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The Investment Bank of the Future: Trends in Technology and Innovation

On 18 September 2019, the Florence School of Banking and Finance hosted in its latest online seminar Shabdeep Mann and Tom Fish from PricewaterhouseCoopers, who discussed the emerging technologies and the impact they will have on the banking sector in a seminar entitled ‘The Investment Bank of the Future: Trends in Technology and Innovation’.

Technology is the most powerful lever banks have for addressing challenges and delivering future opportunities. This online seminar, which is based on the joint AFME-PwC report ‘Technology and Innovation in Europe’s Capital Markets’, discussed how technological innovations will transform the business model and operating model of banks, as well as the impact on the industry ecosystem, and the key considerations for regulation.

The speakers started the presentation by outlining the necessity for innovation in today’s banks, outlining the four major technologies that are driving the change, including data (a key asset, which enables decision making and enhance client services, while enabling further technological innovations), cloud technologies (which can ultimately reduce fixed costs), artificial intelligence (which allow also to anticipate and respond to emerging trends in the markets, including performing corrective actions) and distribute ledger technologies. These technologies will impact the whole banking value chain.

The presentation focused then on implications of these technologies on the sector, which will become inevitably more complex. Presenters highlighted global implications such as the outsourcing of actions traditionally performed by financial actors, the issues of privacy and data regulation, the shifts in power centers, and the need for regulators to reconsider their role in minimizing abuses and risks. Finally, the online seminar was closed by eight principles for innovation, that banks should adopt in the future to keep pace with technology and innovation, while balancing against potential new risks and cybersecurity concerns.

Download the presentation