Investment Banks Spending More On Front Office Technology, Says TowerGroup

New research from TowerGroup finds that investment banks are now beginning to increase their focus on leveraging "deal management" technology and automation, by spending money on improving their ability to win deals the key driver of investment banking revenues. "The

By None

New research from TowerGroup finds that investment banks are now beginning to increase their focus on leveraging “deal management” technology and automation, by spending money on improving their ability to win deals – the key driver of investment banking revenues.

“The technology landscape in investment banking is changing, though at a significantly slower pace than on the trading side,” says Stephen Bruel, author or the research and a member of the Securities & Capital Markets research practice at TowerGroup. “TowerGroup believes that technology will help embed best practices and structure around the investment banking process, particularly relative to new issues. The goal is not to fully overhaul or automate the complete deal process, but rather provide solutions that complement the banker and save valuable time and resources.”

TowerGroup estimates that investment banks will spend $1.53 billion in the US on investment banking suites of IT applications, with another $1.48 billion being spent outside the US. TowerGroup estimates that 82% of all investment banking IT spending is currently targeted to help win deals – and the drive towards a single window portal will keep that proportion steady.

«