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Day: July 15, 2021

Which One Is a Good Career Option, Financial Analyst or Commercial Banking?

Posted on by Imarticus Learning

Understanding Commercial Banking

Commercial banks specialise in providing services such as accepting deposits, providing business loans and also offer basic investment products which don’t need much investment guidance. Commercial banking is often a division of a big bank and sometimes it is a stand-alone special unit. The main difference between commercial banks and retail banks is that it majorly deals with corporates, medium & large sized businesses in addition to the general individuals.

Both private sector and public sector banks are included in the commercial banking category. The commercial banking performs a wide range of functions including accepting deposits, providing loans and credit services, credit creation, agency functions, etc. While providing credit to customers the commercial banks do not advance cash rather they create a deposit account for the borrowing party to withdraw funds. It helps to better channel the limited funds available at a bank.

Commercial banking careers are considered one of the most sought-after career roles and invite a lot of competition. The most prominent roles and positions offered at commercial banks include account manager, loan officers, sales associates, trust officers, branch managers, etc. The remuneration for commercial banking careers varies greatly depending upon your position and experience. One can get an entry-level role by completing graduation in a relevant field such as commerce, economics, mathematics, etc. Managerial roles require post-graduate degrees such as an MBA.

Role of a Financial Analyst

One of the primary responsibilities of a financial analyst is to conduct a financial analysis of businesses to paint a comprehensive financial picture of the organization. Financial analysts use tons of relevant financial data including the historical and current records to assess outcomes for business decisions and find profitable investment avenues. It helps companies to assess the feasibility of a particular project by predicting the future revenue and expense from the operation.
Financial analysts are required to have good quantitative acumen and analytical skills. Financial analysts use relevant financial data to help companies make important financial decisions. Financial analyst job roles are considered as a prestigious one and it often has very well defined roles and responsibilities providing a good work-life balance. The requirements for the role of financial analysts vary depending on the organisation and the exact position that you are offered.

There are multiple job roles that you can opt for depending upon your interest including equity analyst, treasury analyst, investment banking analyst, etc. The best course of action to get entry-level jobs as a financial analyst is to complete your graduation in a relevant discipline such as commerce, statistics, economics, etc. If you are already working at a job and want to advance your career as financial analysts, you can opt for financial analyst course by reputed institutions like Imarticus Learning that also provides job assurance with the top-notch companies in the field.

Which One You Should Choose?

Now that we know what both the job roles entail, choosing between a commercial banking and financial analyst career will be easier. It is a very subjective matter and requires personal evaluation. The very first thing to keep in mind while choosing a particular career option is your interest. Do you like interacting with customers or do you like working behind the scenes churning numbers? If you prefer the former then you should opt for a commercial banking career and if you choose the latter then financial analyst is a good fit for you.

The second most important thing to keep in mind while choosing your career is the skills you have. Your hard and soft skills combination plays an important role in finding out the most suitable career option for you. In a commercial banking career, you need to have excellent communication and sales skills, you should have a problem-solving approach and you should be customer-oriented. For the role of a financial analyst you need to be good with numbers and have a knack to trends and patterns, you should possess good analytical and presentation skills too. You can use these guidelines as parameters to find the most suitable career option for yourself.

Also Read: Difference Between Business Analyst & Financial Analyst

What is the Advantage of Doing Financial Modelling?

Posted on by Imarticus Learning

What is Financial Modelling?

Financial modelling can be explained as the process of creating a mathematical model that represents the actual financial situation. It helps to summaries the relevant financial variables by applying advance analytics and statistical tools. Financial models are widely used by banks and financial institutions to represent the performance of a project, investment, financial instrument or any other portfolio.

Financial modelling has gained huge importance in the last few decades as it helps to predict future trends and identify risks that might hamper the success of businesses.

Financial models are abstract representations of the real-life financial scenario; it is built on various assumptions regarding the economy and business. The financial modeling course is not just relevant for banks and financial institutions but all businesses that are looking to predict future trends and minimize their risk exposure. Any financial decision regarding a project involves predicting the future revenue from it and the expenses associated. Generally, we make assumptions regarding these variables based on the information at hand. Financial models help to make more accurate predictions with the given data sets based on the assumptions regarding the project.

Benefits of Financial Models for Businesses

Now that we have a fair idea as to what financial modelling exactly entails, let’s dig deeper into the benefits of financial modelling for organizations and why it’s an indispensable tool for most businesses.

  • Futuristic insights: The primary role of any financial model is to make predictions regarding the future. This helps businesses to obtain valuable insights into the future and provide them with instant solutions to their problems. An instant solution in the sense that they are better prepared to tackle future problems that have not yet happened and which probably will. This helps businesses to know what their future income stream looks like and helps them manage their expenses accordingly. It also guides them on decisions related to entering new markets or expanding into different territories.
  • Minimize risk exposure: One of the main advantages of financial models is that they help to identify risks associate with the business based on the historical data and current market information. Early risk detections help them to minimize the risk exposure and eliminate the risk in some cases altogether. Financial models make predictions based on the assumptions and data at hand, a different set of assumptions produce different results. This can helps businesses to find the best course of action and reduce the challenges in the way drastically.
  • Regular assessment: Financial modelling helps businesses to conduct monthly or periodic assessment of their financial performance. It helps to compare the actual performance of the organization with the predicted performance at the beginning of the period. It helps to identify the loopholes or pain points associated with a business and provide useful insights into the factors that are affecting the performance of the business. Businesses can make alterations and adjustment to reap profits from their operations based on the financial assessment.

Career Benefits of Financial Modelling

There is a growing demand for professionals who are well versed with financial modelling techniques. We have already discussed the numerous benefits that financial modelling offers to businesses in the contemporary landscape. Credit rating, risk management, investment banking, equity research, mutual funds, etc. are some of the most prominent segments which employ financial modelling professionals.
The importance of using data to make predictions about the business has grown in the past decade and so has the need for qualified professionals who know the ins and out of financial modelling. Financial modelling provides you with an opportunity to work in highly rewarding profiles such as Mergers and Acquisitions, Venture Capital, Asset Allocation, IP Valuation, etc. You can opt for financial modeling course by reputed institutions like Imarticus Learning to obtain a comprehensive and practical understanding of the industry. It even guarantees job assurance. with some of the leading corporations in the industry.

Also Read:  What is Financial Modelling Course