Which of the following is a primary goal of fintech in investment banking?

• A. Reducing competition among financial services
• B. Improving the efficiency of financial transactions
• C. Minimizing regulatory compliance burdens
• D. Eliminating human interaction in financial advice

Answer: (B)

Improving the efficiency of financial transactions is a primary goal of fintech in investment banking because fintech leverages technology to streamline processes, reduce transaction times, and enhance overall operational efficiency. By adopting innovative solutions such as automation, artificial intelligence, and blockchain technology, fintech aims to create faster and more cost-effective ways for financial institutions to conduct transactions, manage data, and serve clients.

Efficiency gains can lead to lower costs for firms and clients alike, fostering a more competitive market where investors can access services more quickly and reliably. This focus on efficiency aligns well with the overarching aim of fintech to harness technology to modernize traditional banking practices, thereby enhancing user experience and operational productivity.

While reducing competition, minimizing regulatory burdens, and eliminating human interaction may be considerations within the financial services landscape, they do not capture the core focus of fintech in investment banking, which is fundamentally about improving transaction efficiency.