Citigroup has created a new unit to help its investment bankers use big data to advise corporate finance clients, as large advisory firms increasingly turn to technology to automate parts of the dealmaking process. The new division is called strategy advisory solutions, and it combines three business lines including its unit advising companies on how to defend against activist investors and its data science unit, according to a memo seen by Financial News.
“Being able to produce analytics quickly, tailor insights to specific clients and support advice with differentiated data research will further distinguish Citi and empower bankers globally with new and impactful tools,” the memo from investment banking bosses Tyler Dickson and Manolo Falco said.
The new unit means that its financial strategy group, shareholder advisory and data science capabilities come together under one roof. Investment banks’ advisory businesses have largely escaped the relentless march of technology that has automated a number of functions on the trading floor and eliminated thousands of jobs. However, while dealmakers are not yet being replaced by machines, large investment banks are turning to technology to help them analyze vast quantities of data faster.