Investment Banking in the Upcoming Years: Factors and Trends to Watch Out For

1. Investment Banking in the Upcoming Years: Factors and Trends to Watch Out For As long as there is a need for capital formation and monetary exchange, the banking sector is bound to thrive as the backbone of the global economy. And the two major departments of banking – namely, corporate and investment banking – constantly work hand- in-hand to ensure the smooth functioning of this sector from the macro as well as the micro levels. Investment banking is now one of the most lucrative and well-paying subfields in the banking domain, and has proven its relevance time and again in terms of ensuring significant long-term gains for individuals and organizations across the world. Having said that, there’s always room for further growth and advancement –and it’s time to have a look at some investment banking trends that are all set to influence this domain in a major way. 1.Making Way for Advanced Technology Key investment banking services, including equities trading, Mergers & Acquisitions and predictive analytics often involve monotonous data-collection, processing and calculation tasks that tend to bog down employees and restrain them from ascending in their professional journeys. With Artificial Intelligence, Machine Learning, big data and other latest disruptive technologies entering the picture, these tasks can be automated – thus increasing overall efficiency and enhancing the customer care experience. While these

2. technologies are still incipient in the field of investment banking in India, they are predicted to firmly establish themselves in this sector in the near future. According to the Accenture Banking Technology Vision 2018 report (as reported by LiveMint), a whopping 83% of Indian bankers believed that AI technology would work alongside humans in the investment banking field over the next two years. 2.Reforms in Business Strategies An important tried-and-tested method by which investment banks help their clients raise capital is through equity- and bond-linked schemes – such as IPO stocks – which enable companies to pool funds from the public within short periods of time. However, the past few decades have witnessed a shift from this traditional strategy. Other significant methods of generating funds – including private placements, strategic alliances and acquisitions have established a strong foothold in the corporate world. However, this does not necessarily imply that investment banking as a sector has become redundant – it only means that there is a need for a shift in focus from the more traditional fundraising methods to other investment banking services such as M&A and private placements. 3.Enhanced Customer Care Experience A good clientele is the driving force for every company and business sector, and investment banking is no different. Enhanced customer service would help investment banks meet client requirements in a more professional and personalized manner. Advanced technological interventions like the ingenious chat-bot technology can help the industry establish better interactions with its clients. Front-end

3. administration can be further enhanced to ensure that high-value clients are brought forth and there is sufficient coordination between customer service teams and other departments in the bank. While optimal client service measures are already being taken in the investment banking sector, more comprehensive customer service models leveraging on latest technology have now started being considered. Conclusion The future of investment banking is bright and promising; however, in order to cater to the shifting requirements of the private sector, there is a need to focus on modern investment banking services alongside the traditional strategies. In all probability, one can expect to witness a technically advanced, strategically dynamic and client- centric workforce in this domain in the upcoming years.