The investment banking industry remains under immense pressure amid plummeting profits, regulatory roadblocks, high costs and shrinking trading commissions.
The inescapable reality can be seen in the stagnant profit levels for many years now. Top investment bankers, who used to hunt elephants, have been reporting declining revenues, without any recovery in sight.
In the face of adversity, banks are also taking a long, hard look at the investment banking landscape what was once a money-minting business. Banking experts no longer attach much importance to trading commissions owing to the volatile market scenario. Clearly, the challenges for investment banks are only growing as their clients are increasingly unbundling their business decisions based on the quickly changing market scenario.
Our observations reveal the five broad challenges faced by the investment banking industry and how to overcome those challenges:
Aligning workforce with business objectives
Structuring and executing technological reformation, adopting a strategic approach
Renovating business models for boosting trading commissions
Meeting customer demands and tracking their behavior