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Today’s most important investment banking trends

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Apps get used by over 10,000 bankers in 25 countries to manage their contacts, pitches, and deals. We’ve had a front-row seat to some of the world’s most high-performing teams, and we’ve seen firsthand how technology can provide them a competitive advantage over their competitors. The following are the current top trends in investment banking:

  • Hacking growth using first-party data

Many investment banks begin their technological journey early on, according to Joseph Stone Capital. When a firm has a small group of corporate finance and M&A managing directors sourcing business, it begins to receive thousands of looks every year at potential deals. Keeping track of all of these ties and companies becomes a task. The amount to which the company tracks all of its financial information becomes a competitive lever for entry into and dominance of specific industries, sectors, and specialized markets.

  • Using your network to find new business opportunities

Investment banks collect a wealth of proprietary first-party data on relationships, company financials, target industries, deal multiples, estimated bid ranges, and other topics. Firms then use these data points to generate insights and inform top-line growth strategies through thorough research, according to Joseph Stone Capital. While operating partners and senior managing directors may disagree about the relative worth of these datasets and how effective they are in assigning staffing placements or extracting maximum deal value, there are a variety of approaches to assess the size and involvement of an investment bank’s network.

  • The size of big data is growing.

With good cause, many of our clients have started their digital transformation programs with data lake or master data management (MDM) architecture on the roadmap. When an investment bank can operationalize data on its major customers and business relationships, the resulting mountain of data provides a rich mining source for uncovering client insights, developing new market strategies, and expanding into new products.

When third-party market data sources get coupled to Salesforce, bankers can identify new opportunities and save significant amounts of time spent doing data entry and keeping it up to date, having first- and second-party data integrated.

  • Companies are becoming more interested in martech.

Many of the companies we work with see 2020 as a pivotal year for their marketing efforts. COVID’s disruption caused M&A and corporate access professionals to reconsider their strategies. What are the primary risks and opportunities associated with hosting events online and developing digital marketing strategies? Is it possible to securely share information and build relationships on an all-digital platform?

Banks can collect far more data about client and prospect engagement by utilizing intelligent marketing automation tools to distribute high-value content pieces to their audiences, including a better understanding of who is actively engaging with them on social media, webinars, and analyst calls, among other things. For example, event engagement data from MeetMax, CVent, and Zoom is layered into Salesforce so that a banker can quickly and easily access 360-degree relationship insights; it’s easy to imagine a future where the research reports that a private equity dealmaker reads are nearly as indicative of interest as the good old-fashioned call notes that the banker might record.

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