It’s little secret that FICC businesses in many banks are struggling to achieve profitability and ROC, while dealing with increased regulatory burdens, cost pressures and the impact of COVID-19.
Against this backdrop, banks must do everything in their reach to improve performance and get the most out of their sales and trading teams – and a recent survey shows they are indeed stepping up their game in this regard.
The survey, conducted by PwC, found that an overwhelming number of financial institutions recognize that they must accelerate productivity efforts if they are to create sustainable business models. 72% stated they were planning to implement specific productivity measures, compared to 53% in 2018.
But what tools do banks have at their disposal to achieve this goal? Data, analytics and AI have become the number one driver of gaining a competitive advantage through increased productivity across industries. Investment banking is no exception.
The range of innovative digital technologies available to boost the productivity of human bank employees has exploded in recent years and, according to PwC’s survey results, the industry is capitalising with almost 80% of institutions using these tools for this purpose.
Of these institutions, 54% are using AI, 40% deep learning and 37% robotic process automation – and 90% of these businesses have seen an improvement in productivity as a direct result.
With statistics as clear cut as these, the benefits of tools that turn big data into smart data come into sharp focus: a stronger understanding of trends, market activity and client needs, to name just a few.
It’s clear that implementation of these technologies can’t wait – banks must act today if they are to unlock new opportunities and improve the productivity of their client relationships. But how can they leverage their unique position as the custodian of information and knowledge and deploy these technologies to maximum effect?