How an MBA in Banking and Finance can be helpful in the BFSI Sector?

The banking and finance sector, also known as the BFSI sector, is one of the largest industries in India. The assets of Indian public sector banks alone are worth $1.5 trillion in FY20.

Moreover, this industry is growing at a rapid pace. The more it will grow, the more career opportunities you will have. In this article, we will cover how completing a financial business management course can help you in building a career in this field.

How an MBA in Banking helps you in the BFSI Sector

Makes you stand out

Having an MBA in banking will benefit you greatly in standing out. Recruiters in the BFSI sector look for skilled candidates that can showcase expertise in the industry’s different subjects. Another criterion is candidates with a strong work ethic and commitment towards their profession. Having an MBA will help you showcase all of these qualities and more. It will also make you eligible for many leadership roles in the industry which you couldn’t apply for without an MBA.

You will easily stand out from candidates that don’t have an MBA or those who have an MBA specialization in another subject. Hence, you will be at a great advantage with this qualification.

Easier project management

An MBA program will teach you about the fundamental and advanced concepts of business. Its specialization in banking will help you learn about the essential subjects of the banking and finance sector, including financial accounting, analytics, fintech, and others. Possessing these skills will make it much easier for you to handle projects and measure their growth. Project management is a highly in-demand skill, and an MBA in banking will allow you to specialize in the same.

Develops leadership skills

A big reason why employers prefer candidates with an MBA to fill senior roles in their organization is that they have better leadership skills. Developing soft skills is a prominent section of an MBA program. Moreover, senior roles require professionals to have a strong grasp of different leadership skills. Some vital leadership qualities you develop during an MBA program are:

  • Problem-solving
  • Critical thinking
  • Communication
  • Teamwork

Not only will these skills make your job significantly easier but they will also allow you to grow your organization better and hence, advance your career more easily. Strong leadership qualities will help you direct your organization’s resources more effectively and pave the way for a brighter career, particularly in the lucrative BFSI sector.

Get an MBA certificate online

Completing a financial business management course can aid you significantly in accelerating your career in the BFSI sector. It helps you develop vital soft skills and become an industry leader.

In the current day and age, when there is a contagious virus spreading everywhere, the safest way to learn crucial skills like financial accounting and business management is by getting an MBA certificate online. An online course will allow you to learn from the safety of your home without going anywhere. You will be able to study safely and according to your schedule. It would also help you learn without interrupting your professional life, unlike a conventional MBA program.

Conclusion

There are many advantages to getting an MBA in finance and banking, especially when you want to pursue a career in the BFSI industry. It helps you get high-paying jobs, accelerate your career growth and become a sought-after professional. If you are interested in finding out more about an MBA with a specialization in banking, then you should go here.

Confused? Check Out These 10 Key Concepts to Understand in Investment Banking Operations

Do you want to start learning about investment banking but don’t know where to start? Don’t worry, we have got you covered. The following list covers the top 10 most important concepts in this field. It would help you get familiar with the jargon used by investment bankers and start learning easily.

After all, investment banking is a great area with many possibilities of growing professionally. However, some concepts might be hard to crack. Let’s begin understanding these simple but essential concepts:

Top 10 Investment Banking Concepts

·         Stock

A stock represents ownership of a share in a company. When you buy a company’s stock, you buy a small fraction of that organization which is called a share.

·         Equity

Equity refers to the value of an asset after deducting all the liabilities on the same. Owning a stock entitles the owner to a proportion of the company’s profits and assets equal to the amount of stock he/she possesses, hence it is also called equity.

·         Financial Instrument

A financial instrument is a virtual or real document that represents a legal agreement of some monetary value. It can be debt-based or equity-based. There are many subcategories of each kind of financial instrument as well.

·         Derivative

A derivative is financial security whose value relies upon an underlying asset (or a selection of assets). The underlying asset (or assets) is called a benchmark. Popular examples of financial derivatives are interest rate swaps, options, and forward contracts.

·         Asset

An asset is a resource that has an economic value that an individual, organization, or country owns. The owner of an asset controls it with the expectation of receiving a future benefit through appreciation in its value. An asset can benefit the owner in multiple ways depending on its nature.

·         Liability

A liability is something a company or a person owes to another party. Examples of liability are accounts payable, loans, bonds, accrued expenses, deferred revenues, and mortgages.

·         Debt Finance

When a company borrows funds from institutional investors or individuals to handle expenditures or working capital and promises to pay interest and principal for a set duration, it is called debt financing. In other words, when a company finances its operations by taking on debt, we call it debt finance.

·         Boutique Banks

Boutique banks are investment banks that specialize in a minimum of one aspect of this field. Some prominent boutique banks are Allen & Co. and Charles Schwab.

·         Bond

A bond is a financial instrument that represents a loan taken out by an organization. Bonds allow companies to raise capital by borrowing funds from investors rather than banks.

·         Security

Security refers to a negotiable and fungible financial instrument that has some value. Security could be a stock, option, or bond.

How to Start an Investment Banking Career?

Starting an Investment banking career is easy if you have the right resources. Recruiters in this industry look for certified professionals who are adept at various economic, business, accounting, and financial concepts. Investment bankers must also know how to evaluate corporations to forecast their future performance and make decisions accordingly.

The best way to start your career in this field is to find the right courses for investment banking and join one of them. You should choose one that lets you learn online and test your skills through projects and assignments while teaching you all the required concepts.

By and large, investment banking is a broad subject with many concepts and skills. We recommend checking out the CIBOP program, which is among the most popular courses for investment banking in India. It will help you learn all the concepts we discussed in this article along with additional subjects and technologies.

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Stages Of Money Laundering And How To Combat It!

Money launderers’ methods are becoming more sophisticated every day, and financial transactions are becoming more complicated. In addition, the speed with which money and assets can be transformed and transferred has expanded rapidly due to the greater use of technical communications.

There is no one-size-fits-all approach to money laundering. Regardless of the methods used, the laundering process is divided into three stages, each of which may include launderers’ transactions that could alert a financial institution to criminal conduct.

Money Laundering Process

Anti-Money LaunderingMoney laundering is a word that refers to the practice of converting cash obtained through criminal activities into legitimate and clean funds. This article will look at three broad stages and measures to prevent money laundering.

Money laundering usually involves three stages, including-

Placement

When a person involved in criminal activity deposits monetary proceeds into the financial system, this is the first stage of money laundering. This is done to get rid of the money obtained through unlawful means. This stage corresponds to the criminal’s maximum level of vulnerability.

Layering

The money is then separated from its original, illicit source in the following stage of money laundering. This stage of the procedure is frequently tricky. Money can be altered such that audits do not notice it by moving it quickly and to other regions. Money may be transferred between different nations at this point.

Integration

The funds are integrated when they are placed and layered into the financial system. The criminal can then obtain funds from their initial illicit source in ways that don’t bring notice to the issue.

Ways To Combat Money Laundering:

Innovations In Technology

The technology used to detect money laundering-related suspicious activity is improving and becoming more accurate. AI and Big Data software enable these systems to become more precise with anti-money laundering.

Record Management And Software Filtering

Financial institutions and corporations also retain thorough records of transactions and employ software that might identify questionable conduct. For example, customer data can be categorized according to suspicion, and transactions can be rejected if particular criteria are met.

Holding Period

Many banks demand that deposits be kept in an account for a certain number of days (usually around five). This holding period reduces the possibility of money laundering when it is moved via banks.

Investment bankers and financial regulators are trained with anti-money laundering practices to look for laundering cases in their daily encounters. Violations of these laws will result in hefty fines and other consequences.

How To Become A Investment Banker?

Anyone with a thorough understanding of financial assets and investing has a chance to work as an Investment Banker. However, for those seeking entry-level careers in the field, the following courses are beneficial:

  • Com Hons.
  • BBA in Finance
  • MBA
  • CFA Program

A professional can enter the field and earn meaningful experience with a certification course in Investment Banking by Imarticus to advance in the industry.

In terms of depth, expertise, and relevance to the Investment banking sector, the CIBOP program by Imarticus is the answer to your query “how to become an investment banker?”

It stands out in the category of finance courses. It’s an excellent method to develop industry-relevant subject expertise and land a job at a top global bank.

Course Highlights:

Case Studies: Complex business scenarios and real-world application cases.

In-class simulations: Allow students to learn through the use of simulations that mimic real-world challenges.

Teach-backs and evaluations: Key concepts are internalized through assignments, assessments, and quizzes, while teach-back sessions confirm knowledge correctness.

Interactions between industries: Prepare presentations based on real-world events and understand how market dynamics affect financial markets.

All About Investment Banking and Combating Anti-Money Laundering

In the last decade, with the ever-growing list of high-profile parties involved and the lucrative benefits of being involved in such transactions, my investment banking as a career has sky-rocketed.

However, being an Investment banker is not only about the intelligent business suits anymore – especially not in the current financial sector.

Understanding Investment Banking

Investment banking is a branch of a bank or financial institution branch that provides mergers and acquisitions (M & M&A) advisory services to governments, businesses, and institutions along with underwriting (capital raising).

Investment banks operate as go-betweens for investors (those with money to invest) and corporations (those with money to support) (who require capital to grow and run their businesses). These institutions also enforce anti-money laundering policies as a method to monitor potential fraudulent transactions.

Nevertheless, one needs to differentiate between the working of an Investment Bank and that of an Investment Banking Division of a bank. Whereas a dedicated Investment Bank will offer you a wide range of services, the Investment Banking Division of a particular bank can only help with underwriting and M&A advice.

A full-service Investment Bank offers the following services:

Underwriting: Working with underwriting and capital raising groups, Investors and firms look to raise money or go public through the IPO process. The primary market, sometimes known as “new capital,” is served by this function.

Mergers & Acquisitions (M&A): The Bank takes on advisory roles for both buyers and sellers of firms, as well as management of the M&A process from beginning to end. Investment bankers issued by the Bank advise clients on either the acquirer (buy-side) or the target (sell-side) in a transaction (sell-side).

Sales & Trading: In the secondary market, these banks match the buyers and sellers of securities. Investment banking sales and trading departments function as agents for clients and can also trade the firm’s funds.

Equity Research: The study of securities by the equity research group assists investors in making investment decisions and facilitates stock trading.

Asset Management: The Bank manages investments for a diverse group of clients, including institutions and individuals, in various investing approaches.

Best Investment Banking courses with placement in IndiaThe Investment Banker is the key to fulfilling all the above roles of an Investment Bank. So how to become an Investment Banker? First, let us see if you are made for the role or not:

  1. Being aware of the skill set required for the job (i.e., Excel, Word, and PowerPoint) and being good at them
  2. Readiness to handle the pressure in the hierarchy as with every corporate job – all work will eventually roll downhill
  3. Determination to put in the long hours because there will be many data to analyze
  4. Excited about the learning curve ahead and not doing it just for the money.

If you have your priorities sorted about why you want to pursue this career path, we can go on to explore how to become an Investment Banker.

  1. Getting into the right business school is the stepping stone to start your career.
  2. Network in the right circles to increase your chances of landing an interview
  3. Mastering technical skills such as valuation, financial modeling, and accounting are crucial for doing it smarter and better than others.

However, once you are in the role, your job entails much more than just financial spreadsheets. Money laundering is quite prevalent within such financial institutions – with or without the parties’ knowledge.

Therefore, as an Analyst or Associate, it becomes their job to abide by the Anti-Money Laundering policies to monitor and report any suspicious activities or transactions that may have the potential of being dishonest money. After all, it is all in a day’s work!