With so much jargon in the financial sector, it’s easy to think of a term such as mezzanine financing as confusing or opaque. However, the opposite is actually true here. So, what’s mezzanine financing in commercial property finance? It’s all in the name, really.
weeping the world of investment banking, the presence of artificial intelligence (AI) is gaining status over and above being simply an industry buzzword. According to Gartner, AI is set to recuperate 6.2 billion hours of productivity and $2.9 trillion in business value by 2021. With continued research and development into how AI can be deployed in the investment banking industry, aims for increased efficiency raise questions of job security and possible redundancy of certain business functions.
The disruption across industries from the rise of technological innovation is nothing new. Efficient algorithms and tailored data processing systems are changing the way almost every business operates. The investment banking world has seen an improvement in the decision-making process and stimulated efficiency. Major financial institutions that lean into technology optimise their business operations and client services offerings.
The idea of risk is straightforward for the most part but exists in different ways for every industry. In investment banking, risk management means protecting financial assets against loss. This is done by first identifying risky behaviours and then avoiding them if possible or deploying appropriate strategies to reduce chances of negative impact.
The concepts and systems on which corporate and investment banking are grounded today reach much further back than many people realise. In fact, several principles we still use can be traced back to the merchants and traders of medieval Italy. As their reach and trading capacity increased, so did the risks they carried and therefore the need to implement systems and regulations to protect their interests.
There’s an African proverb that says, 'For tomorrow belongs to the people who prepare for it today.' It beautifully encapsulates the importance of preparation and forward-thinking. In the business world forecasting should be the first step of any strategy or plan.