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What Is the Best Way to a Job at an Investment Bank?

Posted on by Imarticus Learning

What Is An Investment Bank

Investment banking is considered to be a financial mechanism which has much complexity. A financial mediator that performs different varieties of tasks is called as ‘Investment Bank’. These banks are mostly specialized in a big and composite financial transaction. Various projects and business entities are served by these banks.

They act as a financial advisor or agent for institutional clients. Also, it can be described as the special area of banking tasks that helps companies to increase capital and provide advisory to them. JPMorgan Chase, Citigroup, Bank of America & Deutsche bank is some of the examples of investment banks. There are investments banks dedicated to only individual customers also who have retail operations.

How Does An Investment Bank Earn

Investment banks buy all the desired shares at a price computed by the experts and resell them to the public. Also, sometimes sell the shares on behalf of an issuer authority and earns a commission on each share.

Consider a company A who is buying a different company that is X. A company has does not have any idea about the company X like is it worth buying and how they can benefit in terms of generating revenues. In these kinds of situations, investment banks come into action which goes through a process to check about the values of company X, it does the documentation part and advises company A the correct time of buying company X.

An investment bank in this situation is advising the buying side but there can be vice-versa of it also. They can even help to sell a company like X in this case. The bigger the deal would be, the more the commission investment bank would earn.

How to get a job at Investment Bank?

It is tough to get into investment banks due to large applicants and very few openings. It is seen sometimes that the ratio goes to 100:1 of applicants and openings. If you want to get entry into an investment bank you can enter mainly through two job roles that are analyst and associate.

In investment banks most common job roles for junior, mid-level & senior roles are stated below:
1) Associate
2) Analysts
3) Director
4) Vice President
5) Managing Director

The quality traits that analysts or associate working in IBD of Investment bank are :
· Competitive
· Detail-oriented
· Polished & Presentable
· Highly ambitious

Investment Bank Course & Certification

To start in the areas of Investment banks one should get a good understanding of accounting principles and also excel including basics things like formulas and functions. Then you can start with financial modelling which is the primary things task in an investment bank daily. There are several online courses and certifications provided by Udemy, Coursera & Imarticus and other institutes. They offer courses free of cost and also paid online course in different domains to help people to make a career in Investment banks that is often done by CA, MBA professionals, etc.

There also PGP certifications which are done under investment banking and capital market. There is training and placements assistance also provided by the institutions. If you enrol in Imarticus certification on certified investment banking operation professionals you would be given training and also placements assistance. It is a 180-hour certification program. The average placement which is committed is of 3-8LPA.

Some of the popular courses that are present online are:

· FLIP – NCFM: Equity Research with Financial Modeling
· FLIP – NCFM: Investment Banking Operations International
· FLIP – NCFM: Issue Management
· PE, M&A, and Structured Finance
· Research Analyst with Financial Modeling
· Technical Analysis

Also Read: Different Types of Investment Banking Jobs

What are the careers in a capital market?

Posted on by Imarticus Learning

In every economy, there are typically two types of financial markets; one is the capital market and the other is the money market. The function of both the markets is the same; both act as a link between the investors and the wealth creators. The fund gathered in this process is used to create wealth in the economy in the long run.

The former market deals in commodities and financial instruments in the form of long-term securities having a maturity of more than a year. A capital market is known for making the transactions between the investors and the companies smoother.

The money market is known for buying and selling securities that have short-term maturities, like less than a year, e.g. treasury bills and commercial papers.

Two types of capital markets

Let’s take a look at the two major types of capital markets:

  • Primary market – It is the most important type of capital market. Its key function is the formation of capital for the government, institutions, companies, etc. It aids investors in investing their savings and extra funds in companies that plan to start new projects or enterprises expanding their companies.
  • Secondary market – This is commonly known as the stock market. Here, the investors indulge in buying and selling securities in the form of debentures, shares, bills, bonds, etc.

The basic difference between the two markets is that the primary market issues only new securities whereas the secondary market deals with existing securities. No fresh issues are made in the secondary market.

Career opportunities in the capital market

When we talk of the capital market, there are unlimited rewarding career opportunities for individuals from different backgrounds, irrespective of age, gender, educational qualification to a certain level and area of interest. Also, liberalization in the Indian economy gives rise to opportunities in the capital markets for both national and international players. So, considering all these aspects, we can conclude that there are strong choices of a career in the capital market for people who want to pursue a future in this field.

Some of the sector-wise positions in the capital market are: 

  • Commercial Banking
  • Credit Analysis
  • Compliance
  • Real Estate
  • Portfolio Management
  • Risk Management
  • Insurance
  • Actuary
  • Underwriting
  • Government Contracting
  • Government Contract Analysis
  • Government Acquisition

Few popular certification courses on capital market

 In order to build a successful career in capital marketing, one can pick the most suitable capital market course from the list below:

  • Currency and interest rate derivatives – This unique industry-recognized certification course helps to boost one’s career with valuable practitioner visions.
  • Exchange-traded derivatives – If our target is the financial services, then this course can give a great shape to a career with its practical knowledge on currency futures and options.
  • Financial markets AML compliance – This program is basically based on AML (Anti Money Laundering) standards delivered by the regulatory bodies.
  • FLIP – NCFM: Capital Markets Fundamentals International – This is India’s only online course on the US, UK Financial Markets that can help you acquire a FLIP NCFM certification. It works best for IT and KPO professionals.

Conclusion

The capital market is basically a branch of finance and anyone having an interest in this field can consider taking up a career by opting for the right course. Like most other professions, even a career in the capital market requires a certain skill set together with some basic attributes. Since capital markets deal with several activities associated with both the investors and the borrowers, the career scopes are also very diverse.

What are 3 Reasons To Join An Investment Banking?

Posted on by Imarticus Learning

People you work within Team.

Like you, they’ll have come through an exacting selection and training process, and we guarantee that the vast majority will be bright and exciting high achievers who care desperately about what they do every day at work. And in the City banking attracts an international crowd, so you’ll get to know people from all around the world.

Fun at Work.

There’s too much to do in this game! You’ll be working in an industry where the rapid pace of innovation keeps things fascinating, and you’ll get to read about what you’re working on in the news. Some roles will give you the chance to travel abroad extensively, and we hear that the social side of things isn’t wrong at all.

Monetary Perks, and more

What can we say? It’s a lot more than you’ll be able to earn in most other industries. There’re other perks too – private insurance plans, pensions, in-house gyms, travel across the world and (sometimes) freshly baked cookies from your institutions own kitchens. – Wink.

The question remains the same. How?

We make it simpler for you. You need not necessarily study abroad. Imarticus Learning offers multiple internationally recognised training and placement opportunities for careers in financial analysis. The investment banking courses at Imarticus have been customised to impart practical, instead of theoretical knowledge to ensure no gaps in the academia and the industry.
To take your career to the next level, all you need is a counselling session, where you get a chance to meet senior industry experts to guide you, keeping in mind your skills and interest to offer the best-suited training to you.

Artificial Intelligence in Investment Banking – The Technological Revolution

Posted on by Imarticus Learning

If there’s a word that will capture the zeitgeist 2018, it’s Artificial Intelligence. Not just the concept, but its application and consequently our reaction to being usurped by our own creation. Siri was the beginning, the most simple of AI. But it’s crisp ‘robotty’ voice meant we knew it was an algorithm. The launch of Google Duplex had critics picking up pitchforks and making for the witches hut. They couldn’t take the ‘hmms’ and ‘ahs.’ The possibility that human interaction might never be restricted to, well, humans. What did they think was going to happen? That we could get rid of the driver and not rid of the personal assistant.
It was a natural progression I would think since AI is making itself felt across the spectrum of our daily activities. Transport- Tesla and Uber are developing self-driving cars. Your shopping- Amazon is replacing human cashiers with A.I. in automated grocery stores. And how can we forget how  Facebook mines our personal data to help advertisers know what you’re going to buy next. It’s safe to say that the future of war to is going to be AI, and the 21st century will be known for its technological arms race. Global spending on artificial intelligence and machine learning is predicted to grow from $12 billion in 2017 to $57.6 billion by 2021, and investments will follow.Investment Banking Banner

But what about Finance?

Finance is still away yet in the full understanding application of AI but let’s look at some numbers. According to an article in MIT Technology Review, the US equity trading desk at Goldman Sach’s New York headquarters employed 600 traders. Today they employ two. 598 traders have been replaced by automated trading programs and they are supported by 200 computer engineers. Apparently, 45 percent of the revenue from cash equities comes from electronic trades. Complex algorithms are being built that can understand what a trader would do, not just across equities but even asset classes like currencies and credit. AI has already been used by hedge funds in stock trading. Goldman Sach’s new consumer lending platform, Marcus, is entirely run by software, with no human intervention. What about Accounting? E&Y said that the graduate recruitment for auditors and accountants could fall as much as 50% in the next four years, because of AI.

What about Investment Banking?

Well, what is a DRHP? It’s nothing but a risk document that lists out everything that can possibly go wrong with the company. I can’t see why a Bot can’t do that. Or in fact build a financial model with three scenarios, or even a Pitch Presentation because so much of these templates are becoming standard.

But how can AI replicate nuance? How can it ever know when to the high ball a Private Equity player during a deal syndication?

Investment Banking is much too dependent on human emotion – winners curse wouldn’t exist if all our actions were rational, and therefore AI will never make headway in Investment Banking. Maybe a ‘bot’ won’t be a rainmaker anytime soon but it’s safe to say ‘soon’ is not ‘never’.

What are the Perks of Investment Banking?

Posted on by Imarticus Learning

If you are considering a career in finance, Investment banking definitely comes up as an option. As it is known as the starting job in the financial sector. It is a commonly believed, that investment banking demands a lot and is a high-pressure job, but at the same time investment banking is also known for the many perks that it offers. Not only financially but also in terms of personal and professional development. If you are a person who is passionate about making money and want to multiply that in manifolds, then investment banking is designed for you.
Investment banking is mainly about matching the expectation of people with capital to the people who need the capital. So basically an investment banker gives option, advising clients on investment opportunities such as Joint Ventures, Mergers and Acquisitions etc…,
If you are a part of a developing economy like India, there lays yours.
Perk # 1, as the economy provides huge opportunities for growth, due to the availability of vast untapped sectors, high entrepreneur dynamism, and ground-breaking opportunities of constructing win-win situations between the capital provider and the people who need it for business.Investment Banking Banner
Perk # 2 is undeniable, the money! To get this one out of the way, a fresher in this domain can expect to earn a starting salary of about 20 lakhs per annum. A point to note is that there is no upper limit to the pay package in investment banking. The pay scale is directly proportionate to the contribution and value addition, a professional gets to the company, in terms of size and value of deals.
Perk # 3, smartness and intelligence gets rubbed on you, now we all know that investment banking demands long hours. An average work week would be 80 to 100 hours long. It is that much time, that you are spending with the brightest minds. Why is that? It’s because investment banking promises great wealth for the individuals, therefore it attracts the sharpest, brightest, intelligent academic pedigree, who are driven at the workplace, and clear in objectives. Therefore, even if you consider your intellect as average, by the end of your run, you would develop wonderful personal and professional expertise from these individuals.
Perk # 4, great compensation, from dinning with the richest to vacationing at the most exotic destinations, an investment banker will witness all. Besides the frills like flying business class to close deals, staying at the best of the hotels, that the job promises, the bonuses of an investment banker are to die for. Most reputed banks offer bonuses which are three times the individual’s salary. Investment bankers are pampered by the banks, meals, transport, incentives etc…, are some benefits which are synonymous with investment banking.
Perk # 5, a job in investment banking opens up other career options for the individual. The analytical toolset that is developed while working in the investment banking sector can be leveraged to later move on, either to the buy side, corporate finance or consulting. Many previous investment bankers have joined completely different verticals, while some others have started their own ventures, as they have developed a strong knowledge of finance and how companies operate.
So the cards are set, if your passion is in numbers and making money out of money, irrespective of your academic background, with the prerequisite of strong math skills, business administration and researching skills, with excellent communication, then pick up our course in investment banking and venture out in the world of money.

Impact of Information Technology on the Investment Banking Industry

Posted on by Imarticus Learning

The major investment banks perform numerous transactions every day across national and international markets. The investment banking transaction could be varied in nature from huge mergers and acquisitions to derivatives, commodities, basically, deals of many natures. Now imagine how is this possible? Or was this possible for investment banks to conduct their business in this form, say a decade or two ago? Not really, for investment banks to function like this, they need to have a strong IT support, right from the front end support, like in sales and trading applications, quantitative analytics and risk analysis support to data warehousing, settlement, and position keeping systems.
For investment banks to thrive, especially in a global landscape, would need details like value at risk for portfolio, and information of global markets, and this information has to be valuable, accurate and in real time. It is established that the availability of this information is only possible with appropriate IT intervention. Especially things such as value at risk can only be calculated using statistical tools and historical evaluation over a period of time.Investment Banking BannerInformation technology thus becomes an enabler for investment banks in conducting their business more efficiently, from within the bank. The objective of this department is to enable the bank function in an optimal way using technology, and to provide smarter and futuristic solutions. The function of the IT applications used in investment banking either integrate with the legacy technology or are built on new platforms which are user friendly, fast, flexible and automated.
An investment bank, to function at par with global standards and meeting client and customer expectations, needs to adapt smart technology. Effortless and efficient front and back end IT systems, risk management systems, multiple trading platforms are some of the major technological advancements being used by investment banks for effortless functioning. If one is part of the investment banking industry or the financial sector on the whole, they will use technology at every level, maybe the impact will change but the technological exposure will be there for sure. From as elementary to using excel, word and databases for managing client information, using power point for presentations, to using and managing information tools to compile the financial reports.Investment Banking Banner
It is not only in the daily functioning, but also to match the volatile nature of global markets, there is a constant need to develop new financial products and make changes in the investment flows. The IT departments of any investment bank have to keep up with this demand and be innovative in providing solutions. So they not only need to keep up with the technical requirements of the investment banks but also the business needs and come up with innovative solutions on how to integrate them both.
Investment banks are in the need of building an IT leadership that has clear communication skills, a great technological vision, and the ability to blend well with the business need along with good global governance. Investment banks have realised the importance of change management, and opening up doors to embrace technology, perhaps building a strong coalition from executives to the leadership, with the endeavor to embrace digital capabilities.
The investment banks of tomorrow will successfully build a team that reduces operation dependency from archaic legacy solutions to effective IT structures while reducing the cost base to create financial incentives for transformation.

Are There Enough Opportunities in the Banking Sector

Posted on by Imarticus Learning

India’s Banking sector is expanding. Based on certain reports, it is expected that the Indian banking sector could rank as the fifth largest banking and financial sector by 2020, and perhaps even the third largest sector by 2025. Which is indicative that the banking sector is growing faster than ever.
Currently, the Indian banking industry is worth Rs 81 trillion, and it will effectively see a growth due to many factors in the future. Banks are integrating technology, like the internet, and mobile devices for transactions and communication with their customers, one can see an impact of social media and big data in the functionalities of a bank, which are getting sophisticated by the day. The banking system has also seen an improvement over the last couple of years, due to government efforts in promoting banking majorly in rural areas. More specifically the ‘Pradhan Mantri Jan Dhan Yojana’ has ensured a significant rise in deposits. The banking sector can also be trusted to be stable, as all the global upheavals did not impact the Indian banking sector like it did to the rest of the world.
The overall growth and an industrial and economic development ensure transaction of funds which will find its ways in the banking institutions. For a developing country like India, the banking sector would serve as its backbone. As the banking sector is prepping itself for growth, where more private banks are expected to enter the scenario, it is creating huge career opportunities for all those candidates who desire to be future bankers.
There are opportunities in the banking field as it offers a wealth of diversity in vacancy. Irrespective of the kind of bank or department or function, there will always be some kind of banking element in it. Also, a career in banking is considered international in nature.Investment Banking Banner
With all the above factors, it is only obvious that the banks are recruiting rather aggressively. Now a day’s, banks have diversified their activities into newer products and services, ranging from the conventional ones like the Credit Cards, Consumer Finance, Wealth Management, General and Life Insurances, Investment Banking, Mutual Funds, Pension Fund Regulation, Stock Broking Services, Custodian Services to expanded services like NBFC’s and Capital Market.
It is predicted that with all the above-foreseen requirements, banks, in general, will have to recruits about 7 lakh people in order to manage their operations alone.
A broad classification in the banking sector for the recruitment scenario would look like this,

  • Commercial Banks which include Private, Public and Regional banks
  • Cooperative Banks these are generally managed by co-operative societies, between State, Central and Primary Agriculture, targeted majorly for the benefit of the rural people
  • Investment Banks, their aim is to provide Financial Assistance to their customers and offer support services like Foreign Exchange, Foreign Trading, and Equity Management.

Most of the above banks would have good prospects and well-paying salaries, with performance and experience based promotions.
A career in the banking sector, with experience, also has the scope of branching out as a consultant. All those with entrepreneur spirits have something to look forward to. Besides the many exciting and promising roles that the banking sector offers, it also gives you the freedom to change, for example, if you are an MBA in Finance, on just doing a certification you can enter the field of Financial Analysis.
So the key is to keep learning and exploring avenues as the banking sector offers you with many opportunities.

Career Opportunities in Capital Market

Posted on by Imarticus Learning

When most people tell you about their plans of pursuing a career in finance, capital market, most often it is understood that they will be working for a bank. That could be the case years ago, however, there are limitless opportunities and rewarding career choices for individuals from all backgrounds, irrespective of their gender, age, educational qualification to an extent, and interest. Also due to liberalization, the Indian economy has given rise to the opportunities in the capital markets for national and international players.
So there are strong career choices for anyone planning to pursue a future in capital markets. To be sure of your career in the capital markets, one needs to first get clarity of the term.

What is capital Market?

To simply put it, capital markets can be explained as markets where financial products originate or are created before they are available for trading. So these markets mainly manage and control the investments and savings amongst the suppliers of capital. Investors who operate in retail and or institutional investments would come under suppliers of capital, at times even the users of capital businesses, government and individuals can also be considered as suppliers of capital.
Capital markets are necessary for any prospering economy, as capital becomes an important feature for generating economic output.

The capital market can essentially be divided into two –

Primary Markets – this is where new bonds and stock issues are sold to investors, and
Secondary Markets – this is where existing securities are traded
It is important to note that all financial products are created in the primary market and then traded in the secondary market by bank salespeople and traders.

Career Options in Capital Market

The capital market is considered as a branch of finance, and anyone with an interest in joining the field of finance can decide to enter this field. Like any profession, a career in capital market also requires certain skill sets and some common basic attributes.
It is also important to note that the term capital markets include all the activities associated with the investors and the borrowers.  So the career opportunities within the capital markets also become very diverse, simply because of the kind and number of activities involved.
Therefore, on the plus side, it gives the candidate choice in the field of interest, careers are reasonable achievable especially for those who are committed professionals, and lastly, they are financially satisfying creating a further sense of purpose in the work you do.
To get a better understanding, positions in the capital market from specific sectors would be like,
Credit Analysis and Compliance Officer from the Commercial Banking Sector, Portfolio Management and Credit Analysis from the Real Estate Sector, Underwriting and Actuary from the Insurance sector, and Government Contract Analysis and Government Acquisition from the Government Contract Sector. Consider these as just samples, there can be additional sectors and roles to pursue.
The skills required to pursue a career in capital markets is quite similar to finance. One needs to obtain an advanced degree, with specific courses and certifications. The degree or course could be a one which offers a holistic learning or a specific skill in a particular function. The choice is yours in the nature of interest basis which you need to comply with the relevant degree or certification.
A strong business acumen along with communication, negotiation skills will help you get the right foothold over your career from the start.