Investment banking and securities trading involve companies providing financial services and engaging in advisory financial transactions on behalf of individuals, corporations, and governments.
Largest investment banks (market cap, billion USD):
- JPMorgan Chase (744.02)
- Goldman Sachs (200.74)
- Bank of America ( 353.06)
- Morgan Stanley (221.44)
- Citigroup (153.88)
- Barclays (53.56)
- Wells Fargo (254.66)
- BNP Paribas (75.57)
- Jefferies (15.79)
Key trends:
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Industry recovery from the 2008 crisis
The global investment banking industry has not yet reached pre-crisis levels. However, there is positive momentum in terms of capital adequacy and profitability.
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Global mergers and acquisitions (M&A) activity
Mergers and acquisitions (M&A) activity continues to grow. International M&A activity has also set new records.
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Continued global dominance of U.S. banks
The United States remains the leader in the number of mergers, acquisitions, and securities transactions.
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Investments in digital technologies
Most investment banks are making every effort to implement digital technologies to reduce costs and improve customer service. However, many operations are still unavailable, and the business models of most banks remain unchanged. Personnel expenses are sharply declining due to increased investment in digital technologies. Some banks are spending billions of dollars to modernize their technological infrastructure. Digital technologies are also being introduced into previously non-automated areas, such as securities trading.
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Customer-centric approach
Investment banks are rethinking fundamental models of customer interaction, shifting the focus from products to clients and adopting a personalized approach to service delivery and decision-making. This model will help expand client engagement and provide a clear understanding of whom to serve, what to offer, and how to deliver it. To simplify this approach, investment banks are also considering involving third parties.
