Investment banks are beginning to leverage "deal management" technology and automation, spending IT dollars on improving their ability to win deals.
"The technology landscape in investment banking is changing, though at a significantly slower pace than on the trading side," said author Stephen Bruel, of research firm TowerGroup. Bruel says the increased use of technology will "complement the banker" and save time and resources.
TowerGroup says investment banks can increase the effectiveness of their IT approach without undertaking a wholesale redesign of their solutions, and estimates they will spend about $1.5 billion on IT applications.
Despite the investment, Bruel says the money won't change the nature of investment banking as a "relationship business." Rather, "as younger bankers who grew up with technology move up the hierarchy in their banks, they will push for new and more efficient uses of IT."