{"id":245615,"date":"2021-10-12T12:33:12","date_gmt":"2021-10-12T12:33:12","guid":{"rendered":"https:\/\/imarticus.org\/?p=245615"},"modified":"2023-12-05T08:55:30","modified_gmt":"2023-12-05T08:55:30","slug":"how-is-digitalization-impacting-investment-banking","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/how-is-digitalization-impacting-investment-banking\/","title":{"rendered":"How is Digitalization Impacting Investment Banking?"},"content":{"rendered":"

Everyone is aware of how the entire banking sector is advancing. In order to keep up with the industry, rapid adaptation of digitalisation is one of the main priorities of the banks. Digital transformation in all forms is the current global movement faced by all the banks. There are some of the major strategic priorities like Customer experience, Data intelligence, Operational efficiency and Financial insights and almost all the banks are treating transition with utmost importance. A bank has different divisions like Investment Banking, Retail Banking, Commercial Banking, Global Banking, etc and you will come across digital transformation in every division of the banks.\u00a0<\/span><\/p>\n

One of the most profitable fields in the financial industry is investment banking and to understand <\/span>what is investment banking all about<\/b><\/a>, here are some broad pointers to keep in mind before you go through the rest of the article. Investment banks advise governments and organisations on how to raise money, how to merge or take over companies, and how to reshape the business most effectively. An investment banking division will have five key areas: – Equity Capital Markets (ECM), Debt Capital Markets (DCM), Leveraged Finance, Restructuring, Mergers & Acquisitions. While M&A focuses on business advisories related to mergers and takeovers, ECM and DCM focus on advising organisations and governments on raising capital. Leveraged finance is fairly like DCM but there is an involvement of larger risks. Restructuring is where bankers analyse the structure of a business. For example, debt\/equity ratios. Once the scrutiny is over the company is restructured in the most effective way to run the business successfully.\u00a0<\/span><\/p>\n