Emerging trends in corporate finance

Keeping up with trends in corporate finance

In the corporate finance world, change is constant and keeping up with the latest trends is essential for banking and finance professionals who want to stay ahead of the curve. Some of the most popular corporate finance trends right now include big data and analytics, alternative financing, and environmental, social, and governance (ESG) investing. Big data and analytics are being used more and more to inform strategic decisions in corporate finance. 

Alternative financing is another growing trend in corporate finance. With traditional bank lending becoming increasingly difficult to obtain, many companies are turning to alternative lenders for funding. These lenders include online peer-to-peer lending platforms, private equity firms, and venture capitalists. Finally, ESG (environmental, social, and governance) investing is becoming more mainstream as investors seek out companies that are making a positive impact on society and the environment. 

So why is it important for banking and finance professionals to keep up with these trends? Because these trends are influencing the way companies make financial decisions. If professionals don’t stay up-to-date with the emerging trends in the industry, they will be at a disadvantage when it comes to working in the industry and providing advice or services to their clients.

Emerging trends in corporate finance

Here are some of the emerging trends in corporate finance that are completely transforming the sector:

• Digital transformation

As traditional business models are transforming and companies are looking for new ways to be more agile, the focus of corporate finance professionals is shifting toward digital transformation. This trend has been driven by the need for a more effective and efficient business model. Companies are now looking at e-commerce as a way to increase customer engagement and sales. In addition, they are also looking at online marketing as an effective way to enhance brand image and awareness.

• Integration of FinTech & financial institutions

The integration of FinTech & financial institutions is another emerging trend in corporate finance. This trend has been driven by the need for more efficient financing solutions for corporations. Corporates are looking at FinTech companies as a way to reduce costs and improve efficiency in terms of accessing funding options from various sources in one place.

• IPO finance for corporates

IPO is the public offering of a company’s shares and a way for a company to raise capital by selling its shares to the public. The process begins when an entrepreneur or business plans on issuing new shares for sale at an initial public offering (IPO), which usually occurs after it has grown into a successful and profitable entity. When this happens, investors can buy these newly issued shares in order to gain ownership stakes in those companies.

• FPOs

FPOs are used to finance a company’s growth. They can be used to bridge the gap between the company’s existing debt and equity, and they allow for additional capital to be raised without diluting ownership or control of your assets. FPOs typically have a longer maturity period than traditional debt instruments, so you’re able to use them as long-term financing solutions for projects with low-risk profiles.

• Corporate bond market

The corporate bond market is a place where corporates can raise funds, borrow money, or invest in bonds. Bonds are debt securities that entitle the issuer (the borrower) to interest payments over time and repay the principal at maturity. They’re issued by companies or governments around the world in order to finance projects like infrastructure, equipment purchases, etc. They’re typically not fixed-rate securities because their value depends on how much investors believe they’ll sell for at maturity.

• Private Equity

Private equity is a form of investment in which the investor does not have any control over the management of the company. Private equity firms are large and dynamic entities that provide financial resources to help companies expand their operations or acquire other companies and franchises. They also offer management services to help their portfolio companies operate more efficiently through their expertise in finance, accounting, human resources, and general management.

• Merger & acquisition

Mergers and acquisitions are a way for companies to grow. They can be used by organizations as a way to expand their businesses or by investors who want to buy into promising companies at an attractive price. Mergers and acquisitions (M&A) are often viewed as positive steps in the life cycle of an organization because they contribute positively to long-term growth prospects and increase shareholder value. 

New emerging trends in corporate finance

• Digital transformation 
• Integration of FinTech & financial institutions
• IPO finance for corporates
• FPOs
• Corporate bond market
• Private Equity
• Merger & acquisition

Pursue TAPMI’s online MBA BKFS

Pursuing TAPMI’s online MBA BKFS program through Online Manipal is a great opportunity for working professionals in the BFSI sector to gain a broad understanding of business, leadership, finance, and banking concepts. The program is designed to help working professionals develop their potential so that they can advance their careers to leadership and management roles. 

Learners can choose from 4 industry-oriented electives to gain specialized knowledge and skills. Professionals with working experience in the BFSI sector can broaden their knowledge and skill sets that are more aligned with the emerging demands of the BFSI sector and corporate finance.

Conclusion

Corporate finance is constantly evolving, and it can be difficult to keep up with the latest trends. However, understanding these emerging trends in corporate finance can help businesses make better decisions that will lead to improved financial health and increased long-term success. From leveraging technology for efficiency gains to using big data analytics for decision-making, companies must stay ahead of the curve if they want to remain viable and competitive in this ever-changing landscape.