Smart money refers to investments or transactions made by expert investors who have an understanding of the financial markets and can often spot trends before others. Whereas financial services refer to the services provided by the finance market; it is used to describe organizations that deal with the management of money, e.g. banks, insurance companies, credit card companies, investments banks and stock brokerages. Smart money investing in financial service defined as a team, which consists of highly qualified analysts who are skilled and impeccable in their analysis. These analysts are able to predict the movements in share market on time and with high accuracy and using their experience and latest software tools.
According to study, “Smart Money Investing In The Financial Services Industry: Tracking M&A, Venture Capital, And Private Equity Investments Globally – Q2 2018” some of the major key players that are currently working in the smart money investing in the financial services are Barclays Bank Plc, Lloyds Banking Group Plc, Fifth Third Bancorp, Emirates NBD Bank, Fitch Group Inc., MB Financial Inc, Worldline SA, SIX Payment Services AG, PayPal Holdings Inc., VeriFone Systems Inc, iZettle AB, Ant Financial Services Group, Revolut Limited, Denizbank A.S., Anbang Insurance Group Co Ltd, Financial Engines Inc, Hearst Communications Inc., Baidu Financial Services Group, PaymentSense Ltd.
There are many investment activities are involved in smart money financial service such as mergers, asset transaction, acquisitions, private equity and venture financing. A merger is an agreement that unites two existing companies into one new company.
There are many investment trends are involved in smart money financial service, in 2018 such as banking, payments and wealth management. The investment banking industry involves many trends such as digitization, new accent of reducing cost, boosting trading commissions, customer centricity and workforce of the future. Payment investment involves internet of payments, context based payments, peer to peer payments, real time payments, partnership between banks and fin-techs, decentralization through blockchain technologies and commercialization of mobile network operator wallets. Wealth management investment trends are tax reform, cost containment, artificial intelligence & digital labor and people strategy.
There are many developments are involved for financial services. In June 2018, private equity investments reached US$ 304 million with a volume of 8 deals. In august 2018, a maiden fund was launched by Franklin Templeton alternative investments Pvt. Ltd, which aims to diversify investor’s investment portfolio.
Financial sector of India is undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market. In June 2018, the number of Mutual fund equity portfolios reached a high of 74.6 million. Another crucial component of India’s financial industry is the insurance industry.
In Q2 2018, growth of financial services industry is 205.5%, which is declined by 4.5% from deals in Q1 2018. Venture finance deal activity registered a decline in terms of deal count, accounting for 160 deals. Additionally private equity deal count rose by 15.9% and private equity deals registered growth of 138.3% during the same period. In second quarter, payments for restructuring amounted to EUR 2.1 million. The Investment Bank’s total revenues grew 59% annually to record 113.5 million due to an expansion in each of the business lines.
The globalization of financial market is rapidly increasing by international financial centers due to electronic trading systems. The future of financial market is depend on many keys such as technological wonders, meeting regulatory requirements, electrification of the trading and market transparency are expected to impact during the forecast period.
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Ankur Gupta, Head Marketing & Communications