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Investment Management – Career and Scope

Posted on by Imarticus Learning

In the present progressively aggressive world, where different variables – political, financial, focused, social or administrative – always entangle an association’s domain, the interest for appropriately talented supervisors, who comprehend the business and have the vitality and boldness to handle troublesome circumstances, is continually on the ascent.

In a nation like India, where the Investment division is overwhelming the market, being inventive, scientific, a great sales representative and an extraordinary communicator may not be quite recently enough. Another factor that adds to a fruitful administrator’s basic attributes is legitimate learning of cash and the market. This is on the grounds that when one has avant-garde learning of fund, this upgrades his expository systems, institutional practices, monetary hypothesis and down to earth applications, and enables him to settle on viable choices on financial strategies and procedure.
While different organizations over the globe have entered the race to make Investment managers, not very many individuals comprehend which competitor is well-suited for which specialization. For a man who appreciates following the money related markets, comprehends the patterns of the market and always refreshes himself with the offers and stocks costs through different media, a PG in Investment Management is quite recently the correct choice.
Investment Management is tied in with overseeing cash by putting it in an assortment of advantage classes including values (or offers) and bonds. Working around there, which is otherwise called resource administration or store administration, will mean utilizing your mind each day to attempt to outsmart a huge number of different members in the money related markets.
Try not to go into Investment Management on the off chance that you prize sureness and trust that a PC can give unmistakable responses to three decimal spots. You’ll be more suited to venture administration in case you’re interested in the world, ready to challenge an accord and not reluctant to face off regarding issues with senior partners.

The primary day by day assignment is to break down individual organizations and attempt to evaluate their prospects with a specific end goal to attempt to discover which organizations are probably going to beat the market. You could be taking a gander at a wide range of sorts of industry and breaking down anything from iPhones to oil apparatuses or natural nourishment patterns. The principal business destinations of venture administration are to give a decent speculation to customers – and great client benefit as well.

Investment Management employments

The principle parts of Investment Management are investigator and investment manager. As you may expect, the part of an investigator is to break down stocks, taking a view on their future viewpoint and flowing examination inside. This could involve meeting with organization administration and taking a gander at financial information and market patterns.
Investment Banking Banner
An Investment Manager (some of the time otherwise called a portfolio or store chief) will then be in charge of putting customers’ cash in an arrangement of stocks. Speculation chiefs will depend intensely on the inside and out research done by examiners when choosing how to contribute. In the meantime, they should assume general liability for how the store is built, taking a gander at the master plan and considering issues, for example, resource designation. Numerous venture directors’ bear on doing hands-on research to abstain from ending up plainly excessively removed from organization examination.
We at Imarticus Learning specialised in training aspirants looking to make a career in the field of Investment Management.

Best Things About Investment Banking Jobs

Posted on by Imarticus Learning

Every now and then in time, you will hear debates on which career should you choose to enjoy a secured future, and most often investment banking as an option will rise up in conversations, as the destination which will take you to the competitive world of finance, with some clear advantages. Money is the most attractive of them all.
There is a lot that goes into becoming a successful investment banker, the initial investment is high, and clearly not for the faint hearted. Most individuals who have been on the other side of the fence, have one piece of advice for people looking forward to pursuing their career in investment banking, they say, you need to love the job, the process more than the outcome to survive in the industry, you need to have the love for investing, financing, doing business, travelling and meeting new exciting people, if you join the industry for the name tag, the parties the fame and the bling of being an investment banker, chances are you will not survive to reap the benefits of the industry.
The high pressure, long hours are not for the soft hearted. And so if you survive the initial years there are tremendous rewards waiting for you, making all the hard work worth it at the end, what are they?

Compensation

Your first salary will probably be higher when compared to any other industry, and you will be learning a lot more than new graduates. The bonuses also offered are pretty steep and with time will only increase.

Work Life Balance

Yes, it is true, only few will consider 100 hours’ week, sleepless nights and no social life amongst the positives. However, a change of perspective – once you reach the height of exhaustion, your mind and body will come up with the demands and appreciate anything short of physical breakdown as a holiday and perform in extreme environments with accuracy. Also, such a schedule will help you understand demands, in the long run, creating a sense of urgency in the way you work.

Learning

You will be working with the brightest minds in the industry, and it has its benefits. Attention to detail, multitasking, speed and accuracy in tasks, people skills, negotiating skills are but a few that you will pick up while working on the line. Investment banking has the most lateral skill sets imaginable. Working in investment banking can be explained as one of the hardest parts of your career and if you have done that in the initial phase, everything that comes later is doable and comparatively easier. Many former investment bankers have successful avenues in lateral industries due to the acquired skills from their initial years.
So if you like the fast paced, results driven world of banking, and are fine with letting go of your social life for a while, then investment banking will definitely be a great career choice. If not a lifelong career option, it will surely be a great training platform for entry into other professions. So to get your dream job in the top investment bank, join our certification course in Investment banking (CIBOP).

Impact of Technology on Investment Banking

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The Financial Services industry is without a doubt seeing the effect of innovation driven change either straightforwardly to their plans of action (for both customer and business customers) or even as an optional or tertiary effect, given it’s at the center of all different ventures. While these organizations have made a tolerable showing with regards to by and large of receiving more current and propelled advancements, they clearly need to get a move on of appropriation or hazard losing piece of the overall industry to the freshest participants – or more terrible, getting to be noticeably out of date.
The most recent influx of development and technology is about versatility. The web based keeping money and financier encounter has now moved onto your telephone which upgrades accommodation on many levels.
Banking and Investment applications would now be able to connect into your telephone’s GPS to give you area based data, for example, closest ABMs and branches.
Versatile and remote advances are a greater amount of a development in my psyche as they haven’t radically changed the market as much as past developments.
Remote installment innovation over RFID (Visa Pay Wave, MasterCard Pay Pass) is up to twice as quick as utilizing money or check cards. Charges won’t be dropping but rather buyers are getting back another extremely significant ware, time.
The normal retail Investment Banker or Financial Analyst won’t think excessively about how quick their exchanges are executed however dealers, institutional speculators and mutual funds do.
Executing exchanges a couple of milliseconds quicker on a trade can have a major effect when you are doing thousands or even a huge number of exchanges a day.
Getting the most ideal cost for your customers encourages them spare cash while it will also facilitate those who are putting the exchanges, they will get more business. There are different contentions that fast exchanging can prompt higher expenses for speculators nonetheless.
Fiber optic interchanges, quick figuring force and reason manufactured applications all add to executing exchanges rapidly.
While the pace of innovation change in the budgetary division may be ease back in respect to different regions, despite everything it has an extremely critical effect.
Regardless of whether we understand it or not, advancements in innovation for the managing an account segment influence us consistently.
To stay in the lead, money related and finance administrations associations must acknowledge and adjust to the way that the client base they serve is experiencing a noteworthy move as far as purchasing practices and inclinations, a lot of which is being driven by the computerized innovation transformation, especially online networking and portable. Era Y, for instance, needs more decision and control by the way they interface with a bank or insurance agency, regardless of whether it act naturally coordinated, web drove, individual to-individual, on the telephone or in an office. Accordingly, organizations must change their customary models and items to benefit this developing and evolving client

Career After Investment Banking Certification

Posted on by Imarticus Learning

Investment Banking prospects in India are very promising. Planning a shift in careers or a fresher, this is one stream worth considering. Specially, if you are an individual who finds the idea of making money from money exciting.
In simple words, investment banking is a profession where you match the expectations of people who have the capital with those who need it. Although it is not as simple as it sounds. As you will be advising people or institutions on money matters across various phases of a life cycle of a project, ranging from the start up stage to the listing of stock markets, you need to maintain the optimum valuation. It requires great understanding of the market so that you can offer the most optimum advice to your client, on options like mergers, acquisitions, joint ventures etc…,
Certain skill sets required to excel in this choice of work are, high research and an analytical mind-set, par excellence communication skills, an innovators mind set, troubleshooting capability, genuine ease of working and analysing numbers, forecast sales and budget, technical knowledge. A person from any steam can think of starting their career in investment banking, but it important to have a good understanding in math, economics, business studies. Although you can pursue an MBA, to have a specialised course will serve as a spring board to your efforts and help you secure a job in a reputed company, or help you get that promotion you are waiting for since long.
There are very limited options you have in terms of getting a holistic training on investment banking, however one that has proven to be closest to giving you the best exposure and highly recognised in the industry is, the Certified Investment Banking Operations Professionals (CIBOP), it is a flexible program for both fresher’s and experienced professionals. And CIBOP can be considered as a pre prep for the CISI IOC certification program, it is highly regarded by investment houses globally and passing this certification echoes the thought that an individual does have a sound understanding of the financial services industry.

The CIBOP program offered by Imarticus, is a 180 hours’ program dedicated in understanding complex securities and derivatives, their trade life cycle, along with operational risk and regulation. CIBOP offers operations and domain training augmented with a personal development program. CIBOP has an industry relevant program, supplemented with industry stalwarts as faculty, and real case studies.
On completing the CIBOP course from Imarticus learning you will get an industry endorsed CIBOP certificate along with the optional CISI certified IOC certificate, besides this, Imarticus has career services and their placement team will guide and assist you throughout the program, providing the best career opportunities.
CIBOP is a hybrid program with online self-paced videos and live classes, along with classroom training. The CIBOP program also has a host of guest lectures, by experienced industry veterans, which presents abundant opportunities for students to raise questions and clarify doubts and get clear actual industry insights.
On completing CIBOP course you will have a sound understanding of every aspect of Investment banking along with practical aspects of the sector. So if you have an inclination towards this field and have some of the prerequisites in place, don’t wait and enrol with Imarticus Learning and take the CIBOP certification.

What is Investment Portfolio? and How would Portfolio Management Help?

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A Portfolio Investment is basically a passive investment of securities in a portfolio, done with the objective of returns on investment. As in most cases, there is a direct correlation with the return expected and the risk expected.
There is a difference between Direct Investment and Portfolio Investment, while the former means having a substantial stake in a company of choice and a possible involvement on a daily basis, the later can span over a broad range of asset types, for example, Bonds, Real Estate, Mutual Funds, Exchange Traded Funds, etc…,

Arrangement of investments in a portfolio depends on many elements. One of the most important criteria being the ability of the investor in managing or tolerating risk factors, second being, the amount available for investment. For a modest investor, mutual funds or exchange traded funds might be the best option, however, for a high net worth investor, stock and commodities might be more appealing. It is interesting to note that portfolio investments for organisations generally need to span across time so that there is a match between their liabilities and assets.
Most of these investments are preferred basis, risk versus return combinations, from low-risk low returns to high-risk high returns, or on their income streams, like steady or fixed, or variable with the promise of growth.
Portfolio Management is a method which aids us in the decision making process of investments made in an organisation, aligning the investments to the objectives, appropriate asset allocation for the organisation or projects within an organisation, and managing risks, all comes under this umbrella.
It is basically a SWOT Analysis (strength, weakness, opportunities and threats) for the debts against equity, and many other similar endeavours that the organisation takes, to get higher returns, which in turn opens the doors for potential risk factors.
Now, service line head of departments will not be able to track how budgets are spent, or cannot validate the task on preference against priority, and all this could put them under pressure and perhaps lead to decision paralysis for fear of scrutiny.
Portfolio management is able to direct or redirect the business lines to the greater goal by asking and seeking simple, most basic, yet often ignored questions, on lines of value addition on the jobs performed.

Advantages of applying Portfolio Management method on Investments

Healthier Asset Allocation

Managing a long-term assortment of assets. Ensuring harmony, and understanding of various kinds of assets. The basic objective is to ensure augmenting a profile of an investor which has a better return versus risk, by investing in a mix of assets.

Building Diversity

The only certainty in investing is unpredictability, winning or losing combinations cannot always be forecasted accurately. And to manage this, it becomes essential to diversify the investments, further down to the asset class. By spreading the risk and reward within the subset of an asset class, mitigates risk on losses. True diversification is observed, across various securities, geographies and sectors of economy.
Rebalancing: in this method the, a portfolio is returned to its original target allocation on an annual basis. Doing this gives an opportunity to align the portfolio to the investors risk return profile, by capturing the returns or gains annually, and further expanding the possibilities of growth in potential sectors.

Loved this blog? Read more here:

Use of Risk Management in Investment Banking
Core Investment Banking Activities That Can Help an Organization to Grow

Become a Professional in Foreign Exchange

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Becoming a Doctor, Lawyer or an Engineer requires hours of dedicated approach and clarity of thought for application. The effort is very similar to what it takes to become a professional in foreign exchange. Just like to work in any professional capacity, you need to dedicate time in honing the skills, it is the same prerequisite for becoming a Foreign Exchange broker. It requires the same amount of dedication and skills to ensure you not only understand trading but also are tremendously successful in it. If thoughts are applied correctly it is guaranteed that you will rise and perhaps be equally profitable.
Since you will become an individual contributor in this setup, you need to have a strong sense of determination and discipline, along with another array of personal and professional attributes, and technical skill sets. Not taking a stalk of your current strengths, and areas of improvement, and hastily jumping into the profession, with a grandeur sense of success, will guarantee failure and loss of capital.
Here are some broadly classified steps to consider before you plan to become a Foreign Exchange Professional:

Be true to oneself and practice and Learn the Trade

Becoming a successful trader will take a lot of effort, courage and time from your end and there is also a considerable amount of risk that you will need to take from time to time. Drive, passion and ambition is the true essence of trading. Trading will not make you a millionaire overnight, initial profits as a mark of success is not the right vision to have. You need to exercise risk control and have a keen observation to spot trends. As a trader, you need to accept that there will be losses, and you cannot make back all the losses on one single trade.
Using a demo account, that is trading in live markets with monopoly money, will help you develop your own style and trading ideas. It is a good idea to become an apprentice to a professional trader or research on the subject. It is a daunting task until you get a hang of it, so take all the support that you can.

Learn the Basics of Trading – Then Develop a Trading Strategy

It is important that you have a clear vision. And that is only possible when you have a strong foundation, the basic introductory concepts of trading. Once you have understood how the forex market functions, it is time to develop your style of trading, a strategy. Now there are many ways you can trade in the market, however, if you need to be an expert in reading raw and natural price dynamics of a market, forex price action strategy is recommended. It will help you develop chart reading skills that will go a long way. It is basically you, who will choose how to proceed with the strategy of your comfort.
Become a Successful Trader
Once you start trading life, points to remember…
• To avoid failure set stop losses on every trade
• Always stick to your trading strategy
• Have a risk margin of not more that 2% on every trade
• Do not get emotionally influenced on a trade
• Trading with the mindset to recover losses is a vicious circle stay away from it
• Trust your instincts
• Don’t be vary of losses, the most successful traders also face it
• Have a target to achieve more profitable trades, than the one with losses
The above are but a few tips that might help you trade successfully. Be aware that this is a very daunting path, and one cannot confirm success or failure until you invest years of hard work, face loads of stress, but stay determined. With effort and passion, drive and patience you will cross over to greener pastures.

How to Start a Career in Banking

Posted on by Imarticus Learning

The finance and banking industry employs a wide range of professionals from brokers, including individual, business, and Investment financiers. While the parts and obligations of these brokers may vary, they all must administer the monetary needs of their customers. Individual brokers may work one-on-one with customers opening private company accounts and administering budgetary exchanges, for example, sending cash requests and dealing with stress.
Business investors prepare advances to planned business people, while venturing brokers, associate lenders with conceivable speculation openings. Additional time and travel are regularly required in these employments, particularly for venture brokers. By and large, financiers spend many work hours sitting at a work area. Payscale.com detailed a mean yearly pay of $35,226 for individual investors in January 2016.
Despite the fact that degrees in speculations and managing an account might be hard to discover, many projects have specialisations in these territories as a major aspect of different projects. Back, bookkeeping and business are the doubtless decisions, however, speculation firms and banks may likewise be satisfied to see degrees in financial matters, arithmetic or designing. Notwithstanding the program name, what employing boards truly need to see is that you’re great with numbers, and each of these degrees requests that of their graduates.
While in school, understudies ought to start sharpening the abilities they’ll be effective speculation brokers. Honing introductions, acquainting yourself with Microsoft PowerPoint and Excel, figuring out how to talk about numbers in a legitimate yet open way, and interfacing with a wide range of sorts, of individuals, are only a couple of the approaches to fabricate auxiliary aptitudes while likewise diving into coursework.
A banking entry level position might be a piece of a degree program or an open door an understudy seeks after amid the mid-year. Taking an interest in a temporary position gives imminent financiers involvement in the field and a comprehension of keeping money arrangements and controls. Furthermore, a temporary position may assist acquaint them with the obligations they’ll have once they start work. Entry level positions are likewise a route for people to start making associations in the exchange and systems administration for planned work openings.

Consider managing an accounted speciality. When investigating conceivable temporary positions, consider the distinctive sorts of investment banking and finance options as claims to fame. For instance, if you are inspired by venture banking, then apply for an entry level position with a speculation bank, which might be situated in a noteworthy metropolitan region.
Banks offer Investment Banking certification preparing programs that will plan people to find out about the procedures required in making ventures and working with customers. Those enlisted in the program are acquainted with business works with, saving money administrations, and customer relations. So as to start finding out about these practices, banks furnish people with contextual investigations, introductions, and displaying sessions.
So when you are looking to start a career in banking, it is always better to look up for certification training programs like these.  Imarticus Learning offers a number of certification programs in finance and banking which would be of interest to you.

Life Hacks for an Investment Banker

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Investment banking is synonymous with big pay cheques and long working hours. As soon as you start your career in it, you will realise that you are being stretched in all directions, with no time for family or friends or personal tasks. Most veterans in investment banking express that they feel they are always short-changing something or someone throughout. It is always a race against time.
Having said that, the same veterans, to survive the mad rush, have come up with some coping mechanisms that help them balance their day, ensuring that they touch all spectrums of tasks, personal, professional etc…,
Listed below are some lifestyle hacks in personal and professional capacity, that will help you get joy, out of the most tasking regimes and demands, faced at a professional level by investment bankers.

  1. Get a solid support system, and outsource as many tasks as you can without guilt, for example, use laundry and iron services from professionals, rather than expecting your spouse or you to do it over weekends, or if you higher up the ladder, an assistant at work or a junior can be used for delegation of tasks.
  2. Do not intentionally drive around to work, it will only add to the frustration of daily tasks, use Uber, or hire a driver, given the traffic and road conditions, you will feel blessed with the extra time you get to concentrate on tasks before reaching work.
  3. Better still, stay closer to work, even if the rent is higher it will save you loads of time invested in travel.
  4. Invest in good housekeeping, you will have enough deadlines and last minute reports to work on, getting groceries and cleaning your house will always take a backseat. A good help at home will rejuvenate you to face the challenges of the days to come.
  5. Walk as much as you can, you will need the exercise with time if you have to visit a client, see if you can take the trains or metro, walk, let the fresh air clear your thoughts.
  6. If you insist on holding on to your car, break the routine, on some day’s drive, listen to music, choose non-traffic hours to get that fresh rush of adventure on the way to work, it will clear any jarred thoughts from the previous day.
  7. Keep in touch with friends from the same industry, someone who can understand your challenges and limitations.
  8. If possible, choose a partner who understands the demands of your work life, possibly someone who themselves don’t have very demanding schedules, or else matching up with each other will be a life long struggle.
  9. Find solitude with yourself, keep a reality check, know the demands of your job.
  10. Travel, even if it is in your hometown from time to time, short trips, and do them alone, to stay in touch with yourself.
  11. Exercise, regularly or whenever you can, simple yoga asana, help you maintain the equilibrium.
  12. Expectation Management, be prepared that your life over the next few years will be demanding, the good news is that the body adjusts to the demand effectively with time. So, until then know your outlet to cope with the demand, be it swimming, writing, sleeping, indulge in it, drift away from work a little while.
  13. Eat well, small regular meals, will keep your system running, you will have to work long hours, prepare for that, tea or coffee whatever keeps you going, do hydrate yourself. Avoid drinking (at least on working days J)
  14. Be pleasant to people at work.
  15. Find your sweet spot, associate with a firm that does the kind of business you enjoy.
  16. Stay sane, have a sense of humour, enjoy the kind of work you have chosen, don’t take yourself too seriously.
  17. Be a good listener, you will be surrounded by intelligent and bright people, learn quick, be smart and rise up the ladder soon, there is breathing space up there.
  18. Learn from every experience, learn not only from success but also from mistakes.
  19. Take regular naps, quality of sleep is important not the quantity.
  20. Learn how to improve your performance in everything, automate repetitive jobs, will save you some time.

Also Read: How to Become an Investment Banker

 

Core Investment Banking Activities That Can Help an Organization to Grow

Posted on by Imarticus Learning

Investment banks, in the true sense, are financial intercessors, amongst people who need funds and people who can provide funds. They ensure that there is a flow of cash and distribution of capital. In a simple example, they are the bridge that brings together, those who need money to invest in businesses, like factories with equipment demands, with those, who have the money to invest, all the while, forming the markets which allow capital and controls price for these monetary trades.

Over time these financial intermediaries have evolved and have gotten more complex and competitive. And hence have started offering many supplementary amenities.
Investment Banks essentially have two lines of activities.

  • Sell Side – here securities are traded not only for cash but at times for other securities like for example, in facilitating transactions.
  • Buy Side – this is the advising lateral, where to advise on entities like, Private Equity Fund, Mutual Funds, Hedge Funds, is given to establishments that are concerned with buying investment services.

Core activities of Investment Banking can be better explained in three major divisions.
Front Office, the Middle Office and the Back Office.
Front Office, is generally known as the revenue generating unit, this is where most of Investment Banking contracts take place. It offers many services, namely assisting firms in Mergers and Acquisitions, Corporate Finance I.e. managing fund requirements for daily operations. It also offers Professional Investment Management for establishments. For certain high net worth clientele, preparing Market Research Reports, around Strategy Management and Wealth Distribution and Risk Reports. And lastly, it also involved in Sales and Trading activities for their clientele.
Middle Office, includes functions of Compliance with government regulations and restrictions for professional clients like the banks and financial divisions etc…,
It also manages Capital Flow, basically, the function is to monitor the flow of cash in and out from an establishment, to ensure required liquidity for it to function, without getting into any financial difficulties.
Back Office, it is the glue that holds the investment bank together. It primarily manages the Operations and Technology, for things such as Trade Confirmations, safeguarding that the securities bought are correct, sold and settled for the right amount. To ensure the software and technology platforms are efficient, at times creating relevant trading algorithms, so that traders can function effortlessly.
Investment Banking is significant for corporates as they need to raise capital. By taking the above-mentioned functions into reflection, the area of opportunity for investment banking is huge. Therefore, to stay updated, financial handlers should take stock of the development around them, so that they can adapt and take advantage of the offerings.

Related Blogs:

https://imarticus.org/blog/whats-next-in-banking-and-finance-all-about-new-age-banking/

https://imarticus.org/blog/does-corporate-finance-excite-you-here-are-some-investment-banking-courses-which-will-help-you-achieve-your-goals/

How Retail Banking is Affecting the Industry

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Retail banks offer financial services for businesses and individuals alike. Essentially, they provide, banking products and services to individual customers, for entrepreneurial and non-entrepreneurial purposes. Banking significantly has always been on the ‘retail’ side I.e. they raise income from large sources such as retail depositors. So while talking about retail banking, the focus is mostly on the asset side, which means lending to the retail side.
On the whole, retail banking is offering products and services that impact both sides of the balance sheet. On the Liability side, it offers, fixed, current, saving accounts, and on the asset side, it offers mortgages and loans, such as personal, housing, automobile, educational etc…,
It is circumstantial to note, that most economies in the developing countries are now seasoned enough to ask for products and services not only during the transitional phases but also during maturing phases as well. For the same reason, it is observed that retail banking is implementing all products and services to match the current needs and the future demands of the growing economies.

Typically, the retail banks, on the asset side, offer financial services to the clients. Their clients are majorly divided into ‘mass’ and ‘class’ clientele. For the mass clientele, these banks offer blanket services that mostly cover their needs in term of consumer credits, for example, home loans mortgages, credit cards. By doing this the banks generate extra liquidity that assists the economy. For the class clientele, which is defined as niche customers, these banks customise their products and services to match the high net worth. This can also be termed as private banking, adding to the liquidity pool.
The availability of cash through easy credit methods by the retail banks, allows people to spend their future earnings today, directly impacting consumption of products and development of industries, leading to developing economies.
Now on the Liability end, retail banks offer a secured place, for people to park their existing funds, safely in the form of saving/current accounts, fixed deposits, other financial products, which get them higher returns, than parking the money under the pillow would. The interest rate, which is used as an apparatus to maintain monetary liquidity in the economy is set by the RBI. And you will see a slight fluctuation in the rates from time to time.
Lastly, Retail Banks allow you to manage your transactions fluently, and conveniently through debit cards and online transactions virtually without actually exchanging cash.
Now, since we understand the contours of retail banking, let’s understand how do they work, well, it is very simple, they make money by loaning the deposited cash on higher interest rates, than what they offer on deposits.

How do they affect the industries and subsequently the economies?

They are a supply tool for finance in any economy, the regulations permit them to have a minimum percentage of deposits on hand, and hence they have the flexibility to loan out the remaining amount. Creating a flow of money lent, from one source, going into the borrower’s account. That is how they create a deposit rate. Now visualise, what a powerful tool this is for any growing economy.
The retail banking space is a welcome retreat in the middle of all turbulence caused by global financial demands, which people struggle to deal with every day. Customer deposits, gathered by retail banking become a central source of steady funds for many banks. In this endeavour it becomes important for banks to continue introducing innovative frontiers in the space of retail banking, to maintain relevance to the customers. Banks can achieve this through an essential bond that it can create, with the customers by understanding and connect with their needs and preferences.

Read More:
How Does Private Banking Differ From Retail Banking
Careers in Retail Banking and Wealth Management