Introduction to Investment Banking

Industrial Trends

Learning Outcome

5

Understand ESG’s growing importance

4

Understand ESG’s growing importance

3

Recognize how technology and regulation reshape banking

2

Identify major industry trends

1

Understand why investment banking must evolve

Think & Reflect

If banks worked 10 years ago… why change now?

Can AI replace banking tasks?

Should profit ignore environmental impact?

Story — Banking Then vs Now

10 years ago:

Manual processes

Limited analytics

 Traditional advisory

Today:

AI-driven decisions

 Automation

ESG-driven investing

 Fintech disruption

Core idea:Investment banking must evolve to stay relevant.

Why Industry Trends Matter

Without adapting:

Efficiency drops

Regulatory risks increase

Clients move to alternatives

Core Concepts

Modern IB transformation is driven by:

Now let’s explore the 4 major trends.

Technology

Sustainability

 Regulation

Fintech competition

Trend 1: Digital Transformation & Automation

Can computers and AI replace banking roles?

Yes — routine and analytical tasks are automated.

Technology enables:

AI-driven decision-making

Faster trading & analytics

Automation of repetitive tasks

Front Office Impact

Back Office Impact

AI CRM systems

Robo-advisors & chatbots

Sentiment-driven trading tools

RPA in reconciliation & KYC

Blockchain for verification

Cloud-based infrastructure

Real-world insight:Automation improves speed, accuracy, and scalability.

Trend 2: ESG Integrated Advisory

Should banks ignore environmental & social risks?

Modern answer: No.

Banks now advise clients on:

Sustainable investments

Governance practices

Climate risk management

Key ESG areas:

Green bonds

Sustainable portfolios

Governance compliance

Why it matters:Investors demand responsible growth.

Core idea:Profit + sustainability = future finance.

Trend 3: Regulation & Compliance Pressure

Can banks operate without oversight?

Absolutely not.

Regulators enforce:

Transparency

AML compliance

Risk controls

Banks respond with:

Larger compliance frameworks

Regulatory technology (RegTech)

Impact:Safer but more complex operations.

 Trend 4: Rise of FinTech & Disintermediation

What if startups replace banks?

Direct investing

Peer lending

Faster digital access

Result:Reduced reliance on traditional intermediaries.

Core idea:Competition drives innovation.

Summary

5

FinTech drives innovation

4

Regulation ensures accountability

3

ESG shapes advisory decisions

2

Technology transforms operations

1

Investment banking evolves with industry pressure

Quiz

Digital automation mainly improves:

A. Decoration

B. Efficiency

C. Advertising

D. Staffing

Digital automation mainly improves:

A. Decoration

B. Efficiency

C. Advertising

D. Staffing

Quiz-Answer

Foundations of Investment Banking & its Operations- Industrial Trends

By Content ITV

Foundations of Investment Banking & its Operations- Industrial Trends

  • 2