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Day: February 5, 2022

Here’s why Financial Modelling is an experts job

Posted on by Imarticus Learning

Most individuals think just acquiring knowledge on a few topics related to financial modelling can make them eligible to work as a financial modeler. But, in reality, it is not the case. To know why financial modelling is an expert’s job, first, you need to know what financial modelling is. So, read on…

What is financial modelling?

Financial modelling is the task of developing an abstract financial model based on a real-world scenario. The primary responsibility of the financial modeler is to link financial statements in Excel, analyze financial information, do ad hoc analysis, create presentations, perform sensitivity analysis, and analyze financial transactions. A company uses it for the following purposes: 

  1. Foresee the roadmap of profitability 
  2. Valuation of a security
  3. To explore the benefits of the merger
  4. Portfolio performance
  5. To know the future need of raw matters
  6. Discovering new market opportunities
  7. Trace undervalued securities
  8. Quantify and predict risk
  9. Check investment requirements 

Financial modeling is often regarded as an expert’s job as it demands mainly a high-level skill set. Most financial modeling courses provide students with all the required knowledge needed to be a successful financial modeler. But, what are the skills required for this job? Let’s find out.

  • Decision-making ability 

Based on financial models, you must be able to make impactful decisions. As a financial modeller, your inputs will be responsible for making the future pathway of a business in the correct lane. 

  • Excel Skills

Excel is your best friend if you are a financial modeler. You have to be competent in using it, and all the formulas, macros, charts, and VBAs should be at your fingertips. If you are not good at it, then you can learn financial analysis beforehand.

 

  • Time management    

Jobs related to financial modeling demand time management at its best. As a responsible employee, you might need to produce models within a time frame. And, you have to figure out how you can accomplish it within a limited time. In case you are not good at it, then you will have to spend some sleepless nights.

  • Problem-solving ability   

Keeping a problem-solving attitude always is a must for this job. Although a financial model is created to solve a single problem, it often raises another one. Hence, this job will test your skills to the fullest and keep you on the brink. 

  • Knowledge of finance, accounting, and valuation 

Making a career in any field of finance requires a fundamental understanding of accounting. As a professional, you have to be competent in advanced knowledge regarding IRR, DCF, NPV, etc. As valuation is also an important aspect of accounting, make sure you know every in and out of it. 

Hence, it is evident from the above pointers that a financial modeling job demands a lot of subjective, analytical, and soft skills. Some of India’s best financial analyst course provides comprehensive knowledge on accounting and finance. But, to acquire soft skills, candidates might opt for a short-term course that can help develop soft skills. 

Top 10 financial modeling careers of 2022   

  1. Equity Research
  2. Investment Banking
  3. Mezzanine Finance
  4. Real Estate Development 
  5. Commercial Banking
  6. Venture Capital
  7. Private Equity 
  8. Corporate Development 
  9. Financial Planning and Analysis
  10. Start-ups 

Besides, one of the most critical questions that come to mind is what do financial modelers do? The job description of a financial modeler includes: 

  1. Developing models based on previous data to forecast industry-related metrics
  2. Enhancing and developing transaction models
  3. Performing scenario analysis by accessing risk based on micro and macro factors 
  4. Scrutinizing non-financial and financial risks and providing a solution for those 

Apart from these, there are also various responsibilities a financial modeler might have, and these roles also depend on experience and expertise level.

Thus, enrolling in a financial modelling course will provide an edge for candidates from other finance professionals and offer a career with myriad scopes.  

Related Blogs: 

FAQ – Financial Modelling & Their Answers

Who Can Do Financial Modelling Course

Financial Modelling Types Of Financial Models

The top 5 Cryptocurrency resources for non-technical people

Posted on by Imarticus Learning

The cryptocurrency was first noticed in India around 2015-16 as Bitcoin. But still, it is a matter of imbroglio for most of us. Terms like “decentralized”, “blockchain”, “disintermediation”, “DeFi”, and “mining” are mostly a matter of bewilderment. But, no matter how technical they sound, even non-technical people can master them. To understand the concept of cryptocurrency, here are the top five resources for non-technical people. 

  • The Quiet Master of Cryptocurrency – Nick Szabo (#244)

The polymath, Nick Szabo’s podcast, is a steal. He is known for his deep understanding of cryptos and is a lawyer, computer scientist, and cryptographer. He is also known for coining “smart contracts” and designing Bit Gold. This podcast consists of his conversation with Naval Ravikant and covers the topics: 

  • Definition of Bitcoin and other cryptos and what problem do they solve
  • “Social scalability”
  • Ethereum, its strength and weaknesses
  • Smart contracts
  • Initial coin offerings
  • Blockchain governance 
  • Wet and Dry code
  • Pascal’s scams
  • Future 
  1. Why Bitcoin Matters by Marc Andreessen 

On 21st January 2014, New York Times published an article on Bitcoin by Marc Andreessen, the founder of Netscape. This Bitcoin tutorial consists of a highly in-depth overview of why bitcoin matters and what he believes to be the future, as this technology is evolving faster. This article is available for free in the Dealbook section of NYT. 

Fat Protocols by Joel Monegro 

Fat Protocols is an article published by United Square Ventures on 8th August 2016 and projects a different perspective on how investing in cryptocurrency is different from investing on the internet. It says that most monetary gains on the internet come from the “fat” application layer such as Google, Facebook, and Amazon as halted by the “think” protocol layer. You can read this article for free on the USV’s official website. 

The Internet of Money   

The Internet of Money is a book written by Andreas M. Antonopoulos, and he is an expert in Bitcoin and cybersecurity. This book consists of the best of his speeches, explaining his concepts about Bitcoin and cryptocurrency.

Non-technical people who have a limited understanding of cryptocurrencies can check this book to get detailed knowledge regarding underlying technology and the social implications of cryptos. With the help of this book, Andreas M. Antonopoulos goes a step ahead in exploring the technicalities and how they can change the world permanently, the way the internet did.

Ethereum Whitepaper by Vitalik Buterin

A whitepaper is usually issued by a company and is an authoritative, persuasive report of a problem and provides a solution. The whitepaper of Ethereum is the founding document of the crypto and provides details about the goal and pathway to create a decentralized internet. Similar to the Bitcoin Whitepaper, this document also contains details regarding technical terms.

This will provide a non-technical person with enough idea about the technical terms, how the total cryptosystem works, and the future aims of this decentralized world. The white paper of Ethereum and Bitcoin (by Satoshi Nakamoto) are available free of cost on their official website, and individuals are free to download and read the information.    

If you are interested in undertaking your career in fintech, then the knowledge of blockchain technologies is very demanding.

Hence, knowing every bit of it will help clear concepts on mathematics, finance, and economics. So, when you search financial technology courses, make sure that the one you choose covers every primary and in-depth topic related to fintech. 

5 things that should be on the radar of every investment banking operations professional

Posted on by Imarticus Learning

An investment banking career is undoubtedly going to be extremely rewarding and lucrative in days to come. Amongst the plethora of roles in investment firms, one of the most sought-after high-profile jobs is investment banking.

The primary roles of an investment banker are to facilitate transactions amongst two firms such as acquisitions or mergers and aid companies who wish to go public (IPOs). They are also responsible for the creation of investment models to aid in business plans in an organization. 

Becoming an investment banker can be a challenging feat because they are required to have various tangible and intangible skills. Additionally, it is a mandate in their field of expertise to have a vast and thorough knowledge of the industry, adequate market information, know-how of tools and software, and also information on newly-emerging advancements in the market. 

Things to look out for in investment banking

  1. Industries and innovations in domains: Investment bankers have the responsibility to be aware of the latest advancements in the sector they are specializing in and the technologies that are being introduced. This helps them stay updated about the domain they are working with to help their clients more effectively. Investment bankers must be armed with extensive industry knowledge and also with information on how other companies are faring in the same domain. 
  2. IPOs, M&As, and market information: Knowing about active or ongoing mergers and acquisitions is essential for investment bankers. Investment banking operations professionals are required to stay updated on recent IPOs and about companies that are planning to go public. Market research is absolutely crucial for investment bankers and they must always look for market information (both existing companies and startups) on their radar. 
  3. State-of-the-art tools and software: Investment bankers must be capable of using analytical software such as Tableau and SAS (Statistical Analysis Software). Professionals in this domain are also expected to be able to use risk management software, business intelligence tools (such as Power BI) and even ERP (Enterprise Resource Planning) systems in order to carry out financial analytics.Since most MNCs and corporate/commercial banks are adopting these software or similar tools, professionals in investment banking must be aware of these technologies and how they can be incorporated.

     

  4. International affairs and geo-politics: Global affairs and national occurrences can alter the course of a project or influence the revenue of companies or markets. An entire domain or sector can get affected by political or economical factors.For example, if two countries are engaged in political issues, then it can affect the import or export of certain goods, thus hampering the operations of a company or even a sector. This was seen in the case of companies that import Chinese products or use raw materials such as plastic granules from China.
  1. Corporate banking and commercial awareness: Commercial awareness is the understanding of how to make a company successful. When it comes to investment banking, by being aware of how similar products, services or companies are faring, one can help his/her clients grow their business and gain revenue.Being aware of corporate banking or commercial banking trends is also important for professionals in this domain. Investment banking operations professionals must be able to help their organization make good investments or provide loans to businesses that will be able to pay them back. Due to this, it is essential for investment bankers to be aware of good and bad investments.

A career in investment banking requires certain skills and detailed knowledge about the market. These skills can be easily acquired if you learn investment banking by taking up a reputable investment banker course.   

Related Blogs:

The Roles Of Investment Banker