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Tag: Investment banking trends

Investment Banking Market 2020 Covid-19 Impact Analysis, Trends, and Forecasts to 2027

Posted on by Imarticus Learning

Investment banking is an important sector responsible for generating capital. Investment bankers assist their clients in making financial decisions. The recent Covid-19 impact has shown its effect in almost every industry. The Investment banking market has to steer through the challenges during this tough situation. There are new and innovative ways being taken by individuals to cope up with the challenges. Let us see the current market situation of Investment banking and future trends in this sector.

Impact of Covid-19 on Investment Banking

The disruption of staff from office due to Covid-19 has cost investment banks a lot. They have adopted the ‘Work from Home’ culture to deal with this situation. The senior leaders have to cope with the challenges and have to monitor the performance of employees. Asset values are also falling in the present scenario, investment bankers have to cope up with it. The governments are also trying to give fiscal stimulus to companies/firms and are lowering the taxes to gain back the market confidence. Cash flow is also decreasing due to a halt in services, an investment banker has to maximise cash in hand.
Firms have to remotely manage their staff and have to create a work environment somehow. Investment bankers are using digital applications to make their job easier. The usage of technology for ease in doing business is surging. According to a report by S&P Global Market Intelligence, many investment banks reported a year-over-year drop at the end of 2019 due to the Covid-19. Due to the rise in uncertainty in the stock and bond market, market volatility is increasing. Investment bankers have to work through these challenges for sustainability.

Trends and Forecast in Investment Banking Sector

Due to the impact of Covid-19, investment banks are targeting mid-sized companies. There are a lot of mid-sized companies in every country. Due to the high frequency of these types of companies, potential growth is available. New technologies like cloud computing, e-commerce, AI, Machine Learning are redefining the way investment bankers worked. Many investment banks are increasing their institutions’ engagement on social media platforms to increase interaction with clients remotely.
The usage of data analysis is also trending in the Investment banking sector. Data analysis is used to analyse any financial decision and generate profits. Due to Covid-19, a lot of companies/firms have shifted to online work. Investment bankers are investing in cybersecurity companies because their demand is going to increase. Every company wants its data to be protected and with fall in manual work processes, cybersecurity services are being demanded.
The current global market of Investment banking is more than $250bn. The average industry growth is around 2.3% in the past five years. Investment banking may be impacted by the Covid-19 crisis, but individuals and financial institutions have coped up and made sure the business survives. There are a lot of fluctuations in the market, so prediction and investing in correct ventures is important.
It is predicted that the investment banking and brokerage market will grow in 2020-2027 and the leading players would be JPMorgan, Goldman Sachs. Digital banking is been predicted as the future of banking by 2027 and a lot of investment banks have taken the first step and have shifted various services to a digital medium. There will be a lot of chances for upward mobility in the Investment banking sector in the coming years.

Conclusion

Investment banks and their employees are managing their roles remotely and are coping up with the challenges laid by the Covid-19 impact. The capital has to be generated for the continuation of the business. A lot of new opportunities are also opening which are being grabbed by many key players in the Investment banking market. This article was about the impact analysis of Covid-19, trends, and forecasts in Investment banking.

Major Trends Driving Investment Banking in 2022

Posted on by Imarticus Learning

The role of technology in the investment banking industry has never been more significant and vital. Interpreting data based on the analytical details and flow of information is key to the investment banking industry. Needless to say, to stay ahead of the game, professionals must stay on top of all the current trends of technology within investment banking.
The investment banking industry evolved in India in the 19th century. In that period, trading industries were established by the European banks. At the same time, many international banks showed an interest in investment banking in India. Investment banks need a foundational transformation to deliver consistently from their main businesses and technology will play a major part in achieving the same.

The Major Trends Driving Investment Banking in the Future

Regulation
While a few may be delighted about rollbacks in regulation, one must approach this new movement with measured caution and cheer. Though some of the regulations may be reduced and reversed, suffice to say that others will be put in their place.
With the advent of technology, automation and AI take centre stage with machine learning and other such important tools. These help in the detection of risks and scams. However, with this progress, many more regulations have come into force. Several limits were placed on industries soon after the financial calamity. Things have settled since then and so, the regulations are likely to be relaxed, eventually. When this happens, tax rates and interest rates will move in favour of the bank.
Technology
The evolution of technology will have a tremendous impact on shaping the future of investment banking in India. Technology helps to promote safer work environments, enhance customer experience and increase productivity. Digitalization, AI, big data, mobile technologies, and augmented and virtual reality will transform the investment banking course across all financial sectors. In recent times, E-trading has become the leading technology in financial areas, hence, there is an urgent requirement to improve multiple trading platforms and investment banking IT systems.
The shift in the Workforce
Technology influences the manner in which individuals perform day-to-day tasks in an investment bank. ATMs have resulted in the migration of roles from transactional to analytical, and automation will also follow suit by assisting the movement of resources to a more managerial level.
Initially, few employees will be edgy regarding these structural changes however, it is important to note that automation and AI will not do away with jobs but only alter everyday activities. Customer service will still remain a priority and should not be compromised.
Hence, upskilling is certainly a smart approach for employees and managers alike in this field.
Future Generation
In future, the entire traditional and historic ways of investment banking get replaced with the latest in technological infrastructure and analytics. Digitization of customer experience and AI will occupy the world of investment banking. To rise as a global leader in finance, India needs to be open to accepting these changing trends. These evolving facets of investment banking assure not only global success but also enable the citizens to overcome various socio-economic issues and rise with the country.
Conclusion
These are some of the major trends in the investment banking sector and all these trends are assumed to reshape the industry of banking and investment. The coming times will bring upon a revolution of sorts with historical changes in traditional models.

Trends are Bound to Influence Investment Banking This Year

Posted on by Imarticus Learning

In The News

The last six months of the year 2016, were telling of the fact that things would be positively looking up for the field of Investment Banking. It was believed that this change would be led by most of the US banks as a majority of FICC revenues would begin to be recovered. While there are many experts waving the pessimistic flags, especially of the decline of the
Investment Banking owing to all the modern regulatory burdens and digital disruption. In spite of this, a majority of us are of the belief that optimism should be the word of the day. While it is truly considered that the entire industry would have to revamp itself, but it is also true that the Industry has been historically very successful at this.
Many have begun to realize the importance of some clear and innovative line of thinking and the need for new and correct business models. These business models are held as the key factors for ensuring future success, which is why the implementation of these needs to happen real quickly. Experts seem to have identified a few important trends, which would be acting as themes that Investment banking as a field would likely focus on in 2017. There will be a lot of profitability in store for banks, mainly as a result of the FICC business driving revenues that was out of fashion previously. We have all seen and read about all the significant cuts that have taken place and there are more such to come. Offshoring is one trend that is on the rise again as many top Investment Banks are relying on nearshore and offshore teams, in order to deliver the complex functions.
The cost and income ratios are going to undergo serious improvements in the year 2017 and things are looking really up for the US banks, especially after the tough year they seem to have had. Organizations will be seen focusing on eliminating their weaknesses and focusing on improving their strengths. In trying to survive in the competition, there will be many seemingly hard decisions that banks will be expected to make. Misplaced regulation is bound to act as a drag on the global economy and is likely to cause a real impact of structural reforms and regulation designed to improve transparency. Unlike the earlier days, developing the traits of patience will be a key factor in the future. Being the early bird will not pay, as much as waiting for the guidelines would be helpful, in evolvement and learning of lessons.
More and more banks are likely to focus on client strategies and will develop their servicing strategies towards a smaller universe of clients. There will be a lot of encouragement in terms of scientific approach when it comes to customer service and feedback on behalf of the banks. There are very strong chances of the CRM technology to be made more user-friendly as well.

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