What Is Trade Life Cycle Of Reconciliation?

Before understanding the trade life cycle of reconciliation, let’s study the term: reconciliation.

Reconciliation

Reconciliation is basically a process in which an accountant compares two separate records and evaluates the accuracy of the agreement. It is a verification method to ensure that the process of trading is correct, secure and consistent in practice.

The process of reconciliation is done in order to protect businesses from fraud and illegal activities in trade. The frequency of reconciliation depends on the body with regular check frequencies of daily, once in a month or in a year.

Now, we are in a position to understand the trade life cycle of reconciliation.

Trade Life Cycle

The life cycle of reconciliation

In most institutions, the process of reconciliation is machine-oriented, thereby automated. But the process still requires humans to double-check the accuracy of the document and look for errors. Reconciliation consists of the following steps, let’s understand them one by one:

1. Checking the cash register with the bank statement

The first step of reconciliation is to compare and check the transaction in the cash register to that of the bank statement. 

2. Finding missing transactions in the bank statement, and matching it with that of the cash register

There are instances when a transaction is not recorded in the bank statement, but it is present in the cash register. The role of an accountant here is to find the missing transaction and fix it in the records.

3. Ensuring transactions are recorded in both bank statement as well as company internal register

As an accountant, it is important to record every transaction of the company in a two-medium form. One in the cash register, and second in the internal cash register. This helps in making the process of accounting and reconciliation easier.

4. Check for bank errors

Sometimes there can be printing or technical errors in bank statements which can lead to major differences in transactions in the bank statements and cash register. So it is important to identify the errors, fix them and produce new adjusted bank statements. The accountant can add, subtract or modify the bank statement to match with the cash register in case of a printing error or technical error. The purpose of the process is to make it transparent and secure for the company.

Banking and Finance

5. Balancing the bank statement and internal cash records

The reason why reconciliation is done is to ensure that the bank statement matches with internal cash records and vice versa. The accountant must identify, correct and modify the errors in any of the maintenance records ( bank statements and internal cash records) in order to depict the good financial health of the company.

There are two ways to check records, one is with the help of double-accounting which we have discussed above. The second is to use analytics to identify major fraudulent activities in the financial system and report them.

If you’re too new finance and banking industry and are looking forward to learning Capital Market, bonds, equities, and investment banking, then we highly recommend having a look at our courses in finance at Imarticus Learning. It will help you in understanding the fundamentals of finance and know about how economies work.

For more such articles, feel free to explore more by, 

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Trade Life Cycle – The Process of Buying And Selling!

What is trade?

Trade is the process of buying and selling any financial instrument.

The lifecycle of a trade is the fundamental activity of investment banks, hedge funds, pension funds, and many other financial companies. There is no better way to understand the workings of a financial institution than to follow the progress of a trade through all of its various stages and all the activities performed upon it. In the financial market, “trade” means to buy and/or sell securities/financial products. 

 

To explain it further, a trade is the conversion of an order placed on the exchange which results in pay-in and pay-out of funds and securities. The trade ends with the settlement of the order placed.

All the steps involved in a trade, from the point of order receipt and trade execution through to settlement of the trade, are commonly referred to as the ‘trade lifecycle’.

Trading has evolved from a humble apple grower wanting a stable price for his produce come harvest time, to a complex and exciting industry comprising a significant share of the global economy, and more recently, taking a hand in saving it. 

It is the fundamental activity of investment banks, hedge funds, pension funds, and many other financial companies. There is no better way to understand the workings of a financial institution than to follow the progress of a trade through all of its various stages and all the activities performed upon it.

Just like any other product, even trade has its life cycle involving several steps, as those with a career in Capital Markets know.

All the steps involved in a trade, from the point of pre-negotiations and trade execution through to settlement of the trade, are commonly referred to as the trade life cycle. The Trade life cycle consists of a series of logical stages and steps.

What are the Steps Involved in a Trade Life Cycle?

1. Sale

  • This is a process of client acquisition in which HNIs or Institutional clients are introduced to various investment products or vehicles.
  • These vehicles or products are available with an Investment Manager or Bank by whom the client’s investments are managed.
  • The investments are collectively called Mutual or Hedge funds.


2. Trade Initiation and Execution

  • This is the process of placing an order in the market.
  • Trade Initiation and Execution can be done both in Order and Quote-driven markets.
  • This depends on the choice of a marketplace and the external platform.
  • Once the order is placed and it gets matched, the trade is said to be executed.


3. Trade Capture

  • Trades are then booked internally in an FO system for it to flow down to the operating systems.
  • It is booked in a Risk Management System (RMS)


4. Trade Validation and Enrichment

The reference data team set up the static and dynamic details which help middle office teams to validate the trade, before releasing instructions into the market.


5. Trade Confirmation 

  • This is an extremely critical step for the trade settlement.
  • Trade details and SSIs are agreed with the counterparty at bachelor schreiben lassen least a day before the settlement date.
  • Confirmation via depositories like Euro clear/DTCC


6. Trade Settlement 

This is the process of simultaneous exchange of cash versus securities for a security trade or cash versus cash for a Derivatives trade.


7. Reconciliation 

Reconciliation involves matching ledgers against statements to ensure correct accounting of all trade books.

The beauty of Investment Banking Operations, as taught in any school of investment banking, is the trade life cycle and its mechanisms akademisches ghostwriting.  It has always fascinated me to think how innovative and creative a financial institution can work to get a job done.
Whilst working through the life cycle, one must keep in mind the reason for its existence, the end result and the factors that surround it.

Steps Involved in a Trade Life Cycle

Pointers to remember:

  • The reason the market and its participants trade securities and financial instruments hausarbeit schnell schreiben, the current drivers and trends in modern securities markets.
  • The methods the trades are executed, that any financial analyst course can teach you.
  • It is very important for an organization to identify, describe and create a clear picture of the events scheduled for a trade.
  • The operations team needs to be familiar with the key terms used in the fields of trade processing and its administration
  • Understand the interaction and dependability of each department through which the trade flows.
  • Understand the role of IT, identify the gaps which IT can resolve especially Straight Through Processing techniques
  • Most importantly, what can go wrong where and what are the risks involved in every step of the trade life cycle ghostwriter bachelorarbeit kosten, be it credit, market, liquidity or operational risk.

The main reasons for the failure of a trade life cycle could be due to controls not adhered to or failure by any department of any of the people involved in the trade life cycle.


If you are looking for a Capital Markets course, or want to explore an Investment Banking Career, get to know more about the trade lifecycle through focused training and this blog could be a good starting point ghostwriting preise.

To know more about this, you can also visit – Imarticus Learning  Also can contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Bangalore, Hyderabad, Delhi, and Gurgaon.

Use of Data Analytics in Improving Working Capital Management

What is working capital management?

Working capital is an organization’s utilization of money to cover its daily needs, such as paying for raw materials, supplies, and salaries. The term can also be applied to individuals. Working Capital Management is defined as “managing cash flow so that it fulfills all the business needs”.

For example, if you have $10 in your wallet but need $100 worth of groceries today, your working capital would be negative $90. Working capital management takes care of the flow of funds within the organization. It ensures that funds are available to meet short-term obligations without having to borrow or sell assets. It’s essential for all businesses because it affects the growth and the profits of the company.

Without sufficient working capital, companies will fail before utilizing their full potential. Working capital management is a critical function for every company. Whether you are operating in the manufacturing or service industry, managing your working capital will impact your ability to grow and succeed.

How does it help the organizations?

Data analytics can help organizations measure how much money they need for their working capital based on their current situation. This way, they can improve their working capital management by minimizing risks such as overinvesting or underinvesting in one area while neglecting others.

There is a need for both MSMEs and large manufacturers to remotely manage their supply chain, cash flows, etc. This has led to a rapid and massive shift away from manual processes. This is where automation comes into play – Accounts Receivable Automation (ARA) was developed as an alternative solution by many companies who needed more control in this area of their business while still managing all aspects with less workforce. These systems allow businesses to deal directly with suppliers and it drastically cuts down processing between payments and delivery.

Application in the real world

In the past few years, the use of Data Analytics has been steadily increasing as a way for organizations to understand their customers better and identify trends.

In today’s world, data analytics is indispensable as it facilitates the efficient working of an organization. The proper recording and analysis of every activity related to the manufacturing cycle of the products help in having visibility of the processes.

Data Science Course

One particular area where Data Analytics can be applied is in examining customer payment patterns, such as when customers pay or don’t pay on time. For example, one company found that because of the customers who paid late, they were losing roughly about $21 million annually due to delayed payments from other clients. It also examined the reasons as to why people pay late. They came up with several insights like cash crunch during month-ends, etc. that stopped them from making these payments.

Using a company’s balance sheet and cash flow statement, a financial analyst can determine when the business has excess funds and also the times when they need more money. This analysis can then be used to establish an appropriate financing strategy that balances the company’s needs with its ability to repay the debt over time. Data Analytics makes the entire process smoother and better.

Conclusion

To maintain change, it is imperative to differentiate between noise and signal. This is done by developing measurable, granular  KPIs that are monitored strictly. Carefully analyzing historical data can provide valuable insights into managing networking capital by quickly finding and dealing with emerging issues.

Contact us today if you want to be well equipped when it comes to dealing with such situations. With a digital analytics course, implementing these tactics in your business becomes easier.

With a data science course, you become aware of the techniques that go into it. The course comes along with a placement opportunity so that you’re all set to apply your business analytics knowledge in managing operations.

How to Get into Venture Capital?

Introduction

Finance has become the new popular area for interesting career fields and options. It has started getting all eyeballs from individuals all over the world. A career in Finance comes in with a lot of growth opportunities but most importantly these jobs have come into huge demand because there is a lot of money associated with these career options.

What is Venture Capital?

Venture Capital is not a new term in the field of Finance. It is a kind of Private Equity fund where the money is invested in businesses, usually in early start-ups and emerging businesses. These companies are perceived to have huge growth potential as these companies usually come up with solutions to the problems the world doesn’t have an answer for right now. In such cases, huge bits of companies are created based on the market value of the company (which is calculated by approximation and keeping the future performance elements in mind).

These chunks are then bought by the investors who believe in the vision and the growth trajectory of the company and are also affirmative that they will earn heavy returns on their investment. The whole deal about venture capital is that invests in a company who are really early at starting their operations and have started quite recently. Venture Capitalists are also known as angel investors at times as they invest in companies that are too young and do not have access to various financial markets where they can raise funds.

These investors tend to invest in companies that have a unique idea and show tendencies that they can manage the business and its subsidiaries quite well. Popularly, not only these investors invest money in such companies but also help these companies in their growth and scaling activities which shortens the gap between their investment and earning returns.

How to flourish into the Venture Capital sphere?

Getting into venture capital requires a series of steps. Venture Capital companies provide huge amounts of investments to emerging businesses to facilitate their growth and efficiently eliminate any bottlenecks in the way of scaling of the business. Venture capitalists make smart investments. Getting into Venture Capital is not everyone’s cup of tea. Some of these venture capitalists are multi-billionaires and millionaires.

To become a venture capitalist, the first prerequisite would be to have a surplus fund for investing in businesses. This is different from investing into shares or bonds of listed companies as there an individual is looking out for momentary gains, therefore the amount of investment is not huge and on the other hand, if an individual is a venture capitalist, he invests a substantial amount of money to help the company build a name in the market and also participates in the growth plan of the company.

A venture capitalist must be good at his communication as he is funding a concern. Also, they will have to work with top professionals which brings in the requirement of staying in touch with the current business surroundings.

You can become a venture capital if you have a prior entrepreneurship experience. With the help of this experience, it will be easy for you to come on terms with the other business you are planning to invest in. Also, for getting into venture capital, one must have a good know-how of investment banking and how the financial instruments work.

A capital market course would give you the necessary insights. Your venture capital career will be propelled once you know how to position the companies you are investing in and keep a tap on their journey. For being a venture capitalist, you will have to have an open mind. There is no single go-to strategy but you can better by investing more and learning from those experiences.

Everything You Need to Know About Trade Validation and Enrichment in Trade Life Cycle

Everything You Need to Know About Trade Validation and Enrichment in The Trade Life Cycle

The development of technology results in the rapid development of the trading landscape.

There are no messengers anymore. Instead, we have letters. In place of the stock ticker, there is a television. 

Innovative technology accelerated the trade lifecycle process.

The workflow of a trade order from the time it is created is known as the trade life cycle. Front office, middle office, and back office activities make up the Trade Life cycle.

As a result, every element, from data storage and communication to online banking, has affected how the current market works.

A specific trade is executed in a market from the other side of the world in the wink of an eye.

Introduction to Trade Life Cycle

The Trade life cycle can be seen from different angles. The Trade Life Cycle can be seen as the interaction between the buyer and the seller. However, it can be divided into trading and operational activity.

Front Office: Frequently referred to as the trading floor, the front office primarily conducts the tasks of trade capture and trade execution.

Middle Office: The Middle Office in the Trade Life Cycle is crucial to the management of exceptions.

Back Office: The “backbone” of the entire commerce life cycle is, in a sense, the back office.

Trade Enrichment in Trade Life Cycle

Trade Enrichment refers to an enhancement of something valuable to improve efficiency. It adds specific trade data to the basic trade detail to allow Downstream processing.

Trade figuration

Calculating trade cash values is known as trade figuration. It entails figuring out the net value of a securities transaction.

Selection of relevant custodian details

STOs engage local agents to exchange securities and cash on their behalf to decrease the risk of being without securities and cash and to interchange securities and cash.

Issuing Settlement instructions (For example, by SWIFT or fax)

When a trade is settled, both parties involved in the transaction receive their respective payments. It is, therefore, a two-way process.

Reporting of trade

It entails informing stock market regulators of trades. Reporting of trade is required. It is carried out to improve market transparency.

Trade Validation in Trade Life Cycle

Soon after the completion of execution and enhancing trade, the next step is establishing certain measures. This is known as Trade Validation. In this Trade validation and enrichment in Capital Market, the process inspects if the received trade information in the back-office systems coincides with the front-office records.

It takes a lot of preparation and follow-up for a trade to actually happen.

To gain a greater grasp of trading, it is necessary to comprehend the full transaction lifecycle or the series of events and procedures that take place when a trade is made.

Know More about Special Trades

Special trades – includes validation of certain trades such as

  • That is deemed to be large
  • Trades in a specific market
  • Trades with a specific counterparty
  • Trades with prior value dates
  • Trades with prices outside a specified range
  • Trade setting on a Free of Payment (FOP) basis

Exception handling

Few trades may require editions or have to be cancelled. In such instances, they are sent back to the front office. If any trade is not resolved within the stipulated period, it may be escalated to a more skilled member of the middle office.

Conclusion

Once you have a firm grasp on the life cycle of a trade, you may use it to learn more about investment banking’s global markets section. You will gain knowledge of the various facets of the trade life cycle and the jobs accessible to those seeking to make a career in this field.

 

Ways Trade Execution Can Improve Your Capital Market Business!

What exactly is Trade?
Trade is the exchange of items between two or more parties backed up by purchasing power. In a layman’s language, buying and selling of products and services are known as Trade.

What are Capital Markets?
Capital market is the kind of financial market where securities such as long-term debt, equities, etc. are traded frequently. This is a volatile market as the value of these securities and the interests and dividend rates involved with them keep fluctuating.

The capital market is further broken down into two categories: Primary Market & Secondary Market. The primary market is the capital market where new securities are bought and sold and the Secondary market is the one where the already issued securities are exchanged by various investors and companies.

Trade Execution and the Capital Market 
Whenever there is an exchange, trade comes into the picture, even in case of financial instruments. Financial instruments are heavily traded all around the globe every second. And with such exchange of securities, the trade aspect has to be clearly defined and should not be eclipsed by the volume of transactions. The capital market runs on the game of exchange. Such exchanges are facilitated by smooth trade execution, Asset Management Allocation, and a well-versed post-graduate diploma in Banking and Finance.The trade life cycle has to be optimized and every step has to deliver some value to make the process smooth and glitch-free. Mentioned below are the stages of the Trade Life cycle and how their execution leads to improvement in the capital market business.

  • Order Initiation

The order is initiated when the stocks of various companies are made to float in the market. Such a process can be called as “Security Existence Awareness”. Then an individual buyer or a company shows its intention to buy particular security with the help of their registered stock brokers. The brokers perform the buying and selling function for their respective clients in exchange for a small fee. After the order is placed, the brokers process the transaction, delivers the security or collect the money and transfer the benefit to his client.

  • Order Processing and Managing Potential Risks

A capital market is a place with fluctuating value. And with fluctuation, risks dawn in. To process the order, the broker must have a clear picture of the funds residing in his client’s account and also of the securities the client is interested in. If both the scenarios fall in line, the broker generates the receipt and processes the orders. If any default on the part of the client, the broker will have to keep a window up for such loopholes and manage the associated risks carefully. Also, the broker has to recover the additional charges from their clients efficiently.

  • Order Matching and Trade conversion

On the verification of what is required by the client, the particular securities are sent to exchange for verification of various details and allotment of the respective securities. The brokers charge a brokerage for executing the security trade function effectively and efficiently. The receipt of the order confirmation is then sent to the client and the details of the client are recorded by the broker for the allotment of a unique customer ID.

An agency that is commonly known as the custodian then intervenes in the settlement of any security deal. The custodian receives the details of the order from the exchange. This includes details like the type, price of the security, etc. This is done to make the custodian aware of an upcoming securities exchange. It is the job of a custodian to validate the details of the transaction and then show a green flag to the broker. This complicated process can be made much easier by proper capital market training.

  • Trade Settlement and Clearance

The trade is then settled after 2 days of a valid transaction. This is commonly known as a T+2 settlement. The clearance provider then informs the restrictions of the particular transactions which is followed by the settlement of balances. The securities are then allocated to the client in his DMAT account and the share value is credited to the companies raising capital. After completion of such a transaction, it is recorded by the Exchange offices.

Bank Innovation Through Collaboration, Its Better Together..!!

Bank Innovation Through Collaboration, Its Better Together..!!

Bankers have used a number of strategies to gain competitive advantage the chief weapons being localization and scale of operations. Do you know that in the US of the 7,000 odd banks only 1.5 percent of the players command control over 75 percent of the deposits and 81 percent of the loans? GDPR and PSD2 are all set to transform the banking industry by empowering the customer with multi-dimensional power over their personal data in 2018.

The future of banks and their success is to reply to the regulatory and technological disruptions through a strategy aimed at value-added relationships with fintech enterprises, e-commerce platforms, and companies like Amazon, Google, Facebook and more. This will ensure they still get multivariate data for their systems to carry out their functions while they offer their clientele a more holistic improved experience since the regulations will check the growth of banks. The capital market course shows that the well-run and capitalized new-age midsize and small banks are among the survivors in the race for survival and staying competitive.

Will the mere strategies of being local and scale of operation in cashing in on local markets be sufficient for banks to survive? Let’s explore why it’s different now.

The Commodity trap:

The same basic model of banking has survived for centuries now. Banking had become an essential service that had no real threat of substitution, till it was at disrupt just 5 to 10 years ago when tablets, smartphones, broadband connectivity and other concepts of AI, data analytics and ML slowly and surreptitiously crept into our lives. The banking disruption in banking is only just beginning and it appears to have fallen into a commodity trap.

The essential features of a commodity trap as defined in the book by Beating the Commodity Trap authored by Richard D’Aveni and applicable to the capital market course state that the concept applies where,

  • Business insights and process knowledge are distributed widely as in a bank with many branches.
  • The moving of products from the manufacturer to producers occurs with very low costs as in the banking services and charging of high fees for sub-par customer service.
  • The lifecycle of product s is short before a newer version replaces it.

The Collaborative Advantage:

The banking industry is burdened by regulations and compliance measures that focus on mitigating and avoiding risks. Established enterprises prefer to protect their territories of customers rather than collaborate and better the customer’s journey. And the time has come for the risk-averse banking sector to open its doors to collaborations with vendors, customers, and even other banks to stay afloat and make a bid to increase their customer bases. Managing the past results and protecting their revenues will lead nowhere if the focus on future outcomes is overlooked.

The regulators have a point in reinforcing compliance and this is especially good in the areas of credit underwriting and capital management. But, risks will have to be taken in small doses of improving customer experiences, innovating with new products customized on needs of clients, and bringing in new on par services like the leading ASIPs and PSIPs to counter the falling into the commodity trap.

It’s Better Together

Innovation in the banking sector should move towards more collaboration, beyond a single business line, and should include a more brainstorming capital market course for new ideas inside the bank. Events from the likes of Finovate, Bank Innovation, Innotribe, and NextBank prove the smaller firms globally have no legacy systems or models to protect and are hence more innovatively involved in newer products and services. The National Science Foundation’s Business Research and Development Survey show that large firms (with more than 25,000 employees) spent less than 40 percent in R and D which is down by 30 percent for the period 2001-2008.

The Bank Innovators Council is akin to the “FinTech” incubators and even when they do not have the same forums its good to go with an old African proverb that states when you want to go quickly you walk alone and fast. But if you need to go far buttressing the point that innovation badly needs the banks to introduce idea connectors, network enablers and such measures on a war footing.

In conclusion:

While innovation may be frightful to risk-averse banks it has the potential to lead to effective collaborations, generate revenues and better customer service and interactions.  If you would like to learn all about the remedial measures being taken up by banks it is time to do a capital market course at Imarticus Learning where the future of emerging technologies is well-taught and packaged with career-ready skills.

Passenger Vehicles Sales Drop For 9 Months In A Row

 
Tata Motors was supposed to launch its Altroz premium hatchback brand in mid-August. But a flurry of critical happenings forced it to defer, considering that every car launch in India is a 4000-crore gamble. The decision might seem like Tata Motors’s prerogative, but what it also highlights is a hint at the current state of the passenger vehicle market of India. In more critical words, it is a tiny example of the causes and effects of the great Indian passenger vehicle slump of 2019.
The question then is: what is happening with the auto industry and why?
To answer that question in the simplest way possible, there arises a need to cover all the aspects of the event. Let’s have a quick look.
What is Happening with the Auto Industry?
Historical and current data by the Society of Indian Automobile Manufacturers (SIAM) show that in July 2019 sale of passenger vehicles across categories (two-wheelers and four-wheelers) dived by about 19% compared to the same period in 2018. This is a very steep fall.
The worst affected is the passenger vehicle segment which registered an annual drop of 31% compared to 2018 even as the industry saw government intervention through restrictions involving the Bharat state emission standards. Earlier in 2019, the BJP-led central government had mandated that only BS-VI-compliant vehicles will be allowed for sale in India from April 2020, hinting at a possible goodbye to the older BS-IV versions. This drop is the steepest since December 2000.
While experts have attributed the cause to multiple factors, what this slump has further resulted in is what is controversially described as ‘fear-mongering’ on the part of the industry players. Job cuts in lower-tier cities, deep discounts, and new model launches failing to attract the potential buyer, and sluggish stock market forms the circular loop of both causes and effects, which can only be simplified by taking a look at the possible cause of this slump. Or causes.
What Caused this Slump?
While the Goods and Services Tax (GST) introduced in 2017 helped improve overall passenger ownership numbers, it began to experience a sharp decline sometime in early 2018. What exactly caused it?
Increase in fuel prices (in major metropolitan cities like Mumbai), higher interest rates, and a major hike in vehicle insurance costs were the major factors, as reported by The Hindu. The flood situation in states like Kerala also had an adverse impact in the third quarter of the 2018-2019 fiscal.
It further reported the effects of the IF&LS crisis as it tied the slump in sales in rural areas to the decline in trust with non-banking finance companies (NBFCs). In rural India, NBFCs are trusted more than actual banks. This was further accentuated by the high inventory pile-up among dealers and manufacturers.
In December 2018, the industry set off the alarm, putting its final rays of hope on the Lok Sabha elections in early 2019. The old government regained its power and nothing changed.
What perhaps is the often-neglected cause but one which has the highest weight is the combination of the BS emission standards as well as the unanimous heralding of electric vehicles. Any wise person buying a car today wants to drive it for at least a few years. And what with fuel prices refusing to go down and government standing outside everyone’s door with the emissions placard, she wants to ensure that her future private commute is ensured as well as insured with low maintenance costs.
The new BS emissions mandate comes into effect on April 2020. So, naturally, the dilemma of buying a car before or after the due date has put off a lot of discerning buyers. More of them are holding off their purchases due to one reason or the other.
Lastly, what is interesting is also the rise in growth of pre-owned cars sales. Compared to the figures in 2018, the sales for used cars grew by 12% as reported by The New Indian Express on June 2019. If one looks at the features of cars launched in the last year and compares it with those that were launched five years ago, nothing much has changed.
With the young population making wise choices when it comes to finances, thanks to increased awareness of financial literacy in the nation, they no longer need a car, let alone a new car. Taxi-cab aggregators, despite their occasional newsworthy actions, are still going strong, thanks to the young India who does not yet believe in owning a car when all it does is take him from point A to point B. Which is what he wants.
What’s Going to Happen?
In August 2019, economist and former vice-chairman of the NITI Aayog thinktank Arvind Panagariya wrote a critical analysis of the auto industry slump. He criticized the industry for waiting on the government to bail them out as he also observed the decline as not cataclysmic.
What he suggested were the industry players to keep patience and use their former profits to club the gap in this ‘phase’ even as the nation moves on to a financial market that looks favorable to consumerism.
Although the slump has triggered losses in the form of large layoffs (about 10 lakh jobs at risk) by almost all companies, there is still hope that the performance will improve in the coming months. The industry has made a demand for a reduction in GST to 18% from the current rate of 28%, but there does not seem to be a clear resolution on that front even as the government ponders over it.
This could well be a phase for the industry, as noted by experts and some auto manufacturers alike, but when that ‘end’ will be cannot be guessed, especially during the high level of uncertainty in the Indian financial and consumers market.
Influential events like the recent revocation of Article 370 will take time to subdue, and only then can one even expect to see a change, as one analyst commented on the promise of anonymity. So, the best course of action is to just wait and watch.

What Are Some Technologies That Can Prove Beneficial For Retail Banking?

What Are Some Technologies That Can Prove Beneficial For Retail Banking?

Financial institutions annually spend huge amounts running into billions of dollars a year on upgrading technology and undertaking system integration work. This is not a fad but an essential for their survival. But, in comparison to the newer banks and the capital market courses the technology of the new age is not only nimble and lightweight but is also more adaptable and faster than the older banks’ legacy systems.

Some areas where technology definitely impacts the banking services can briefly be summarized as below.

A. Customer authentication: Imagine a dual-control process with multi-factor authentication taken care of in a bank. It is possible only when the technologies keep pace with the customer demands and is possible only with the application of the latest developments in big data analytics, AI and ML.

B. Data Security: Data is being generated by the fraction of a second and its sheer volumes are nowhere better known than in retail banking. Storage of data is another sector where banks need to tread carefully because of the increased KYC norms. Innovations in cybersecurity, cloud storage, and such areas are not only essential but mandatory for compliance or regulatory norms and to gain customer trust, loyalty and confidence. Such futuristic technologies suitable for retail banking can be learned in Capital Market Courses.

C. Legal and KYC requirements: With financial markets tightening the noose around fraudulent investors and borrowers the regulatory environment is much more stringent than ever before. The bank’s documentation, its process, and technology have all been under regular scrutiny in recent times. It would be impossible if not for Regtech innovators and technology stepping in to make it feasible.

D. Integration with legacy technology: Banks are big acquisition businesses and this means mergers of legacy technology of the two entities. When such legacy systems are to be transitioned to a newer uniform technological platform it involves huge costs. Technology can definitely help integrate the legacy systems at reduced costs and without changing the existing infrastructure.

The areas and developments that will see changes:

Citing a 2018 outlook report from SIFMA there are four trends that will definitely see benefits and change in retail banking. They are:

1. AI will aid and enhance the processes of decision-making and investments.

2. Automatic processing and AI will see a huge change.

3. Blockchains and capital market courses will lead to technological innovations to make retail banking and the capital markets more investor-friendly and efficient.

4. Data security and protection will increase in importance.

How do the banks benefit?

According to the experts, bankers, analysts, consultants, etc that spoke to The Financial Times, the top 5 areas that have the potential to be successfully transformed by blockchains are

Settlement and Clearing:

The bank network is a tangled network of securities, investments, and loans that need to be recorded, settled and cleared on a daily basis. And, this costs billions of dollars annually to run. Accenture says that this area of settlement and clearing could save investment banks up to USD 10bn if they use blockchain technology for efficient settlement and clearing operations.

Payments:

Payments systems from the central banks globally are moving to explore blockchain technology and shifting payments system processes to blockchains and issue digital tokens that can be used on the stock markets and cashed in at the central banks. Commercial banks also have pushed forward with their own projects instead.

Trade finance:

LCs, trade finance, bills of lading, etc are still paper-transactions sent through post or fax globally. According to the R3 MD, Charley Cooper, this is an obvious area where banks can benefit from blockchains.

Customer Identity Verification:

Lenders are in reality trusted custodians of investor’s money and regulators will hold the banking agents responsible for authentication of records and checking the customer’s identity. This area is a vital banking-risk that blockchain-processing can easily overcome. It is an era of start-ups in the KYC blockchain-enabled systems. Some of them are Blockstack, Cambridge Blockchain, Credits, and Tradle.

Syndicated loans:

It takes a long 19 days for US companies to raise syndicated funds from banks. Early repayments and foreclosures are still done on paper. To address the efficiency of this area Credit Suisse and 19 similar-minded financial institutions formed a work-consortium with the blockchain enablers to put the syndicated loans Synaps on a blockchain framework.

Conclusions:

Taking capital market courses at Imarticus Learning can help you learn and reskill on such futuristic technologies for retail banking. Hurry and enroll. For more detailed information regarding this and for further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

What Is The Function Of Retail Assets In Capital Markets?

By retail assets, one means the products that are sold. In terms of the capital market, these could be the products of the equity and debt capital markets. Hence one needs to understand the very basics of the capital market to understand its retail assets. Let us start.

Understanding the terminology:

Doing capital market courses can be very useful to get the big picture of the capital markets. The term capital market is the place where securities in the form of various instruments like a bond, stocks, etc can be exchanged by the capital needy borrower and the capital-rich investors.

They comprise the foreign exchange-FOREX market, the bond markets, and the stock markets. The major markets are London, New York, Hong Kong, and Singapore, NSE, NASDAQ, BSE, etc. which are normally found in nearly all financial centers.

The Capital Market courses classify the capital market as secondary or primary markets. The bonds and the stocks are the most popularly known instruments. The financial analyst in the capital markets is the bridge and seeks to make these transactions efficient in the capital market where the borrowers needing capital and the lenders with surplus capital can both exchange securities transparently.

Capital markets deal with capital suppliers including private investors, institutions offering instruments related to their savings and investments in life insurance companies, pension funds, non-financial companies, and charitable institutions and foundations which have surplus cash to invest.

The capital-needy users of the funds are motor-vehicle and home purchasers, governments using funds for building infrastructure projects, non-financial companies, and those seeking capital investment or operating expenses in firms/organizations. Thus capital markets sell both debt and equity securities. The capital markets operate on electronic platforms through online transactions.

Both capital markets and investment banking cover equity and the debt capital market. Capital markets use investor investments and savings serving as a channel between firms needing capital and suppliers who have capital. The capital lending entities include institutional and retail investors while those needing the capital are governments, businesses, and laymen.

Equities are actual ownership of the company stock certificates and the returns on it depend on whether the company makes a loss or profit. Debt securities such as bonds, debentures, etc are IOU’s that bear a fair interest rate higher than that offered by banks. When companies go public they sell IPOs to large institutions like banks, institutional investors like hedge funds, mutual funds, etc.

If the stock is sold to the investor it is called a primary market and the secondary market sells those shares and stocks that come up for trading or reselling existing security. The secondary market is overseen by the SEC. Ex: NASDAQ. This provides investors with a regulated ecosystem and reason to invest in the capital markets.

Different types of Retail Banks:

Retail banks can be of three types. They are:  

  • Commercial Banks
  • Investment Funds
  • Credit Unions

All these banks offer services related to retail banking and provide almost similar services. Their products include: 

  • Savings accounts
  • Checking accounts
  • Mortgages
  • Credit cards
  • Debit cards
  • Personal loans.

Why do a course?
Here are the top reasons for doing capital market courses.

1. Staying updated with technology changes:
Today’s business world needs a good understanding of the working of businesses and compliance with political and regulatory issues. It goes beyond the reading and understanding balance sheets, compliance issues or regulatory measures and reporting.

Data analytics, capital market courses, Deep-Learning systems, and predictive-forecasting are helping make investment decisions and strategies evolve with knowing the exact outcome of the impact of such decisions. All available data and allied technologies are now being used and the financial data is no longer disparate from business data.

2. Skill-set development:
The focus of Capital Market Courses at present on the skill development of personnel for banking and capital markets. The obvious outcomes they will look for are to include customer-facing processes, a deep understanding of business requirements, proficiency in predictive forecasting tools, change, and soft-skills management and understanding and creating financial models for the capital market decisions.

3. The good payouts:
FAs in the capital market according to Indeed make an average of USD 65-110k. They also receive great bonuses, perks, and incentives that total to almost being equal to their earnings. In essence, payouts and lucre are huge incentives in career-making decisions.

Conclusion:
Doing a course from a reputed Academy like Imarticus has several advantages besides certification which works as a true measure of your practical skills. On a concluding note, remember that at Imarticus Learning you can do capital market courses tailor-made for capital markets which cover the comprehensive syllabus with plenty of hands-on experience that is sure to give your career a huge head-start!

For more details in brief and for further career counseling, you can also search for – Imarticus Learning and can drop your query by filling up a simple form on the site or can contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.