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The Evolution of Investment Banking and Financial Regulation

Posted on by Imarticus Learning

The domain of investment banking (IB) has seen notable changes over time, evolving into an essential tenet of the global financial system.

The necessity for efficient regulation to preserve stability and protect investor interests has increased along with the industry’s importance.

In this article, we aim to dive into the specifics of investment banking, starting right from its history. We will discuss the evolution of investment banking focusing on the intricate relationship it bears with financial regulations.

The article also aims to focus on the importance of investment banking, keeping in mind the contemporary financial landscape.

This is a must-read for anyone looking to take up an investment banking course and kickstart their best career in the field.

What is Investment Banking?

Investment banking is banking that deals with substantially higher transaction values on a much larger scale.

It basically refers to a financial service that involves assisting governments, private corporations, and other entities to harness capital and look into financial advisory services. Now here comes the role of investment banks.

Investment banks facilitate these transactions and issue securities, mergers and acquisitions, etc., thereby serving as intermediaries between investors and businesses in the capital markets.

This guarantees a straightforward risk management and advantageous negotiation process that satisfies all parties engaged in the transaction.

By engaging trusted investment banking services, fund managers and businesses can achieve a seamless transaction experience that meets the needs and expectations of all parties involved.

Investment Banking Training

After providing a brief definition of investment banking, it’s natural to question the necessity and importance of utilizing its services for the efficient execution of mergers and acquisitions (M&A) deals or fundraising underwritings.

Investment Banking Evolution

Investment banking has undergone a tremendous shift that has altered the way financial services are delivered and the nature of the global economy.

Initially, investment banks mostly provided advisory services and helped businesses raise funds. However, the function of investment banks changed along with the development of the money market.

Investment banks have broadened their range of services over time to embrace a variety of endeavours. They welcomed mergers and acquisitions, which allowed businesses to collaborate and seize fresh growth prospects.

They entered the asset management industry, assisting people and businesses in portfolio optimisation and sound investment selection.

Trading developed into a crucial component of their business, helping them to negotiate the complex world of futures and securities. They guided investors in their financial endeavours by offering insightful information through cutting-edge research.

A significant turning point came in the late 20th century when regulatory barriers were loosened, granting investment banks greater flexibility in their operations.

This newfound freedom led to the convergence of commercial and investment banking, blurring the traditional lines and giving rise to financial conglomerates.

Investment banks could now engage in a broader range of financial activities, fueling innovation and driving growth in the industry.

The development of investment banking was greatly influenced by the process of globalisation. Investment banks were able to spread across national lines thanks to developments in communication and technology.

They welcomed the chance to service customers from all over the world and adapted their business practises to meet the vast range of demands of a globalised money market.

The current investment banking landscape has been changed by cross-border transactions, global capital flows, and the development of strategic alliances made possible by this globalisation.

Financial Regulation and Investment Banking

The regulation of the financial industry and investment banking are interwoven. Investment banks’ operations are governed by regulations, which make sure they comply with requirements to safeguard investors and maintain market stability as well as operate ethically and responsibly.

Financial restrictions frequently affect how investment banking is done. Regulations may, for instance, specify the capital needs of investment banks, limit some risky operations, or prescribe disclosure and reporting obligations. 

The relationship between financial regulations and investment banking is dynamic and complex. Investment banks must adapt their practices and operations to comply with changing regulatory requirements. Similarly, regulators continuously assess and adjust regulations to address new risks and challenges posed by evolving market conditions.

To delve deeper into the evolution of investment banking and financial regulation, you can explore reputable financial news websites, academic journals, regulatory body websites, and industry publications for in-depth analysis and insights.

The Role Of Derivatives Market in Investment Banking

Investment banking depends heavily on the derivatives market. It entails purchasing and disposing of financial products known as derivatives, whose value is derived from underlying assets like stocks, bonds, commodities, or currencies.

Here are some key roles of the derivatives market in investment banking:

  1. Risk Management: Derivatives have many uses in investment banks. They allow and enable investors to protect themselves against potential losses brought on by changes in interest rates, exchange rates, or commodity prices, which is how they aid in risk management. 
  2. Speculation and Trading: Investment banks engage in derivative trading to speculate on price movements and profit from market fluctuations. They employ advanced trading strategies and sophisticated models to identify opportunities and manage risks associated with derivative positions. This speculative activity contributes to market liquidity and enhances price discovery. 
  3. Structured Products: Investment banks design and create structured products using derivatives. These products combine derivatives with other financial instruments to create tailored investment solutions for clients. Structured products can provide customized exposure to specific market outcomes, leverage investment strategies, or offer enhanced yields. 
  4. Market Making: Investment banks act as market makers in the derivatives market. They facilitate smooth transactions by offering competitive prices, absorbing buying and selling orders, and managing inventory. Market-making activities help ensure that the derivatives market remains efficient and liquid. 
  5. Client Advisory Services: Investment banks offer advisory services to clients regarding derivatives strategies and market opportunities. They assist clients in understanding the risks and rewards associated with derivative instruments, tailor derivative solutions to meet specific objectives and provide ongoing support and guidance for their derivative transactions.

How to Become an Investment Banker?

Becoming an investment banker requires a combination of technical and “soft” skills. An investment banking certification can greatly enhance your candidacy. Networking also plays a vital role in the investment banking industry. Connecting with successful upperclassmen, seasoned professionals, and senior bankers can provide valuable career guidance, interview tips, and potential opportunities. A recommendation from a senior banker can significantly impact your career trajectory.

If you’re a finance graduate with up to 3 years of professional experience, and looking to start your career in investment banking, Imarticus brings to you the Certified Investment Banking Operations Professional course.

Conclusion

Investment banks are adapting and thriving in this constantly changing world. In order to improve their services and offer more individualised solutions, they embrace technology breakthroughs and make use of digital platforms and data analytics. They integrate intricate regulatory frameworks, ensuring compliance while looking for fresh business prospects. 

While investment banks continue to be at the forefront of financial innovation, promoting societal advancement and influencing the direction of international markets, you can become a part of this growing industry with the right motivation and guidance! 

Want to Become an Anti-Money Laundering Specialist? Learn More About Job Roles

Posted on by Imarticus Learning

Financial institutions have to pay special attention to each customer and transaction to identify any fraudulent activity. A bank that has strong anti-money laundering policies will prevent people from depositing illicit money into any bank account.

Security policies are the main concern of financial institutions if they want to stop losses. Not only the financial institutions, but the government is also strict when it comes to money laundering.

Young enthusiasts that are looking to build a career in banking/finance should learn anti-money laundering skills to earn a better job offer. Read on to know more about anti-money laundering and different job roles in the industry.

Understanding money laundering via financial systems

In the money market, many criminals try to coat the source of their incomes. You cannot deposit money obtained from any illegal activity in banks. Money laundering hides the source of the black money and makes it white. The dirty money is moved around in a financial system and, multiple transactions are made to confuse the bank officials. It also includes depositing black money in small amounts or transferring black money to a foreign country.

best investment banking courses with placement in IndiaOnce the dirty money is cleaned via money laundering, criminals can use it to finance criminal activities.

It will not only affect the financial institutions but also affects the country and the citizens.

Financial institutions have strong AML (Anti-money Laundering) policies in place that stop criminals from depositing money.

Performance areas of anti-money laundering jobs

The day-to-day job responsibilities of anti-money laundering professionals in banks are as follows:

  • Anti-money laundering experts have to analyze the money market and uncover the pertaining risks within the financial institution. They are also involved in identifying and monitoring suspicious bank accounts or transactions.
  • Anti-money laundering experts are aware of the current alerts generated by the law enforcement authorities. Many times, they help law enforcement to catch a money launderer.
  • Procedural vulnerabilities and loopholes in the financial system are identified by anti-money laundering experts. All those areas that can be exploited by money launderers are identified by anti-money laundering professionals.
  • Anti-money laundering professionals also offer expert advice to financial executives for maintaining high-risk accounts.

What are the job roles in Anti-money laundering?

The financial market is complex and, criminals are also using advanced money laundering techniques. There are different types of anti-money laundering jobs that work together to stop the movement of black money. The top types of anti-money laundering jobs are listed below:

  • Junior Compliance Administrator: People who join the AML industry become junior compliance administrators. They have to carry out routine AML checking and administration of compliance processes in the bank.
  • Risk & Compliance Officer: A risk & compliance officer will be involved in KYC (Know Your Customer) activities. The risk officer is also concerned with CDD (Customer Due Diligence).
  • Fraud Investigator: Fraud investigators uncover the source of fraud in any financial institution.
  • Chief Compliance Officer: It is responsible for forming better AML policies for the financial institution.

How to learn more about AML?

Many young bankers are choosing online risk management courses to know more about AML. The Certified Investment Banking Operations Professional course offered by Imarticus can be the right choice. This course will teach you about financial markets and risk management. You will also go through case studies to know more about real-world AML processes.

Conclusion

In this digital era, criminals are conducting complex money laundering attempts. To stop those attempts, banks need expert AML professionals in the coming years. With an online course in risk management, you can learn the required AML skills. Start your risk management course now!  

Top 5 Regulatory Changes in the Investment Banking Operations Industry

Posted on by Imarticus Learning

The investment banking industry is responsible for raising capital for businesses. In 2021, investment banks will help their clients in identifying revenue-generating opportunities. The investment banking operations industry must perform per some of the regulatory norms. Regulations for the investment banking operations industry are decided by the central/state government. If an investment bank fails to comply with the regulations, it may go through legal hassles. Besides finance professionals, investment banks also need expert compliance officers for following the regulations. There are investment banking courses online that can help you in learning regulatory compliance. Before you search investment banking courses online, you should know about these five regulatory changes.

 

  • Lending limits

 

The exposure limit for investment banks is decided by the central government. The exposure limit defines the amount of loans banks can give to borrowers based on their total funds. The exposure limit is often revised by the central government and investment banks must follow it. The current exposure limit for banks in India is 15% for a single borrower. For a group of borrowers, the exposure limit for banks in India goes up to 25%. The exposure limit can be increased by 5% for financing infrastructure projects. Investment banks often identify capital ventures and invest themselves. While doing so, they should not lend more than the exposure limit to avoid legal hassles.

 

  • Cash Reserve Ratio (CRR)

 

Financial institutions in India must keep a certain amount of cash with RBI (Reserve Bank of India) to meet payment obligations. The CRR is decided by the RBI and changes all the time. Investment banks must keep an eye on the current CRR to avoid any legal hassles with RBI. The current CRR for financial institutions in India is 3%. It means that if the deposit of a financial institution increases by INR 100, then INR 3 will have to be deposited to the RBI.

 

  • Operation norms

 

Once an investment bank has been incorporated, it must conduct operations according to the regulatory norms. According to the norms, an investment bank must list its shares within three years of its incorporation. The regulatory structure also defines the percentage of foreign shareholding. As for now, the foreign shareholding is restricted to 49% in India (maximum). Investment banks can increase foreign shareholding further but only after contacting RBI. The latest regulations also state that financial institutions must open 25% of their branches in rural areas where banking facilities are limited.

 

  • RBI

 

RBI will only set the banking regulations in India for all investment banks. The RBI Act launched in 1934 has given this power to the RBI for deciding the banking regulations. All investment banks that are incorporated under the ‘Companies Act’ will have to follow the RBI regulations. Often, RBI reviews the regulatory structure and makes changes. Compliance officers must keep an eye on the latest announcements from RBI.

 

  • Investment Advisors Act

 

The Investment Advisors Act brought a paradigm shift in the investment banking sector. Before this act, investment banks misinformed investors to curb the competition. In 1940, the Investment Advisors Act was created in which all investment banks had to register themselves. The fees collected by investment advisors are also regulated by this act. An investment banking certification can help learn more about the regulatory structure.

Which is the best investment banking course in 2021?

Imarticus Learning provides an investment banking certification in partnership with London Stock Exchange. The Certified Investment Banking Operations Professional course will help you in launching your investment banking career. With an industry-endorsed curriculum and career guidance, you can build your investment banking career. Start your CIBOP course with Imarticus now! 

The Roles of an Investment Banker

Posted on by Imarticus Learning

Investment Banks have the unique purpose of playing a number of roles when it comes to the world of finance and investments. The various functions of an investment bank include underwriting of new stock issues, taking the responsibility of mergers and acquisitions and in general acting as a financial adviser to a number of high profile, private firms as well as the governmental firms. Some of the other functions that an investment is responsible to accomplish are the management of assets, for large investment funds as well as personal wealth management of certain high net worth individuals. These and a few other functions have gone on to give these investment banks, a very alluring and sophisticated image. Some of the top Investment Banks that a lot of finance aspirants vie to work for are JP Morgan and Chase, Goldman Sachs, Credit Suisse, Deutsche and so on.

Apart from underwriting, another one of the roles of an investment banker would include acting in the capacity of financial advisers, for any and all of their clients. These investment bankers, provide guidance and advice to the corporations, on a number of things which include, how to make the company go public, raising the required capital as well as many other financial aspects. Mergers and Acquisitions are another one of the important roles of the investment bankers.
These professionals have an expertise, especially when it comes to evaluating a company financially. They are also supposed to assist companies in structuring as well as facilitating various merger and acquisition deals.

In order to ensure, that they are performing all their roles on an optimal level, an investment banker, needs to be one step ahead of all their contemporaries. Being up to date with all the news about the market, being able to get your hands on the latest insights and analysis, both when the market opens as well as when the market closes and looking for ways and means to better their performances.

An excellent investment banking professional is well aware of the fact that they need to keep their skills sharpened all the time. This is probably the reason why a lot of professionals, tend to take up certification programs, offered by esteemed institutes. Imarticus Learning; is one of the top investment banking institutes which is basically equip them with the knowledge as well as the insights of what exactly is the industry looking for.

What is the Difference Between Working in a Private Equity and an Investment bank?

Posted on by Imarticus Learning

An Investment bank is responsible for raising capital and assists its clients in making financial decisions. They help businesses to raise capital via investment from investors. Private equity also helps in raising capital but it is different from an Investment bank in many ways. Both these fields are concerned with the shares of any particular firm/company but their working methodology is different from one another. The professionals who work in both these sectors also have a different working approach. Read on to know more about the differences between working in private equity and an Investment bank.

Difference between Private Equity and an Investment bank

The major differences are as follows:

  • Investment banks provide investment opportunities to their clients but they never buy shares in their client’s business. They assist their clients in raising capital but are never involved in the business whereas if you are working in private equity, you will try to buy a stake in your client’s business. Private equity is fully involved in the client’s business. You can say that besides assisting in raising capital as Investment banks do, they are also an investor for their clients.
  • An Investment bank can help its clients in generating capital and this process can go till the client is satisfied with the bank’s services. In the case of private equity, you will try to buy an underperforming company and then make it successful and quickly sell your stake to some other stakeholder and exit from that company. They try to buy a stake at lower prices and sell it at higher prices.
  • An Investment bank knows the revenue it has to generate for its client in advance whereas if you are working in private equity, there is no limit up to how much you can increase the value of your stake. Private equity also shares their client’s profit as they are also stakeholders in that particular company. Mostly, private equity receives its profit share in dividends.
  • The target investors of private equity are generally UHNWI (Ultra-High Net-Worth Individuals) for investing in ventures whereas an Investment bank generally provides its services to all types of companies/firms ranging from mid-level companies to high-level companies.
  • The analysis of clients, market structure, etc. done in the Investment banks is more detailed and critical because they have to identify the risk associated with any client. On a contrary note, private equity does data analysis only to find out about the trends and potential investors. There is not much risk associated with their clients as they mostly work with UHNWI clients who can manage themselves pretty well.

Working Culture of Employees in an Investment bank and a Private Equity

An Investment bank has a workforce consisting of analysts, consultants, etc. who are larger in number as compared to the number of workers in private equity. Private equity works with a limited number of employees and has fewer working hours as compared to an Investment bank. The employees in Investment banks have fixed salaries but the employees in private equity are also involved in the business and many times get a small percent of the share of any particular venture where their firm is investing.

One can choose any of the aforementioned fields according to their interests. The skills required are almost the same in both of these sectors. You need to have more negotiation skills for working in private equity and if you are working in Investment banking, you need to have an analytical approach. To learn more about the working methodology, one can take up Investment banking courses available on the internet.

Also Read: Difference Between Investment Banking and Corporate Finance

Top Investment Banking Trends To Watch In 2021

What Are The Best Investment Bank To Work For

How Can I be a Good Investment Banking Analyst?

Posted on by Imarticus Learning

With the growing trend in investment, there is a surge in the demand for jobs especially in the field of investment banking analysis. The more people invest, the more is the need for individuals to analyse investment portfolios. The profile of an investment banking analyst surely requires hard work but it promises amazing returns and lucrative promotions.

Basic Responsibilities of an Investment Banking Analyst

  • Reviewing the financial data and analysing the details
  • Compiling the reports and presenting the findings
  • Performing administrative duties

Tips to Become a Good Investment Banking Analyst

Every job and field requires proper dedication and hundred per cent submission to the work. An employee must always take care of the duties that he has been assigned along with fulfilling all the responsibilities. Maintaining cordial relationships with all the fellow employees along with respecting the bosses is consequential.
For an aspirant to become a remarkable investment banking analyst, following tips need to be considered.

  1. Stay Attentive: Although every work on the job must be done with proper attention, the job of an investment banking analyst requires highly undivided attention. This is because an analyst has to deal with certain specific details involving numbers and money. The passing of almost all the portfolios depends upon the findings of the analyst. This makes it all the more significant for the analyst to put all his attention in his work while on the job.
  2. Get Along With Your Team: Many times it is possible that a group of analysts have to work together on certain projects. Co-ordination among all the members of the team is really important. To become a good investment banking analyst, an employee needs to co-inside with the interests of the whole team. By working efficiently in a team, one can very easily improve his performance and learn through the capabilities and creativity of others.
  3. Gain The Required Knowledge: For an investment banking analyst, he must possess all the required knowledge of his field. Profound knowledge of accounting standards, mathematical formulas and other applicable principles is required to save a lot of time and efforts while on the work.
  4. Use Computer, Be Smart: Where an analyst has to deal with huge numbers and data, having a strong grip on useful applications like Ms Excel, Ms Word and Ms PowerPoint is important. This job requires giving presentations to investors and presenting the data systematically for better and easy understanding. Therefore, sound knowledge of these applications can help the analyst raise his standards of working.
  5. Work Well in Financial Modelling: Financial modelling is a field which must be known to an investment banking analyst in detail. Financial modelling deals with forecasting the performance of any company in terms of its earning and financial stability. Financial modelling is done by making the use of Ms Excel. If an analyst aspires to progress in his field, he must ensure that he has a way with financial modelling.
  6. Don’t Shun from Long Working Hours: In a desk job like this, sometimes working for late hours can demotivate the employees. But an investment banking analyst must understand that working for long hours in the initial phase may land him at something beneficial in professional terms. It is quite obvious that working for more time than usual will help you undertake more work leading to a greater experience in lesser time. Also, you can learn to handle burden at an early stage which may come up as a problem at higher positions.

Along with the tips listed above, you can consider Imarticus learning for a professional investment banking course. For a stable career in this field, taking up an investment baking course must be considered.

Also Read: How To Become Investment Banker

How Can You Learn and Make Equity Research Reports?

Posted on by Imarticus Learning

Ever wondered how do you get those buy-sell recommendations regarding securities on the business news channel or your daily newspaper? Well, let’s take you behind the scenes to know better how and who does the magic there.

What are equity research reports?

If you want to learn to make equity research reports you are in for a treat as you’ll be explained in detail what equity research reports are. Equity research reports are detailed documents constructed by equity research analysts, the emphasis of the research could be a specific stock of a company, any given currency, commodity or fixed-income instrument, or any given industry.

Research reports mostly have actionable investment strategies, like whether to buy or sell or hold a given stock. The main objective of conducting this kind of complex analysis is to help channel investment into profitable ventures.  The equity research report provides a subject of communication from a securities firm to its prospective clients with a very precise purpose of resource allocation.

The equity research reports broadly talk about an array of things that includes the investment thesis, financial information and valuation, associated risk & disclaimer and the final recommendation. In addition to this, the equity research report digs a little deeper into the functioning of the business by providing a detailed overview of the business including subject matters like the industry it operates in, its management team, the financial performance, risks, and the target price point.

How to make equity research reports?

Creating an equity report varies to a great deal on what kind of equity report you are preparing. The general equity research reports begin with a thought-provoking headline around the subject and go on to talk about factors like target price & recommendation, stock vs. index graph, investment report summary, stock data, business description, industry overview, and competitive positioning, Valuation, financial analysis, and the associated business risk. The variation can range from initiation report and sector report to strategic and result reports etc.

Initiation reports are the reports that are generated in the very initial stages when the company takes the case for the firm being researched. Being the first detailed research report from the brokerage/ equity firm it is a lengthy one and is generally in the range of 20-50 pages. In addition to the stock details, it also takes into account factors like overall competition, industry dynamics, etc.

The industry or sector report gives major emphasis on Industry dynamics, firm’s competitors, government policies and regulations and key forecasts. It provides the client with a holistic knowledge of the industry ecosystem and peers in the sphere. The strategic or economic reports include information on general macroeconomics, the currency movements, commodities, etc. reports are especially useful for portfolio managers to take the decision on country-specific fund flows.

Broadly it can be concluded that the equity reports start with an overview of what the company does, followed by the recent performance and projections for the future. The report also includes the growth prospects and the risk associated with the business supported by some relevant data.

Dos and Don’ts of equity research reports

It’s important to follow the standard writing techniques while preparing such reports as it’s for a specific purpose and should do nothing more than the intended outcome. The reports should not summaries the finding in the very beginning. It should be clear consie and to the point, as the decision-makers are bounded by time constraints.

Time is of the essence here, the equity research reports induce the investor to invest in a particular stock or security, given the highly volatile nature of the stock market and the financial industry in general, timely updates are paramount, any delay is a strict no-no here!

Why Do Investment Banker Make So Much?

Posted on by Imarticus Learning

Why do people in Investment Banking make so much money? The question has been oft-heard and is as often as Excel gets heard in financial analysis. When it is just another banking job, why should one get paid so high that every career aspirant wants a job in IB?

Yes, IB has those punishing hours of 80-120 hours at times per week and do have such high-stress values that it is an accepted fact that 44 per cent look for alternative careers even before they get promoted upwards and hardly have a social life.

It is also true that you are at the client’s mercy and that it is a competitive field where every other person is highly educated if not more. All valid points that could be also be applied to entrepreneurs and other careers too? So why?

What People in Investment Banking Actually Get Paid?

Commissions: In Investment Banking at the level of MD/Group Head/ VP, you really start earning well. That’s because every sale gets you commissions just like the car selling agent or real estate broker does. Banks sell the companies for acquisitions, mergers and restructuring. Higher the deal amount betters the commissions.

And when the deals run into many millions, billions or thousands of them calculate the commissions! They are just selling very high-priced commodities.

Expenses and margins:
Well if that’s true then the wealth management and commercial finance people should also make as much. No, they do not. Because the commission rates are lower and they have more incidental expenses like effective profit margins. The ATMs, branch offices, cheque books all cost money.

Even when you deposit money into your savings accounts and the money is larger than the ceiling limit you have to pay the bank for depositing your money with them. However, paying 1per cent on USD 1 million in the checking account is not fair right?

Banks, in contrast to real businesses, have very few staff, small offices, tiny payrolls by contrast, and almost zero real expenses like infrastructural costs, manufacturing processes, or maintenance and operational expenses. Perhaps they do have a tiny bit of travelling and hotel expenses which the client gladly pays for the banker’s role as intermediaries and custodians besides the regular multi-million dollar fees for their services.

About a generous 50 to 60per cent of such revenue goes to the IB employees as bonuses, salaries and commissions. Now that’s why they get paid so much.

Why Investment Banking is a Popular Career Choice?

Are you aware of why most foreign banks have an office in and operate from India? The factors that contribute to their presence are:

• Availability of skilled local talent in data analytics.
• Large English speaking population.
• Presence of services like LPOs, KPOs, back-offices and transcription services.
• Lower costs in financial operations.
• Availability of reliable firms like Infosys, Wipro, TCS, Syntel to do business with.
• Training institutes for technological skills and the latest trending skills are world class.

These banks need to run profitably and promote the use of local talent who find well-paying prestigious jobs and make investment banking their careers.

Investment Banking Services:
Certification in IB helps.
The Investment Banking certification measures your skills in the services of an investment bank. Namely,
• Advice on buy-outs and acquisition of firms.
• Acquisition and mergers
• Trading in securities
• AMC
• Corporate finance
• Services involving Custodianship
• Restructuring of debts
• Other allied services.
• Capital market investments

Education:
The career progression in Investment Banking requires sound financial knowledge. A graduation degree is not mandatory and IB encourages disciplines like finance, economics, business administration, and mathematics which do give you an upper hand.

Doing an IB certification endorses and enhances your skill sets for the job and your resume. Certification also serves the purpose of being a measurable index of practical implementation skills in the basics of IB. The career progression ladder may also have an odd-ball who starts as an Intern, moves to an Associate role, and then upwards to Vice President, CFO, MD job roles etc.

Skills required:
The banking field’s crucial skills are:

• A graduate degree for Associate roles.
• Adept at Microsoft PowerPoint presentations and Excel manipulation techniques, and MS Office and Word suites.
• Extremely long working hours of 80 hours with hardly any holidays.
• Being a team player and effective learner from feedback.
• An eye for details and data organization.
• Conceptual knowledge of accounting and financial issues and solutions.
• Investment banking certification course.
• Financial and business modelling knowledge.

In parting, the Investment Banking career aspirant does make a wise choice for some fantastic pay-packages. The demand for them is high. If you want to be in IB then do the course at Imarticus Learning who even offer assured placements to the deserving in this hallowed field.

How Investment Banking is Different From Asset Management

Posted on by Imarticus Learning

One of the biggest and obvious differences between asset management and investment banking is that assets are managed in asset management which is fundamentally managing investments that clients have and wish to invest for better returns, while investment banking deals with the raising of capital funds needed by companies, organizations, and even governments. While Asset management is about investors IB is about raising capital for activities that are basically about expansion and infrastructure building.
Investment Banking resorts to many ways to raise funds like acquisitions and mergers, stock purchases, initial public offerings etc to raise capital. It could be on the sell or buy side of the investment. For example on the sell-side of investment banking activities include capital-raising stocks and bonds issues among others while the buy-side involves activities like advising clients for private equity, insurance, mutual funds among others.
Investment Banking also has trading equities, marketing assistance to clients, securities research, derivatives, dealing in commodities and fixed-income securities as part of its activities. Asset management is a dedicated division for investments of its client’s funds in derivatives, equities, commodities, currencies, securities, etc., to earn higher returns and grow their size through issues and investments based on the risk-preferences and client needs.

Asset Management Vs Investment Banking as a Career Choice:

Education:
Both IB and AM do require sound financial knowledge and though not mandatory a degree/ graduation in economics, finance, business administration, math, etc does give you an edge. So do the certifications in the field when they come from a reputed institute like Imarticus and serve as measurable indices of skill and experience in the required concepts of IB or AM. There may be the odd-man-out in both fields who starts as an Intern, through to Associateship, VP, MD job roles etc.
Skills required:
Both the Asset Management and Investment Banking fields require these essential skills.
• A minimum of graduation in finance, law, economics etc.
• Proficiency in PowerPoint presentations, Excel techniques, Office and Word suites.
• 80 plus long hours every week.
• Being an effective learner and team player.
• Effective organizer with an eye for details.
• A quick learner who takes instructions well.
• Excellent conceptual knowledge of finance and accounting tasks.
• A practical IB or AM course.
• Certification of your practical skills.
• Great skills in financial modelling.
The ladder to climb:
Here is the figurative AM/ IB ladder of career progression. Starting as an intern and working your way up to the licensing in the US is very popular.
• 2 to 3 years as an Intern Financial Analyst in both fields.
• AM/IB Associate.
• VP- Investment Banking/ Asset Management.
• IB/AM Director.
• MD, CFO etc.
Scope for jobs:
Both areas have great scope for the unending demand of aspirants seeking bank- job prospects. The US Labor Department predicts a decade of growth of 12% starting from 2014. This is so as the financial instruments too, are evolving fast based on market requirements and both the technology and concept applications get complex and new-age. AM does score marginally over the IB aspirants in terms of jobs and scope as the investor base has grown tremendously with digital transactions, availability of online products, and ease of investment has increased too.
Salaries:
There is hardly any difference in the pay packages of the AM and IB. In early 2004, the median AM salary was 168,000 USD while that of the professional IB was315,000 USD. A decade later the figures for the AM was 263,000 USD versus the IB salary of 288,000 USD. Investopedia reports suggest the median 2015 banker’s salary was in the range of 75,000 to 85,000 USD. The performance bonuses added to take it to 140,000 USD for bankers in the early first year. AM pay packages varied between 55,000 to 100,000 USD with a flat cut in the funds managed by them. The financial crisis, global shifts in capital markets and new financial products will see the gaps close according to an FT article source.
Parting notes:
In terms of career prospects, salaries, job roles and working conditions there is a lot of overlap between the asset management and investment banking sectors. However, AM has a slight lead in job prospects. Join the financial courses at Imarticus Learning if you are interested in being an AM or IB and have the inclination for it. Their reputation is superb and they offer a host of benefits including certification for aspirants. All the best in your banking career!

What are the Benefits of Investment Banking Certification

Posted on by Imarticus Learning

With the rapid pace at which technology and data have evolved in the last decade, organizations have had to find newer practices in financial management and banking too. Whether you wish to make a career, switching jobs or are aspiring for a promotion, organizations want to know before recruiting that the aspirant has sufficient experience and certification in banking practice. This is where the employers need a measurable validation of your banking experience from a reputed institution to provide them with exactly this information.

How the Investment Banking Course Helps

The aim of the Investment Banking course is to ensure

  • Prepares you for final investment banking certification exams.
  • Aspirants are job-ready from day one.
  • Frequent updates and mock interviews for job placement.
  • Career guidance and interview-skills workshops.
  • Resume writing, assistance and application techniques.
  • Assured job placements.

The best learning courses for IB certification ensure they bridge the gaps in technological and soft skills while producing job-ready aspirants who can hit the ground running. The three components covered are

  • Experiential learning: The courses have experiential practical training led by certified and industry-drawn instructors and mentors, Excel-based technology training, powerful discussion forums, Post-course engagement, and a host of assignments and case studies.
  • Soft-skills Learning: Inclusive of interpersonal communications, email and virtual communication, decision making, time management, problem-solving, assertiveness and emotional intelligence building.
  • Course Learning: This module is comprehensively handled through extensive classroom sessions using tools like video lectures, real-life simulations, assured placement sessions, resume writing and building sessions, mock interviews and more.

Why Investment Banking Certifications are So Essential:

Certifications like the investment banking certification besides being a goal achieved can also provide you with a number of other benefits like

  • Builds your confidence and adds to your resume.
  • Measures your Excel, technological and presentation skills.
  • Visibility in a pool of aspirants in the job market.
  • Salaries that are probably better and account for a better experience in banking practice.
  • Credibility that you know, implement and practice the techniques learnt in the course.
  • Match market and technological trends that are current and in demand.

Job Perks:

A quick look at the salaries range shows that IB salaries can range from 6 to 22 lacs. Those with certification do tend to draw and negotiate contracts paying them 20 to 40% more than the median salaries.
Recruiting Companies:
Recruiting companies includeJP Morgan Chase, Bank of America, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan and Stanley, Accenture, Datamatics, Deloitte, BSE, Adobe, Acer, Aaj Tak, Amazon, Yes Bank, Bajaj, Springboard, 99 acres, Mahindra group, Heng Seng Bank, BNP Paribas, HSBC, and more.

Minimum education:

Banking does require sound financial knowledge and though not mandatory graduation in economics, finance, business administration, math, etc does give you an edge. So do the certifications in the field, especially when they come from a reputed institute like Imarticus, and serve as measurable indices of skill and experience in the required concepts of banking like in IB or AM.

Climbing the job ladder:

Starting as an intern and working your way up to the licensing and certifications in the US is very popular.
• 2 to 3 years as an Intern Financial Analyst in both fields.
• AM/IB Associate.
• VP- Investment Banking/ Asset Management.
• IB/AM Director.
• MD, CFO etc.

Investment Banking Salaries

There is hardly any difference in the pay packages across the various sectors of IB. In early 2004, the median professional IB salary was 315,000 USD. A decade later the figures for the IB salary stood at 288,000 USD. Investopedia reports suggest the median 2015 the investment banker’s salary was in the range of 75,000 to 85,000 USD. The performance bonuses added to take it to 140,000 USD for bankers in the early first year. Asset managers pay packages varied between 55,000 to 100,000 USD with a flat cut in the funds managed by them. Thus the financial crisis, global shifts in capital markets and new financial products will see the IB salaries rise and the gaps in salaries across IB services close, according to an FT article source.
Conclusion:
Banking jobs are high-prestige, well-paying secure fixed-hours jobs. There is an unending demand of aspirants seeking bank- job prospects and the scope for the demand in personnel is always rising. The US Labor Department predicts a decade of growth of 12% starting from 2014. This is so as the financial instruments are also evolving fast based on market requirements and both the technology and concept applications get complex and new-age. Do your investment banking certification at Imarticus Learning and kick-start your career today.