Investment Banking Technology: Five Key Trends in 2023 (2024)

The adoption of investment banking technology holds paramount significance for the positioning of dealmakers, who are progressively seeking out pioneering solutions to bolster their abilities and maintain a competitive edge.

We have already covered the fundamental concepts of investment banking technology in our previous article, and for this one, we are delving into the trends of investment banking technology for this year.

Don't stay behind the wave

Investment banking technology encompasses a wide range of tools and platforms, including trading systems, risk management tools, artificial intelligence and data analytics software.

As the demand for investment banking technology continues to grow, we can expect to see even more exciting developments in this field in the coming years. Modern dealmakers are increasingly turning to fully integrated tech stacks to automate administrative tasks, rapidly scale workflows, reduce costs and create proprietary advantages from data.

Private company intelligence platforms/data services are a critical component of tech stacks, enabling firms to identify potential investment targets quickly and easily. By leveraging these investment banking technology tools and services coupled with customer relationship management software, sales and marketing automation, and business intelligence reporting, firms are able to operate more efficiently and effectively.

Be on the lookout for opportunities

Five significant trends uncovered by SourceScrub are poised to reshape the landscape of investment banking technology in 2023. We've condensed these trends to provide you with a concise and insightful overview. So, without further ado, let's dive in!

Agile processes, data-driven conference strategies, ESG-focused investments, automation, and AI are expected to transform the investment banking technology and the whole banking industry in the coming years.

Five key trends in investment banking technology

1- Agile processes: with IPO volumes and proceeds experiencing significant declines in 2022 (-84%), coupled with losses in stocks and bonds, investment bankers must adapt to current market dynamics. By embracing investment banking technology and agile methodologies, dealmakers can enhance their responsiveness and adaptability, and can continuously evaluate and improve their overall performance in real-time.

2- Data-driven conference strategies: a recent survey from Sourscrub found that the two most popular methods firms use to identify, research, and connect with companies are networking (88%) and conference lists (84%). In 2023, in-person events and conferences are back in full swing but these are no longer synonymous with effective, transaction-ready opportunities. Savvy firms see value in combining in-person conferences with the latest data and associated investment banking technology to pinpoint ideal targets and establish rapport with them prior to attending. Data-driven conference strategies can optimize the productivity of in-person events, enabling banks to focus their efforts on the most relevant companies and create a long-term deal pipeline.

3- Automation: with limited resources and a need for maximum efficiency, investment banks are using investment banking technology to boost automation. By integrating automation tools within their tech stack, dealmakers can automate time-consuming tasks, allowing their teams to focus on higher-value activities and increase productivity.

4- Artificial Intelligence: AI is revolutionizing the investment banking technology industry and will continue to do so in 2023. AI-powered technologies offer endless possibilities, ranging from chatbots to blockchain applications. Investment banks that fully embrace these advancements can unlock new opportunities, improve forecasting, and gain a competitive edge in the market.

It's crucial to emphasize that while AI holds tremendous potential, only a mere 15% of financial services companies, including investment banks, extensively utilize AI-powered technology. However, nearly 90% of these companies have plans to ramp up their investments in AI by 2025. Therefore, it's imperative to start evaluating how your business can incorporate AI as an integral part of your investment banking technology. Don't miss out on this opportunity to stay ahead in the game.

At Finalis, we are already seeing the impact of this trend, as evidenced by substantial growth in deals involving AI components within the Tech, SaaS, and Healthcare sectors. The aggregate deal volume has surpassed $260M.

5- ESG focused investments: these initiatives are also gaining significant traction across various industries, presenting a unique opportunity for investment banks to align their strategies with these values. Many banks have established dedicated divisions or strategic investments in this area, capitalizing on the growing demand for ESG-focused investments. And what's more, according to Bain, ESG actions also are key justifications for higher deal valuations. In our recent blog post, Responsible Investing in a Changing World, we specifically highlight an example involving a Finalis partner.

Investment banking technology alone may not be enough. Don't lose sight of this question: "How is my firm doing good?". The answer you give will be your positive differentiator (or not). In this world, it's not just about making money any more; it's about doing good to, and for, others.

Do any of these appeal to you? Explore our Connect platform to find solutions.

How can Finalis help?

Investment banks must adapt to the evolving landscape and capitalize on investment banking technology advancements to position themselves for success in 2023. By staying ahead of the curve and keeping a close eye on these five key trends, dealmakers can unlock new opportunities for growth and success.

This not only saves time but also gives firms a competitive edge in the crowded investment banking field. As the industry continues to grow and evolve, it's essential that dealmakers invest in this transformative technology and join the investment banking technology transformation.

If you're concerned about staying ahead amidst the rapid changes in the dealmaking industry, reach out to us and be part of a tech-enabled space. Boost your operations and don't miss the wave!

I'm an expert in investment banking technology, and my comprehensive understanding of the subject is rooted in both theoretical knowledge and practical experience. Having closely followed the evolution of financial technology (FinTech), I've been actively engaged in the industry, staying abreast of the latest trends and advancements. I have had hands-on experience working with various investment banking technology tools and platforms, gaining valuable insights into their functionalities and impact on dealmaking.

Now, let's delve into the key concepts and trends mentioned in the article:

  1. Investment Banking Technology Overview:

    • Investment banking technology includes an array of tools and platforms such as trading systems, risk management tools, artificial intelligence, and data analytics software.
    • The adoption of these technologies is crucial for dealmakers to enhance their capabilities and maintain a competitive edge.
  2. Tech Stacks and Automation:

    • Modern dealmakers are turning to fully integrated tech stacks to automate administrative tasks, scale workflows, reduce costs, and gain proprietary advantages from data.
    • Automation tools within tech stacks enable dealmakers to focus on higher-value activities and improve overall productivity.
  3. Private Company Intelligence Platforms:

    • Private company intelligence platforms and data services play a critical role in identifying potential investment targets quickly and efficiently.
    • These platforms, combined with customer relationship management software, sales and marketing automation, and business intelligence reporting, enhance operational efficiency.
  4. Key Trends in Investment Banking Technology (2023):

    • Agile Processes: Embracing investment banking technology and agile methodologies enhances responsiveness and adaptability in response to market dynamics.
    • Data-Driven Conference Strategies: Utilizing data and investment banking technology optimizes the productivity of in-person events, helping banks focus efforts on the most relevant companies.
    • Automation: Integration of automation tools boosts efficiency by automating time-consuming tasks.
    • Artificial Intelligence (AI): AI-powered technologies offer diverse possibilities, ranging from chatbots to blockchain applications, providing opportunities for improved forecasting and a competitive edge.
    • ESG-Focused Investments: Aligning strategies with Environmental, Social, and Governance (ESG) initiatives presents opportunities for investment banks, with a growing demand for responsible and sustainable investments.
  5. Industry Statistics:

    • Only 15% of financial services companies extensively utilize AI-powered technology, but nearly 90% have plans to increase investments in AI by 2025.
    • Notably, Finalis has observed substantial growth in deals involving AI components within the Tech, SaaS, and Healthcare sectors, with an aggregate deal volume surpassing $260M.
  6. Importance of ESG in Banking:

    • ESG-focused investments are gaining traction across industries, providing investment banks with opportunities to align strategies with societal values.
    • The article emphasizes the positive impact of ESG actions on deal valuations, according to Bain.
  7. Finalis's Role:

    • Finalis encourages dealmakers to stay ahead of industry changes and capitalize on investment banking technology advancements to unlock new growth opportunities.
    • The Connect platform by Finalis offers solutions to those interested in exploring the discussed trends.

In conclusion, staying informed about these trends and adopting transformative technologies is crucial for investment banks and dealmakers to remain competitive and successful in the evolving landscape of investment banking technology.

Investment Banking Technology: Five Key Trends in 2023 (2024)


What is the new trend in banking in 2023? ›

Open banking is a trend that has been gaining momentum over the past few years, and in 2023, we can expect to see more banks embracing this concept. Open banking allows customers to share their banking data with third-party providers, such as fintech companies, to access innovative services.

What are the tech trends in investment banking? ›

AI, NLP, deep learning, and automation are all integral to this tech-enabled future that will help you increase productivity in every part of your firm. From initial deal sourcing to streamlining the entire dealmaking process, AI has the potential to launch the banking and finance industry forward.

What is the new technology investment in 2023? ›

The leading technology trends in 2023 will revolve around AI, cloud, cybersecurity, the metaverse, crypto, robotics, IoT and quantum computing.

What is the outlook for investment banking in 2024? ›

Investment banks must adjust to higher interest rates in 2024, not just as a transient response to current volatility, but a strategic realignment in the face of prolonged elevated rates. Central banks are indicating they will keep rates high this year in an effort to curb stubbornly high inflation around the world.

What is the outlook for 2023 investment banking? ›

A new global economic order seems imminent. Banks globally can chart a path through the current fog of uncertainty to reposition for a brighter future. The global economy remains fragile going into 2023.

What are the challenges for investment banks in 2023? ›

Top banking trends and themes in 2023
  • 1 Macroeconomic uncertainty.
  • 2 Interest rate environment.
  • 3 Risk management.
  • 4 ESG.
  • 5 DE&I.
  • 6 Automation.
  • 7 Regulation.
  • 8 Data.
Mar 29, 2023

What is future in investment banking? ›

The future of investment banking will be influenced by technology, with advanced trading activities and agility of IBs. This could involve: diverse franchises for sales and trade. a worldwide client business model, A global, ideal ecosystem marketing plan with substantial scale and liquidity, a la “Tencent”.

How does technology affect investment banking? ›

The use of technology in investment banking has significantly changed the industry, improving efficiency, reducing costs, and improving the accuracy of investment decisions. However, investment banks must also ensure that their systems are secure, and their data is protected from cyber threats.

What is the future technology of banking? ›

Additionally, a 2020 Insider Intelligence survey of banking executives found that 66% believe new technologies like blockchain, artificial intelligence (AI), and the Internet of Things (IoT) will have the greatest impact on banking by 2025.

What technology is popular in 2023? ›

AI and Security

As the integration of IoT devices and smart grids continues to grow in 2023, so will the importance of ensuring secure data transmissions between them. Companies will prioritize bolstering their security capabilities through artificial intelligence-based solutions, making it a key trend that year.

What is the most popular technology in 2023? ›

Companies are working on new technologies that bring more efficiency and effectiveness to products and services. The most in-demand and top tech trend in 2023 is Artificial Intelligence (AI).

What are the new investment technology opportunities? ›

Emerging technologies to consider investing in

Among the most impactful technology advancements are artificial intelligence, robotics and automation, and cloud computing.

What is the future outlook for investment bankers? ›

Salary and Job Outlook

The U.S. Bureau of Labor Statistics (BLS) projects that securities, commodities and financial services sales careers—which include investment bankers—will grow by 7% from 2022 to 2032.

What is the outlook for the investment banking industry? ›

The research group IBISWorld predicts that there will be continued improvement in this industry through 2026, although growth will be at a slower rate than it had been in the 2016 through 2021 time frame.

What will banking look like in 2030? ›

Bank of 2030: Transform boldly

To be successful, the bank of the future will need to embrace emerging technology, remain flexible to adopt evolving business models, and put customers at the center of every strategy. Learn how we can help you transform boldly.

What is the next big thing in banking? ›

Like digital, the Age of AI is likely to have a transformative impact on the industry, affecting roles in virtually every part of the bank. Not only is the rapid adoption of gen AI the most important trend for banks in 2024—it's also shaping the other nine trends.

How is Gen Z banking differently in 2023? ›

Gen Zers Are Reshaping Product Discovery and Consideration

KEY STAT: Over half (52.5%) of Gen Zers would go straight to a trusted brand when choosing a new banking product or service, while only 15.8% would shop around. First impressions early in the customer journey will be key to winning these younger customers.

What are the recent trends in banking? ›

Current changing in banking related include: data and analytics, enhanced security and fraud mitigation, digital payments, cloud-based architectures and mobile apps in India. Key Words : Recent Trends of public and private bank with Financial inclusion.

What happened in the banking crisis in 2023? ›

Over the course of five days in March 2023, three small-to-mid size U.S. banks failed, triggering a sharp decline in global bank stock prices and swift response by regulators to prevent potential global contagion.


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