Is investment banking going to be a thing of the past?

It’s a very interesting question, with the advances in financial technology (fintech), and the desire to circumvent the current system in place. A lot of high finance is run through large investment banks. They handle very large transactions and act as the bridge between the public and the company in several situations.

In recent times, there’s been a rise in trying to go direct to consumers to save on fees, paperwork, and time. The process to raise significant equity also comes with a significant process.

There are millions of dollars to be spent on bank fees, legal fees, and time coordinating that many feels can be avoided.

It’s an interesting question, that one might ask with the rise of cryptocurrency and other alternative financing routes.

Not only could investment banks be in for a decline in revenue and profit, but so could their people. The industry is built upon the large fees and corporate structure that’s in place.

If things change, so could the number of employees and positions at the investment banking companies. This could mean fewer jobs in high finance, and less opportunity for younger people to pursue investment banking.

Younger people often become investment banking analysts to start a career in investment banking. So one might wonder, what does an investment banking analyst do?

An investment banking analyst is a position you start at in an investment banking position. It’s a level up from a summer intern, but quite similar. You’re a full-time employee, but you’re generally doing the tasks that no one else wants to do. It’s a way for investment banks to weed out the analysts who aren’t committed to the industry or company.

A lot of investment banks are exporting the grunt work, or the work an investment banking analyst would normally due to foreign nations with low-cost labour. This calls into question if that kind of trend will continue, and the number of investment banking analyst jobs could be on the decline.

With all the advancements in technology, it’s possible we see a decline in investment banking. Alternative funding and financing sources are on the rise, and it’s starting to gain a presence.

There has been a desire for people to distance themselves from the large institutions that make up our financial system and economy, especially the large fees that come with using an investment bank.

Investment Banks play a large role and facilitate a lot of large financial transactions in the world today. Not only that, but they keep the financial system we have in place. A lot of what the current financial system is built upon are the systems, procedures’, and policies of the large investment banks.

It’s going to be interesting to watch the evolution of finance in a technology-driven world, which could distance from the traditional investment banks we have in place. As people look to take out the middlemen in large transactions and find alternative ways with more benefits available, it comes into question if investment banks could be on the decline.

It will be very interesting to see how this plays out, as the largest and most powerful financial firms in the world, who make up wall street, all play central roles in the investment banking world.