5 COVID 19 strategies that you can adopt as an investment banker
Amid the lockdown and social distancing, businesses had to revise their set up to ensure that their financial wheels keep turning. The time of uncertainty came with its set of challenges that were largely unprecedented; however, they paved the way for business solutions that can be useful both in the present and in times to come.
Investment banker strategies brought into practice during this phase helped the corporate sector to sail through turbulent times. Implications during and after this pandemic can only be controlled if you are mindful of risks, and as a business owner adopt the investing strategies that can help your company stay steady financially. This blog covers a few of the vital issues that business investors must look into.
Impact of Covid-19 on investment banking
The role of an investment banker is central to the business landscape. They play a pivotal part in helping clients generate money in the capital market, while assisting them with various financial advisory services.
While the current pandemic has certainly disrupted the flow of financial services, the situation is not altogether grim. A recent session conducted by the United Nations Conference on Trade and Development (UNCTAD) concluded that there have been some positive developments that have emerged during this time.
The focus was largely on the timely approach and action plan of investment promotion agencies (IPA) who are supporting their clients through these turbulent times. Their innovative investment banking strategy has played a significant role in sustaining the economy and targeting sectors for better investment opportunities. It was also concluded that in future, functions of investment banking may be more inclusive of collaborative efforts on a global platform. Useful practices exchanged among investment bankers from different parts of the world can help promote effective solutions and be of use to all business owners.
What is investment strategy?
Investment strategies are tactics that take into account factors like risk tolerance, business goals, market interest rate, and more. They are also highly flexible and can be modified as per the environment and its influence. Hence, during the COVID-19 phase, there is a stringent need for newer investment banking strategies that businesses can adopt.
Among the various types of investment strategy, ensuring a continuous flow of work is of great importance. The displacement of the workforce due to social distancing has impacted the investment banking industry as well. The various processes that are part of this vertical may be difficult to perform in a remote environment such as trading and front office sales. Hence, it becomes vital to bring high-functional digital tools like collaborative software and virtual turrets into use.
2. Long term investment
Another important thing that has surfaced is the need to invest smartly and keep long term goals in mind. As an investment banker, don’t try to tame the market, but rather have a long-term plan keeping the risk issue in mind as well. A disciplined long-term practice can help generate better revenue than short term gains.
While security is an important part of all financial decision-making, the nature of security takes a shift in the present environment. Data leaks and security concerns can be a big issue when operations are being conducted in a remote setting. While the financial industry can sustain its workforce in a remote environment, it has to keep a check on cyber threats as well. Any data leakage can have disastrous implication and must be avoided at all costs.
4. Machine learning
Among the different types of investment strategies, the growing need for newer technologies has to be given immediate precedence. A robust and resilient MI/AI model is needed to cope with the growing needs of this sector. Increasing use of AI funds and chatbots, along with numerous financial software, is a clear sign that investment bankers need to incorporate the growing significance of technology into their everyday work.
5. New products
The banking system has managed to sustain itself through the economic crunches of the pandemic, and is preparing itself to get through the crisis. This requires a serious remodelling of current business and IT infrastructure. In doing so, investment bankers will have to look into introducing new products and offerings to meet client demands and give effective solutions to post-pandemic financial needs. In short, this means evolving rapidly and stepping up to the challenges with the help of modern apparatus.
To flourish in this dynamic industry, you need to think analytically and be prompt in its applying up-to-date solutions to financial challenges. The Master in Finance and Investments programme and ACCA courses offered by London School of Business and Finance can help you gain the skills you need to succeed in this industry.