Foreign exchange attracted major investment from banks as they looked to enhance their revenue streams outside previously core areas such as equities. As a result, they spent heavily on FX technology to increase the speed and efficiency of FX trading systems and platforms. Meanwhile, the ever-changing regulatory landscape puts permanent pressure on investment banks to comply with decrees from the Financial Services Authority well as international directives.
Within retail banking, technological change is being driven by the massive divestment programmes taking place. The process of setting up a new retail bank with its own infrastructure and systems is a massive technological endeavour, therefore there has been demand for IT professionals to staff divestment projects.
The institutional fund managers hired IT staff in significant numbers to support major change programmes that were driven by merger activity, technology refresh and regulation.
Investment management firms also had to respond to a raft of regulation including the Markets in Financial Instruments Directive (MiFID2) and Regulation (MiFIR), the European Market and Infrastructure Regulation (EMIR), Retail Distribution Review and rules around short-selling and capital adequacy.