McKinsey’s Trading Prophecy Is a Wall Street Ruled by Machines

(Bloomberg) — Wall Street’s future will be dominated by firms that embrace technology from electronic fixed-income trading to blockchain and predictive algorithms, reducing the need for people in the front and back office, according to McKinsey & Co. Global investment banks that successfully adopt automated trading and other measures can increase profit by 30 percent, the consulting firm said in a report released Wednesday. Smaller firms should take a more targeted approach, using technology to streamline operations and trim costs, according to the paper titled “Two Routes to Digital Success in Capital Markets.” “Banks taking the all-in route will end up with business models and economics that look very different from those they have today,” according to the report. “On the sales and trading front, digital channels will become the…


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