The investment banking industry is seeing a notable surge in activities to cater to the needs of customers, employees, and other stakeholders. A leader in investment banking outsourcing, SG Analytics assists clients in integrating the hybrid roadshows strategies through advisory and valuation support services.

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Top Trends That Will
Shape Investment
Banking in 2022
The onset of COVID-19 has irrevocably changed the banking
industry. While 2020 and 2021 were the years that the pandemic
forced banks to embrace digital change, 2022 will be the year that
will see that change institutionalized, leading to the emergence of
a new normal.

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Investment Banking: Marching
Towards Divergent Growth
The investment banking industry saw a notable surge in activity
after the reopening of global markets. To mitigate the effects of
the pandemic, investment banks have started following the hybrid
roadshows strategies and are utilizing the latest technology to
revamp their origination strategies.
For most leading banks, the inclination for incremental change
and cautious experimentation is leading the way to a faster digital
metabolism. Leading banks are shifting to digital transformation
and focusing on building more secure financial systems.
What initiatives are worth the attention in 2022?
Here we have identified the top 8 trends that will be most
influential in disrupting banking in 2022, thus fostering an exciting
new future for banking.

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1. Sustainable Finance Products get Real.
Sustainable finance refers to investment decisions made by
considering environmental, social, and governance (ESG)
considerations. Finance and sustainability are predicted to go
hand in hand. Owing to this reason, sustainable finance is being
ranked among the top trends in the BFSI sector.
Banks are willing to sacrifice their short-term bottom line to stay
one step ahead of regulators and environmental groups.
Together with fintech, banks are exploring the perfect opportunity
to adapt to these new requirements to create future-oriented,
sustainable finance products.
2022 will likely notice more social impact initiatives, offering access
to environment-related investment opportunities and finance
guidelines that align with net-zero goals and other sustainability-
linked bonds.
2. Rapid Adoption of Artificial intelligence
Although still in an evolutionary stage, AI will make significant
progress in 2022, positioning itself as the most influential wave of
technology that will transform the world. With every major industry
leveraging AI and increasingly intelligent machines to
complement their work or replace it by providing a superior level
of competency.
The banking and finance sector is slowly catching up with the
trend. Chatbots are helping customers to sort their financial
affairs, and banks are using machine algorithms to detect
cybercrime patterns.
The rapidly evolving diverse AI technologies are impacting the
banking industry. Organizations are increasing investments in AI to
uncover their potential in assessing critical data and improve
business efficiency. The development and effective

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implementation of AI will likely guide the investment banking
industry in 2022, thus creating opportunities to invest in more
transformative and consequential technology themes.
Read more: Fixed Income Outlook 2022
3. Real-Time Payments Will Continue to Climb to the
Top
When it comes to payment, speed and accuracy are of utmost
importance. People working in the gig economy want to get paid
at the end of their shift, and employers can meet these needs by
sending the funds through a real-time payment network
connecting them directly to their bank account.
Real-time payment space lets corporate & investment banks send
the payments digitally to active customers by authorizing the
payment, thus cutting down on the cost and time it takes. It's not
just companies that are benefiting from this service. It is also
enabling consumers to receive their bills directly into their bank's
app or website, thereby authorizing the bank to pay them instantly,
irrespective of weekends or holidays.
2022 will likely see a surge in the employment of real-time
payment authorizations, thus creating a smooth and secure
banking experience.

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4. Open banking
The trend that was supposed to take off in early 2020 is now
experiencing a promising curve in 2022. Open Banking is looking
more optimistic than ever in terms of its collaborative approach
and connectivity between banks, fintech vendors, and regulators.
Open banking is a vision that obligates financial institutions and
banks to provide regulated third parties access to customers'
financial data. Such access is provided only with customers'
permission and is employed for the development of new apps and
service platforms. Open banking offers better transparency to the
consumer and more opportunities for investors ready to revive the
BFSI sector.
This emerging trend will enable financial organizations to deliver
full-spectrum, client-centric banking capabilities and remain
competitive.
5. Digital Currencies are Leading the Front
Digital currencies, till now, have been considered the teenager of
money: one that can be easily swayed by a stray tweet, ready to
break the rules of the well-established market. But 2022 is
experiencing a growth in digital money, and banks are learning to
take them seriously. Central banks are launching digital
currencies. These are accompanied by developing regulations
around cryptocurrencies and a recognition that many of the core

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concepts of crypto trust will have enduring value. In years to come,
more financial institutions and government agencies will be
sharing data and ideas on ways to incorporate elements of this
new type of currency into the global financial system.
Read more: Global IPO was record-breaking in 2021; Should we be
preparing for headwinds in 2022?
6. The War for Talent Intensifies
With technology becoming a critical enabler for banks, a
publicized shortage of engineering, data, and security talent is
throwing light on the stark reality. Banks aren't as attractive as they
were to prospective employees. There is an unmet demand for
technical workers, but these roles are a small fraction of the talent
the banking sector requires.
The younger talent particularly needs flexibility and wants to be
valued in their jobs. They see the banking culture as rigid,
hierarchical, and overly formal, leading to a disproportionate
share leaving the sector.
Forward-thinking banks are developing integrated plans to
holistically address their employment issues. They are mapping
the skills required in the future and are using a variety of
approaches to recruit and retain young talent. They are also
reassessing their work structure, culture, and practices to enhance
their appeal among employers as well as employees.

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7. The Rise of Decentralized Finance
Today, the financial services industry is buzzing around
Decentralized Finance or DeFi.
DeFi is a system that uses blockchain and similar technology to
provide secure, programmable, real-time transactions directly
between digital asset holders. DeFi is often referred to as bank less
finance as there is no centralized entity regulating these
transactions. This indicates increased risk, but it also signifies more
control and fewer processing fees for participants.
Many of the biggest banks, like Goldman Sachs, are beginning to
leverage bitcoin and other cryptocurrencies. Others in
the investment banking spaces are speculating how blockchain
will disrupt the industry. However, one thing is for sure: DeFi is still in
its early days, and hence it is impossible to understand how it will
cause technological disruption in banking.
One way for banks to stay ahead of DeFi is to focus on developing
proprietary market intelligence. Leading firms are setting up data

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warehouses, integrating data from multiple sources, and
developing models to uncover meaningful insights. Reliable
market predictions, precise scoring systems, and other proprietary
resources will be the guiding force in winning business in the
future.
8. Omni-Channel User Experience: Banking on Your
Terms
Today, great customer experience is everything. Brands are taking
excessive measures to better understand their customers' needs
to form a deeper bond with them. When accomplished right, an
omnichannel experience provides consumers with increased
flexibility and convenience.
With technology continuously bridging the gap between physical
and digital experiences, the investment banking industry is
engaging more digitally with its customers than ever before.
While the pandemic forced our everyday activities to be
conducted online, the users have continued to rely on personal
connections with their bankers and advisor. But many consumers
and small business owners are willing to do things on their own,
which is why the self-serve option in banking will continue to
evolve, giving consumers the ability to confidently attain their
goals by using the mobile app features. AI, machine learning, and
voice biometrics will play a key role in helping professionals
authenticate a customer and address their questions more
efficiently.

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Read more: What will the economy look like in 2022? 6 trends to
watch out for!
Key Takeaways:
• The convergence of trends is reshaping the banking industry.
• The COVID-19 pandemic has led to banks becoming proactive by
challenging their long-held assumptions and becoming more adaptive.
• Banks today are looking forward to the opportunities that lie ahead of
them.

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Time to Employ a Different Approach
The banking sector is reshaping its businesses to continue to cater
to the needs of customers, employees, and other stakeholders.
While they once relied on their size and regulatory protection,
these factors may also be obstacles in today's environment. Banks
are now navigating these waters successfully and will be doing
things differently.
Banks are now working towards delivering more than the return on
equity and identifying opportunities to innovate efficiently. With the
pandemic subsiding, the coming years will start to see the
emergence of new normal in the banking industry.
2022 is likely to bring incremental modifications to the digital
banking landscape. With demand at an all-time high, the need to
delight the customers with practical digital features and seamless
experiences will be the driving key for banks in maintaining an
edge on their competitors.
With offices in New York, San Francisco, Austin, Seattle, Toronto,
London, Zurich, Pune, and Hyderabad, SG Analytics, a pioneer in
Research and Analytics, offers tailor-made services to enterprises
worldwide.
A leader in Investment Banking Outsourcing, SG Analytics helps
ensure seamless integration with the client’s strategy across the
value chain by providing advisory and valuation support services
globally. Contact us today if you are looking for investment
banking outsourcing to leverage advanced technology tools and
best practices of the industry to enhance your investment
portfolios and make strategic decisions.