Using AI models for credit risk assessments can help financial institutions make smarter decisions to boost the customer life cycle

Posted on January 1, 2022January 2, 2022 by Imarticus Learning

Credit risk may vary differently depending on the type and amount of credit, but now there are new methods to assess it. Artificial intelligence models are the next step up from traditional scoring systems and offer a more nuanced look at your customers.

The use of AI models for credit risk assessment has been on the rise in recent years. It’s easy to see, unlike traditional scoring systems, these models provide a more nuanced view of customers and their financial history.

With this information, you can ensure that reliable data will back any loans or other financial products offered.

This article helps you to understand AI-based credit scoring models and how they help make your business more profitable.

AI-based credit scoring model:

It is about improving the transparency of credit through increased access to information, higher credit standards, and improved risk assessment.

The big contribution of the AI-based credit score model is not only figuring out people’s real identity or whether they are eligible for loans. Instead, it changes the old idea that people who make more money could easily get a loan.

The model evaluates borrowers not by personal income levels but by risk factors, including employment history, credit report, assets, and liabilities.

This way, when making decisions about an individual’s eligibility for loans without lessening the effect on others in society.

Consumers can be evaluated according to their implications rather than just their income level- thus decreasing the incidence of the poverty cycle.

Benefits of integrating AI credit risk assessment model

AI is fast, smart, and efficient at making decisions without any biases or emotions getting involved. This means you can make more informed financial decisions based on scale data from the entire population.

AI-based solutions transform credit scoring in several ways. Involving such a model can help the financial institutions as follows:

With the support of the AI credit score model, financial institutions can learn about their customer’s financial behavior based on historical data and potential income forecasting. Such analyses help the institutions to sell their credit plans to the right category of clients.
AI model offers greater speed without compromising quality or precision. The lending decision is much easier than traditional methods where banks used to apply decision trees, regression, and complicated arithmetic analyses to generate the client’s credit score.
AI smart applications are available to check the customer’s creditworthiness and maximum credit limit.
It has allowed the banks to increase the customers’ lifetime value by engaging with them continuously and intelligently to strengthen each relationship across diverse products and services.
Increased profits due to efficient targeting of low-risk loans. Both economic and efficiency terms benefit from reduced bankruptcy rates.

Learn more with Imarticus Learning:

Imarticus Learning presents credit risk management courses that help to understand India’s credit landscape and the entire loan assessment process.

Our Credit Risk Management Course USPs:

Quality learning experience through learning pedagogy consists of 145 hours of live lectures.
The comprehensive credit risk management courses strongly emphasize the digital innovation that is disrupting the lending space.
Helping to build a career in banks, NBFCs, and start-ups through resume enhancing workshops, interview preparation sessions, and mentorship.
Holistic, well-rounded, and practical curriculum designed and delivered in collaboration with Moody’s Analytics.

For further details, contact us through the Live Chat Support system or visit our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, and Gurgaon.

Here’s why real-time payments aren’t available to corporates

Posted on December 6, 2021October 5, 2022 by Imarticus Learning

Here’s why real-time payments aren’t available to corporates

Every business requires funds and needs to process payments faster. However, corporate payments still take time, and organizations usually cannot facilitate funds easily. The delayed processing of payments has led to a demand for real-time payments in the corporate sector. However, for that to happen, banks and companies require significant structural changes. A PGPNAB in new-age banking and finance can help candidates develop ideas about introducing real-time payments in the corporate sector.

Why Can’t Corporates Use Real-Time Payments?

Instant payments are popular in the world of retail. Retail customers often expect and use instant or real-time payments while buying products. However, in the corporate world, this has not been the case. Real-time payments are not available to the corporates for any purchase. Real-time payments are not available to corporates because corporate organizations often have funds tied up that cannot be used for immediate payments. The system of withdrawing or accessing these funds in real-time is complex.

The traditional payment infrastructure that corporate organizations depend on is responsible for real-time payments not being available. The back-end systems of corporate companies are not capable of taking or creating real-time payments. For instant payments to become accessible, there needs to be a change in the entire infrastructure.

In the corporate sector, companies opt for batch processing of payments. Usually, information related to a particular billing is sent to a company’s bank, and the bank processes the payments in batches. Such a method takes time. If companies were to introduce real-time payments, they would need to change this system entirely. In real-time payments, individual bills are processed and settled as soon as they are available.

The change needs to come about in both banks and corporate organizations. Banks need to provide modern solutions to corporate clients to process all business payments in real-time. On the other hand, corporations should change the existing technology, business operations, and overall structures. It will help create suitable gateways for real-time payments.

There are many business professionals and students who wish to work with advanced technologies for newer payment channels. They can opt for a banking and finance online course. A course from Imarticus Learning will help candidates focus on new-age solutions.

Understanding the Use of Real-Time Payments

A complete understanding of real-time payments is necessary for those wishing to incorporate them in corporate organizations. If they are introduced in the corporate world, companies will reduce the complications arising from long settlement periods. Every business wants to get paid faster, and the only way that can happen is through real-time payments. A PG diploma in banking and finance is an excellent choice for candidates who wish to learn and work with real-time payments in corporate organizations.

It is especially suitable for working professionals. Imarticus Learning offers a PGP in New-Age Banking. The course is ideal for graduates who preferably have experience of 1 or 2 years. Candidates can enroll in the PGP in New-Age Banking and sit for placements after 11 months. The curriculum for both programs includes recent financial trends and banking modules. Students are taught to use advanced technological solutions and offer practical training. It prepares students for the industry and helps them focus on their specializations.

The PGPNAB program from Imarticus Learning offers multiple career options after graduation. It is also ideal for business professionals who want to learn how to implement real-time payments in the corporate sector. The corporate industry is currently booming and can benefit from real-time payments. Thus there are many opportunities, and Imarticus Learning ensures placements once the students graduate.

Did you know enrolling for these online MBA courses gets you a whole host of exclusive benefits?

Posted on October 11, 2021October 14, 2021 by Imarticus Learning

We live in a time when everybody desires an MBA! It has become a norm, and people make that choice without fully understanding why. That is most likely why business schools ask the same question in their MBA applications and interviews.

While it is extremely important to figure out why you want to pursue it as a career after graduation, it is equally important to enrol yourself somewhere reliable. There are many courses that promise you a lot of perks, but end up delivering nothing. Those of you who are unable to go for a full-time MBA course should consider distance learning MBA programmes.

Here are two of the best online MBA courses that will help you shape a good career:

MBA in Fintech:

This FinTech MBA online course includes all the key components of FinTech as well as provides you hands-on experience with leading technologies, including API, Blockchain, Cloud Computing, AI, Machine Learning, RPA, IoT and Big Data.
On enrolling to this JAIN Online MBA in FinTech, you will be given access to five professional courses on LinkedIn. Each course is meant to broaden your understanding of essential FinTech components through an easy online learning experience, boosting your ability to comprehend complicated FinTech subject matter during the main MBA course.
This JAIN Online MBA in FinTech learning experience is given using the four quadrants strategy, resulting in optimal learner engagement. Each quadrant has 120 hours of learning, two-way live online classes, pre-recorded lectures on their Learning Management System (LMS), student conversation forums on the LMS, comprehensive e-content & printed material for in-depth comparisons, self-study tasks, case studies, et al.
This MBA in Investment Banking & Equity Research includes significant student mentoring programmes. One can take advantage of the weekend Virtual Mentoring Sessions while simultaneously attending doubt resolving sessions with lecturers during live lectures or on the Learning Management System discussion boards.
Along with feedback on Resume Writing and Interview Prep, they offer a specialised Corporate Relations Team to help one find the ideal career path. The Corporate Relations Team provides regular feedback on the CV and social media profiling, as well as 1-on-1 Mock Interview Sessions.

MBA in Investment Banking:

This distance learning MBA course, just as the aforementioned course, grants you a host of benefits which include:

This Investment Banking MBA Programme covers every key facet of the industry. This course helps you learn Accounting, Financial Analysis, Economics & Markets Principles, Investment Banking Operations, and a lot more.
As part of this forward-thinking programme, you will have ongoing access to the university’s lab environment, allowing you to put theory into practice.

Following completion of your Investment Banking MBA, you will receive exceptional career support and job placement options from both JAIN University’s Relations Team and Imarticus Learning’s specialised Placement Team.

Conclusion:

These two are one of the best online MBA courses you’ll find, and both of them are acknowledged by the UGC. They give you a whole bunch of benefits which you can enjoy while juggling between your work as well as academics. If you are looking for a lucrative career after graduation, then give this a shot!

MBA Entry, no longer CAT-centric- An Opportunity for Executives working from home!

Posted on October 7, 2021March 29, 2024 by Imarticus Learning

The MBA admission process has changed drastically over the past few years, with the CAT (Common Admissions Test) becoming less and less of a focal point for admissions officers. Instead, colleges are now looking at more holistic measures to assess potential students, including essays, work experience, extracurricular activities, and leadership positions.

This shift in focus is directly related to an uptick in applicants and colleges fighting over limited resources like funding and qualified staff members. Professionals always doubt what to do after B.COM. This blog post will guide you about the online MBA course.

Current Trend of Business Schools

The current trend among business schools is to use these alternative assessment methods to understand better who will be successful within their programs. The latest trend in MBA admissions is to look beyond applicants’ test scores and focus on a more holistic picture of their people. There is a shift away from purely quantitative measures of success, such as students’ undergraduate grades and MBA entrance exam scores.

How does an online MBA address the learning need of executives working from home?

One of the biggest challenges working executives face is staying on top of their continuing education and professional development. Graduate professional biggest question is what to do after B.com thus gets solved with an online MBA course.

Students can travel and work extended hours, leaving them with limited time at home to do an MBA degree. It has led many to search for MBA courses online, where they can take classes at the comfort of their space at any time and still get the knowledge and certification they need.

For many working professionals, staying current with their continuing education and professional development can be challenging because of limited time at home.

Working professionals often turn to MBA correspondence to get the necessary knowledge and skills without sacrificing jobs. This way, they still get the knowledge and certification they need but still stay up to date with their professional development.

This change in focus is directly related to an uptick in applicants and an increase in schools fighting over limited resources like funding and qualified staff members. As such, many MBA correspondence programs are looking for ways to expand their reach to capture a larger pool of prospective students, and this is where the shift towards non-CAT measures comes into play.

Why Enrol in MBA program with Imarticus Learning

The widespread adoption of financial technology has dramatically altered the global economy’s dynamics, leading to a surge in the need for skilled FinTech specialists. The 4 Quadrants strategy use to deliver the learning experience for this best online MBA course in FinTech, leading to optimum active learning. Personal and group assignments, programming exercises, and thesis all provide opportunities for hands-on education.

Some course USP:

The course lets the students learn skills that prepare them for an exciting MBA career.
Impress employers & showcase skills with a certification endorsed by India’s most prestigious academic collaborations.
World-Class Academic Professors to learn from through live online sessions and discussions. It will help students understand the practical implementation with real industry projects and assignments.

Contact us through the live chat support system or schedule a visit to training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, and Gurgaon.

Intuitive tools to power your pitch, structure better deals, and climb the league tables in Investment Banking Operations

Posted on October 5, 2021 by Imarticus Learning

The investment banking sector is a section of the banking and financial services business that assists organizations in raising funds and also provides advice and consultations on a variety of financial instruments available by assessing individuals’ and firms’ needs and risk appetite. These days taking up an investment banking operations course will assure you a very good job in the banking industry.

What is a pitchbook and how to make a powerful pitchbook?

A pitchbook is a sales book used by investment banks to market products and services to potential clients. The goal of a pitchbook is to close a deal with potential clients. It gives a general picture of the company, including historical information, financial strength, and services available to potential clientele.

Points to remember while making a pitchbook:

Introduction:

This part is used by the bank to explain who they are and why they are the greatest in the industry. It gives a summary of the transactions it has successfully managed as well as some of the industry accolades it has received in the past. It also offers information on its position in the sector.

Updates on the market:

The market update section displays the current situation of the financial markets. This section will pique the client’s attention because it contains the bank’s thoughts on the direction of the financial markets.

The strategy of transaction:

This part describes the strategy that the bank will employ to suit the client’s needs, depending on whether the client wants to issue an IPO, sell a business, or locate a strategic partner.

Methods of Valuation:

The bank demonstrates the appraisal methodologies it employed to arrive at specific findings. For example, the bank may utilize comparative analysis to compare the client’s business to other enterprises in the same industry.

Appendix

The appendix section provides backup information for the information presented in the pitchbook’s body. It is added as the pitchbook’s final section and contains information on the assumptions used in computing future projections, financial reports, and so on.

How to structure better deals?

To establish a fantastic deal structure, aim for a win-win scenario in which both sides’ interests are effectively protected, the deal and risks are kept to a bare minimum. Win-win deal structures are more likely to result in a completed merger or acquisition transaction and may even shorten the time required to complete the M&A process.

Three ways of structuring deals:

In an asset acquisition, the buyer purchases the selling company’s assets. If the selling business chooses a cash transaction, an asset acquisition is usually the optimal deal structure. The buyer selects which assets to buy.
In contrast to an asset acquisition, where assets are directly transacted, assets are not directly transacted in a stock buy. The buyer acquires a majority of the seller’s voting stock shares in a stock purchase acquisition. In essence, it means that the buyer gains control of the seller’s assets and liabilities.

A merger is the outcome of an agreement involving two different commercial companies to unite as one new organization. A merger is usually less complicated than an acquisition because all liabilities, assets, and so on are transferred to the new business.

How to climb the league table?

A league table ranks market leaders based on various indicators within a specific industry. League tables are frequently used to rate organizations that provide underwriting, financial and legal advice, and mergers and acquisitions services.

There are several ways to make your way up the league table in investment banking. By far the most obvious yet effective way is to crack higher valuation deals in the M&A segment to achieve a higher net-worth and term value.

Conclusion

As evident from the above discussion, investment banking and its operations are extremely crucial parts of the banking industry, hence taking up an investment banking operations course will easily fetch you highly paid jobs. If you are considering a career in banking, such a course will definitely add to your knowledge and experience.

Financial Analysis: India’s GDP and Fiscal Situation Seem Back on Track in 2021

Posted on September 29, 2021March 21, 2024 by Imarticus Learning

The recent COVID pandemic has harmed the GDPs and fiscal situations of countries across the globe. Financial analysts were the only ones that could help investors and companies to go through the challenges of the COVID pandemic. However, the COVID scenario in India is now under control and businesses have started their operations.

According to the latest financial analysis reports, the GDP and fiscal situation in India are back on track. 2021 has brought a new opportunity for businesses to generate huge revenue and gain returns on investment. Read on to know more about the current GDP and fiscal situation of India and how financial analysis helps.

Understanding GDP and fiscal situation

As a businessman or a financial analyst, you should be familiar with the terms like GDP and fiscal situation. GDP (Gross Domestic Product) refers to the market value of all the finished goods/services produced within the country. GDP is strictly applicable to the products and services produced within the borders of the country. The current GDP of a country is used by businesses and investors to make strategic decisions. GDP lets us know about the economy and producing capacity of the country.

Along with GDP, the fiscal situation of a country is also important in evaluating the economy. A strong fiscal position of a country is good for businesses and investors. If a country has its expenditures less than total revenue generated, it has a strong fiscal position.

If a country experiences a fiscal deficit (expenditures are more than revenue), it will also hamper the continuity of businesses.

GDP and fiscal position are important terms for a financial analyst to carry out the research process. If you are searching courses for financial analysts, you should have a prerequisite of GDP and fiscal position.

Current GDP and fiscal situation of India

For the first quarter of the 2021-22 financial year, the GDP in India has grown by 20.1%. The lockdown imposed by the government during the peak-COVID time severely affected the production of services and goods. Now, businesses and production houses are allowed to operate which has led to an increase in GDP for the first quarter. Construction and manufacturing sectors in India have shown the most growth in the first quarter of the 2021-22 financial year.

The revenue collection of the Indian government will also be better in 2021. High GST collections by the Indian government have narrowed the fiscal deficit. The fiscal deficit for the first four months of 2021 came to a nine-year low due to better revenue collection. All these details are closely studied by financial analysts. You can also search for courses for financial analysts and build a successful career.

Perfect course for financial analyst

Among the many financial modeling courses in the market, Financial Analysis Prodegree offered by Imarticus Learning is the best. Its industry-oriented curriculum designed by KPMG makes it one of the best financial modeling courses in India. During the pro-degree program, you will work on six real-life projects to know more about industry practices.

It is a type of chartered financial analyst course that is self-paced and tech-aided. You will also be eligible for the placement assistance provided by Imarticus towards the end of the financial analysis course. Imarticus has successfully helped around 2400 enthusiasts to build their careers with their courses.

Conclusion

A chartered financial analyst course can help you in knowing the techniques used in the industry to make better decisions. You can learn to evaluate businesses, investment ventures, and projects with a financial analysis course. Start your financial analysis course with Imarticus now!

Fuelling Business Growth and Innovation with Investment Banking Operations

Posted on September 24, 2021April 1, 2024 by Imarticus Learning

Investment banking is that division within the banking sector that facilitates large capital funding for corporations and governmental bodies. Common perceptions make us immediately associate investment banking with Harvey Specter like bankers assisting corporations to crack high stakes negotiations and deals. But there are massive backend operations going on at all times without which these deals would be impossible.

That is the importance of investment banking operations. An operational investment banker, more commonly referred to as an operations specialist, is responsible for ensuring efficiency, accuracy, profitability, and risk reduction vis-a-vis the clearance and settlement of transactions for the company’s clientele.

Utilizing investment banking operations to their full potential engsures infinite business growth and innovation. Which is all the more reason why operations is an extremely lucrative career path.

In this article, we discuss the ways in which business growth and innovation can be fuelled with investment banking operations as well as provide recommendations for investment banking online certification and investment banker courses in India for anyone looking to learn investment banking to improve their career prospects.

Function Of Investment Banking Operations

Investment banks offer transactional, legal, and advisory services to their high-profile clientele with complex financial needs.

Some of the activities included in the oeuvre of investment banking are underwriting, mergers and acquisitions, equity research, and asset management.

During the processing of transactions, there is a huge volume of information, products, and money that continuously flow from end to end. The smooth processing of this data falls under the jurisdiction of the operations teams which is also referred to as the back office or engine room in investment banking parlance.

Apart from providing support to client-facing departments, the operations staff also ensure the optimal functioning of IT solutions and data management systems deployed across the organization. They also oversee the regulatory requirements of a bank.

Driving Growth Potential With Investment Banking Operations

Investment banks play a pivotal role in sustaining the larger economy by adding liquidity to the financial markets. They promote business growth and aid the circulation of money in the economy thereby promoting growth. Banking operations are the dark knight of any investment bank – the heroes who hide in plain sight. Although, they perform non-revenue functions, without them the profit-making capacity comes crashing down.

Think of it as having a strong core. No matter the amount of muscles one grows in the arms or legs, without a strong core, the body is unable to support or balance them. Streamlined banking operations can save banks tons of money which can then be utilized for business growth and building innovations.

How To Be An Operational Investment Banker

There are several roles and functionalities under the banking operations of an investment bank. New entrants usually undergo extensive on-the-job training for at least one to two years that helps in the development of niche expertise.

Hiring teams in investment banks look for formal education in finance and internship or apprenticeship experiences in potential candidates. Having an investment banker online certification also adds to a candidate’s competitive edge.

Conclusion

To learn investment banking, a good place to start is to get a degree from any reputed institution in India. A Certified Investment Banking Operations Professional course from a good institution can be the best investment banker course in India that can guarantee a CIBOP degree and best job interview opportunities.

If a classroom environment seems uncomfortable in the post-Covid world then you can also consider this online Certified Investment Banking Operations Professional course that offers holistic learning in the nitty-gritty of investment banking operations.

How to Traverse the Web of Investment Banking Operations

Posted on September 18, 2021March 29, 2024 by Imarticus Learning

An investment banking career is one of the most prestigious professions in the banking space because it guarantees a lucrative remuneration, infinite growth potential, and scope to work in leadership roles. Every year hundreds of graduates and experienced professionals seek to enter the investment banking space in various roles.

This article aims to simplify the web of investment banking as well as discuss career paths in investment banking operations.

What is Investment Banking all about?

Despite its high demand as a career option, the most commonly asked question is this – what is investment banking all about?

Investment banking is a division within the larger ambit of a bank or a financial institution that connects investors with corporations, governmental bodies like municipalities, and large institutions. Investment banks offer operational, transactional, legal, and advisory services to their high-profile clientele with complex financial needs.

Investment banks provide a range of services to their clients, such as:

Underwriting
Mergers and acquisitions
Sales and trading
Asset management
Equity research
Managing stocks and shares
Commercial and retail banking

Contrary to popular perception investment banking is not a single job. Rather, it is a huge segment within the banking ecosystem within which several departments and jobs exist. The various roles within investment banking can be categorized into:

Front office functions (revenue-generating and client-facing roles)
Middle office functions (overseeing compliance and risk management)
Back office functions (managing the entire organization’s operations)

Who Is An Operational Investment Banker?

An operational investment banker, more commonly referred to as an operations specialist, is responsible for ensuring efficiency, accuracy, profitability, and risk reduction vis-a-vis the clearance and settlement of transactions for the company’s clientele. Operations staff provide support to the client-facing departments. They are also responsible for the smooth functioning of IT solutions and data management systems deployed across the organization.

The responsibilities of an operational investment banker include:

Processing and settlement of financial transactions executed by front-office teams
Efficient logging and accurate processing of transactions within prescribed timelines
Developing and maintaining automated systems for fast and precise processing
Initiating and overseeing processes
Aiding in maximization of efficiency and profitability

Needless to say, an operational investment banker plays one of the most crucial roles in any investment banking firm. Without the operations staff, no process or transaction can go through in a safe and efficient manner. Entry-level staff in this niche are often hired as analysts and undergo a one to two-year on-the-job-training program and formal learning where they are taught administrative and business skills along with a deep dive into the company’s software systems.

How To Have A Career In Investment Banking Operations?

Like any other investment banking role, getting into operations can be challenging because of the competitiveness that exists in the field. On average, companies receive a minimum of hundred applications for each vacancy. Due to this reason, it is vital to have a competitive edge over other candidates to land a decent job in investment banking operations.

Candidates with a degree in finance or a valuable investment banking certification stand a better chance when it comes to being recruited. Companies also regard apprenticeship or internship experiences in operations with high value. Similarly, having an MBA degree in finance from reputed institutions also ensures significantly higher chances of getting recruited into top management positions in investment banking operations.

Conclusion

A career in investment banking operations provides high levels of personal and professional growth, stability, and lucrative financial rewards. It is one of the most important and sought-after career paths in the banking industry and valuable expertise to acquire if one seeks to climb up the rungs to top leadership positions.

The journey begins with upskilling oneself to suit the requirements of an investment banking operations career.

For that, an investment banking certification course like this Certified Investment Banking Operations Professional course is a good place to start.

Investment Banking and Its Key Advantages!

Posted on September 17, 2021September 17, 2021 by Imarticus Learning

Understanding Investment Banking

Investment banking Training is a specialized division within the finance and banking industry that engages in advisory-based financial transactions for its clients, the clientele includes individuals, government, and corporations. Investment bank helps in capital creation for its clients. The primary function of these banks is to act as a mediator and facilitate financial transactions between two or more parties.

The investment banks leverage their vast network to connect borrowers seeking funds with investors having surplus capital to invest in profitable avenues.

Investment banks help the economy on a macro level by channeling funds between borrowers and investors. Investment banks also help to facilitate Mergers and Acquisitions deals; it requires conducting rigorous research on the companies that can be a good fit for its client’s M&A strategy. Investment banks also help with underwriting new debt and equity securities for various corporations.

Let’s understand the functioning of an investment bank using a familiar example. You must’ve heard of Initial Public Offering (IPOs), during the IPO process the company issues shares and invites the public to be a part of the organization by buying its shares at a predetermined price. A lot is going on behind the scenes, like valuation of the company, market analysis, competitor’s analysis, etc.

All these complex tasks are carried out by Investment banks to help companies go public and accumulate the required capital for their growth and profitability. Investment banks also determine the share prices so that the chances of oversubscription and under subscription can be avoided. Let’s dig deeper into some of the key advantages of Investment banks and how they help the economy.

Key Advantages of Investment Banks

The key advantages of Investment banks can be highlighted in their functioning.

Initial Public Offering (IPOs): Initial Public Offering process is an overwhelming financial transaction process and requires expertise in various aspects. Investment banks serve their clients going public by acting as intermediaries between corporations and investors.
Investment banks provide underwriting services for companies opting for equity funding by issuing company stocks to the public. The underwriting process is not as simple as it sounds. The underwriting process involves investment banks purchasing the shares of the company at an agreed-upon price which it then resells to the public using a stock exchange.This requires the investment bank’s commitment to purchase a specified number of shares, it could purchase all or part of the total shares being issues. There are three types of underwriting commitments; it includes firm commitment, best efforts, all or none. In the firm commitment, the investment banks have to purchase all the shares being issued at a predetermined price.

The best effort commitment is suggestive of the name, here investment banks commit their best to sell as many shares as possible and there is no legal obligation for them to buy all the shares being issued. All or none case requires selling all the shares being issued to the public, any under the subscription will lead to a null deal.
Mergers and Acquisitions (M&A): Mergers and acquisitions is a strategy used by corporations to come together and boost collective profit by eliminating competition. Corporations leverage their synergy in operations to boost profitability and growth prospects. The merger involves two companies usually competitors coming together whereas acquisition involves one company buying a majority stake in another company or acquiring it.

This whole process entails complex research work to understand the competitors in the market and what they bring to the table for a profitable M&A deal. The M&A deals also require investment banks to value to targeted companies that could be a profitable prospect, this valuation requires conducting rigorous due diligence to understand the financials of the prospective company.

Also Read: Beginner Guide to Investment Banking

Emerging Worldwide Market Trends and Events with in-depth Financial Analysis in Investment Banking Operations!

Posted on September 1, 2021March 22, 2024 by Imarticus Learning

Financial analytics is an operational function of financial services and financial markets that uses various mathematical, statistical, economic, and financial models to forecast the financial position of individuals and corporations.

Financial analytics professionals provide clients with financial forecasts for multiple purposes, such as investment banking operations. For those wondering “why investment banking,” this blog explores the latest global trends in Investment Banking Operations, making the field apt to explore opportunities.

The global investment banking market is segmented:

By Type: Financial Sponsor/Syndicated Loans, Mergers & Acquisitions Advisory, Debt Capital Markets Underwriting, Equity Capital Markets Underwriting
By Enterprise Size: Small, Medium and Large Enterprises
By End-Use Industry: Financial Services, Retail & Wholesale, Information Technology, Manufacturing, Healthcare, Construction, Others

Emerging global market trends in Investment Banking Operations:

High-frequency trading

Research indicates that the global high-frequency trading market will nail a bullish growth from 2020-2026. HFT platforms use complex algorithms, analyze needs, and spot emerging trends in a fraction of a second. The investment firms implementing HFT can expect high favorable returns on trades, giving a more systematic approach to active trading.

Virtual IPOs

Lockdowns accelerated the demand for remote connections & transactions. The pandemic has forced companies to opt for virtual IPO. Automation of the process during pandemic decreased the time to 50 percent.

Digital technologies

The COVID-19 pandemic pressed for digital transformation, i.e., consolidation & automation of mid-and back-offices. Some digital technologies redefined recently include:

Robotic Process Automation (RPA) for budgeted operations
Mobile payment methods
Cyber hygiene
Use of AI & smart technologies
Investments in the hybrid cloud from popular service providers
Confidential computing for data & communication privacy
Automation of data distribution with big data analytics & real-time reporting
Monitoring & tracking compliance & regulations
Increased security with blockchain technology

Scope of Career in Investment banking with the shifting trends

With the advancement of investment banking with recent financial analysis trends, job redesign is the next step. Organizations ensure that they build a talent pipeline that understands regulations, new technologies, risks, and new changes. Since this job profile demands face-to-face client servicing, the nature of jobs is also changing.

IB professionals need to upskill & augment their understanding of technology. It is crucial to keep yourself updated in the domain through recent investment banking certifications and primary courses in trending technologies and explore financial, technical, & interpersonal skills to stay above the mark.

Grow and Explore with Imarticus Learning:

The Certified Investment Banking Operations Professional course fully equips you with the skill-sets required to begin a career in investment banking operations, treasury & clearing services.

Upon completing the CIBOP course and related assignments, students receive an industry-recognized, internationally accredited Certificate of Excellence. Additionally, they can also take up the CISI certification (CISI IOC) exam.

Apart from access to the placement portal, all available leads & references from networks, students also get up to five assured interviews with leading firms in the banking & finance sector with the Imarticus Learning placement assurance program.

The CIBOP program stands out in expertise with relevance to the investment banking industry.

It is a valuable pathway to gain industry-relevant domain knowledge and get placed in a leading global bank.

Contact us through the Live Chat Support system or visit training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, and Gurgaon.