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Tag: Retail Banking

Revolutionizing Retail Banking: The Innovation of Smart Debit Cards by Google, Apple

Posted on by Imarticus Learning

The idea of a smart debit card is revolutionary. Google first introduced it in 2009, but now many banks are using them to make banking easier for their customers. This blog post will explore what they are and why they’re so great!

The future of retail banking may be changing thanks to introducing one small investment: the smart debit card. These cards have all the features you would expect from your current bank-issued debit card, but with some added benefits that can change how you use them every day.

What are smart debit cards, and how do they work?

A smart debit card is like any other using the VISA or MasterCard network, but with added benefits that allow users to quickly retrieve their money if their card is lost or stolen. When you swipe your debit card, the transaction goes through immediately, and the merchant gets paid. However, an alert is sent to the user’s mobile device when used with a smart credit card.

Benefits of using a smart debit card over traditional ones

Security: Theft alerts

With a smart card, if the card is lost or stolen, you can cancel it immediately to prevent would-be thieves from using your personal information to make purchases. There are also theft alerts that allow users to track their card’s activity and know when it operates.

Privacy: One-time number for all transactions

Smart debit cards give you just one number to use for credit and debit payments instead of the 16 digit numbers required by standard cards. This single card and PIN provide greater privacy over your account information because these types cannot use without the owner’s phone.

Ease of Use: Contactless payments

Contactless payments, such as those made on Apple Pay, Android Pay, and Samsung Pay, allow users to place their cards near the payment terminal for a purchase rather than using a chip or PIN. The technology uses NFC as a communication method.

Hassle-Free Billing: Automatic payment alerts

Another benefit of the smart debit card is that it can automatically send your bank an alert when you purchase, allowing hassle-free bill tracking and management. For those who forget to check their bank account regularly, this feature can be a godsend.

How does the process work for the user?

What a card does is help you maximize your investment, particularly with interest rates so low on savings accounts and money market accounts. It means that there is an increase of limitations on transactions as one tries to encourage people to keep their funds in their account longer before spending it—the debit card allows customers to spend money in their accounts without cutting into their interest.

Explore and learn with Imarticus Learning

This PG Diploma in Banking and Finance includes hands-on instruction from industry professionals and covers every vital area of  Banking. Students may apply what they learn in the immersive tech-enabled learning experience to real-world business settings and challenges.

Some course USP:

  • This certificate course in banking and finance is with placement assurance aid the students to learn job-relevant skills.
  • Impress employers & showcase skills with a PG Diploma in Banking and Finance endorsed by India’s most prestigious academic collaborations.
  • World-Class Academic Professors to learn from through live online sessions and discussions. It will help students understand the 360-degree practical learning implementation with assignments.

Technology Investment Banking: Take Over the World with Zero Earnings and Negative Cash Flows

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When it comes to technology, investing in companies that are not making a profit might seem unreasonable. However, let’s assume the case of Amazon or Tesla where both these companies had negative earnings during certain quarters which scared investors immensely. In the long run, these two are highly profitable companies, but even then, they still sometimes manage to astonish their investors with poor earnings in a few unfortunate quarters.

There are many emerging technologies that have been and can be invested upon during their negative phases where they end up losing more value (or money) as compared to their earnings. Good investors take these risks with technology and software companies when they see a certain amount of hope or trust that these companies will certainly become profitable in some time.

best Investment Banking courses with placement in IndiaMassive investment banking firms such as Ernst & Young, Morgan Stanley, Goldman Sachs, and others have dedicated technology divisions, focused only upon investing in technology that will be important in the future or companies that have been estimated to become household names.

A Certified Investment Banking Operations Professional (CIBOP) course can definitely assist in transitioning to investment banking jobs.

What are Negative Cash Flows

Negative Cash Flows occur when companies spend more money than they generate within a stipulated duration. However, Negative Cash Flows do not necessarily mean the company is running at a loss, it is simply a status that equates to imbalances in the revenue stream.

Though it means that the total expenditure outweighs the net income for the specific period, companies can still make a net profit in the long run. In areas such as technology, the initial phase is spent on research and development, thus, actual profit cannot be seen till products or the software is deployed and available to the public. So, investors and firms can still make a profit by looking at the gross margin.

Products should sell for more than their production cost in order to make a profit. However, in the case of Tesla, during the first quarter of 2021, the company lost $970 for every Testa automobile sold (which they covered up with credits and bitcoin sales). Without their credits and BTC sales, they would actually end up losing $181 million.

Amazon, one of the biggest names now, took 14 years to cumulatively turn up the net profit that it earned in just the 4th quarter of 2017. In fact, until the early 2000s, Amazon incurred negative returns during every quarter.

Why are Zero Earnings Beneficial for Investors?

Many technological companies suffer from negative earnings quarter after quarter, however, some always end up achieving blue-chip status or acquiring massive value. This is especially true for biotechnology, IT, semiconductors, hardware, and aeronautical innovations. Investing in early-stage firms from these industries that are currently suffering due to difficulties can promise massive rewards that far outweigh the associated risks.

The possibility of invested companies discovering extremely important technology that assists medical science or AI systems that are capable of running entire cities is far too alluring to miss out on. Zero earnings or negative earnings can be a short-term situation and smart investors rely on the gross margin for longer durations.

It is a high-risk investment, however, large investment banks and investors are generally willing to be patient with temporary problems for an earnings recovery in the future. When wondering about what are the career options after graduation, one can definitely look into investment banking.

Conclusion

A certificate in investment course details shows the way to become a budding investment banker for helping investment firms. Valuation methods such as Discounted Cash Flow and Relative valuation take a company’s temporary problems and the future profit into account to determine if it is worth taking the risk.

So, what are the career options after graduation? Candidates are first recommended to definitely enroll for a Certificate in investment course, details are available here.

Related Article:

How Do I Get Into Investment Banking

Career As An Investment Banker

 

Should Digital Channels Support Retail Banking Strategy?

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In this era of digitization and technological advancements, this question is itself answered. If you are resisting flow with the current you will vanish. Digital channels should support the retail banking strategy. Consumer banking is a synonym to retail banking in which the customers are offered services like mortgages, debit/credit card generation, savings, etc. and these services can be accessed through a bank or a nearby branch of a bank.

Now, these services are day-to-day services. I mean who doesn’t want to check his account balance and if these services are offered through digital channels, it would save time and service of an institution.

The electronic way of offering services helps in reducing the gap between customers and the bank. If you are able to communicate about any discount, bank holidays, etc through a notification, then tell me why not it is good? It happens a lot that there is not a branch nearby of our bank. In that case, retail banking services offered via a mobile app or any digital platform would be a blessing. It is not only good for the customer but will also help the financial institution.

They can find out the number of people using their digital services and can do a checksum through data analysis. They can get suggestions from consumers and can work on the loopholes. It will reduce the workload from the employees and they can contribute towards effective services. The manual way of determining things may take time sometimes, effective real-time computation thorough digital channels will not only reduce the time taken, but it will also satisfy customers to a greater length.

You can see easily how countries are shifting from cash to cashless economies and why would anyone want to be left behind. But offering retail strategy through digital channels should not affect the customer-firm relationship. There must not be any gap in the services offered at the physical locations compared to those offered at the digital platforms.

There are currently over 55 million active users on Google pay, Phonepe has already crossed the 100 million user mark. You can see that people have started shifting. In this case, the Retail Banking strategy is required to undergo a lot of changes and they must break their traditional way of working otherwise they are on the edge of being extinct. Customer problems and FAQs can be easily dealt with by online applications. Financial institutions can also increase their market share through digital transformation.

You could see that even a local vendor or a street shopkeeper accepts payments through UPI. It implies that no one is willing to lag behind in this digital age, it doesn’t take a lot of time for big firms to take a toll and fall into bankruptcy.

Everyone has a mobile phone nowadays and if they can access Retail Banking through their cells, why would they prefer going to a physical location again and again. It doesn’t matter what happened in the past, it is a new era, if you are not accepting the change, you will have to come up with something more reliable and if you cannot, then be ready to accept your downfall.

Conclusion

Look around you for a while, how many people go to a banking institution for day to day transactions? Many of them just do it through Amazon pay, Google pay or other platforms. It is not a choice anymore, it’s a compulsion, a need in this era.

Many of the financial institutions are already undergoing digital transformation to cope up with the changes. A strict yes would be the answer if the question is should digital channels support retail banking strategy. Hope this article helps you in understanding the effect of digitization in today’s era and how the financial institutions need to adapt.

Consumer Needs are at the Forefront of Digital Transformation in Banking

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Consumer Needs are at the Forefront of Digital Transformation in Banking

‘Going digital’ applies to so much more than just using social media or moving data to cloud devices. In the banking sector, it relates to a complete overhaul of the way banks and credit unions understand, contact and please customers– the digitization in banking as they call it.
The first step to a successful digital transformation in the banking sector starts with an understanding of the attitudes, desires, and choices of digital consumers. It then leads to major consumer-centered improvements in order to meet these needs to retain customers and stay ahead of the competition.
It may look like banking institutions are lockstep in their advancement towards goals, but consumers are continuously raising expectations, which means a complete change of approach is in order. It’s especially important to be aware of consumer needs in a time when leaving a bank and opening a new account elsewhere is an easy process– an aspect every good new age banking course will endeavour to cover.
So what does today’s financial customer want?
The top five consumer desires, according to recent surveys, are:

  • Rewards for business
  • Simplification of life with 24/7 access to balance
  • The bank’s knowledge of them as a customer and an individual
  • The bank looking out for them with wealth-building advice
  • The anticipation of needs and insights on how to spend budgets and save money

Rewards for business and transactions
Banks have become a lot more than a place to deposit your money and garner interest– they’re now a place where people come to do business, transact for loans, send and receive money and get personalized offers. A big ask of consumers today is that they want to be rewarded for their business, by way of reward programs through points, vouchers, coupons, gifts or discounts.
Mobile access to services
As explained in many a new age banking course, today’s digital customer wants to be able to access their balance and keep track of expenditure no matter where they are. To keep up with this demand, banks are releasing apps with increasingly intelligent features like chatbots and voice assistants. An added perk that banks can provide is allowing customers to look at spending patterns and make use of money management and budgeting tools.
Personalization schemes
A stand-out indication of the change in consumer mentality within the financial and banking sectors is that customers at their bank or credit union don’t want to be just a number anymore. They want to be recognized as individuals with varying needs and preferences, not even categories or target groups as was once the process of ‘personalization’.
Switch to digital channels
Gone are the days when people head to their banks to directly withdraw cash or make other monetary transactions. Today, consumers prefer digital channels like tablets, laptops, and smartphones– meeting face-to-face comes second in the list, followed by phone banking. This represents how the omnichannel need of a consumer is fast arising, regardless of the age or income.

Conclusion
Consumers today want personalization and digitization and want their hand in hand. Any level of customer dissatisfaction can be analyzed to understand the root cause and identify if there is a new age banking solution. This will help any bank gain favor among the masses, specifically the digital natives.

How Does A Banking Industry Help To Improve The Cash Flow?

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Banks are driving the economy
Banks are at the helm of affairs in today’s economy. Banks accept money from the people in the form of deposits and also provide credit to people who need money for professional and personal reasons. Banks hold an eminent position in maintaining the financial stability of any country; be it developing or developed. Banks ensure that there is optimum liquidity in the economy.
Banks’ role in regulating cash flows
Banks play a major role in improving and maintaining the cash flow in the economy. Banks issue money in the form of banknotes which are accepted throughout the country as a medium of exchange. Banks ensure the effective transferability of money from one party to another. Banks act as collection points for people who want to withdraw money and paying points for those who want to transfer or send money to other parties.
Banks also offset payments to people staying in different countries, hence levying a charge on those transactions and ensuring the inflow of cash in the financial institution. Banks borrow money from higher sorts of institutions and lend it out simultaneously thus creating a never-ending cycle of lending and borrowing and also ensuring the injection and withdrawal of money in the economy. They indulge in short-term borrowings and extend long-term borrowings to their customers.
Banks provide multiple incentives to the people who pay back their loans ahead of time and hence create a “swing-situation” for both the borrowers and banks as the inflow comes at a much quicker rate than expected, hence giving a lift to the cash flow.
Banking is a complex process. It requires a lot of insights on what rates should be maintained, what penalties to be charged, etc to keep this loop of money cycle functional. Corporate Banking training has high relevance in such a case.
How do banks help businesses in optimizing cash flows?
Banks help businesses increase and optimize their cash flows. Businesses should start tossing their sandwiches with bank oil before they start burning. Banks help businesses in analyzing statements better. Banks find ways so that the companies are paid faster from their debtors and every other possible form of receivables. They also streamline the process which controls irregular cash flows.
Banks also helps business in digitizing the process of cash management thus fixing the problems like time lag, in numerous discrepancies caused by paperwork, etc. Banks make it easier for businesses to send and receive and send money online smoothly thus, making the whole cash flow process much simpler and more effective. Mobile banking reduces the cost of transactions and also reduces the time of every transaction to a mere fraction.
Banks work as money advisors telling you what’s right for your money hence, bringing the best out of your money. Banks help you scan the opportunities and flag the dangers. Banks help in establishing a line of credit thus bringing stability to the whole process.
Banks also use some stringent measures to ensure cash flow because their primary function is to optimize cash flows. They charge a penalty for delayed paybacks thus maintaining their status in the economy.
Banks ensure liquidity
One of the major roles played by banks in ensuring cash flows is maintaining the liquidity. The funds are injected from time to time thus keeping the economy buttery. Bank generates cash flows in huge volumes, thus regulating the whole economy. It reduces leaks and helps the continuous cycle of money to become denser.
Banks help people in channelizing their accumulated money into other avenues where the returns could be huge, thus helping the people to grow the money which they have. Optimum cash flows give banks a breathable environment where they can spread out their roots and take control of the situation.
Conclusion
Banks help in instilling a sense of financial freedom and also streamlining the cash flows in all parts of the economy. Banks are the epitome of efficient money management and cash flow supervision. Corporate banking training would incorporate a better understanding of the banking sector. Banks have to keep a constant tap on the economy and come up with strategies to increase cash flows from time to time.
To understand these watch guards of the economy better, one will have to understand the fundamentals of money and also require in-depth insights on how money management can be leveraged to increase and optimize cash flows, thus building a great economy.

How Asset Management Helps You Sell Better, Faster and Smarter?

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An asset is a resource that is owned by any business concern. Assets are both tangible and intangible. Equipment, machinery, etc. are some of the tangible assets whereas patents, copyrights, etc. are intangible assets. Assets also help in determining the worth of the company as there is a monetary value that is hidden in it.

Asset management is nothing but a systematic process of dealing with the assets a company possesses. It involves activities that are directly related to assets such as asset development, asset up-gradation, disposal of assets, maintenance of assets and so on.

The main motive of asset management is to optimize costs and also reap the best benefits one could get from a particular asset. Also, asset management involves managing assets according to the nature of the company e.g. A bank’s main asset is the money it holds. So, it will try to optimize its earning by the means of transaction costs, etc. on the other hand the main asset for any manufacturing concern would be its equipment and machinery so, it will lay its focus on maintenance and upkeep of the machinery.

What are the benefits of asset management?

The main agenda of managing assets is to either gain appreciation in the value as in the case of real estate or to make the most out of a particular asset that has a limited life span as in the case of factories. Also, assets are managed to mitigate risks. Asset management aims to ensure that with a minimum investment, the returns received are infinite.

Who offers the services of asset management?

The Asset Management Training is generally offered by financial institutions who are subject matter experts on “what is to be done with assets of a particular company.”

An asset manager makes a portfolio that promises high returns to a particular company with the number of assets available with them. His major job is to balance out the risks involved with suitable results.

The asset manager procures materials such as security papers, bonds, etc. from the Capital market and then make decisions on the basis of his client’s willingness to take risks. He considers all kinds of social, political and legal factors before making his move.  He has the final say in such decisions.

How does asset management ensure easy and quick revenues?

The main focus of asset management is to maximize the value of returns which can be gained by any asset. In a production concern, assets are taken good care of so that the machinery can run smoothly for long hours, hence producing a lot in a single day. The asset which plays a major role in any company is cash. Proper management of cash can solve a lot of problems for any company.

An asset manager with the consent of the company invests the company’s money in various avenues so that the available money multiplies in a short period of time. Also, an asset management company advises its clients on what assets to procure. A major example of this would be Mergers and Acquisitions.

An asset manager advice its client on what companies it can acquire to expand its business operations. He helps in purchasing assets as a part of investment strategy and then improves the state of the asset and resells the products made out of it or the asset itself at a much higher rate.

An asset manager helps in selling better by optimizing economies of scale and reaping the most out of the limited resources. Asset management also involves the computation of life cycles and additional costs involved with a particular asset. This translates into both long term and short-term financial planning hence, giving a clear direction to the company and optimizing profits.

Conclusion

Asset management is important if you want to reap out the maximum benefits from the available assets. It will bring out the benefits faster and more efficiently. It will help in making the best use of resources thus making the sales of a particular product smooth, multiplying revenues and making use of everything smartly and involving minimal costs. Hence, it proves to be a boon for companies.

4 Steps To Increase Cyber Resilience In Wealth Management?

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No amount of wealth management training is sufficient to protect a person’s assets from the dangers of phishing attacks and other malware. The best strategies against cyber attacks are by being vigilant and strengthening the foundations of security.
This is where a new term- cyber resilience, comes into the picture. Put simply, cyber resilience is the process of making defense systems more agile by combining the best of cybersecurity and business resilience. It can be defined as a business’s or organization’s ability to adapt to attacks in a fast-paced environment.
It has become an important part of wealth management training setups that emphasize on the core strengths of highly‌ ‌structured‌ ‌security systems are 4 strategies to do so.
Prepare And Identify Threats
An important part behind any good cyber resilience strategy is to properly identify actions for when the cyber event will occur. Using a bundle of defender tools and data trackers, businesses can know the weak points in the chain of security and act accordingly to prevent any mishaps. Preparedness also involves being able to deal with specific emergency management business functions such as asset management, debit and credit checks, human resources, strategic planning, financial management, and risk management.
Surprisingly, there is a lack of well-documented procedures that should be followed in the event of a cyber attack. Dynamic business environments have to create their own methods with some references from established sources such as the EU General Data Protection Regulation.
Detect Different Attacks
Vigilance, above all, is necessary. Focus on activities to rapidly identify when an attack is to occur and ensure there are proper contingencies in place to substitute for the systems that may be affected when things go wrong. This strategy involves the use of monitoring networks for indicators and keeping safeguards that come into action automatically. There can be a wide variety of attacks including the common DOS(Denial Of Service) attacks.
In the scope of wealth management training, this could be a secondary app or form that caters to use needs during maintenance checks or the use of DNS Reverse Search Lookups to increase security. More importantly, the system should not treat an anomaly that occurs in the mainframe as an attack if it doesn’t cause any mishaps. The reason for the distinction is to prevent this from occurring.
Build Effective Response Systems
Instead of being dependent on the security setups of a singular platform to manage wealth and capital, invest some money in auxiliary systems to support the current network. Incident reports and response plans must be drafted and circulated among users along with some roles that should be assigned to potential members of the organization.
But instead of using machines as tools for response systems, certain individuals must be delegated to ensure safety. Appoint a team leader or a manager to check the system security frequently and produce reports to its health. Another person in the team should have the responsibility of incident checks, coordinating response team activities, and communicating status reports to upper management.
Recover And Review
Use the review systems to restore any affected data. The flow of money should never be affected especially when the concentration of transactions increases exponentially with the number of users. A good means of implementing this is through the use of methodologies like SCRUM that stress on a cyclical procedure to assess attacks and respond to them.
An effective cyber resilience strategy looks at developing and implementing appropriate methods to restore data points and services immediately after an attack. Keeping enough number of phase gates for identity checks or using an SSL(Secure Socket Layers) can help implement these strategies to a great degree.
For more details, you can also visit – Imarticus Learning 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.

What Is Digital Transformation in Retail Banking and The Role of Data?

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Today’s financial services industry is nothing like what it was a decade ago. Changing customer behavior boosts in technology and intelligence and the general digitization of society is what’s behind this massive change. Over the past few years, banks have had to pull their socks up and get with the times to stay afloat. For many, this meant a digital transformation.

What is a digital transformation?
Digital transformation is the integration of new-age technology into all aspects of a business. It branches off into two– the fundamental changes in operations and client services, and the cultural transformation that follows in its wake.

Digital transformation in retail banking is driven by the need to speed up growth. In fact, 87% of banks have a long-term plan for digital innovation in place already. It’s just as well, seeing as online banking systems and third-party companies such as Paypal and Google Pay continue to threaten traditional banking organizations.

Investments in data analytics and the cloud are on a steady plateau, but expenditure on next-gen technologies like blockchain and Artificial Intelligence is on the rise.

Where are these technologies used in retail banking?
Customer service: Customers are increasingly choosing their primary financial service providers based on how easily they can operate and access their assets and how mobile the system is.

Digital IDs: Biometrics-based solutions enable customers to register once and be recognized each time. This increases operational efficiency and tightens security.

Voice banking: Voice authentication and banking are largely untapped, but it’s only a matter of time before AI-powered digital assistants catch on just in the retail banking sphere just as digital transformation, in general, did.

Distributed ledger technology: Traditional retail banks maintain central databases but they’re slowly making the shift to blockchain systems, where there’s no need for intermediaries or central authority.

What is the role of data in retail banking’s digital transformation?
Retail banks are inherently data-driven businesses. How well they use customer data insights is what gives one bank a competitive edge over another. Small wonder, then, that the role of data in extremely crucial in the digital transformation of retail banking.

Here is a quick breakdown of how data can be used in new-age banking:

Hyper-personalization: Too often, traditional banks have tried to target individuals based on crude segmentation that does more harm than good. With new-age technology, data analytics on consumer information can identify how to effectively target audience in an age where banking is no longer a life-long commitment.

Insight-driven services: Retail banking needs data to establish and promote insight-driven services that add value. A lot more is asked of a retail bank today than 10 years ago, and not just in terms of interest rates and lockers for valuables. Banks must come across as having customers’ best interests in mind to establish brand loyalty and drive numbers.

Personal Finance Management: with data and technology, banks can better cater to customers and assist them in managing their money efficiently. Personal and relationship managers have long been a part of the retail banking system. But with the help of data analytics and technology, banks can deliver into insights that once eluded them, thereby making the system more efficient and personalized.

The retail banking sector is in for a rough few years, but the silver lining is that banks already have a headstart on client relationships. Using digital banking to leverage these personal connections can make retail banks far more indispensable than their online competitors.

What does this mean for employees and aspirants?
Traditional methods and syllabi can only go so far in preparing you for digital disruption. New-age banking courses can effectively prepare people of all experience levels for the digital age. The better banking courses are those that will give you hands-on experiences and allow you to interact with industry professionals to see how the digitization has transformed their daily work.
Retail banking training can also be organized by the banks themselves. Introduction to these technologies is crucial to maintain stability during cultural and structural changes. To learn new-age banking is to prepare oneself for the future.

How To Get A Job In The Field Of Investment Banking?

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Jitesh did his graduation from commerce. He was unable to get himself a job and failed to set up his own business  Here’s how he got placed at BNP Paribas, with a certificate course from Imarticus.

Recalling his experience, he explains how from being a boy who just graduated from college with no practical knowledge, he transformed into a well-groomed professional at Imarticus.

Jitesh enrolled in the Investment Banking Course at Imarticus, that helped him encompass knowledge in the field of finance, including inter-alia advanced derivatives, banking operations, commodity trading, etc. At Imarticus, Jitesh was provided with rigorous Investment Banking training in line with the Internationally accredited course, that developed his analytical skills, and in-depth understanding of the course contents.

Difficulties faced by Jitesh during the Investment Banking Certification were to arrange the finances for the course and to manage time for the course. Imarticus made Jitesh overcome these hindrances by providing an option to pay the course-fees in easy monthly installments and flexible weekday/weekend programs.

Jitesh advocates the Investment Banking Certification Course at Imarticus, due to the presence of faculties having extra-ordinary pedagogical skills, and practical experience in their respective fields which not only enriches the learning experience of the student but also develop an undying Interest in the Subject. Jitesh further recalls how Harish Thakkar Sir’s deep knowledge in the field of Capital Markets and his personal attention towards him made him understand the toughest of the topics forming part of the content of the course.

About Imarticus Learning’s placement facility, Jitesh was truly excited to have joined BNP Paribas, out of the many opportunities offered during the Imarticus placement drive, which marks the participation of many reputed Investment banking firms for recruiting from Imarticus.

Jitesh now wants to pursue the Financial Analyst Course, the foundation of which has been laid down by the Investment Banking Certification course at Imarticus.

Are you planning to kickstart your Investment banking career like Jitesh? Contact us to enquire about such courses. If anyone has interested in Retail banking course or digitization in banking, Imarticus Learning would be a one-stop solution for them.

For more details regarding this in brief 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?

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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.