| Introduction | | | | bank is important in terms of providing advice, |
| Banking Investment or investment banking is part of | | | | integration, orientation and range of products and |
| the financial services industry that offers wide variety | | | | services offered that act as the major source of |
| of services to corporations and organizations all over | | | | retaining and attracting the customers. Investment |
| the world. The range of products and services is | | | | bankers seek to cultivate an image of competence |
| increasing rapidly that has made it difficult to distinguish | | | | and quality which is especially important in a |
| the most important services because investment | | | | competitive professional service business (Eccles and |
| banks offer their services in different forms (Turnbull | | | | Crane, 1988, p.69). Neely (1999) states that quality |
| and Moustakatos, 1996) The service is an area that | | | | assurance is achieved by managing the quality |
| helps companies in funds acquisition, advising for wide | | | | assurance activities system, quality control diagnosis, |
| range of transactions for future businesses ( it is clear | | | | innovation, improvement, inspection, quality evaluation |
| that the investment banking deals with providing | | | | and audit, infrastructure, assistance in product usage, |
| financial assistance to the companies for business | | | | recycling, customer satisfaction, reliability, safety, |
| matters, it is essential to ensure quality service in the | | | | product liability and environmental protection. In order |
| area. Therefore quality assurance is the main pillar of | | | | to provide all the facilities mentioned hitherto, quality |
| any business including profit and nonprofit organizations, | | | | assurance should begin at each level purely |
| government and nongovernmental organizations as it | | | | undertaken and supported by the quality assurance |
| affects the level of success in the business. The | | | | team and its members (Gillman and White, 2001, p. 215). |
| quality assurance further helps in conducting other | | | | And of late, Total Quality Management (TQM) |
| evaluation processes like standards compliance | | | | principles are in practice in most of the successful |
| evaluations, brand assurance evaluations, customer or | | | | organizations which also lays down the principles in |
| guest experience evaluations, etc. which makes it | | | | providing qualitative services to the customer. The |
| essential and important in any business organization to | | | | TQM principles designed by various researchers are |
| maintain a dominant position in the industry market ( In | | | | being adapted by many service industries to provide |
| view of the importance of quality assurance, the | | | | quality service to its customers or clients. It is important |
| present paper is intended to discuss the issues and | | | | to note that the principles are more effective in service |
| importance related to banking sector particularly in | | | | sector organizations than in any other firms |
| investment banking. | | | | necessitating the need to integrate the principles in the |
| Investment Banking | | | | investment banking to provide quality services to its |
| Investment banks have multilateral functions to | | | | customers and achieve greater customer satisfaction |
| execute in favor of various companies. The service | | | | (Cowling and Newman, 1995). Managers are required |
| mainly deals with companies like helping private and | | | | to be sensitive to different demands and needs when |
| public corporations in issuing securities in the primary | | | | developing their operational, human resources and |
| market, guarantee by standby underwriting or best | | | | marketing strategies with a view to improving the |
| efforts selling and foreign exchange management. ( it | | | | quality of service they offer to their customers as they |
| is committed towards providing assistance to capital | | | | are willing to pay for better premium services (Spathis, |
| markets as intermediary. These are the institutions that | | | | Petridou and Glaveli, 2004). The increasing |
| are regarded as counterparts of banks in the capital | | | | expectations among the customers, existing and those |
| market in the function of intermediation in the process | | | | coming to the bank in search for better service than |
| of resource allocation (Subramanyam, 2004, p.72) | | | | others in the industry has created a competitive |
| Need for Quality Assurance in Investment Banking | | | | climate thereby laying the impetus on quality of the |
| Williamson (1988, p.55) stated that investment banking | | | | relationship between the customer and the institution. |
| has been and will continue to be an increasingly | | | | There are various methods which can be used to |
| intensively competitive business in order to strive in the | | | | ascertain the determinants of the concept of service |
| market which is mainly dominated by the changes as | | | | quality as well as quality measurement techniques |
| part of strategy in the capital and securities industry. | | | | (Joseph et al, 2005). Quality is an important aspect in |
| The changes in the market include emergence of | | | | any industry, offering products or services, to attract |
| institutional investors, internationalization, innovative | | | | new customers and retain the existing ones. And |
| technology enabling investment banks and their | | | | providing assurance about the quality is need of the |
| customers to organize and distribute information, | | | | hour for every business. As investment banking is a |
| increasing complexity, and capital market capabilities | | | | service oriented business with most of the profits |
| are replacing institutional intermediating capabilities | | | | coming through the investments in businesses and |
| making the commercial banks increasingly active in | | | | acting as consultant to many businesses, it is |
| investment banking. Quality assurances are essential | | | | necessary that investment banking adopt suitable |
| in order to retain the customers on hand which shall be | | | | techniques, theories and principles related to quality |
| the top priority for any organization as they are the | | | | assurance for customer satisfaction and retention. |
| main source of revenue and to attract more | | | | Conclusion |
| customers with quality assistance in banking services. | | | | The banking sector is growing day by day with new |
| The assurance of quality in service sector brings the | | | | and complex services offered to the customers by |
| customer back to make use of the services and | | | | various banks to strive in the competitive market. The |
| recommend the same to others which means | | | | whole gamut of business is surrounded with one |
| increased rate of profit. Therefore quality assurance is | | | | aspect i.e. customer service. Therefore quality is |
| essential in banking sector and especially in the | | | | important while providing service to the customers as |
| investment banking sector. | | | | any soar experiences will result in loss of customers |
| Quality Assurance in Investment Banking | | | | as well as business. It is mentioned that investment |
| Quality Assurance is a new topic that is been applied | | | | banks must improve and emphasize various service |
| in banking industry that has been accorded the | | | | dimensions resulting in better quality service. However |
| responsibility to evaluate the performance of system | | | | it is important to mention here that just offering |
| and practices and also suggested changes in the | | | | qualitative service is not sufficient but to assure the |
| existing practices to improve quality assurance. The | | | | same service and much better service in the coming |
| process of evaluation regarding the quality assurance | | | | future is necessary for the investment banking which |
| in investing banking is initiated with the identification of | | | | deals in higher segment as compared to commercial |
| suitable methodology with definition of goals and | | | | banking. As mentioned earlier, apart from acting as |
| objectives of the organization ( The process is | | | | banks, the investment banks also engage in |
| essential in investment banking as investment banks | | | | consultancy services providing assistance in financial |
| have unique role to play in bridging the worlds as | | | | and company matters. Basing on this, most of the |
| mainstream investors manly rely on the quality | | | | companies turn towards the banks for suggestions |
| assurance of the investment banks (Rhyne, 2009, p.51). | | | | and providing right advice at the right times |
| In view of the importance of quality assurance in the | | | | demonstrates that the bank is reliable financial adviser |
| investment banks, the process is carried out to | | | | and is able to meet the clients expectations. Moreover |
| strengthen the procedure and standards at corporate | | | | it is important to provide service far better than |
| level, promoting efficient utilization of available | | | | expected by the customers during the service |
| resources so that different functions are carried out in | | | | process by being responsive, approaching the |
| an expeditious and cost effective manner and make | | | | customer to help inspiring confidence, and adopting an |
| recommendations for enhanced customer satisfaction. | | | | institutionalized approach (Turnbull and Moustakatos, |
| Initially quality assurance will be started by following | | | | 1996). Service quality is being recognized as one of the |
| three pronged strategy i.e. (i) develop the system, (ii) | | | | key strategic value which aims to provide better |
| document the system, and (iii) analyze the feedback | | | | service in order to retain the existing customers by |
| and make further recommendations ( assurance is at | | | | providing optimum satisfaction, opportunities for cross |
| its best at the times of negotiation with with single | | | | selling, development of customer relationships, |
| investment banker and stronger when registered in | | | | increased sales and market shares by attracting new |
| traditional manner instead of shelf registration | | | | customers all of which ultimately enhancing the |
| (Williamson, 1988, p.69). According to Turnbull and | | | | corporate image and business performance (Joseph |
| Moustakatos (1996) service businesses can grow in | | | | and Stone, 2003). In view of the above benefits |
| various ways by retaining the existing customers and | | | | associated with quality assurance in various |
| attracting new customers through great quality and | | | | organizations and particularly in investment banking, it is |
| eliminating the redundancies by the way of terminating | | | | an integral part of the management process to |
| the services of unsatisfactory customers and | | | | achieve the goals and objectives of the investment |
| providing services to new customers.. Further to | | | | banks. Thus quality assurance is an important element |
| clarify the scope of quality assurances to the | | | | in attracting customers or client in the investment |
| customers in investment banking, reputation of the | | | | banking sector. |