Technological advances, coupled with stricter governance following the Great Recession, are forcing investment banks to adapt to maintain market share and profitability. This nuanced assessment from CB Insights provides a wide-angle view of the industry’s transformation. Financial professionals seeking a better understanding of the state of play in investment banking will find this an intelligent and insightful report.
Technology, competitive pressure and a stricter regulatory architecture inform the new investment banking landscape.
Prior to the 2008 financial crisis, investment banks were flying high, but the Great Recession changed the business and regulatory environment. Bankers can no longer depend on the once-vibrant and dependable profit centers of initial public offerings, mergers and acquisitions, asset management, equity research, and sales and trading.
Investment banks once held the monopoly on helping firms “go public.” Companies now are pursuing different channels, including “direct public offerings” (DPOs), special financing vehicles and “alternate exchanges,” or they are choosing ...