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Tag: banking and finance courses

Capital Structure Optimisation: Finding the Right Balance Between Debt and Equity

Posted on by Imarticus

A company’s capital structure, a critical part of a career in finance, involves the blend of debt and equity it relies on to fund its activities and expansion.

Debt comprises borrowed money that necessitates repayment and interest, encompassing bank loans, bonds, or lease agreements. On the other hand, equity represents ownership stakes that do not require repayment, including common stocks, preferred stocks, or retained earnings.

The allocation of debt and equity within a capital structure is frequently quantified using ratios like debt-to-equity or debt-to-capital.

Why Does Capital Structure Matter?

Every business has its unique capital structure needs. Large conglomerates differ significantly from small businesses, just as low-risk consumer goods companies vary from those in the seasonal travel industry.

Regardless of size or industry, businesses must carefully determine the proper capital structure to achieve their goals.

Distinguishing between risk analysis and debt management approaches for businesses and individuals is important in shaping capital structure development.

Establishing a solid foundation that minimises liabilities, maximises cash flow, and balances debt with retained earnings enables businesses to create an optimal capital structure that supports their operations and garners stakeholder support.

How To Optimise a Capital Structure?

Choosing how to fund a company takes time and effort. Managers must consider market implications.

One smart move is to favour borrowing (debt) over selling shares (equity). Debt often sends a positive signal and is cheaper due to tax benefits.

Selling shares (equity) can dilute ownership, is seen as unfavourable, and is pricier with dividends paid after-tax earnings.

A vital tool is the “interest tax shield” that lowers taxes on interest payments:

What Is Equity Capital?

Equity capital is a key concept in corporate finance. It represents capital that doesn’t involve debt and can come from various sources, like stock options, savings, company profits, or family investments.

Equity in a company’s capital structure includes:

  • Hybrid Financing: This is a blend of equity and debt commonly found in publicly traded companies, often bought and sold through brokerage firms. 
  • Convertible Equity: It’s a type of hybrid financing where convertible preferred shares can change into common shares at a fixed rate. 
  • Preferred Equity: This form of financing represents a partial ownership stake in a business or company. It has advantages, like receiving payouts before other stockholders, but it doesn’t usually come with voting rights. 
  • Shared Equity: This is another form of financing offering ownership interest, but ownership typically only happens after the business or company pays off its debts, which makes it riskier.

The two common ways companies generate equity capital are as follows:

  1. Contributed Capital

When a company gets investment in exchange for stock, it’s called contributed capital. They often offer this to venture capitalists, angel investors, or shareholders. However, it usually means giving up some control over the business in exchange for funding.

  1. Retained Earnings

Established businesses with a strong track record can fund operations, expansion, or acquisitions using profits from previous years, without the need to persuade investors to buy stock.

Yet, for startups or newer companies, attracting investors may necessitate showcasing a higher potential return on investment.

What Is Debt capital

Debt capital represents borrowed money used to support a business’s capital structure. This borrowed cash can have short-term or long-term repayment periods.

The cost of this capital hinges on the company’s financial health. Highly rated companies secure loans at lower interest rates, which is more favourable than higher rates driven by perceived risk.

The company’s balance sheet is vital in demonstrating its creditworthiness to lenders and investors.

Some of the various components of debt in a capital structure include:

  • Senior debt: In cases of financial distress or bankruptcy, this category precedes repayment. Senior debt loans typically carry lower interest rates. 
  • Subordinated debt: Although riskier than senior debt, these loans offer higher interest rates, enabling lenders to earn more. 
  • Convertible debt: These bonds can be converted into equity based on a predetermined amount specified by the debtor.

Debt capital can take various forms, including:

  • Loans or credit cards: Some companies start with family funding and maxed-out credit cards. Though not the easiest route to building a capital structure, loans or small business funds offer a less complex alternative, demanding a detailed business plan and expense breakdown. 
  • Long-term bonds: Ideal for small businesses, these debts require interest payments without immediate principal repayment. 
  • Short-term commercial paper: Often employed by giant corporations like Fortune 500 companies, these 24-hour loans secure significant sums from capital markets, typically used for substantial operating expenses. 
  • Vendor financing: Companies may utilise this debt form to cover payments to vendors while building their business by selling goods. 
  • Policy holder “float”: Insurance companies rely on this type of debt to cover expenditures as needed or to earn interest in an account until repayment becomes necessary.

How Do You Balance Debt and Equity in Your Capital Structure?

Balancing debt and equity in your capital structure isn’t a one-size-fits-all equation; it depends on your unique business circumstances

Different businesses have different goals, risks, and opportunities to consider. Some of the factors in play include:

Profitability and cash flow

Assess your business’s profitability and how steady your cash flow is. You can use more debt if your company consistently makes money and has reliable cash flow. It allows you to handle debt payments and benefit from tax advantages.

Growth potential and investment opportunities

Consider your business’s growth potential and the investment prospects available. If your company has significant growth potential or lucrative investment opportunities, you might opt for a mix with more equity. This approach allows you to seize opportunities without excessive debt constraints.

Industry and market conditions

Analyse your industry and the market conditions in which you operate. If your business competes in a rapidly changing and competitive sector, you might lean towards less debt and more equity. This approach gives you flexibility to adapt to shifts in customer preferences and technological advancements.

The balance between debt and equity in your capital structure should align with your business’s specific circumstances and needs.

Conclusion

Achieving the right balance between debt and equity in your capital structure is crucial to financial management. It requires a deep understanding of your business’s unique needs and circumstances and considerations for profitability, cash flow, growth potential, and industry dynamics.

For those looking to enhance their expertise in this critical area of finance and embark on a rewarding career in finance, consider enrolling in Imarticus Learning’s IIM Lucknow’s Advanced Management Programme In Financial Services And Capital Markets.

7 Emerging trends in derivatives markets

Posted on by Imarticus

The derivatives market is the money market for derivatives, which are financial instruments generated from other types of assets, such as futures contracts or options. The derivatives market is separated into two parts: exchange-traded derivatives and over-the-counter derivatives.

best investment banking courses with placement in IndiaA derivative is a sophisticated sort of financial security that is agreed upon by more than two parties.

Traders utilize derivatives to get access to certain marketplaces and trade various assets.

The most widely known underlying assets for derivatives include currencies, stocks, bonds, commodities, interest rates, etc.

Contract values are determined by changes in the underlying asset’s price.

 

 7 Emerging Trends in the Derivatives Market:

Artificial Intelligence in Trading

 The derivative market is an essential component of financial services; it is a vast worldwide hut with ample capacity to accommodate cutting-edge technologies. Blockchain, artificial intelligence, and robots are already aiming towards it.

We all know that practically any asset may be traded in the derivatives market as futures and options. However, the intricacy of these instruments presents difficulties for investors. Reliable pricing solutions are essential due to continually changing market dynamics and regulatory restrictions.

A competent pricing tool is required by everyone from buy-side and sell-side trading desks to adherence, pricing, and accounting departments, among others. The most popular solutions in the market have some limits that must be overlooked.

For example, the answers are so complex that they must first be taught in order to be used. These technologies are so expensive that not everyone can manage to benefit from them; also, because of their vast size, they are confined to endpoints and can only be used with a few devices. Consider the following instances for better elaboration.

Based on the current SEBI rules, foreign investors or EFIs are participating in commodity derivatives. (For example — cotton exchange/trading, trading in metals such as nickel and zinc). Trading in fossil fuels such as natural gas and crude oil has seen a rise. The demand for these is booming like never before.

Emphasizing futures derivatives and forwards derivatives when deciding upon contracts. A major focus is on individual securities in Indian and even foreign markets or exchanges, new sets of compliances in foreign markets as well as Indian markets (especially when it comes to bonds and percentages in the agricultural sector)

Crypto derivatives are again gaining the spotlight and Indian investors are shifting towards modern trends or derivatives.

Physical settling of stock derivatives — It’s been determined that the physical setting of all stock derivatives will be made mandatory. Cash-settled stocks will be listed in decreasing order, based on daily market capitalization aggregated for the month of December 2018. SEBI has stated that in 2019, the worst 50 derivatives equities would be moved to delivery resolution every quarter.

 Conclusion

 Financial derivatives have taken a prominent place among all financial instruments (products) as a result of innovation and revolutionizing the landscape. Derivatives are financial instruments that help dealers manage risk and profit. It aids in the transfer of risk from one to the next.

Learn investment banking online to gain better insights into the derivatives markets and become an expert. Pursuing investment banking courses online will help you juggle between your work as well academics, seamlessly, and that will give you the right push you need for a successful career.

Related Articles:

Pros & cons of Derivatives Markets

Why choose a career in Derivatives Markets?

How are Derivatives Changing Markets?

Here’s why learning about derivatives is essential to begin a career in the capital markets

Investment Banking Operations: The Vista Ahead in 2022

Posted on by Imarticus

Investment banking is a sector of banking operation that helps organizations or individuals with financial consultancy services and raises capital for them. Most experts believe that after the rebound from the pandemic, investment banking has a broader scope in the near future. But, it is essential to understand that investment bankers primarily act as intermediaries between investors and security issuers for making them public.

Investment Banking course

As this has myriad prospects, including substantial career opportunities, it is vital to have proper investment banking training that will provide them with adequate knowledge to pursue a career in this sector.

Although the road ahead is highly optimistic, to pursue a career in it, individuals must understand the top trends in the investment banking sector. This is necessary because, most likely based on these changes, the road ahead is going to pave the way for 2022. 

Top Trends in Investment Banking 

In 2021, this concerned sector opened plenty of opportunities for investment bankers. Based on the previous year, most experts believe that this year is also likely to be eventful and will shape the future of 2022 and beyond. So, to enter this arena, aspiring individuals must opt for investment banking courses that will allow them to learn comprehensively, aligning with the modern-day industry demands.  

A few of the trends in investment banking that have the potential for future business opportunities and higher growth are: 

  • Sustainable Finance 

Although the term ‘Sustainable Finance’ is not a new concept, this idea is now achieving new heights as more investors and stakeholders are aware of the adverse environmental impacts. This concept has taken its place after this COVID-19 pandemic. And, now most investors are showing interest in net-zero carbon emissions. As a result, sustainably-linked bonds (SLB) are currently trending and it is likely to continue due to the global climate change commitments.  

  • Private Equity 

For the revival of the Indian economy after the pandemic, private equity players have shown significant confidence in the country’s growth. In particular, the private equities in infrastructure and renewable energy and fields like pharma and IT-enabled services have deployed around USD 50 billion.

  • Mergers and Amalgamations 

The mechanism of mergers and amalgamations came into the limelight because of investment facilities. Around 80 cases of this were reported in 2020, whereas 190 were witnessed in 2021. In addition, big players such as Adani, Reliance, and Tata have shown interest in the renewable energy, pharma, and retail sectors of the Indian market. Along with this, the opening of the economy with the availability of new schemes might trigger new such mergers in the near future. 

  • IPOs

In the FY 2020-21, Indian start-ups have raised a total valuation of around USD 29 billion. This amount is significantly higher compared with the previous financial year. This happened primarily due to the surge in sectors like pharma, tech, retail, financial services, and IT. The future potential of these sectors has increased the funding and will likely continue for FY 2022. 

So, it is evident that the market is changing slowly and is likely to return to the pre-COVID times with new variables. Hence, the booming field of investment banking is expected to require more talented job seekers. Therefore, individuals must look for investment banking courses with placement opportunities to get ample opportunity to grow in the future. 

Apart from seeking courses that secure a placement, make sure that the investment banking course aligns with the latest trends, is industry connected, and covers real-world scenarios of the same. A proper course or training in this field can provide rewarding careers like financial analyst, risk management consultant, and investment banking associate. 

A novice’s guide to investing in the money market

Posted on by Imarticus

In today’s day and age, it wouldn’t be wrong to claim that every aspect of our lives is in some way or the other connected to the money market. Times are uncertain, which makes it even more important to have a rooted understanding of what drives our money market. The financial sector has grown at an unprecedented rate over the last few years. We, at Imarticus, are here to help you catch up to it with our Certified Investment Banking Operations Professional program. 

Half knowledge is a dangerous thing.

Investment Banking analyst

Does your understanding of Investment Banking Operations only stem from being a passive participant in conversations involving the topic? Hand-me-downs of what people claim ‘expert opinions’? When it comes to Investment Banking, tangible experience and expertise are what you must build and count on. It is a resource like no other. With Grade A faculty members with a decade’s worth of knowledge and experience at their disposal from tier-I banks across India, Imarticus Learning makes sure that you learn from the best and harness your skills to the best of your abilities.

Seeing is believing 

Learning happens best when you successfully apply acquired knowledge to your benefit. There is no greater motivation than a positive result, and results come through action. Hence, at Imarticus Learning, we believe in putting you in the driver’s seat.

With hands-on experience and action-oriented courses, you apply what you learn and change the course of your action as per your understanding of the subject matter. We believe in “seeing is believing.” Hence, we make it a point to give you a crack at multiple industry-aligned case studies from various sectors and domains, which our expert faculty then evaluate. 

Working towards a future

There’s nothing as disheartening as wasted effort. Time is an investment and should be spent on worthwhile experiences that secure your future. As humans, we instinctively work toward goals and an envisioned tomorrow. With our Certified Investment Banking Operations Professional program, we guarantee all our students employment in the operations sections of global investment banks. Check out our Career Services section for more information: Career Services, Career Coaching – Imarticus Learning.

Brush up before you rush in

When we dive into the world headfirst, it’s essential to have adequate and appropriate information to aid us. The future of the financial world morphs into something new each day, and to understand that. It’s important to have a good hold on what used to be. It is essential to start from the beginning to comprehend new knowledge, which is precisely what we’re here for.

The Certified Investment Banking Operations Professional program is a 180-hour course that gives you an in-depth understanding of securities and derivatives, their trade life cycles, along with operational risk analysis, regulatory reforms, and all the other functions performed in the investment banking operations department.

Click here: Investment Banking Courses, Training & Certification – Imarticus Learning to download our brochure.

All’s well that ends well

Confidence backed up with learning and research is what writes a success story. When you have the proper guidance, the world is your oyster. Learning Investment Banking with Imarticus opens you up to a horizon of possibilities within arm’s reach.

The Certified Investment Banking Operations program specializes in moulding individuals and bringing out the best in them. To check out our alumni reviews and placement partners, click here: Investment Banking Courses, Training & Certification – Imarticus Learning.

What’s impeding investment banking courses online?

Posted on by Imarticus

What’s impeding investment banking courses online?

Despite being known for its intricate financial model, investment banking is a lucrative career that serves multiple business units. Investment banking is a distinctive branch of operation that enables individuals or institutions involved to assemble capital and imparts financial counseling to them. 

However, the dearth of enrollment in investment banking courses online today is evident. So, what’s impeding investment banking courses online?

  • Absence of Human Interaction – With the world embracing the digital transformation that Covid-19 imposed on us, some sectors have and are still incurring colossal losses including the online investment banking education sector. The leading factor contributing to the lack of students enrolling in these courses is the compromised mode of communication. Offline classes have proven to be effective in increasing the retention rate amongst learners. The online mode of education leads to a lack of feedback and low motivation.
  • Technological Issues – Just like any other technology, the online mode suffers through not only glitches but also other problems faced by learners from different regions. For example, not everybody will have access to fast internet or internet at all to learn about this complex discipline. The internet is a privilege that the majority don’t have access to.
  • Compromised Finances – Investment banking is a comparatively expensive course and with the economic disruption caused by the pandemic, the purchasing power of people has diminished significantly. Therefore, investing in an online course has become a matter of skepticism and not many want to pursue investment banking certification without the certainty that they will get a return on their investment.
  • Lack of Practical Exposure – With online education taking over, the theory has far-left practical industrial exposure behind. Offline education was instrumental in providing first-hand experience and industry-relevant training to learners. With the digitization of education, the practical knowledge that learners look for has been vitiated.
  • Lack of a Conducive Educational Environment – Offline education instilled in learners a sense of discipline and a conducive environment to grasp knowledge through interactive measures. Even though online education is more flexible and gives learners a chance to learn at their own pace, it also nullifies classroom etiquette and the responsibility that comes with it. Low motivation is one of the major factors contributing to the lack of students who want to learn investment banking.

Why should you enroll in our investment banking course?

Our investment banking course is a 180-hour long detail-oriented course that enables you to earn your Certified Investment Banking Operations Professional (CIBOP) credentials. Our curriculum has been curated to equip you with the skills that are required to master a career in investment banking along with treasury and clearing services. 

  • Job relevant skills 
  • Increased employability
  • Earn industry certifications
  • Learn live
  • State-of-the-art classrooms 

Advantages of our program

Designed to ensure that you can fast track your career in investment banking, our course provides you with:

  • Practical experience – Apart from stressing the theoretical foundation, we also make sure that you have a powerful practical base. This is induced by including trading simulations and case studies. We ensure that the practical first-hand experience you need to gain an in-depth understanding of the real-time job and industry is not compromised.
  • Industry-specific curriculum – Complex securities, derivative products along with their trading lifecycles and functions; it is all included in our curriculum so that you don’t miss out on the important aspects of the stream.
  • Learning management systems – Our educational facilities are not limited to classrooms. We go above and beyond to provide you with all the materials and resources you need to brush up on your concepts even when studying online via our seamless LMS experience.
  • Tech-enabled education – We aid your education by providing both internal and external technology that enables you to keep up with your reading material and connect with your coursework without any disruptions.
  • Assured placement – Our dedicated career assistance team counsels you thoroughly by providing important and appropriate industry advice. From helping you create a first-class portfolio to guiding you through your interview prep, our team supports you through it all. 

Conclusion

Investment banking is an exciting career that has proven to be rewarding. However, due to the lack of an influx of industry experts, the field of work is gradually dying. This can be prevented by encouraging more people to opt for courses that ensure your all-round development and upskilling in this industry rather than demoralizing them for wanting to pursue this career path. 

7 trends shaping the future of the Money Market: Top picks

Posted on by Imarticus

The money market is constantly evolving, and it can be challenging to keep up with the latest trends. In this post, we will discuss seven trends shaping the future of the money market. We will provide our top picks for each trend!

Here are some of the seven trends shaping the future of the money market:

# 1. The Rise of Digital Currencies

Digital currencies are becoming more popular each year. While traditional currencies are still the most widely used, digital currencies are gaining ground. Their popularity is due to their security and anonymity. 

Top pick: Bitcoin

Bitcoin is the most well-known digital currency. It has become the largest and most popular digital currency. 

 #02. The growth of mobile payments

Mobile payments are becoming more popular as smartphones become more commonplace. Mobile prices are convenient and allow users to make purchases without carrying cash. 

Top pick: Apple Pay

It is a mobile payment system developed by Apple Inc. It allows users to make payments using their iPhone or iPad. Apple Pay is secure and easy to use, making it a popular choice for mobile payments. 

# 3. The Rise of Peer-to-Peer Lending

It is a type of lending that allows individuals to borrow and lend money without using a bank. Peer-to-peer lending platforms, such as LendingClub, have become popular in recent years.

 Top pick: LendingClub

LendingClub is the largest peer-to-peer lending platform. It allows borrowers to get loans from individual lenders and has a low default rate.

#04. The growth of fintech

Fintech means the use of technology in the financial services industry. Fintech companies are developing innovative solutions to problems in the financial sector. 

Top pick: Robinhood

Robinhood is a fintech company that offers commission-free stock and cryptocurrency trading. It has a mobile app that is easy to use, and it has been growing in popularity among young investors.

# 5. The Rise of Robo-advisors

Robo-advisors are financial advisors who use artificial intelligence to provide investment advice. Robo-advisors are growing in popularity due to their low fees and convenience.

Top pick: Betterment

Betterment is the largest Robo-advisor and offers a range of investment options.

# 6. The growth of online banking

Online banking is becoming more popular as more people move to the internet for their banking needs. Online banking is convenient and allows users to access their accounts from anywhere. 

Top pick: Chase Bank

 It offers online banking and a wide range of other banking services.

  1. The rise of automated investing

Automated investing is a type of investment that uses artificial intelligence to make investment decisions. 

The top pick: Wealthfront

Wealthfront is a leading automated investing service that offers a wide range of investment options and has a low fee structure.

Discover Investment Banking courses with Imarticus Learning

Investment Banking course with placement

Students study what is investment banking, complex securities, and derivative products, their trade lifecycles, and the responsibilities that comprise investment banking operations. This 180-hour intensive Certified Investment Banking Operations Professional (CIBOP) course thoroughly prepares students for a career in investment bankings jobs.

Course Benefits for Learners:

  • Our investment banking courses cover complicated securities, derivative instruments, and the trading lifecycles and functions of these assets.
  • Students at Imarticus Learning work in most worldwide investment banks with the CIBOP credential authorized by the Euronext Group!
  • Students can connect with industry professionals and previous course graduates to deepen their learning and optimize their possibilities.

No banking and Finance Certification is Worth it

Posted on by Imarticus

No banking and Finance Certification is Worth it

The most important question that you come across while deciding about your journey in the financial industry is how to land your desired profile in a banking and finance career. The core of financial activities that different firms undertake varies from segment to segment. Your aspiration may be to become an investment banker, a hedge fund professional, a seasoned banker, a risk manager, or an actual financial markets trader.

All these career paths are tremendous, but the problem that candidates in India face is getting the right guidance to land entry into these segments. Additionally, the issue in these segments is a preferential bias towards certified professionals. There are many banking and finance certifications available in the country, and identification and pursuit of apt certification is the need of the candidates. As a professional, you often come across such a dilemma.

 This is what you are looking for in Banking and Finance certifications:

1. A certification that makes you eligible for a job in the preferred segment

Before you get an opportunity to dazzle the hiring managers with your knowledge and skills, you need to cross the shortlisting criteria. With the level of competition in the professional world these days, everyone works up to their core for continuous value addition. Certification in the field of the preferred segment lets you cross the cut-off of shortlisted candidates and gives an indication to the managers about your interest in the field.

2. A course that increases your competency in the field

Hiring managers try to ensure a candidate’s competency for the required job. You, as a candidate, can enhance your resume and add a flair to your profile with the subject knowledge. So you are looking for a course that only gives your profile a value addition but also makes you competent enough for real-life situations.

3. A certification to enhance your earned experience

It is not only the fresh out of college graduates who opt for certifications. Professionals at varying levels on their professional path look to enrich their experience with certification. Suppose you are a banking professional. A risk management certification will add value to your profile and increase the scope of your movement within departments of the banks.

4. Certification to boost your confidence

Sometimes certification is needed to add confidence to your professional skills. On-the-job experience is the most critical aspect of a professional journey, but a certificate gives recognition to the same and increases your confidence in your skills.

This is what we know about it:

Those with banking and finance careers are among the world’s highest-paid workers. In India, for example, the average yearly salary for these professionals ranges between 8.28 and 8.51 Lakhs.

Banking and finance are considered one of the world’s most stable sectors. Banks and other financial organizations recruit even during the recession and economic insecurity.

A finance course can lead to a variety of job opportunities. Many financial professionals begin in entry-level positions and advance to management or executive positions.

The abilities you learn while studying finance may be applied to different sectors, making you a more adaptable job applicant.

This is what we think will be useful:

For a banking and finance career, the need of the hour is getting courses and certifications that align with current market situations. A course designed with BASEL II will not work today when the banking world is talking about FRTB. The banking and finance world changes and the realignment of courses with the market scenario is an absolute necessity.

The courses/certification should be curated in guidance by the market professionals and industry leaders. Trainers from top-notch education or institutes of the country/world should be part of the training teams. A greater level of successful placements for the candidates in the respective field is also crucial.

A mentorship approach by the instructors to understand your particular requirement and aptly guide you towards a better fit.

Consider these options: (Banking and Finance Courses)

Financial Analysis with KPMG

This 180-hour skill-building program teaches mastery of numerous basic finance activities. The program provides you with an endorsed curriculum, dynamic instructors, and practical learning, with over 25+ hours of delivery from KPMG in India.

 Certificate in Investment Banking Operations – Knowledge Partner Euronext Academy

This 180-hour intensive Certified Investment Banking Operations Professional (CIBOP) course thoroughly prepares you for a career in investment banking operations, treasury, and clearing services. Your only obligation is to study; we will care for the rest.

 Executive Program in Investment Banking and Capital Markets – IIM, Calcutta

Executive Program in Investment Banking and Capital Markets was developed in collaboration with the prestigious IIM Calcutta. This comprehensive one-year curriculum will provide you with a fundamental and advanced understanding of global capital markets and investment banking. You will master the foundations of mergers and acquisitions, debt and equity capital markets, portfolio management, sales and trading, and securities legislation designed for finance professionals with at least two years of experience. This IIM Calcutta executive course will help you achieve your goals and develop a solid career in the financial sector.

 We, Imarticus Learning, are a technology-driven training institute with extensive experience in altering professions in finance, analytics and artificial intelligence, business analysis, and core technology. These banking and finance courses have been curated, considering your professional growth opportunities.

These programs will help you reach the pinnacle of your aspired career. We have centers in many cities around the nation; visit us in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, and Gurgaon, or connect us over chat support.

Here’s how technology has changed investment banking operations

Posted on by Imarticus

In today’s era, we can witness technology all around us. Almost every industry sector is now relying on technology for day-to-day operations. Investment banking operations have also changed over the years due to the introduction of new technologies. Investment banking operations are predicted to change further with the rise of new-age technologies like blockchain, AI, and ML.

If you are planning to get into the investment banking industry, you should be familiar with the technologies used for day-to-day operations. Many young aspirants look for Investment Banking courses that help them get familiar with the latest technologies. Read on to know how technology has changed investment banking operations.

Automation in the investment banking industry

An investment bank not only has to raise capital for its client. Besides its services to clients, several internal processes are also to be completed by an investment bank. For example, an investment bank has to maintain its account books regularly.

There are many such mundane tasks for which investment banks used to hire employees. An investment bank cannot ignore mundane tasks because many of them fall under the compliance requirements and need to be completed.

In 2022, it is observed that most investment banks have automated mundane tasks. Tasks like accounting, bookkeeping, and payment reconciliation are automated by investment banks. Instead of hiring employees for mundane tasks, investment banks now hire expert individuals for core job responsibilities like equity research, financial analysis, etc.

New-age technologies like AI and ML play a significant role in inducing automation in investment banking operations. It is just the beginning of robotics and automation in the investment banking industry. Investment banks are gradually moving towards hyper-automation with the rise of AI and ML.

Financial services with technology

Gone are the days when a client has to visit a physical investment bank to get financial advice. Investment bankers can now pass financial advice via several digital channels. Many other financial services are now offered to clients with the help of technology. For example, investors can now view the available securities and invest in them while sitting on their couches. Mobile applications and digital interfaces are enabling customers to access financial services digitally.

Many traditional financial services can now be accessed by customers quickly with minimum staff interference. It not only boosts customer satisfaction but also saves time for the employees of the respective investment bank. Seeing the rise of fintech services, it is evident that customers are loving to access financial services remotely via digital channels.

It is why investment banks are spending huge on developing digital channels that could offer financial services to customers. If you want to learn investment banking, you should know about the financial services that are being offered to customers with the help of technology.

How to get familiar with the technology used in the investment banking industry?

If you learn investment banking via an industry-oriented course, you can get to know about the technologies used in the industry. We at Imarticus Learning offer the perfect program for investment banking aspirants.

Our CIBOP course is endorsed by the London Stock Exchange Group and teaches job-relevant skills. By getting an investment banking certification after the CIBOP course, you can get into the industry easily. 

At the end of the CIBOP course, we will offer placement assistance to help students get a job with any reputed finance firm. During the investment banking course, you will participate in industry interactions. You will meet several industry experts during the CIBOP course.

Several aspects of investment banking will be covered in the CIBOP course. Start your CIBOP course and learn about technologies used in the investment banking industry!

6 reasons why money market courses are indispensable to investment banking operations professionals

Posted on by Imarticus

The money market or the financial market is a significant exchange market where players may grant and borrow short-term, high-quality financial instruments with typical maturities of one year or less. It enables governments, banks, and other significant organizations to sell short-term assets in order to fulfill their short-term cash flow requirements. Individual investors can also use money markets to invest modest chunks of money in a low-risk environment.

 Treasury bills, certificates of deposit, commercial paper, federal funds, bills of exchange, etc. are some of the products traded in the money market.

 Large organizations with short-term cash flow needs can borrow directly from the market through their dealer, whereas small businesses with extra cash can loan through money market mutual funds.

 Individual investors who wish to gain from the money market might do so by opening a money market bank account or investing in a money market mutual fund. A money market mutual fund is a professionally controlled investment vehicle that purchases money market assets on behalf of individual investors.

 What is Understood by Money Market Funds?

 Money market mutual funds or MMMFs are open-ended, highly liquid funds that are often utilized for short-term liquidity requirements. The money market fund exclusively invests in cash and cash equivalents with a one-year average maturity and fixed income.

 An individual invests in money market products such as treasury bills, commercial paper, certificates of deposit, and bills of exchange.

 Objectives of the Money Market:

  1. Supplying consumers with short-term cash at a fair price, such as private investors and governments. Lenders will also benefit from liquidity since money market assets are short-term.
  1. It also helps lenders to convert idle capital into productive investments. Both the lender and the borrower gain from this arrangement.
  1. Since most businesses lack the necessary working capital, the money market assists such businesses in obtaining the monies required to satisfy their working capital needs.
  1. It is a vital source of funding for the public sector in both domestic and foreign commerce. As a result, it provides a chance for banks to lodge their excess cash.

 6 Reasons Why Money Market Courses are Indispensable to Investment Banking Operations:

  1. Money market courses enable investment managers to accurately analyze the financial performance of other companies in the same sector or domain, thus being able to help in making business decisions based on market fluctuations.
  1. Through money market courses, individuals get a deeper understanding of how performance metrics are used for tangible and intangible assets of a company.
  2. Risk managers learn how to use financial analysis tools and techniques such as SWOT analysis or PESTLE analysis.
  1. Money market courses help in gaining market knowledge, thus allowing investment consultants to assess markets properly, enabling them to forecast and predict anomalies or abnormalities for their employers. Knowing how currencies are performing in the market also helps companies make more effective business transactions. 
  1. These courses help consultants or investment bankers create business and financial models for companies who wish to go public or who deal with shares in the market and gain investments based on the capital market (understanding if assets are liquid, stable, or profitable).
  1. If an investment banker works in an investment firm, then he/she can help his/her clients make investment decisions based on the market.

 Conclusion

 In order to learn investment banking efficiently, having knowledge of financial markets is extremely essential. One needs to have a good understanding of the functioning of the money market in order to be successful in the field of investment banking. Hence, you need to pick the best Investment banking certification course to give your career the right boost.

5 Benefits Of Banking And Finance Courses

Posted on by Imarticus

5 Benefits Of Banking And Finance Courses

The sector of banking and financial services is sizable and fiercely competitive. It frequently ranks high in rankings of the industries people want to work in. A job in banking and finance may be a financially rewarding dream for a well-educated person. 

According to a study, this economic sector makes up more than 25% of the global economy. As a result, professional banking course knowledge is necessary for long-term success in this industry. A banking and finance degree can lead to various exciting and lucrative career paths. 

Here are five benefits of choosing this type of educational path.

  • Gain a comprehensive understanding of the financial sector 

Studying banking and finance courses will give you a thorough understanding of how the financial sector works. This knowledge can be beneficial if you pursue a career in this industry. Students get organized instruction through hands-on experimentation, software learning, practical training, and growth possibilities. Upon course completion, candidates receive a professional qualification and certification that aids their career advancement.

  • Learn Financial Management Skills

Everyone in the banking and finance sectors must have strong financial management abilities. You can respond to challenging financial situations and stay current with these abilities. 

  • Challenging Career Opportunity

A degree in banking and finance can allow you to work with people from all over the world. You will learn about different financial systems and how they operate. In addition, you will develop vital research and analytical skills. This expertise is highly sought after by employers in the banking and finance industry.

  • Long-term career objectives

Your resume should begin with a degree in banking and finance from a reputable university. Employers inside and outside the sector see this set of abilities favourably and positively. A student has the highest chances of landing better employment in the future if they can pass an entrance exam and obtain experience working for a recognized firm.

  • Help you become a successful entrepreneur.

With a banking and finance degree, you can acquire the skills necessary to become a successful entrepreneur. This certificate in investment banking provides you with knowledge in areas such as business administration, accounting, and investment analysis. In addition, a banking and finance degree can allow you to network with other professionals in the field.

Learn investment banking courses with Imarticus Learning

The Certified Investment Banking Operations Professional program will give students a good start on their investment banking careers. This financial modelling certification will give students the skills they need to succeed in banking operations, treasury, and clearing services at all production levels.

Course Benefits for Learners

  • Students will learn how to manage complex securities and derivative products, their trade-life cycles, and the roles involved in investment banking operations.
  • With over 8,000 placements completed and a pay increase rate of 60%, students may get the support they need to start their investment banking careers.
  • After finishing the CIBOP course and related assignments, students will get an industry-recognized certificate.

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