face changing customer expectations, emerging technologies, and new business models.