Trends are Bound to Influence Investment Banking This YearMarch 13, 2017
In The News
The last six months of the year 2016, were telling of the fact that things would be positively looking up for the field of Investment Banking. It was believed that this change would be led by most of the US banks as a majority of FICC revenues would begin to be recovered. While there are many experts waving the pessimistic flags, especially of the decline of the
Investment Banking owing to all the modern regulatory burdens and digital disruption. In spite of this, a majority of us are of the belief that optimism should be the word of the day. While it is truly considered that the entire industry would have to revamp itself, but it is also true that the Industry has been historically very successful at this.
Many have begun to realize the importance of some clear and innovative line of thinking and the need for new and correct business models. These business models are held as the key factors for ensuring future success, which is why the implementation of these needs to happen real quickly. Experts seem to have identified a few important trends, which would be acting as themes that Investment banking as a field would likely focus on in 2017. There will be a lot of profitability in store for banks, mainly as a result of the FICC business driving revenues that was out of fashion previously. We have all seen and read about all the significant cuts that have taken place and there are more such to come. Offshoring is one trend that is on the rise again as many top Investment Banks are relying on nearshore and offshore teams, in order to deliver the complex functions.
The cost and income ratios are going to undergo serious improvements in the year 2017 and things are looking really up for the US banks, especially after the tough year they seem to have had. Organizations will be seen focusing on eliminating their weaknesses and focusing on improving their strengths. In trying to survive in the competition, there will be many seemingly hard decisions that banks will be expected to make. Misplaced regulation is bound to act as a drag on the global economy and is likely to cause a real impact of structural reforms and regulation designed to improve transparency. Unlike the earlier days, developing the traits of patience will be a key factor in the future. Being the early bird will not pay, as much as waiting for the guidelines would be helpful, in evolvement and learning of lessons.
More and more banks are likely to focus on client strategies and will develop their servicing strategies towards a smaller universe of clients. There will be a lot of encouragement in terms of scientific approach when it comes to customer service and feedback on behalf of the banks. There are very strong chances of the CRM technology to be made more user-friendly as well.
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