Online investment bank refers to that bank, which offers services related to
investment banking online or over the Internet. At present, a large number of reputed investment banking institutions are providing this type of services to the customers.
Investment banking is that type of banking, which involves financing for government agencies and other corporations by issuance and trading of securities in the primary market. Investment banks help companies to raise finance both from the debt capital market and equity capital market in private and public sectors. Investment banks also offer consultation services regarding issues like mergers & acquisition, as well as other important financial events.
The investment banks are different in nature from the commercial banks. In a number of instances, the investment banks function as mediators or third parties for their customers in transaction of securities.
The principal activities of
investment banks can be categorized into the following types:
- Collection of funds through capital markets
- Consultancy services associated with mergers and acquisitions
- Investment management services (administration of different types of investments like stocks, bonds, and real estate)
- Buying and selling of securities
- Research activities
- Risk analysis and management
- Investment portfolio management
All the principal investment banks now utilize online investment banking facilities. Online investment banks offer a number of state-of-the-art account management and investment tools, which are helpful for the investors. They create an online trading platform for the investors, through which the investment banking products and services can be traded. Online investment banking offers a lot of market research analysis data to the investors, which help them to a considerable extent. The security aspect is quite strong because of the advanced technologies used. One of the most important features of online investment banking is the provision of online IPO (initial public offering) in which the IPO can be offered online. In-house softwares designed by different technology teams are used. The electronic trading platforms are used for the trading desks.
The leading
online investment banks include the following:
- Charles Schwab
- Chase
- Synthesis Bank
- Banknorth Group
- Boston Private Bank
- ICICI Bank
- Bank of America