Lawsuits, bonus-cuts, layoffs at i-banks! Doomsday at wallstreet?
The Global Investment Banking (IB) revenue took a massive plunge of 40% last year as the industry witnessed a historical downfall from $57.4 billion in 2021 to $35.6 billion in 2022.
From revenue droughts to market shocks, and from legacy systems to mass layoffs, the sector continues to get shockers from regulatory, competitive, geo-political, and macro-environment.
Dive into Jasper Colin's exclusive coverage of the global IB sector on how players are gearing up for a more gloomy future, hunting for real-time, hard-to-find, trusted business intelligence.
whopping40%plunge regulationsinternalcreditcontrols
Theglobalinvestmentbankingindustry’srevenuewitnesseda from$57.4billionin2021to$35.6billion Theindustryisundergoingacrisisofitsown,wheremeasures rangingfrom to arefailing tokeepupwiththeunprecedentedtransformationofthe macro-financialenvironment.
FromCryptocrashestoGeo-Political shocks,expertspredicta as riskbubbleshaveexploded,andbanks havemiserablyfailedtoaddressthem.
bleakoutlook
Amidst the recent uproar in wall street as its six biggest banks hit the $1 trillion mark in cumulative profits for the last decade, expert projections in the market still indicate a rather for the
gloomy future 75% of “low confidence”
As per Jasper Colin’s Banking & Capital Markets Survey, a whopping I-Banks exhibit on their risk compliance divisions amidst a volatile backdrop of 2023.
Given that the eight largest American banks are estimated to have as alarmingly high this year as in the pre-2008 environment, the current operating models of investment banks are badly struggling to address their dynamic environment.
leverage
massive job cuts 3%
Cost-cutting pressures have led to in the investment banking divisions in 2022. Be it Barclay’s cut in its corporate and investment banking or Deutsche and Citigroup’s surprising layoffs in their niche IB operations, most of the major players are under pressure.
digitally inept capabilities
Adding to the misery is the of the industry where the issue of cyber-threats has become a top priority among leaders. From Goldman Sachs’ peaked interest in its cybersecurity talent strategy to JP Morgan’s humongous technology budget for 2023, protection is now more important than ever.
Transform to Datacentric, Client-focused and Tech-driven value creation, else ignite the crisis of a decade
two in three
Our research reveals that tech specialists in the sector say an optimal data governance framework has become crucial for I-banks in the post-Covid landscape of dynamic capital markets.
From turnaround time optimization to cost savings, data-driven analytics is revolutionizing the Investment Banking value chain in 2023.
Advancements in cognitive technology and automation are already being used for:
ML-Powered Trading Algorithms
Compliance & Threat Monitoring
Market Sentiment Analytics
AI-enabled Deal Diligence
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