What does investment banking look like in the new normal?

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The Covid-19 pandemic has changed the way of work for almost every sector. Resultantly, this has also affected the financial sector, and new ideas have come in. Talking about the financial sector, investment banking has been an integral part of it.

In this new normal, where digital technologies are becoming an integral part of human life, sectors like investment banking are also embracing it. As an aspiring professional who wants to enter this field, one can complete an investment banking certification course online and up their skill and employability.

Nonetheless, before moving ahead, it is essential to understand the concept of investment banking first.

What Is Investment Banking?

Investment banking refers to the subdivision of the banking sector that focuses on creating wealth for organisations, governments and any other entity. And investment bankers are the individuals who are in charge of reaching these goals.

Moreover, investment bankers generally carry out operations such as

  • Assisting their clients in the sale of their securities (financial certificates or assets possessing monetary value which can be traded or sold, etc.)

  • Being a part of important company-related transactions and deals such as mergers, acquisitions, etc.

  • Act as middlemen or point people in operations involving brokering trade, etc.

People interested in knowing more about the world of investment banking can hence learn investment banking by applying for investment banking certification courses. These courses have detailed modules that teach people everything about becoming investment banking professionals.

What Does Investment Banking Look Like In This New Normal?

The investment banking sector has, as with many other sectors, undergone a sea change in the past two years during the global health crisis.

And now two years later, investment bankers have seen several trends that are directing their energies and which have them excited, such as the ones mentioned below: –

Digital Listings As Opposed To IPOs

Companies opt for digital listings as opposed to initial public offerings (IPOs). The reason this particular step by companies is revolutionising the investment banking sector is that it will help companies save on their expenditure and increase revenue by selling pre-existing shares.

This means that investment banking companies serving their clients need not expend on creating new shares or capital and sell it to the public, but instead sell their client’s pre-existing shares, thereby increasing the revenue of both parties.

The Rise of AI/Artificial Intelligence

The introduction of artificial intelligence has transformed the investment banking sector. With the way this sector works, investments are made, and the creation of portfolios is done, you can now see the sign of AI in almost every area.

Nowadays, AI assists investment bankers in personalising communication with their customers, detecting instances of financial fraud, ensuring appropriate ratings of their customers before dealing with them, and offering faster instances of trading.

Blockchain Technology

Applying blockchain technology (that is essentially an impenetrable digital ledger that stores transactional data, etc.) has proved to be quite beneficial for investment bankers.

These benefits are because blockchain technology has replaced middle merchants or intermediaries and provided a safe space for person-to-person transactions. Blockchain technology has also led to the boom or rise in the use of cryptocurrency by people across the world.

Mobile Applications and Websites

With the advent of time, websites and mobile applications or apps have taken over what used to be the domain of physical brick-and-mortar enterprises. Financial enterprises like investment banking organisations now offer their customers the option to track all their transactions with the help of apps and trade from there on.

The flexibility offered by these apps has changed user-market interactivity and has led to a more dynamic approach to trading and investment banking. It has also created a demand in the public to learn investment banking.

Customer Relationship Management or CRM-based tools

Now, in the modern era, one of the most proficient quotes that have stood the test of time is that ‘the customer is always right’.

This is where automated or otherwise, systems that efficiently manage the relationships or organisations, such as investment banking organisations, or CRM or Customer Relationship Management tools, come in handy. Investment banking has adopted an even more personalised approach with increased customer support and interactions using CRM.

Key Takeaways

To sum up, the introduction of digital services has been a boon for this sector. It has helped investment bankers and the concerned firms to streamline their operations and serve better. It has also helped these professionals gauge future trends and avert any probable pitfalls.

So, if you are interested in entering this field, then completing investment banking courses with placement can be of great help. In this regard, you can get in touch with Imarticus Learning. The Certified Investment Banking Operations Professional course can be your gateway to achieve your dream of becoming an investment banker.

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