The answer to this question lies in understanding why commercial banking and investment banking have different roles to play in the banking sector. Commercial banking is customer-facing and deposit oriented. Investment banking, on the other hand, is similar to brokering deals between willing investors and companies that need investments and offer good growth. Your skill sets for each operation are different and may require different technological enablement.
In a commercial bank, the deposit accepted from retail customers and the general public offer the banks a good investment capacity. Rather than hold on to the funds, banks invest in growing companies with guaranteed returns, government bonds and loans etc. When the income they earn from such investments is greater than what they pay their depositors as interest is higher the bank is successful.
The investment banker is essentially a broker between the bank, the investors and finance-seeking clients, of investment services like IPO’s, asset management, mergers, underwriting, acquisitions, shares, trading, securities, and bonds. The brokerage earned from such financial transactions made on such advice is pure profit. There is no depositing of funds by the investors in the investment banking section. Investment banking is popular today to the large group of investors who have surplus cash and wish to earn well from it. Angel investors also seek the advice of investment bankers to study the markets, inform them of good investments and compute future gains and insights of ROI and many such advisory activities.
The two are completely different though they are a part of the same banking division. Can an arm be used in place of a leg? Well, that should let you infer how these two divisions function and are not interchangeable. A certain degree of compatibility will still exist from a career point of view. However, retraining is the only solution.
To learn more about such differences you could do courses recommended below when your goal is to make a career in banking and financial institutions and the services they can offer.
• Investment banking courses
• Financial modelling training
• Equity Research Courses
• Venture capital and private equity training
• Hedge funds training
• IFRS certification
• CFA certification
• Credit Risk modeling
• Trading in cryptos training
• VBA, Excel and Macros Courses
• Data Analytics Courses
Doing analytics or financial courses offer a good grasp of fundamentals, concepts, theoretical knowledge, practical skills and certifications that could help enhance your resume and career. They also offer boot camps, short term workshops, and basic knowledge of the technological skills like Excel, Macros, SAS, R, Java and so on. While certification definitely helps you need to be an excellent communicator and work diligently to acquire the best analytical and business skills. Another advantage in such courses is of mentoring by certified and experienced industry aces that helps garner the latest best practices, techniques, skills, and practice on the latest trending technologies in the fields of analytics and banking.
The payouts for investment bankers are far higher than in the commercial banking division. This having been said, do remember that it involves great interpersonal skills, a very specific set of technological skills, financial acumen and tireless work to be successful. A certified course on Investment Banking can definitely help enhance both your resume and career while allowing you to build that set of skills so essential to your job choices, career path, and payouts.
Even bankers can retrain themselves to broaden their fields and job opportunities considering the scope and high earnings of investment bankers. An ideal course for investment banker can equip you for the future. As long as money exists the scope for investment banking never dies down. Act on your choices today.
Also Read: How to Become an Investment Banker