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Tag: best banking and finance courses

Financial modelling: The breakthrough of the new generation finance trends

Posted on by Imarticus Learning

Imagine a big manufacturing company with all its moving components – a team of administrators, a workforce that manufactures, a crew that procures the necessary raw materials, different units of regulators, marketing department, supply, and distribution chain.

Given the enormity of the company, gaining meaningful insights into its functioning and gauging its efficiency can be a daunting task. This is where financial modeling comes into play, and hence the growing popularity of financial technology courses among the newer generation of finance students.  

To cater to the growing demand of the online fintech program, Imarticus Learning has come up with a Financial Analysis Prodegree in collaboration with KPMG that offers young professionals a 180-hour financial planning and analysis course covering research on equity and valuation, financial modeling, and accounting. This article will give you an elementary understanding of financial modeling and how it will be a breakthrough for the new generation of finance trends. 

What is a financial model?

A financial model is a simple tool that utilizes any built-in spreadsheet software, such as MS Excel, to forecast the financial performance of any business in the future. It relies on the performance history and future performance assumptions to prepare a balance sheet, income, cash flow statements, and supporting schedules.

This dynamically connected financial model is called a ‘Three Statement Model’. It is the base on which we can build more advanced models, like Mergers and Acquisitions (M&A), Leveraged-Buyout (LBO), Discounted Cash Flow Analysis (DCF model), and other types of financial models.

How is a financial model used?

Company executives rely on the financial model to aid them in taking decisions regarding the analysis of the company finances. Some of the significant decisions that are based on such models are: 

  • Making organic business expansions
  • Divesting business units and assets
  • Raising and allocating capital 
  • Making acquisitions
  • Budgeting and forecasting 
  • Management accounting
  • Valuing a business
  • Financial statement analysis

A step-by-step guide of building a financial model

While building a financial model requires lots of relevant data, assessing them and understanding them comprehensively, using financial tools, and auditing and stress-testing. However, a generic but step-by-step breakdown of building a financial model is provided below:

  • Every financial model begins with an in-depth study of the past financial statements and reverse-engineering the data to forecast gross margins, fixed costs, revenue growth rate, fixed costs, among others.
  • The next step is to start an income statement to compute the revenues, operating expenses, gross profit, etc. With that, you can also begin to fill in the balance sheet.
  • The third step compromises building supporting schedules for capital assets like Property, Plant & Equipment (PP&E), and also for interest and debt.
  • Use the reconciliation method to build the cash flow statement by adding depreciation and starting with the net income.
  • After completing the Three Statement Model, perform the Discounted Cash Flow (DCF) analysis by evaluating your business value and calculating free cash flow.
  • Assess the risk of an investment or plan your business accordingly with different assumed scenarios by adding sensitivity analysis.
  • Build graphs and charts of the financial model to communicate the output with the clients.
  • Test your financial model by stress-testing it against extreme scenarios to check whether your model behaves as expected.

Conclusion

Even a cursory understanding of financial modeling will help you understand that it is imperative for most modern business giants. A global pandemic, recession, inflation, and other economic factors have already bolstered the need for financial models to grow businesses. Enroll in the  Financial Analysis course of Imarticus Learning to join the new generation of finance trends. 

Industry overview: What’s happening in banking and finance?

Posted on by Imarticus Learning

Industry overview: What’s happening in banking and finance?

India’s banking sector is very well regulated and sufficient as per the report of The Reserve Bank of India. The condition of India’s banking and financial sector is very well developed and at par with the leading nations of the world. The credit market and studies related to liquidity risks conclude that the Indian banking system is very resilient and capable of coping with any kind of downturn. 

financial analyst course

If you’re interested in having a banking and finance career, there are a lot of post-graduate programs in finance in the educational sector to help you reach your goals. Innovative banking models have expanded the need for banking and finance professionals in the industry.

What is the banking and finance industry?

The banking sector can be stated as the foundation of the financial services group. The prime concern of the banking industry is savings and lending money to people. On the other hand, the prime importance of the financial sector is on increasing investments, insurance, redistribution of risk, etc. 

The banking segment and the financial institutions are interrelated and work together hand in hand. The economy and circulation of money in a nation depend upon the financial services sector that comprises the banking system and other financial institutions.

The banking and Financial institutions render the following services:

  • Investment services
  • Insurance services
  • Tax and accounting services
  • Loan services

Changing dynamics of banking and finance

The banking and financial sector is turning its head towards innovation and technological advancement. As advancement and growth in technology are encouraged in every part of the world, the banking and financial sector also doesn’t lag and is following the trends with technology with a pep in its step.

Much of the financial sector’s attention is on improving the return on equity as it is an internal part of Financial institutions. A positive revenue mechanism policy is being incorporated by almost all the financial institutions to improve the return on equity of the people who invested in various equities of the companies or Financial institutions.

Recent Trends in Banking

In such a dynamic and technologically driven world, change is inevitable. It is impossible that in this rapidly growing world the banking sector will remain as it is in its traditional form. Hence, that have the banking and financial sector and the recent trends in banking can be enumerated as follows:

  • Universal banking has been incorporated where all the operations can be performed in a single step.
  • Increased payments through debit cards and credit cards.
  • The banking sector is aiming to develop wearables for better banking controls such as smartwatches.
  • Globalization in the banking sector has taken place.
  • The usage of Demat accounts has increased rapidly.
  • Artificial intelligence in the form of Chatbots and robots is being incorporated into the Indian banks.
  • Banking controls and services through phones have increased rapidly.
  • The incorporation of blockchain technology is another important milestone.
  • Payments are heavily done through UPI and India is aiming to become a cashless economy.

Conclusion

With so many different facets of the financial sector and the banking industry undergoing change, it is important for the people who are connected with the banking sector to remain up to date with the changed policies and regulations. It is also crucial that the banking professionals are updated with the recent trends and work accordingly.

If you are already a working professional in the banking sector or you are aiming to be a part of it then you can opt for the banking and finance online training by Imarticus. This course will help you to understand the recent trends in the banking and financial sector better and will keep you up to date.

Banking and finance are extremely lucrative sectors that offer great job satisfaction, career prospects and handsome salaries. These sectors are also expanding with the introduction of fintech solutions, thus increasing the prospects of banking and finance professionals. These sectors are also incredibly diverse and offer many different job roles such as investment banking, financial analytics, risk management, credit analytics and much more highly desirable careers. The banking and finance domains are also known for being incredibly stable and offering rapid growth.

Learn Financial Analysis: A Comprehensive Guide To Trading Methods And Applications

Posted on by Imarticus Learning

Learn Financial Analysis: A Comprehensive Guide To Trading Methods And Applications

All of us want to make money in the stock market, to grow our wealth as quickly as possible. Stock trading and investing to make monetary gains require hard work. Two main aspects of stock trading and analysis include fundamental and technical analysis. You can learn about financial analysis through financial modeling, financial analysis, or chartered financial analysis courses at Imarticus Learning.

Fundamental analysis involves a detailed study of the financials of the company to determine the intrinsic value whereas technical analysis involves the study of historical prices of the stock through chart patterns to project the future price and the trend in stock prices.

What is Financial Analysis?

Financial analysis is the holistic study of the financial position of the company, including past trends, ratio analysis, and cash flows of the company to determine the solvency, liquidity, financial strength, and intrinsic value of the company. When you do a financial analysis of a company or a stock, it should be able to help you determine whether undertaking an investment in a particular company is worthwhile.

It helps you choose the best possible investment opportunities. It involves the study of the balance sheet, profit and loss accounts, cash flow statements, and ratio analysis. You can opt for a financial modeling course or a chartered financial analyst’s course to hone your skills in financial analysis.

Uses of Financial Analysis 

Financial analysis can be divided into two components—corporate financial analysis and investment financial analysis.

Corporate Financial Analysis 

  • Forecasting economic trends in the company/stock. 
  • Companies use financial analysis to enable them to determine future trends in financial policy, long-term budgeting exercises, peer comparison, etc.
  • Project identification teams also use financial analysis to make a comparative analysis of cash flows and return to determine the most investable project. Measures like internal rate of return and net present values form an integral part of financial analysis. Financial modelling courses can help you build your skills in this area.
  • Improve working capital management by improving the efficacy of collection of receivables/payables management, etc.

Investment Financial Analysis 

There are two popular approaches to doing financial analysis:

Top-down going from the macro to micro: This starts from analyzing major economic trends in the economy including  GDP growth, the future direction of interest rates, inflation, exchange rates and currency trends, movement of the economic policy, looking at sectoral trends or factors that accelerate or impede the growth of the industrial sector, and then cherry-picking the industrial sectors poised to perform very well in the economy. 

After the macro analysis, the next step is drilling down to the micro. Looking at specific companies in the selected industrial sectors, conducting ratio analysis and financial analysis of the selected companies, and doing both intra-firm and inter-firm analyses to finally choose the best investment opportunities. 

Value-based investing:  This is going from the bottom to the top. Selecting a company based on its intrinsic value and validating all other assumptions about the macro aspects affecting the company. If the stock markets are particularly choppy, it is always better to use a value-based approach to pick your stocks.

In both the above strategies, analyzing past performance using ratio analysis and other financial analyses is key. Per-share ratios such as price-earnings, price/book value, price to sales, price to enterprise value, leverage ratios like debt/equity, debt to total assets and interest coverage ratios, return ratios like return on equity, return on assets, gross profit margin, net profit margin are all important and can be used in the analyzing the past trends as well as in peer comparison. 

All of the above analyses help in determining the intrinsic value and whether the company is overvalued or undervalued compared to its long-term historical averages. Ratios such as dividend payout ratio and the earnings per share growth help determine whether the company is growing at a sustainable rate and whether it can maintain its growth momentum. 

Technical analysis: Technical analysis is based on the presumption that the current stock price reflects the intrinsic value and charting historical prices of shares will help project the future share price momentum. Various techniques such as bar charts and candlestick charts are used to portray the chart patterns. Various studies interpret different chart patterns to decide whether the stock is likely to give a breakout on the upside or the downside. This helps decide the price point of stock at which you should enter. 

Both fundamental and technical analyses should be used in conjunction with each other and not in isolation. Also, you must be aware that market sentiment depends on macro-economic trends influencing the economic policy of the country and also the impact of central bank action around the world. 

Recently, all central banks around the world raising interest rates due to excessive inflationary pressures in concert has turned market sentiment bearish. This has resulted in large falls in both the indices as well as stock prices.

Key Takeaways 

Doing financial analysis before undertaking any investment activity is very important as it is your hard-earned money at stake. Poor judgment calls or poorly done homework means significant portfolio losses. If you are a beginner in stock markets, learn both fundamental and technical analysis.

Only when you are proficient in both should you take stock of investment decisions or decisions to build your portfolio. Don’t delay. Register for a financial analysis course, a financial modeling course, or a chartered financial analysis course today. It is the difference between growing your wealth and losing it. 

Visit Imarticus Learning to learn more. Contact us through chat support, or walk into any of our training centers situated in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, and Gurgaon. 

Discover the foundations of a successful career in credit risk management

Posted on by Imarticus Learning

If you’re interested in pursuing a career in credit risk management, it’s essential to learn as much as you can about the field. This blog post will discuss the foundation of a successful career in credit risk management. We’ll talk about what skills you need to develop, what education you need to obtain, and what experience you should gain. By following these tips, you’ll be on your way to a successful career in CRU in 2022! 

According to Statista, the United States held more than 36% of the worldwide market share for information and communication technology as of 2022 statistics (ICT). The EU came second with a market share of 16 percent, followed by 12 percent, and China ranked third with 12 percent. It means that the United States is a global leader in ICT.

What is credit risk management?

The credit risk management and analyst course aims to minimize the potential for financial losses by assessing and managing the risks associated with extending credit. To achieve this, credit risk managers use various methods to determine the overall threat posed by individual customers and loans. It can include anything from reviewing a customer’s credit history to analyzing their current financial situation.

For example, suppose a customer has poor credit and has several accounts open at banks known for giving out loans easily (high risk). In that case, this may indicate to the credit risk manager that they need extra attention. 

How to get started in a career in credit risk management?

Credit risk managers are responsible for assessing and managing the risks associated with extending credit. It can include reviewing a customer’s credit history or analyzing their current financial situation, among other things. 

Here’s what you need to consider if you’re interested in working in credit risk management:

Skills:

  • Analytical thinking– a credit risk manager must identify the root cause of a problem and develop an appropriate solution for it.
  • Communication– the ability to communicate effectively with peers, management team members, and customers is essential in this job because they need to make sure everyone understands what’s going on at all times.
  • Critical thinking- credit risk managers must think outside the box and develop innovative solutions to complex problems.

Education:

  • A bachelor’s degree in finance, economics, business administration, or a related field is a must for this job. However, some companies may also need a Master’s degree.

Experience:

  • Credit risk managers typically have at least five years of experience working in their field. However, if you want to advance your career as quickly as possible, knowledge will help tremendously! It would be best to get involved with projects outside of work to show your dedication to the field.

Discover a career in credit risk management courses with Imarticus Learning

Acquire a robust toolbox to help students grasp India’s credit environment, study the complete loan evaluation and due diligence procedure, and conduct financial analysis with this 145+ hour Credit Risk and Underwriting Pro degree.

Course Benefits for Learners:

  • Learn in-demand skills and gain access to high-value tools with a rigorous, case-study-based curriculum developed in collaboration with Moody’s Analytics.

  • The only credit risk certification educates students on the lending environment, credit underwriting, legal and regulatory requirements, and the impact of emerging technology.

  • Credit risk analyst courses assist students in meeting and exceeding employer expectations by developing their business and analytical skills and offering an awareness of the Banking, NBFC, and Credit sectors.

Contact us through the chat support system, or drive to one of our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, and Gurgaon.

What attracts business enterprises to credit risk analyst courses?

Posted on by Imarticus Learning

Businesses have many different areas in which they can specialize. One area that has become increasingly popular in recent years is credit risk analysis. This field involves studying and assessing the risks of lending money to businesses and individuals. 

Due to the importance of this task, many business enterprises are now turning to credit risk analyst courses to learn the necessary skills. This blog post will discuss why businesses get drawn to this type of training.

The increased demand for credit risk analysts in the business world

According to the U.S. (BLS) Bureau of Labor Statistics, job growth in this field will be around five percent from 2019 to 2029. In India, the average salary for a Credit Risk Analyst is 10,58,589 rupees.

Businesses need to ensure that their employees access the latest relevant training. These courses provide in-depth knowledge about the various aspects of this field, and they are therefore becoming a progressively popular option for businesses.

What are businesses looking for in their credit risk analysts?

Credit risk analyst courses are significant in the business world. The reason is that technology keeps changing and expanding. Businesses have to keep up with this change to continue to grow. That is why their employees must attend these courses. Credit risk analysts are vital in the decision-making process for lending money.

For a business to be successful, the credit risk analysts must possess these skills:

Analytical Skills

The ability to analyze data is essential in this field. Credit risk analysts need to examine financial statements and assess the risks associated with lending money.

Critical Thinking Skills

Credit risk analysts also need to be able to think critically. They need to identify potential problems and come up with solutions.

Organizational Skills

This skill is vital for credit risk analysts to stay organized and keep track of all the information they collect.

Communication Skills

The ability to communicate effectively is also vital in this field. Credit risk analysts need to explain their findings and make recommendations based on their analyzed data.

Why will credit risk analyst courses be in high demand in 2022?

Credit risk analyst courses are essential in the business world because of the technology. Technology is constantly changing, and businesses must keep up with this change. That is why their employees must attend these courses.

In 2022, there will be a high demand for credit risk analysts because of the global economy. The global economy is overgrowing, and businesses need to keep up with this change to grow.

Discover Credit risk Management Courses with Imarticus Learning

The only credit analyst courses globally teach students about the lending environment, credit underwriting, legal and regulatory requirements, and the impact of new-age technologies.

Course Benefits for Learners

  • The industry-focused practical curriculum adheres to globally accepted standards and includes recent global trends and best practices.

  • Learning technique consists of 145 hours of live lectures, five case studies, and social learning.

  • After finishing these credit risk management courses, students will get awarded an industry-recognized Certificate of Excellence in credit risk and underwriting.