Bank of America Merges Fintech Investment Banking with Tech
Bank of America has integrated its fintech investment banking merger team into its technology group, a strategic move announced at the Tech Innovation Summit in San Francisco this week.
The Bank of America is restructuring its fintech and tech teams to meet changing needs for fintech in investment banking technology companies, increasingly similar to traditional technology firms in operations and financial models.
The growing convergence between banks investing in fintech services and technology, particularly in the payments and software space is heavily reflected by this move.
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Bank of America investment in fintech is pushing its capital into the sector by adding around 50 fintech specialist bankers to a 200-strong technology group, led by Kevin Brunner, chairman of global M&A and global head of technology, media, and telecom investment banking. The Bank of America’s push is a part of how companies in that sector are endorsing bank fintech investments with the vision of the banking sector becoming more like software-driven industries-from providers of digital payments to digital lending.
“Fintech payments and software are bound to intersect,” Brunner noted during an interview at the bank’s Tech Innovation Summit in San Francisco, explaining that fintech investment banking innovations companies have similar financial profiles, just like the software companies, and thus it makes sense to put them under the same group.
Changing Landscape in Fintech
Historically, fintech investment banking merger had been seen primarily as a subsector of financial services, with verticals of payments and online brokerage that allow banks invest in fintech, but that barrier is eroding now that these businesses are looking more like pure software plays.
The appointment this summer of Brunner to the leadership of the bank’s technology, media, and telecom banking division speaks to strategic attention at Bank of America to that trend of bank of America investment banking. This structural shift underlines the rising importance of technology in financial services and the ways in which institutions cope with the dramatically changing landscape.
The entire industry is shifting toward integrating banks investments in fintech innovations into traditional banking practices. As software-driven solutions continue shaping the future of financial services, major institutions such as Bank of America have started evolving their strategies to keep up in a rapidly changing world.
Stirring the fintech investment banking merger and Tech teams together positions the bank for the rise of digital finance as a purveyor of growing importance, and it better arms its clients to take part in that transformation. It points to the realization that the future of finance will increasingly be about technology and places Bank of America for leadership in space.
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