Advances in technology continuously influence and change all aspects of our globalised world. Investment banking jobs are no exception and, in the near future, as a consequence of these changes, are likely to be very different from today.
While traders already witnessed the impact of technology with most exchange trading floors having been replaced by servers, Tabb Group reports that the next step is for computers to replace humans entirely.
Financial markets participants are currently spending three times more on people than they do on hardware, software and data, and consulting analyst Paul Rowady sees the digital transformation as the new industrial revolution.
Headcount will fall and the skillsets will change says the report and we can indeed see some changes: Goldman Sachs, for instance, employs more programmers and engineers working on tech matters than Facebook and Jamie Dimon, CEO of JPMorgan, said in his annual letter to shareholders that: “Silicon Valley is coming”.
These changes are prompted by lower returns in the investment banking industry and increased regulation, forcing banks to cut costs.
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