Jeff Ramson on the Evolution of Investor Relations

The Evolution of Investor Relations: Then, Now and the Future

The investment banking industry has had to evil great deal since the dual housing and banking crises of 2008. Investor relations have become a much more important part of maintaining business structure. Below we will go into some of the features of investor relations in the past and how they have changed for the modern and future worlds of investment.

Investor Relations: Back Then Ever since the rise of the investment banking class and industry, investment banking has been a very secluded and exclusive club.

Investor relations were based on prestige and press feeds rather than personality. The very wealthy would compete to get into the newest, hottest investment banking firm in order to obtain bragging rights at the cocktail party. In many cases, the investment banking industry took it vantage of this to create bubble after bubble while maintaining its own internal profitability.

Investor Relations: Now In the age of the Internet, it is much harder for any investment banking structure to do business in the dark. Because the relationship between the upper crust and the investment banking industry has soured thanks to incidents such as the Bernie Madoff Ponzi scheme and the housing crisis, investment bankers have had to reach out to upper middle class and middle class investors as well.

This class of people is much less concerned with prestige and much more concerned with actual results. This added pressure along with the pressure of legislation from the government has caused investment bankers break away from the traditional structure, taking with them clients that have learned to trust the individual rather than the institution.

Investor Relations: The Future In the future, many experts within the financial industry have stated that they expect the accountability and the transparency of the investment banking world to increase. Many investment banks have attempted to rework their public image by marketing themselves to the general public using commercial means such as an personal blogs. This is been a very successful strategy for many investment banks, and financial experts say that we can expect much more of this in the future.

If those financial experts are to be trusted, there will also be a divergent of assets away from the traditional investment banking world of Wall Street and other financial hubs. Many of the most reputable investment bankers are continuing to break away and take their clientele with them to niche oriented firms.

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