No Match Found
Current trends in technology and innovation and their impact on the ‘Investment Bank of the Future’
said the biggest driver for tech adoption is their potential to reduce cost and inefficiencies
respondents from Investment banks from across the world
agree that successful banks of the future need to be more flexible, agile and innovative
principles that banks should adopt to succeed in the future
Investment banks continue to face significant challenges in the current operating environment. These challenges are becoming increasingly pronounced as the wider industry becomes more interconnected and digital. New technologies and a focus on innovation will require the banks of the future to be increasingly automated, data-led, open and agile. Business models are expected to be relationship-based, with banks connected into a wider pool of technology and service providers The pace and impact of these technological changes suggest that banks need to act now in order to realise the benefits and maintain their competitive position in the evolving landscape.
Together with the Global Financial Markets Association (GFMA) we interviewed and surveyed over 50 investment banks exploring the key trends which are expected to impact the industry over the next five years, providing a vision for the investment bank of the future and identifying the implications for the industry and policymaking.
This report builds on the Association for Financial Markets in Europe (AFME) report "Technology and Innovationin Europe’s Capital Markets" published in 2018, to now include perspectives from the US Securities Industry and Financial Markets Association (SIFMA), and from the Asia Securities Industry and Financial Markets Association (ASIFMA)
Data & Analytics encompasses the control and management of data assets, and the generation of insights from those data assets to improve decision making. Core data assets include client data, product data, account data, employee data, transaction data, and position data.
Data is seen as a key enabler for all future technology change and innovation; however, there are varying levels amongst respondents as to how data is currently being managed and in the approaches being applied to realise its future value.
Cloud Computing underpins the ability to implement new technologies and to quickly process large amounts of data; however, there are challenges in moving existing infrastructure to both Public and Private Cloud platforms.
Cloud Computing is considered in three models, private, public and hybrid with each able to provide one or more services such as IaaS (Infrastructure-as-a-service), PaaS (Platform-as-a-Service) and SaaS (Software-as-a-Service).
AI is an umbrella term for a number of algorithms and technologies that allow machines to simulate human intelligence by learning (the acquisition of information and rules for using the information), reasoning (using the rules to reach approximate or definite conclusions) and self- correction.
AI is expected to develop rapidly across multiple functions performed by banks. Its success will be dependent on the quality of data and the ability to understand, or explain, how outcomes are realised.
DLT combines database technology and cryptography where multiple participants each keep their own (distributed) copy of, and can update, records in a shared dataset. All copies remain consistent through computerised consensus mechanisms rather than through a trusted third party. Some of the most well-known DLTs are blockchains.
There is widespread research and specific live proofs of concept of DLT being used in banking, and extensive future use cases. However large scale or industry-wide use is still seen as a long-term (5 year+) and ambitious objective.
We have identified eight principles that banks should adopt into the future to keep pace with technology and innovation and balance potential risks and cyber security concerns. Download our latest report to find out more.
Leader of Industry for Financial Services, PwC United Kingdom
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UK Financial Services Technology Leader, PwC United Kingdom
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Director, Financial Services Risk and Regulation, PwC United Kingdom
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Director, PwC United Kingdom
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