The impact of COVID-19 on the investment banking industry is of varied nature forcing the industry to move digital and shape new strategies to be resilient. The way firms respond to the crisis determines the firm’s success as the future of investment banking will be entirely different.
As we all know, the pandemic had a profound impact on the global economy, and investment banking firms are not an exception. Investment banking firms today face a number of new challenges and are finding ways to overcome them.
New challenges faced by the investment banking industry post-pandemic
In general, post-pandemic, the investment banking firms are challenged to:
• Outsource or develop internal shared services for data management
• Renew and revise the Know Your Customer (KYC) compliance.
• Consider the governance back-up for new business models.
• Redefine the industry standards for a new post-pandemic ecosystem.
• Renew operational processes (touchless operations) and activities by increasing digital rigor.
• Define a transformation strategy driven by customers’ needs.
• Explore emerging technologies such as blockchain, advanced data analytics, and AI.
• Evaluate workforce and workplace practices post-pandemic to make it flexible and innovative.
• Simplify legacy systems, adopt SaaS-based models, deploy AI-automation, address cybersecurity issues, and use big data.
• Prepare for return to work strategy through an accelerated reshaping of business strategy.
The innovation priorities tokenized securities, and modern technology implementation will transform the industry altogether. Workplace disruptions are being dealt with becoming reliant on digital technologies as mentioned.
To summarize, the investment banks will undergo a permanent change in client engagement models, operations management, and cloud adoption. As remote workplace setups will continue, the virtual collaboration will become the primary model for client engagement. Remote onboarding and self-service channels will also be in place. The adoption of cognitive and digital technologies will improve the back-office functions to a greater extent and get contextualized for independent clients. Non-core services will see rapid migration to the cloud system. Partnerships with other players will become more common to avail shared services for smooth and effective operations.
Moving forward, these post-pandemic changes have laid its influence on expectations from investment banking professionals too. The demand from them is changing and evolving as the investment banking firms look for resilient candidates today.
If you can embrace innovation, use technology to exceed customers’ expectations by upskilling your technical, financial, and interpersonal skills, then only you can navigate the situation easily. Let’s understand the changing nature of investment banking jobs post-pandemic here:
Changing nature of investment banking jobs post-pandemic
The professionals looking for a job in the investment banking industry must quickly adapt to the evolving needs of the firms. A few of them are:
• Accommodate yourself to the change of market competition quickly.
• Adopt a new learning methodology to keep up the pace.
For instance, new online courses, investment banking certification, etc.
• Make a clear-cut strategy to upskill and upgrade from the existing position.
• Interact with the IT team and gain knowledge about emerging technologies.
• Undergo security awareness training program to take necessary precautions from cyber attack as you mostly work remote.
• Be prepared for contingent workforce projects.
• Have the right mix of physical and virtual work nature.
Though the investment banking professionals are challenged to update their skills and learnings to move their career needle faster, there will be an increasing demand for bankers as the economy picks up soon.
COVID-19 was not a disaster for investment banking professions as it was for other professions. In a way, the pandemic has increased the demand for investment bankers too. Have the right skills to enter the profession or step up your career ladder by earning investment banking certifications.