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INVESTMENT BANKING – WHAT IS THE FUTURE OF IT?

With the involvement of the technology in to the financial sector and the investment banking, the global economy have not been the same and now it is seen that the future of the investment banking is about to change drastically with the involvement of the people and the technology.

Well, now it is necessary to understand and learn as to how the regulatory forces and the technology are playing a major role in redefining the future of the investment banking. The investment banking is highly dependent on the market and whenever any ups and downs is seen in the market, the investment banking gets directly affected by it.

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But the experts have been saying that the time is changing now-a-days. With the help of the fintech, regulatory forces and the new investment strategies, the financial banking organisations have changed from the traditional ways.

The financial industry is becoming more and more specialized in the functionality and the organization is also becoming optimized. The banks now do not compete to become the top most banks of the world, which was the conventional thinking of many banks. But now the banks focus more on the optimization and to provide better and innovative services and offers to the clients. The mentality of the investment banking is getting matured day by day. The banks are providing services as per the needs of the clients. The reasons behind these changes are the regulatory forces, which is making it difficult for the investment banking to carry out the businesses.

Well some of the financial experts and investment banking professionals also suggests that the growth in the investment banking is cyclical and it will soon go back to the conventional ways of operation and functioning.

Here are some of the relatable predictions made for the investment banking by the experts and professionals in the financial industry –

  • In the coming years, the equities and the IBDs will become more important. As the FICCs have been long gone, these are now the most important investment options in the financial world.
  • There is no scope for the era of fixed income currencies and commodities (FICCs) coming back in the future.
  • Earlier, the investment banking had product based management but now the growth of the investment banking and the collaboration with the financial technology; the banks are adopting more client based management.

The centralization of the investment banking is taking place globally. The banks are now focusing much on the client rather than the products. The investment banking is now coming up with the candy offers for the clients and with more and more bank options, the clients are rejoicing the benefits from the best one for them.

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