Investment Banking is a dynamic industry that has been evolving rapidly in recent years. The last decade has seen significant changes as new technologies and regulations have impacted how investment banks operate.
Today, Investment Banks are more compliance-focused than ever before, with increased pressure to meet regulatory demands. The increased regulatory scrutiny of the sector means that companies need to be aware of their responsibilities and obligations when operating an investment bank or providing services for one.
Investment Banking career is a highly sought-after career, and it is not an easy one to enter into. The competition for these jobs is stiff, but if you're looking at building a career in Investment Banking, then you must stay updated on the banking trends that are in the market.
Some top investment banking trends to watch out for in 2021:
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HFT (High-Frequency Trading)
The global high-frequency trading market is set to nail a bullish growth in upcoming years from 2020-2026. These platforms use complex algorithms, analyze the market, and spot emerging trends in a second’s divide. Large investment banks typically employ HFT. The firms that implement HFT expect high favorable returns on trades. This gives a systematic approach to active trading. With the number of advantages HFTs offer, in the coming years, there will be a rise in the use of HFTs.
The COVID-19 pandemic has forced organizations to opt for virtual IPO. Traditionally, the roadshow and pricing of IPOs would take approximately two weeks. It also used to be dependent on face-to-face interactions among management & prospective investors.
Automation of the process has led to a decrease in time by 50 percent. Also, demand for remote connections and transactions has been accelerated during the lockdown. So, tracking legal diligence & reports is the new trend for IPOs.
The pandemic has pressed for a strong wave of digital transformation, i.e., consolidation & automation of mid-and back-offices. Some of the latest digital technologies introduced & redefined include:
- Robotic Process Automation (RPA): saves money on operations
- Cyber hygiene
- Use of AI/ML to improve existing systems
- Confidential computing to streamline data & communication privacy
- Automation of data distribution using big data analytics & real-time reporting
- Increased security by tapping the core of blockchain technology in transactions
Changing Employability with Trends
As technology overpowers investment banks, recreating jobs is the need of the hour. Talented professionals have a deep understanding of new technologies, regulations, risks, and updates. Investment banks are now hiring professionals from cross-industry, acquiring tech companies like IBM, Microsoft, and others.
Investment Banking Career with Imarticus Learning:
Investment banking professionals must upskill themselves & have an augmented understanding of technology. You can choose to keep yourself updated in this domain through recent investment banking certifications courses.
Imarticus Learning through the Certified Investment Banking Operations Professional program is helping professionals explore financial, technical, and interpersonal skills. The investment banking courses equip students with the skills required to begin a career in investment banking.
The students learn job-relevant skills, get hired, gain industry certifications while learning through live virtual classes during the program. The 360-degree structured learning package allows students to access an industry-aligned curriculum, be tech-enabled & get 100% placement assistance. The industry connects, and the alumni network at Imarticus Learning boosts the students looking to grow connections & search for better opportunities in the industry.