Google Partnership with Goldman Sachs to Automate IB?

Mar 5, 2020 7 Comments

What are your thoughts? I personally think that IB is one of the least automated areas in finance. Since banking is highly based on relationship building, this is hard to replace with tech. I've heard that Google is seeking to use APIs to automate a vast amount of work, not just trading. Do you think this will impact the demand for i-bankers? How much do you think you'll be impacted by this decision? Also how much do you think AI will hurt the relationship aspect of the industry?

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TOP 7 Comments
  • Where do you see any news about this?
    Mar 5, 2020 1
  • Oliver Wyman
    Josh2189

    Go to company page Oliver Wyman

    PRE
    JPMorgan Chase & Co.
    Josh2189
    These kind of partnerships are bound to happen at some point. Tech companies are great at handling data and being more efficient. Banks are the only companies capable of dealing with the amount of regulations imposed in FS. A partnership between both worlds would be really good the market
    Mar 5, 2020 0
  • Work is already being automated, but that's analyst work. If you think a program can talk to uhnw individual and convince them to invest 9 figures, then it's worth trying.
    Mar 5, 2020 0
  • New / Finance
    KDANA

    New Finance

    KDANA
    I think it is still limited. The only part where IB division can be automated is Trading no? I am not sure where else can be automated. I heard fund placement for buy-sides (PE/VC) can be automated once a platform for listing fund availability and needs is created (heard many in SF techs are jumping in)
    Mar 5, 2020 0
  • Barclays PLC / Finance
    VestLife

    Go to company page Barclays PLC Finance

    VestLife
    I find it hard to believe the day to day of IB can be automated. Yes, you could make a very basic template model or comps, but every deal is unique and MDs / clients always want to see specific analyses. Automation, at least as we know it today, will be challenged to meet these bespoke demands.

    On top of that, 75%+ of banking isn’t numbers. It’s talking to clients, providing advice, crafting marketing materials, etc. These are not able to be automated. Clients also want to have a trusted confidant and not just a robot, so that portion of the job will likely never be replaced
    Mar 5, 2020 0