4 Tech-Enabled Strategies For Better Investment Banking
Strategies from PSFK’s Digital Banking Playbook, a collaboration with Microsoft, guide investment banking firms through data-based upgrades
Investment banks are turning to cloud-based solutions to improve operational efficiency and risk management—allowing them to derive more sophisticated data insights, streamline operations and improve security. For our Digital Banking Playbook in partnership with Microsoft, PSFK Labs devised four strategies for investment banks to develop agile new business models powered by technologies like AI and blockchain.
Create Personalized Experiences At Scale
With ever-increasing market speeds, the ability to predict the efficacy of an investment becomes more difficult. By leveraging artificial intelligence and data farming tools, financial institutions can more quickly identify risks associated with trades or investment opportunities. These systems analyze patterns in local contexts, global policies and other market fluctuations to provide a thorough analysis of the risks associated with investment decisions, assess trade values or make the trades on their own, all at the speed of the market.
Enable A Modern Workplace
By providing a workplace with tools for remote participation, firms can ensure that staff are always able to access secure information and contribute to in-the-moment analyses. Internally, employees are able to collaborate and make better-informed decisions that are based on real-time data, increasing accuracy and expediting processes. Intelligent virtual assistants can automate tedious and time-consuming tasks, allowing bankers to concentrate on servicing client relationships.
Optimize Risk Management & Compliance
To expedite compliance preparation and regulatory requirements when underwriting mergers, acquisitions and trading portfolios, regulatory teams can incorporate cloud-enabled tools into their existing systems to run risk models, complete stress testing and ensure compliance. Blockchain technology provides a secure way to exchange information among multiple participants who need to approve deals and transactions, saving time and streamlining processes to reduce operational costs.
Embrace The API Economy
In order to survive in today’s rapidly changing financial markets, bankers need to focus on product and service innovation—at a macro, enterprise-wide scale. Although traditional financial institutions have been siloed and self-sufficient, bankers must collaborate with third-party technology developers to compete and expand service offerings. By embracing an open financial ecosystem, they can unlock new investment opportunities for their clients and drive growth.
The Digital Banking Playbook, presented in partnership with Microsoft, highlights how digital tools can augment a financial institution’s ability to optimize operations and reinvigorate the client experience. Download the free report here.
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