- A recent survey of Wall Street executives indicated a split regarding return-to-office plans.
- 42% of respondents from banks and brokerages plan to let their workforce continue to work remotely in a post-COVID environment.
- The same cannot be said of asset managers like hedge funds, private equity and real-estate funds, where 42% said working from home for the long term seemed “somewhat unlikely.”
- All firms plan on investing more in technology as a result of the crisis, with banks and brokerages focusing on trading tech while asset managers plan to put resources towards cybersecurity tools.
- Visit Business Insider’s homepage for more stories.
Nearly half of banks and brokerages — 42% — plan to let their workforce continue working from home in a post-COVID environment, according to a new survey of Wall Street firms.
The survey, conducted in June by tech giant Fidelity National Information Services (FIS), polled 250 executives at banks, brokerages, and asset managers on how the pandemic has impacted their outlook across a variety of topics.
And while many banks and brokerages are happy to maintain the status quo for the foreseeable future, hedge funds, private-equity firms, and real-estate funds seem more keen to return to the office. Only 26% responded they were “somewhat likely” or “very likely” to maintain remote working in the long term. Meanwhile, 42% deemed continuing to work from home in the future “somewhat unlikely.”
Read more:Wall Street’s disaster playbook never included work-from-home trading. Insiders explain how banks rapidly adjusted during one of the most chaotic markets in history.
Regardless of firms’ return-to-office plans, all seem keen to put more resources into their tech in the wake of the pandemic.
One big takeaway: Firms realize they need to step up their technology to address the unique circumstances associated with working remotely. Roughly 54% of banks and brokerages said they would channel resources into upgrading their technology over the course of the next year, with a particular focus on new trading systems.
Across the aisle, one of the buy side’s top priorities is investing in cybersecurity tools, with 56% of respondents highlighting that area as a place resources will go to adapt to the new environment.
Wall Street is reassessing its growth strategy
Investment into tech won’t be the only shakeup the industry is likely to see in the coming months, according to the survey. Amongst banks and brokerages, 35% believe mergers look more likely in the next 12 months compared to 12% before the pandemic.
There will likely be plenty of offerings for sale, as 38% of all respondents said they would look to divest or sell-off non-core business units in the next 12 months.
See more:There’s never been a better time for banks to buy fintechs, according to a Capital One cofounder. Here’s why both sides need each other more than ever.
Startups, many of which have proved their value during the crisis, will also be sought after. Nearly a quarter of all respondents (23%) said they would look to acquire a fintech company over the next year.
The surge in retail trading has also caught Wall Street’s attention. Many bank and asset managers plan on targeting that audience going forward, with 34% indicating there will be increased focus on marketing new products to Main Street.
Are you a young person working on Wall Street? Contact this reporter via email at email@example.com, encrypted messaging app Signal (561-247-5758), or direct message on Twitter @reedalexander.
Private-equity firms’ cybersecurity defense has lagged. Here’s what makes them attractive targets — and what they can do to protect themselves, according to experts.
Wall Street is being shaken to its core by a legion of Gen Z day traders. From a casual hobbyist to a 20-year-old running a 14,000-person platform, meet the new generation of retail investors.