The future of investment banking is set for massive disruption. According to a recent report, 78% of roles in post-trade banking are projected to change by 2030, which is a significant shift. How ready will we be?
This evolution will not only relate to the arrival of new technologies but will also encompass what the skills, roles, and opportunities look like in a period of significant discontinuity. As we begin to see the end of a paradigm, it is helpful for people to know what skills will be required and what opportunities are likely to arise.
The objective of this blog is to provide a roadmap for professionals, both aspiring and experienced, to navigate the evolving investment banking landscape. By understanding these changes, we can prepare ourselves to move forward, and although there might be challenges ahead, there will also be opportunities to embrace in these potentially disruptive times.
The Future of Post-Trade Jobs
In fast-moving financial markets, job evolution is a given that will happen. As investment banking continues to develop with cutting-edge technologies, it is predicted that by 2030, 78% of post-trade banking jobs will change.
The expected changes will occur in the following:
- Artificial Intelligence: As AI becomes more front and centre, post-trade professionals may become more involved in managing, understanding, and analysing data generated by AI.
- Regulation: There will be more emphasis on understanding and working with the global finance regulatory framework, requiring advanced knowledge.
- Risk: As the market becomes increasingly complex and the effects of the global risk environment become more pronounced, skills associated with risk management will become even more crucial going forward.
Expect many new opportunities within investment banking for those willing to invest in the future of post-trade roles and continue to develop their skills in new areas.
In summary, the post-trade job evolution is laid out below as it will progress to 2030:
| Current Role | Evolution by 2030 |
|---|---|
| Data analysis | AI Management |
| Transaction processing | Regulatory Compliance |
| Risk assessment | Advanced Risk Management |
These changes are a reflection of the challenges being faced in the finance industry and the need for ongoing learning and skill enhancement. The future of investment banking is a promising time for those finding themselves working in post-trade jobs, with new roles, new technologies, and new opportunities ahead.
New Skill Sets for the Future of Investment Banking
The financial world is changing rapidly, and the future of investment banking will not be different. With 2030 approaching, it is essential to identify the changing skill sets. Listed below are several key investment banking skill trends that may shape the industry:
- Digital Literacy: If investment banking continues to provide services through new digital platforms accurately, digital literacy may become imperative for all investment bankers. Familiarity with financial technology solutions, blockchain technology, and data analytics is likely to be a standard requirement across all levels of employment.
- Sustainability Knowledge: The conversation of sustainability is growing on a global scale. Investment bankers will need to understand sustainable finance and the importance of ESG (Environmental, Social, Governance) factors on an investment strategy: What is it? And how does it impact investment strategy?
- Regulatory Compliance: As laws and regulations continue to evolve, it is crucial to stay informed about the latest compliance requirements to effectively implement legal investment practices and maintain trust with clients and stakeholders.
- Soft Skills: In the context of investment banking, it is unrealistic to expect soft skills to be less important than technical skills; the practice of soft skills is a driver of building relationships and growing a book of business.
- Adaptability: The banking sector is fast-paced even for seasoned professionals. Therefore, the ability to adapt to new situations quickly and utilise new information positively may be an adaptive skill in the future, through the contemplative nature of investment banking.
These skills, paired with a solid understanding of investment banking, will help professionals navigate the evolving landscape of the industry. As investment banking continues its evolution, skills identified will evolve.
The Evolution of Investment Banking: A Look to the Future
Today, banking operations are undergoing a transformation that is unprecedented due to technology advancements and evolving customer needs. This evolution provides both challenges and opportunities in investment banking.
The three main drivers of this evolution are:
- Technology: Automation and AI are enhancing processes, improving risk management, and increasing efficiencies.
- Regulation: The future of investment banking will be fluid, based on regulatory changes and operational responses.
- Customer demands: Customers want digital banking with personalised service and seamless user interfaces.
According to industry estimates, approximately 78% of post-trade banking jobs will evolve by 2030, marking a significant paradigm shift in the future of banking operations. The entire shift will continue to create a new set of roles and skill sets:
- Data Analysts: As data becomes more important to everyone, data analysts will be required in investment banking.
- Risk Managers: Risk management will be elevated due to regulatory changes and increasingly complicated financial products.
- Tech Specialists: Investment banks will require specialists with knowledge of AI, machine learning, and blockchain.
Overall, it is anticipated that this transformational period will have implications for the future of investment banking. Changes and technology can be uncomfortable, but investment banks have a responsibility to prepare for a more profitable and sustainable future. Preemptively considering the changes is essential to remain competitive in investment banking.
Recruitment in Investment Banking is Changing
The future of investment banking will be changing drastically in the next decade due to a variety of factors, including technology, regulatory requirements and client expectations, which are all influencing investment bank hiring trends, including:
- Increased interest in data scientists and technologists: The rise in FinTech, coupled with growing AI adoption, is creating a hiring marketplace that favours technologists over finance candidates.
- Increased demand for regulatory-focused positions: As banking regulations emerge on a global scale, and become more complicated, there are now regulatory specialists focused on institutions’ own unique rules that need to be hired to navigate the intricacies of those regulations.
- The emergence of soft skills: including problem-solving, adaptability, and communication, is taking precedence over “hard” skills as technology evolves, replacing various aspects of a financial professional’s work.
In response to these shifts, investment banking institutions are changing their hiring strategies: they are hiring from layman backgrounds, specifically STEM, in addition to advancing their training programs for current employees seeking to update their skill sets to improve their future practice.
To be competitive in the future of investment banking, candidates must make an effort to upgrade their skills and effectively navigate a changing environment. Changes in recruitment trends do reflect a shift in not only job opportunities in the investment banking industry, but also ultimately, pathways for career development. These changes signify exciting new opportunities for candidates willing to embrace them.
To summarise, investment banking of the future will reflect the melding of finance, technology, and regulation, mixed with some soft skills!
Advantages of a Career in Banking
A career in banking can offer many benefits, both financially and in personal and professional development.
The first characteristic value: Stability and job security.
The future of investment banking may change, but the industry provides a good prospect for a lifelong career. Predictions suggest that by 2030, 78% of post-trade banking jobs will have changed drastically, which can mean new opportunities or skill set requirements.
Key Advantages:
- Career Advancement– Banking careers have a clear career path with structures for advancement and promotion.
- Upskilling– it will demand a new skill set in the future of investment banking. The learning will be enjoyable and reward your long-term professional value.
- Diversity– Banks operate in a global world, providing exposure to diverse cultures, people, and business practices.
- Competitive Salaries– Banking jobs generally attract good salary packages and additional benefits.
Banking careers are more than doing money transactions. Many skills will be developed and learnt in a career in banking, including problem-solving, communication, leadership, and many others. These skills will all be needed in the future of investment banking.
The future of investment banking will be more digital, more inclusive, and more customer-focused. The change will create exciting opportunities for those who can learn and adapt, and enjoy being part of a continually changing environment. If you are considering a career in banking, you have a lot to look forward to. Imarticus Learning offers you the opportunity to build your career in finance with the best investment banking course. This investment banking course has been thoughtfully constructed to provide you with knowledge, practical skills, and the future of investment banking.
In this course, you will explore investment banking operations, learn about trends in the investment banking sector, and understand the future of investment banking. Furthermore, it touches upon the topics discussed in this blog, which will strengthen your understanding of investment banking and enable you to apply that knowledge in real life. Choosing this course will assure that you are investing in a better future and that you’ll have the skill set necessary to function and thrive in the investment banking environment.
FAQs
What do we mean by the future of investment banking in terms of post-trade banking jobs?
The future of investment banking is changing quickly. We will distribute research in different modes over time. To what extent are jobs in post-trade banking to change by 2030; it is estimated that 78% are likely to change significantly. Post-trade banking encompasses all processes that occur after a trade is completed, including clearing, settlement, and reporting. Post-trade banking jobs will be transformed drastically in the coming years through technological advancements, such as artificial intelligence (AI), blockchain technology, and automation. This will open up new opportunities and calls for new skills in the industry.
What key skills will be needed in the future of investment banking?
As the future of investment banking changes, so will the key skills needed to work in these roles. Professionals will be required to have great flair in the ability to utilise technological advances, data analytics, and clearly understand regulatory requirements and risk management. Besides, soft skills such as adaptability, problem solving and clear communication will be vital as the financial landscape continues to change and young professionals find their place in this transition.
What will be the opportunities for the future of investment banking by 2030?
The transformation of post-trade banking jobs will present many opportunities by 2030. As these roles will be driven by technology into the future, the sector will need more technologists, data analysts and emerging technology specialists supporting and working in investment banking. As a consequence of this transformation, talented professionals will be offered opportunities to upskill and adapt to a new job or existing role.
How can someone prepare for the future of investment banking?
Professionals should prepare for the future of investment banking by ensuring that they develop both technical and soft skills in equal measures. Understanding the most recent technologies, such as blockchain and AI, and having experience in using them will be important. Equally as important, no skill will matter without good, effective communication, problem-solving, and general adaptability, which will again be worthwhile. Keeping up with trends and staying vigilant about change will help prepare for the industry’s future shifts.
How will the evolution of jobs in post-trade banking impact the overall industry of investment banking?
The evolution of jobs in post-trade banking will likely have a major effect on the overall industry of investment banking as has been the case throughout the evolution of the sector. As jobs in post-trade banking become more technology-related, investment banks will adapt to change and adjust their strategies and processes to leverage and utilise the technology. This could lead to a more efficient, streamlined industry, promoting the pride and risk associated with data analysis and better use of technology in a fast-paced environment. Additionally, we will create a highly competitive market for young, inexperienced jobs.