It’s no surprise that access to services while on the go has changed what we buy and how we do business. Demand for on-the-go services doesn’t begin and end in the retail world, however, it’s making its impact felt in the investment banking industry as well, so much so that we’ll soon see a departure from the traditional “within the walls” environment of the investment bank. Today, I’m going to share with you the fourth of six trends expected to be driving forces in the coming digital disruption of investment banks.
Can on-the-go services really work in investment banking?
The proposition is appealing: mobile and other digital technologies will enable individuals to access more data and tools, collaborate more effectively and make better, real-time decisions, no matter where they are. But what does that look like in investment banking? Let’s look at the example of making a credit limit extension to allow a trade with an important client. This requires accessing, analyzing and discussing information, such as the client’s holdings, legal documentation, market risks and the business the bank expects to do with this client. Experts from all over the organization will have to review, share and debate up-to-the-minute information quickly enough to avoid losing the customer’s business. Here’s where mobile technologies come in. They can enable these experts to work together quickly and seamlessly to help them form a decision.
The walls are coming down
Digital solutions could virtualize the entire end-to-end deal management process. I’m talking about a web-based portal that could bring together a virtual team from multiple areas of the organization. Team members’ mobile devices could be used to collaborate through a blend of text, video and audio content.
The concerns investment banks have had around security with mobile technology are real. However, banks that leverage these technologies in the future will be rewarded. Success in this arena will come down to an investment bank’s ability to test these technologies, develop proofs of concept and implement the necessary supporting infrastructure, processes and rules now.
Be sure to join my colleague, Ciara O’Leary, next week when she looks at the fifth trend taking shape because of digital disruption in investment banking: the splitting of the trade lifecycle. Until then: