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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
By Content ITV