Will Investment Banking Be Automated?

Table of Contents


The world is moving towards the digital process and mostly all the processes are getting automated. We can see the software is eating the entire world and the business automation system is entering into the world of banking and finance. Everyone started asking the question of whether the investment in banking can be automated or not? Will investment banking be automated?

Is business automation in banking a great idea?


Most people don’t know what is business automation? It is the process of using the technology to execute the tasks in the business where the manual effort will be replaced. We can see most industries have started to adopt the business automation tools, and in the same way, even the banking also started to use automation in their investment to reduce the time taken by the manual tasks and to reduce the cost.  

The business automation process didn’t leave any industries across the globe and the banking investment started to continuously implement the automation to get the desirable results. There are hundreds of banking and finance industries started to install hundreds of software programs to repeat the tasks automatically. Everyone knows that the technology is getting matured, so the banking investment that has robotic solutions and artificial intelligence will have a bright future. 

How the automation processes shape investment banking?

WILL INVESTMENT BANKING BE AUTOMATED? - How the automation processes shape investment banking? - How to start the business automation process?

If you are still confused about why automation is important in banking investment, then the toughest job in banking is the collection of data and processing. The banking system should know to capture the data, and also they should know what to do with the data. If the banking investment doesn’t have any automation process, then it will be left behind.

So, every banking investment industry should know the business process automation benefits, as it will improve the efficiency and also it will make the data collection job simple and easier. There is also false news that automation will take the role of bankers in the future, but one should understand that even after the invention of excel, still there are companies who are following handmade spreadsheets. So, this kind of business automation process will increase the banker’s skills and help them to bring new ideas. We should never forget that human skills are irreplaceable.   

How to start the business automation process?

There is a lot of business automation process available, and among them, Artificial Intelligence or AI, machine learning, and Robotic Process Automation or RPA are some of the technologies that are used in investment banking. In banking, we can find a lot of business process automation examples such as trade financing, customer on-boarding, bank reconciliation process, the loan application process, automated report generating process, account closure, credit card application processing, and so on. 

Before implementing the automation process in the banking firm, the industry should know the benefits;

Customer base

While opening an account, all banks will do a background checking and this is the most important task. Automation process like Intelligence Automation will play an important role as it will create a centralized network and using this information can be easily pushed and pulled. Also, the bank can extract information in whatever format they want to be.

Risk analysis

In today’s times, banking is continuously investing in automation technologies so that the business process will get automated which is involved in the risk and compliance. This will improve the process of the banking system, and also it will help the banks to easily perform a quality check, risk reporting, and so on. 

Credit card process

Happy customers are the success of any industry, and when it comes to banking, people had to wait for weeks to get a credit card. But now the wait is over because the automation technology is helping the bank to complete the process like validating information and background checking within hours. 

Customer service

As there is enormous competition in the banking industry, customer service is considered the highest priority. If the bank has automation technology, then they can provide excellent customer service by answering thousands of queries in a day, providing solutions at the earliest, and even it will reduce the turnaround time.

Detection of fraud

In banking, fraud and terrorism have been decreased, and they can be controlled only using the automation process. Robotic Process Automation is the best automation technology that will prevent fraudulent activities and also helps to stop beach activities using predictive analysis. 

Challenges faced by the banking investment:

Even though the business automation process plays a prominent role in investment banking, still banks face numerous challenges. Most banks are interlinked with the different lines of business, so starting an automation process in a single system can affect the entire firm. Even sometimes, this kind of automation system will make it difficult to understand the outcomes and the customer feedback. 

In every industry including banking, happy customers are an important part of the success of the industry. Happy customers can be achieved only if the employees are happy, and this is possible only through employee engagement. 

Apart from these challenges, the automation system can reduce the banker’s job as there will be no work left for the bankers to do if the data collection and process will become completely automated. Even though technology has taken the world, still there will be room for human innovation and creativity. 

Future of automation:


Most banks don’t know how to automate business processes as they are entangled with their existing structures. But they should build a business automation process in their banking investment to have a better engagement with the customers and to provide a secured ecosystem. This may take a lot of time, even it is a difficult and costly process, but still, to reduce the competition in the market they should adopt automation. 

In the future, Robotic Process Automation may be considered a meaningful investment for the banking and finance industry. It will reduce the employee workload, and even it will lower the time taken by the manual efforts. – Reza Abbaszadeh


About the author

Abbaszadeh Team

Mr. Abbaszadeh is the founder and CEO of Abbaszadeh Entreprises consists of 4 different companies and multiple divisions within its venture portfolio. In 2019, Reza Abbaszadeh has been awarded as The Youngest Iranian Businessman by Forbes Magazine.