January 24, 2020 – Finance, Tech & Analytics Career Resources

What is Blockchain

Posted on January 24, 2020February 26, 2021 by Imarticus Learning

We are living in an era where any imagination can be brought to life with the help of technology. One of the most ingenious inventions of modern history stands in the form of blockchain technology.

Many of us have heard of the blockchain word through its application in the field of cryptocurrency but are unaware of other prominent aspects of this revolutionary technology.

There are Blockchain courses specially designed to help people comprehend this progressive technology. Let’s understand what it really is and how does it function.

Understanding the Blockchain Technology

If we go by the definition, the blockchain is a decentralized digital ledger that is spread among a network of people where everyone in the network has a copy of the ledger.

Cryptography is used to link the blocks and every block contains a hash that is cryptographic in nature of the previous block, a recording of the time and data of the transaction made.

The transactions recorded here is verifiable and permanent in nature, it can’t be altered later.

To simplify, the blockchain can be understood as digital information sets stored in public databases available to people in a given network. The blockchain stores transactions of value; it could be monetary or other economic transactions of high significance.

Digitalization, transparency and Immutability are the three pillars of this technology that together makes it revolutionary in nature, eliminating the flaws of the traditional ledgers that used to contain valuable information.

Every block stores information regarding the transactions like date, time, value or amount, information about parties relevant to the transaction.

Every block contains unique information and is given a unique code to distinguish them from other blocks in the chain. This unique code is termed as “Hash”.

How Does Blockchain Function

We have already established what blockchain is, all the new data recorded in a block is added to the existing chain of blocks.

Since we know that the blockchain records transaction of value, let’s take an example of an e-commerce purchase to understand the functioning in context.

So let’s say you saw a discount on your favorite smartphone and you rushed on to the e-commerce store for the purchase. The transaction that happened is verified in public records in order to check later if things don’t fall into place or even for general proof.

This process needs someone who can vet the entries from the new transaction. In the blockchain technology, this process of verification is left to the network of computers who vet the transaction and then record this entry into the digital ledger.

Information regarding the amount of transaction, the time of the transaction, digital signatures of parties involved, etc. are recorded in the block.

The block contains other transactions during the same time, after successful verification of all the transactions in a block; it is given the unique hash code for identification.

Applications of Blockchain

One of the most significant applications of Blockchain technology continues to be in the form of cryptocurrencies that are transforming the financial industry and changing the way people transact and exchange things of value.

It is also used in the field of asset management to process and settle the trade. Another application of the Blockchain technology that is very close to the finance industry is in the form of insurance claims processing, the insurance industry is using this technology to identify fraudulent claims and process the genuine claims faster.

Smart property has opened a new venue for Blockchain application. Reducing the chances of theft of smart property Blockchain will play a crucial role in protecting the ownership of tangible goods of value.

The supply chain industry is also the one that is benefitting from the use of Blockchain technology, the technology adds value in this aspect through sensors that give an end to end visibility of the items in supply by providing information related to live location and the state of goods being supplied.

Other than this Blockchain has also found its way to the healthcare industry that uses smart contracts to store and secure personal health records. The health records can be stored on Blockchain with a private key that would limit the access of this information to a particular individual who has the key.

Conclusion

The blockchain technology is the future, it helps to remove the middlemen in the process who don’t add much value but are prone to corrupt the system. In the most basic sense, it’s a decentralized digital ledger that records information which can’t be altered at a later date.

Blockchain has also opened a plethora of opportunities for people as it is being frequently adopted by organizations and has found its way in various industries including finance, healthcare, insurance, etc.

Blockchain courses are designed to train professionals in this field. The blockchain courses help to build an in-depth understanding about the technology and its applications.

What is the Future of Financial Analysts in India

Posted on January 24, 2020July 26, 2024 by Imarticus Learning

The role of a financial analyst is one of the most sought-after positions in the financial services industry. This is due to the fact that analysts have a scope to work in a range of industries together with high earning potential. An analyst plays a critical role in any business that he or she is representing on behalf of their firm.

In general, financial analysts work for KPOs, banks, investment firms, investment banks, insurance companies and even individual companies. A good analyst should be able to evaluate the company’s overall position in the industry in terms of its strengths, performance, prospects compared to its competitors. This involves an in-depth understanding of the company’s investments, finances, growth plans, etc.

Educational Qualification Required

To fit into the role of a financial analyst should have at least a bachelor’s degree, preferably with any of the finance subjects like accounting, economics or statistics as the major. In case the analysts want to equip themselves for better job opportunities and salaries they might consider pursuing a master’s degree in finance or a Master’s of Business Administration (MBA). Any kind of advanced education increases the value of these professionals in the eyes of their potential employers.

In some cases, it has been noticed that employers prefer hiring only those financial analysts who have done their certifications from the Chartered Financial Analyst Institute. They can also enrol into several programs designed to prepare these financial analysts for the challenges they might face in the workplace.

Skills Required for the Role

Some of the specific skills required for this position are:
• Excellent analytical skills
• Good mental judgement
• Sound knowledge
• A good team player

Role and Responsibilities of Financial Analyst

A financial analyst’s role usually differs depending on company to company. These analysts usually focus on a specific region, sector or type of product.

• They determine the cost of operations by gathering the operational data
• Comes up with a financial status by comparing and analysing the actual results with the forecasts
• Guides the process of cost analysis by creating and enforcing policies and procedures, explaining the process and techniques and recommending actions to the management
• Improves the financial status by identifying trends, monitoring variances and reconciling the transactions by correcting the data
• Increases the company’s productivity by developing automated accounting applications
• Maintains the company’s database
• Attends educational workshops to upgrade themselves
• Protects the operations by keeping financial information confidential

The Future of Financial Analysts in India

Today, the role of a financial analyst is considered one of the premier careers even in India. Reports says, there are over 7,000 financial analysts’ jobs available only in India. Once they attain the desired qualification they have the scope to work with financial institutions, multinational banks, Reserve Bank of India, Industrial & Development Bank of India, Unit Trust of India, finance and leasing companies, stockbroking firms, insurance companies, public sector organizations e.g. Railways, corporate sector and consultancies.

The Average Salary of a Financial Analyst in India
In India, at the entry-level financial analysts having less than a year’s experience can expect to earn an average salary of ₹313,149 per annum. With 5 to 9 years of experience, the compensation can go up to ₹574,432 per annum. With 10 to19 years of experience, one can expect around ₹981,857 per annum.

In the later part of the career, with 20 years of experience and more, employees can earn an average compensation of ₹1,502,000 per annum. For more details, one can check the website www.payscale.com.

Conclusion
A career as a financial analyst not only offers financial security but also gives an exciting opportunity to be a part of the country’s finance industry. Considering the rising scope of this career in India, one can obtain the essential education required and gear up for a lucrative job opportunity

Also Read: What is Financial Analyst Course

What is Financial Analysis

Posted on January 24, 2020February 27, 2021 by Imarticus Learning

Financial analysis is the use of financial data and information to evaluate the performance of a company and come up with strategies and recommendations as to how to improve its operations.

Financial analysts are people who study and help analyse the historical data of a company and make predictions about its future performances.

Types of Financial Analysis

There are various kinds of financial analysis, which are:

Vertical Analysis
This is a form of analysis where different components of an income statement are taken into consideration and then segregated on the basis of revenue to express them as a percentage. Results obtained are often compared with that of other companies in a similar industry to get a better overview of the company performance.
Horizontal Analysis
This form of financial analysis involves the study of extensive financial data gathered over a couple of years which are then compared with each other to determine their rate of growth over time. This helps in understanding whether a certain organisation is growing or falling.
Leverage Analysis
Highly popular among financial analysts, leverage ratios are used in the evaluation of an organisation’s performance. While complete debt is considered as a single financial metric and may not be completely helpful on its own, it can be evaluated against the total equity of a company to understand its complete capital structure.
Growth Rates
Another big aspect of financial analysis is understanding growth rates and making predictions or projections regarding the same. Here are a couple of examples of how growth rate analysis is conducted:

● Regression analysis
● Year on year
● Bottom-up analysis
● Top-down analysis
Profitability Analysis
This is a variation of an income statement analysis to understand if the economics of any business is in place or not. Here is how profitability analysis is conducted:

● Net profit margin
● Gross margin
● EBIT margin
● EBITDA margin
Liquidity Analysis
This kind of financial analysis depends on the balance sheet of an organisation, mostly to understand if the short term obligations of a company have been met or not. Common methods of liquidity analysis are:

● Acid test
● Cash ratio
● Current ratio
● Net working capital
Efficiency Analysis
Efficiency ratios are analysed to understand if an organisation can manage its assets well and effectively use them in cash flow and revenue generation. Most efficiency ratios are:

● Cash conversion ratio
● Inventory turnover ratio
● Asset turnover ratio
● Fixed asset turnover ratio
Cash Flow Analysis
Any organisation’s ability to generate cash flow is one of the most crucial factors in the field of finance. Analysts usually start from the cash flow statement to understand the operating procedure of any company including their investing histories and finance activities. Common cash flow analysis methods are:

● Free cash flow
● Operating cash flow
● Free cash flow to the equity
● Free cash flow to the firm
Return Rates
Analysing return on investment (ROI) is very crucial in the finance sector since investors are always concerned about the rate of return they can earn on the money they have invested. Common rates of return analysis include:

● Return on assets
● Return on equity
● Return on invested capital
● Capital gain
● Dividend yield
● Internal rate of return
● Accounting rate of return
Valuation Analysis
The valuation of a business is an important part of financial analysis; financial analysts often spend time building financial models to understand this. There are quite a few approaches for valuation analysis, which can be:
● Market approach of relative value
❖ Precedent transactions
❖ Comparable company analysis
● Cost approach
❖ The cost of building or replacing
● Intrinsic value
❖ Discounted cash flow analysis
Sensitivity and Scenario Analysis
Risk measurement of any business is conducted by the method of sensitivity and scenario analysis during financial modeling. This procedure is to value and predict the future of a company. Performing a sensitivity test could help understand if the future of a company might be at stake, which is why financial planning and analysis is essential. This also helps an organisation prepare budgets and make future predictions.
Variance Analysis
A form of financial analysis, it is the method of comparing the budget or a forecast to the actual projections or results. Variance analysis is important for the finance and accounts departments of a company since it helps in budgeting, internal planning, and operations.

How Can You Start A Career in Digital Banking?

Posted on January 24, 2020September 1, 2025 by Imarticus Learning

The internet was one of the ground-breaking inventions of modern history. It has totally changed the lifestyle of people; the virtual world today is far broader than the real one and has a lot to offer given its lucrative prospects. From reading stories in pages of a tangible book to using your smartphone to read the same, the internet has been a game-changer in every aspect of our living. The new age brings new opportunities for people to explore and develop new skillsets.

A decade ago nobody would’ve ever imagined that there would be companies recruiting people to manage their social media, but today it’s a lucrative prospect. The internet technology has influenced each and every industry, be it education or finance and banking or travel, everything has got an upgrade from its traditional self. One of the prominent industries greatly transformed with the internet in the digital age is the banking industry.

Understanding Digital Banking

In the simplest way, digital banking training could be understood as the digitization of the services offered by the traditional method of banking. Before the advent of e-commerce people had to buy things from brick and mortar stores but with the e-commerce industry into the picture all you have to do is choose your good and checkout your cart after selecting a payment method and it’ll get delivered at your doorsteps.

Something similar has been done with the banking industry, here instead of tangible goods the services that the banks have to offer are delivered to you online that you can easily access with the help of your smartphone in a few clicks.

The service offered through digital banking includes money deposits, withdrawals, and transfers, checking & saving account management, Loan management, bill payment, account services, etc. In this technologically progressive world banks can’t afford to miss put on the benefits that the internet has to offer in terms of better customer servicing, customer satisfaction, and increased customer base.

In the last decade, there has been a big change in consumer behavior, people are valuing your services as an experience and not just a service, this has made financial institutions more sensitive to customer experience and thus bringing the services online is a prerequisite.

Today with the advent of digital wallets and UPI payment methods the need to go to the bank or even carry your wallets for a transaction has reduced drastically. Online banking is very similar to digital banking but has a narrow digital banking traiscope than the digital banking scheme, the digital banking aims to deliver all the products and services that the financial institutions have to offer whereas online banking has limited inclusions like bill pay, money transfer, remote deposit, etc.

Career Prospects in Digital Banking

The digital banking field is very different from traditional banking; it requires a combination of technical knowledge and the knowledge of the banking industry. This sector has a plethora of opportunities for people from both the streams of technology and finance & banking. Some of the major jobs available in this industry include the like of digital product manager, UI designer, software engineers, exploratory testers, etc.

Since the digital world is run with the help of data, this field has a lot to offer to professionals having the data acumen. A large number of decisions today are made by algorithms that are put in place; algorithm mechanics demand is predicted to rise in the near future given banks need people to optimize the customer experience. Another growing demand in this field is for digital process engineers who are trained to analyze and optimize the workflow and maintain the standardized process designed by the company for a smooth customer servicing experience.

Those with a technological background are ideal for product designing and development roles in the digital banking industry. Product managers are also crucial in the digital banking age, they add value by ensuring proper delivery of the digital products and services offered by the bank. Other relevant roles include content management and copywriting roles than requires a marketing bent of mind.