The Value of Consultants in Investment Banking: Enhancing Expertise in Treasury and IT
In the world of investment banking, two days can be a lifetime. Despite having extensive in-house talent and expertise, banks often rely on consultants to gain a competitive advantage. The question is, why call in the reinforcements when you already have a powerhouse for a team?
Fresh Perspective
Consultants provide a different perspective that can be priceless. They are not associated with your organisation's culture or how things have been done. This new and impartial view might help reveal inefficiencies or opportunities that in-house teams can overlook.
Specialised Knowledge
While investment banks are often full-service, consultants are sometimes more focused with particular expertise in narrow areas. For example, an advisor might specialise in a new financial technology that promises to revolutionise treasury operations.
Flexible Resources
Consultants support major projects or busy periods with additional resources without the long-term investment of full-time hires. IT for deploying new systems, or in the Treasury for handling regulatory changes.
Industry Best Practices
Advisors work with various clients within the banking industry. This exposure enables them to provide benchmarks for multiple industries' best practices and stay ahead of strategies that banks need to adopt.
Change Catalysts
This can be really tough when trying to achieve significant changes. Be it IT infrastructure or Treasury processes, neutral consultants can frequently sail through the power play in organisations and bring about smoother transitions.
Regulatory Compliance
The regulatory landscape in Banking is constantly changing. Consultants draw the latest on compliance requirements, allowing treasury departments to stay ahead of regulatory change.
Risk Management Expertise
In an environment characterised by greater financial complexity, statutory accounts firms may provide specialised risk advisory services to Treasury units to assist them in establishing robust value frameworks for market, credit and operational risks.
Technology Implementation
Even though IT departments are essential for implementing new technologies, they can facilitate this with consultancies. They also have experience in several implementations, which smoothen the integration with current systems and processes.
Innovation Catalyst
Objective Decision-Making
Consultants bring new ideas or practices that a business might not have considered. This is incredibly beneficial, especially in rapidly changing fintech and digital banking areas.
The consultants' bias can be introduced for sensitive matters or significant strategy-making. They have a third-party perspective less tainted by internal biases & politics.
Investment banks have impressive in-house capabilities, but strategically using professional services can help them become significantly more efficient and competitive.
Banks should use third-party experts for Treasury or IT to enhance internal knowledge, deliver innovation, and keep ahead in an ever-more-complex bank industry.
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The problem is realising. Consultants should be considered as an extension rather than a substitution for internal capacity. If appropriately used. They can help investment banks realise their full potential and remain competitive in a changing financial world.
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Did any of what I said resonate with you?
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