Technology Investment Banking: Take Over the World with Zero Earnings and Negative Cash Flows

Posted on August 21, 2021April 5, 2024 by Imarticus Learning

When it comes to technology, investing in companies that are not making a profit might seem unreasonable. However, let’s assume the case of Amazon or Tesla where both these companies had negative earnings during certain quarters which scared investors immensely. In the long run, these two are highly profitable companies, but even then, they still sometimes manage to astonish their investors with poor earnings in a few unfortunate quarters.

There are many emerging technologies that have been and can be invested upon during their negative phases where they end up losing more value (or money) as compared to their earnings. Good investors take these risks with technology and software companies when they see a certain amount of hope or trust that these companies will certainly become profitable in some time.

Massive investment banking firms such as Ernst & Young, Morgan Stanley, Goldman Sachs, and others have dedicated technology divisions, focused only upon investing in technology that will be important in the future or companies that have been estimated to become household names.

A Certified Investment Banking Operations Professional (CIBOP) course can definitely assist in transitioning to investment banking jobs.

What are Negative Cash Flows

Negative Cash Flows occur when companies spend more money than they generate within a stipulated duration. However, Negative Cash Flows do not necessarily mean the company is running at a loss, it is simply a status that equates to imbalances in the revenue stream.

Though it means that the total expenditure outweighs the net income for the specific period, companies can still make a net profit in the long run. In areas such as technology, the initial phase is spent on research and development, thus, actual profit cannot be seen till products or the software is deployed and available to the public. So, investors and firms can still make a profit by looking at the gross margin.

Products should sell for more than their production cost in order to make a profit. However, in the case of Tesla, during the first quarter of 2021, the company lost $970 for every Testa automobile sold (which they covered up with credits and bitcoin sales). Without their credits and BTC sales, they would actually end up losing $181 million.

Amazon, one of the biggest names now, took 14 years to cumulatively turn up the net profit that it earned in just the 4th quarter of 2017. In fact, until the early 2000s, Amazon incurred negative returns during every quarter.

Why are Zero Earnings Beneficial for Investors?

Many technological companies suffer from negative earnings quarter after quarter, however, some always end up achieving blue-chip status or acquiring massive value. This is especially true for biotechnology, IT, semiconductors, hardware, and aeronautical innovations. Investing in early-stage firms from these industries that are currently suffering due to difficulties can promise massive rewards that far outweigh the associated risks.

The possibility of invested companies discovering extremely important technology that assists medical science or AI systems that are capable of running entire cities is far too alluring to miss out on. Zero earnings or negative earnings can be a short-term situation and smart investors rely on the gross margin for longer durations.

It is a high-risk investment, however, large investment banks and investors are generally willing to be patient with temporary problems for an earnings recovery in the future. When wondering about what are the career options after graduation, one can definitely look into investment banking.

Conclusion

A certificate in investment course details shows the way to become a budding investment banker for helping investment firms. Valuation methods such as Discounted Cash Flow and Relative valuation take a company’s temporary problems and the future profit into account to determine if it is worth taking the risk.

So, what are the career options after graduation? Candidates are first recommended to definitely enroll for a Certificate in investment course, details are available here.

How Do I Get Into Investment Banking

Career As An Investment Banker

How Much Do Investment Bankers Earn in India?

Posted on August 20, 2021May 14, 2024 by Imarticus Learning

Do you know the average salary of an Investment Banker in India is from 12 lakhs to 13 lakhs, according to Glassdoor? The investment banking sector is growing at a 1.2% CAGR for 2018 to 2023. It is expected to reach a value of $78,008.7 million by 2023.

According to the Bureau of Labor Statistics, the demand for financial services sales reps is estimated to rise by 4% by 2029. This data is combined with attractive salary packages and a secure career. This positions investment banking as one of the most profitable and in-demand career choices.

In this article, we have revealed the salary of an Investment Banker in India. We have also covered the factors that influence it and the Investment banker’s salary in the US.

What does an investment banker do?

Investment bankers act as a bridge or intermediary between investors looking for investment opportunities and organisations looking for funding. The duties of investment bankers are divided into two categories: assessing a company’s financial situation and assisting it in meeting its financial goals. Investment bankers are responsible for analysing a company’s financial situation and capital requirements to offer a viable plan for meeting its financial goals.

Investment banker’s salary in India

The pay ranges from 3 lakhs to 1 crore depending on the skills, roles, designation, experience, job location, company, etc. But, the starting salary of an investment banker is better than many other professions, with initial pay of Rs.7-8 LPA. That’s why experienced investment bankers or Investment Banking Analysts can rise to higher positions fast. This is because their salaries rise quicker, and they earn higher paychecks.

Designation-wise salaries of an investment banker in India

Salary of an Investment Banking Analyst

This is the role assigned to people who’ve just graduated from business schools. Their tasks mainly include research and analysis of investment banking methods. A fresher with this designation would earn around Rs. 5 LPA on average. Also, an experienced candidate can earn Rs.6-7 lakhs.

Package of an Investment Banking Associate

This role is an upgrade from the role of a Banking Analyst. The duties involve the analysis of business strategies. They act as an intermediate between junior analysts and senior officials. The average salary for this role lies between Rs. 7 lakhs to Rs.10 lakhs.

Pay of a Business Analyst

This role is similar to the role of an Investment Banking Analyst. However, the difference here is that the focus shifts to business strategies such as profit optimisation and asset management. For this profile, a candidate would earn between Rs.6 lakhs and Rs.7 lakhs.

Remuneration of a Financial Manager

Being a high-profile role, financial managers mainly oversee a company’s financial health. They audit financial reports, analyse investment activities, and work out long-term financial goals for the company. Also, they use tools to analyse the data. A financial manager in India would earn around Rs. 10 lakhs on average.

Compensation of a Financial Director

The role of the Financial Director is a senior one, as they are leaders of senior executive teams. And their primary responsibility is to frame financial policies. They also make the proper process to meet a company’s business requirements. In addition, they oversee operational and strategic ongoing at the company. So, a Finance Director can have a starting salary of around Rs. 20 lakhs. With an experience of 4-5 years, one can earn anywhere between Rs.45 lakhs and Rs. 50lakhs.

Factors affecting Investment banker salary in India

In India, the average investment banker’s salary is significantly higher. But, to determine the exact pay, you must understand the factors that influence the salary of an investment banker.

The below-mentioned factors affect the salary of an investment banker.

Skills

An investment banker’s most essential skills are financial analysis and modelling expertise. Along with this, the knowledge of mergers and acquisitions plays a critical role too. The ability to work independently is also an essential skill to succeed in the investment banking field.

An understanding of deal structuring and closing principles is essential. Having excellent communication and networking abilities play a vital role. In addition, the ability to conduct research, be quantitative and analytical and explain market events.

Location

Few cities have a higher demand for investment bankers, causing average pay to vary significantly. But, depending on the cost of living, some cities pay comparatively less. Surprisingly, Mumbai (84% higher than average), Pune, and New Delhi pay 4% higher than average. So, these cities are the best locations to work as investment bankers. But, some places offer lower salaries to investment bankers, like Bangalore, Hyderabad, and Chennai.

Work Experience

More experience results in more gain in the field of investment banking. The average salary of one to four years of an experienced investment banker is Rs. 9 lakhs annually. However, bankers with five to nine years of experience earn around Rs. 20 lakh per annum. With an experience of around ten years, professionals can earn approximately Rs 30 lakh per year.

Companies

Some banks and companies are paymasters, while others pay less. So, investment bankers prefer firms such as Morgan Stanley and Goldman Sachs. Other liked banks are Barclays and J.P. Morgan. Investment bankers are generally paid well by most firms. However, you should not focus only on the package. The profile and work are deciding factors in rejecting or selecting a company.

Investment banker salary in the US

The United States pays well to investment bankers. It consistently ranks first in terms of compensation for its investment professionals. Furthermore, cities such as New York reward their professionals besides the salary. It offers valuable and lucrative benefits.

How to start your journey as an Investment Banker?

Before entering any sector, gathering knowledge about the industry, scope, career growth, and job opportunities are always good multitool. The second step is to equip yourself with the knowledge and skill set to become an investment banker. For this, you should get enroled in an institute and learn investment banking concepts.

An institute that offers excellent knowledge, expert faculty and an industry-oriented curriculum will be lucrative. But, if they provide career assistance and interview preparation, that will be the cherry on the cake So, try to find an institute that offers all these and then invest your money.

Apart from this, having a good network also plays a significant role in getting you to start your career as an Investment Banker. For that, you can do an internship with top companies and work hard. Moreover, during the internship, you can learn industry concepts and how to behave professionally.

Conclusion

In conclusion, careers in investment banking training usually offer good salaries. However, they are exclusively bagged by candidates with the best academic backgrounds.

Hence, candidates must work hard. They should try to graduate from a top educational institute. Also, they must know how to reap the benefits of their effort. And, plan a financial career properly to take up the role of an analyst.

Understand the Capital Market in India and its Latest Trends!

Posted on July 23, 2021May 29, 2025 by Imarticus Learning

India is one of the fastest-growing economies. With the Indian capital market being one of the largest in the world, it has led to an Investment banking career becoming one of the most lucrative and competitive professions in India today. Investment bankers are highly sought after for their skills and expertise in assessing investment opportunities and managing investment portfolios.

The role requires an in-depth understanding of the capital markets and how they relate to corporate activities. With this knowledge, investment bankers can help companies raise money on public stock exchanges or sell stocks to investors by buying them back at a higher price later on.

In addition, investment bankers may also advise clients about mergers and acquisitions that could benefit their company’s bottom line.

In this post, we’ll see what the capital market & its latest trends is and how you can start a career as an investment banker.

What is Capital Market?

The Indian capital market is the investment and financing hub for corporate entities, investors, and governments. It includes equity markets, debt markets, money markets, derivative products such as futures contracts on shares of stock (equity), bonds (debt) & currency pairs like Rupee vs. US Dollar, etc.

Latest Trends in Capital Market – What are investment bankers looking for?

The investment banking sector is undergoing a paradigm shift in companies’ investment strategies that are opting to stay private longer and new regulations and transparency imposed by regulators.

– Investment bankers may need different skills than they did before. For example, an investment banker who has been trained on debt financing will be required more now for equity investments because there is a lack of IPO opportunities from emerging markets firms since 2009. Increasingly, investment banks will offer advisory services to help clients raise funds through bonds or stocks offerings rather than traditional advice about which project should get financed with borrowed money.

– Investment banks rarely work alone anymore. They have to form alliances with other investment firms, private equity investors, hedge funds, or sovereign wealth fund managers to provide the different services necessary to handle a complex portfolio of deals. This is especially true for M&A activity where clients want not just advice on the investment but also the help of investment bankers to actually execute the transaction.

– Investment Banking requires a lot more than just finance skills to get ahead. You need strong analytical abilities, too, so that you can provide clients with insights into their industry or sector, which might be different from what they’re used to hearing.

– Investment bankers are looking for candidates who can bring a lot more to the table than just investment banking skills. That’s why Investment banker courses focus not only on technical knowledge but also behavioral and soft skills such as communication, interpersonal relationships, presentation skills, and leadership abilities.

Start a Rewarding Investment Banker Career with Imarticus Learning

Imarticus Learning offers investment banking courses that will provide you the right expertise, knowledge, and skills to start a rewarding investment banker career. Investment banks are always looking for professionals who have an in-depth understanding of the global capital markets.

Therefore, if you want to be an investment banker, then this course is best suited for your need as the investment banker course by Imarticus Learning is designed to provide a thorough understanding of investment banking careers and how one can start their own highly rewarding investment banker career with this coveted degree qualification.

For more details on Investment banking career/courses, contact us through the Live Chat Support system or visit any of our training centers based in – Chennai, Mumbai, Thane, Pune, bangalore, Hyderabad, Delhi and Gurgaon.

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What is The Structure Of The Indian Capital Market
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How Can You Get Into Captial Market After Having a Few Years Of Banking Experience

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

Posted on July 22, 2021September 9, 2021 by Imarticus Learning

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

Posted on July 22, 2021November 29, 2023 by Imarticus Learning

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.

Top Investment Banking Trends To Watch In 2021
Does Corporate Finance Excite You, Here Are Some Investment Banking Courses Which Will Help You Achieve Your Goals
How Good Is Investment Banking As a Career

Stages Of Money Laundering And How To Combat It!

Posted on July 19, 2021May 24, 2024 by Imarticus Learning

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 Laundering Money 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.

5 Must-Watch Movies That Every Aspiring Finance Professional Must Watch!

Posted on July 17, 2021March 22, 2024 by Imarticus Learning

A finance professional is a person who is responsible for guiding the clients to plan their finances and also comes up with good strategies on investment, thereby helping them manage their wealth in a better way. They can also be considered as Finance Advisors since they also evaluate tax and investment-related aspects for their clients.

To start a career in the field of finance, one must have a bachelor’s or a master’s degree in finance and have a good hold over subjects like mathematics, accountancy, economics, and auditing.

What are the career options after graduation?

Many students after having completed their degrees in Finance get confused and wonder what are their career options after graduation. It is a vast field with unlimited opportunities that promise a bright future. For Finance aspirants, there are many options in the investment banking industry.

Investment banking is one of the best and sought-after careers in finance. It can change one’s career trajectory and promises a lot of growth. For better guidance, here is the certificate in Investment banking details:

The CIIB (certificate in investment banking) is an extensive certification exam designed to test one’s understanding and in-depth knowledge of investment banking. The course covers everything from the basics of investment banking, mergers and acquisitions, corporate actions and restructuring, and financial statement analysis.

One can also take up a career in Risk management where one is required to have the ability to minimize the risk factors involved in investment and maximize returns for the clients. Apart from these options, there are many other opportunities too like, Portfolio management, public auditing, and corporate finance.

Other courses that one can do to hone their skills in the field of finance are accountancy courses, wealth management, banking courses, tax qualifications, etc. Finance professionals are required to have experience and the best way to gain experience is by taking up internships and learning as much as one can.

To be a successful finance professional, one must acquire the following skills:

Should have an immaculate knowledge of accounting and economics
Possess analytical skills
Good business management skills
Be a leader
Mathematical knowledge
Should be well versed with using computers and the required software
Have a keen eye and pay attention to detail

The world of cinema has often produced many movies inspired by the lives of finance professionals and there are some amazing movies that have created a lot of buzz in the past. Some are dramatic while some are comical but it is interesting to have a sneak peek into the life of finance or a business professional. Here is a list of the top 5 must-watch movies for finance professionals:

Boiler Room:

The Boiler room is a must-watch for everyone who is planning to try their luck in the stock market. The film deals with the protagonist’s wit, intelligence, and good stock brokering skills that get him a good position and respect in life but soon due to his greed and unlawful tactics he is on the FBI’s wanted list.

Margin Call:

This movie is about an investment bank dealing with the 2008 financial crisis. One of the best movies ever made about the financial crisis, it is engaging and smart. It highlights how not just physical but psychological factors bring down a company. One lesson to take away from this movie is to learn how to handle a company when it’s at its weakest and suffering through a crisis.

Wall Street:

Perhaps the finest movie ever to be made on the finance industry, the movie follows the story of a young man who has just started as a stockbroker and starts learning the ropes of the stock market. By watching this movie, viewers can learn the basic functionality of a stock market.

Rogue Trader:

The movie is about an investment banker and how the oldest bank of Britain goes bankrupt because of him. The lesson learned is that no single person can be given the responsibility of making a business successful and that companies must have a logical and disciplined investment plan to avoid losses.

The Wolf of Wall Street:

This list can never be complete without mentioning one of Leonardo Di Caprio’s best works to date. The Wolf of Wall Street is a comedy movie but shows the shrewdness and unethical ways in which the protagonist makes his way to the top and is eventually caught.

There are business lessons to be learned like loyalty and trust between the boss and his employees, something which is very important in the corporate world. The movie is a laugh riot with some very powerful performances.

All About Investment Banking and Combating Anti-Money Laundering

Posted on July 16, 2021March 22, 2024 by Imarticus Learning

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.

The 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:

Being aware of the skill set required for the job (i.e., Excel, Word, and PowerPoint) and being good at them
Readiness to handle the pressure in the hierarchy as with every corporate job – all work will eventually roll downhill
Determination to put in the long hours because there will be many data to analyze
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.

Getting into the right business school is the stepping stone to start your career.
Network in the right circles to increase your chances of landing an interview
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!

Top Investment Banking Trends to watch in 2021!

Posted on July 14, 2021April 4, 2024 by Imarticus Learning

Investment Banking is a dynamic industry that has been evolving rapidly in recent years. The last decade has seen significant changes as new technologies and regulations have impacted how investment banks operate.

Today, Investment Banks are more compliance-focused than ever before, with increased pressure to meet regulatory demands. The increased regulatory scrutiny of the sector means that companies need to be aware of their responsibilities and obligations when operating an investment bank or providing services for one.

Investment Banking career is a highly sought-after career, and it is not an easy one to enter into. The competition for these jobs is stiff, but if you’re looking at building a career in Investment Banking, then you must stay updated on the banking trends that are in the market.

Some top investment banking trends to watch out for in 2021:

HFT (High-Frequency Trading)

The global high-frequency trading market is set to nail a bullish growth in upcoming years from 2020-2026. These platforms use complex algorithms, analyze the market, and spot emerging trends in a second’s divide. Large investment banks typically employ HFT. The firms that implement HFT expect high favorable returns on trades. This gives a systematic approach to active trading. With the number of advantages HFTs offer, in the coming years, there will be a rise in the use of HFTs.

Virtual IPOs

The COVID-19 pandemic has forced organizations to opt for virtual IPO. Traditionally, the roadshow and pricing of IPOs would take approximately two weeks. It also used to be dependent on face-to-face interactions among management & prospective investors.

Automation of the process has led to a decrease in time by 50 percent. Also, demand for remote connections and transactions has been accelerated during the lockdown. So, tracking legal diligence & reports is the new trend for IPOs.

Digital technologies

The pandemic has pressed for a strong wave of digital transformation, i.e., consolidation & automation of mid-and back-offices. Some of the latest digital technologies introduced & redefined include:

Robotic Process Automation (RPA): saves money on operations
E-payments
Cyber hygiene
Use of AI/ML to improve existing systems
Confidential computing to streamline data & communication privacy
Automation of data distribution using big data analytics & real-time reporting
Increased security by tapping the core of blockchain technology in transactions

Changing Employability with Trends

As technology overpowers investment banks, recreating jobs is the need of the hour. Talented professionals have a deep understanding of new technologies, regulations, risks, and updates. Investment banks are now hiring professionals from cross-industry, acquiring tech companies like IBM, Microsoft, and others.

Investment Banking Career with Imarticus Learning:

Investment banking professionals must upskill themselves & have an augmented understanding of technology. You can choose to keep yourself updated in this domain through recent investment banking certifications courses.

Imarticus Learning through the Certified Investment Banking Operations Professional program is helping professionals explore financial, technical, and interpersonal skills. The investment banking courses equip students with the skills required to begin a career in investment banking.

The students learn job-relevant skills, get hired, gain industry certifications while learning through live virtual classes during the program. The 360-degree structured learning package allows students to access an industry-aligned curriculum, be tech-enabled & get 100% placement assistance. The industry connects, and the alumni network at Imarticus Learning boosts the students looking to grow connections & search for better opportunities in the industry.

Contact us through the Live Chat Support system or plan a visit to our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, Gurgaon, & Ahmedabad.

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Career As Investment Banker

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Want to be a Certified Anti Money Laundering Specialist for a Multinational Financial Institution? Check this out

Posted on June 30, 2021March 21, 2024 by Imarticus Learning

The banking sector is a flourishing ground and the multiple career opportunities in this sector make it the best for both career growth and employment prospects. While a career in banking has been a popular field, the latest rage is being an Anti-Money Laundering Specialist.

For the prospective candidates, the best banking courses after graduation for this career would be the Certified Investment Banking Operations Specialist (CIBOP).

Who is an AML Specialist?

An AML Specialist is a person who investigates the risks and potential of money laundering in financial institutions or global banks. He or she is responsible for constantly monitoring and identifying any suspicious transactions in the field and duly document them.

Recently there has been an increased demand for these specialists and a career in AML is at its peak, considering the swelling cyber frauds that companies suffer every year.

There are various certification courses available online to help you pursue this career. One must choose the best investment banking courses with placement assistance that prepare the candidate for the job.

Why is CIBOP the best option?

CIBOP course is designed in collaboration with the industry experts so that the candidates will have a better idea about what to expect and how the market works. The course will be conducted by experienced professionals who can give a clear idea about the investment banking career and clear their doubts.

This is also one of those investment banking courses with placement assistance for an assured job in the end. Moreover, the trade lifecycle that is taught here takes the global outlook into account so that it always has the perspective of the overall operations.

Career prospects in AML

An AML professional should have a better understanding of the sections such as fixed income, cash equities, money market, foreign exchange, and derivatives market. He or she must be able to do an in-depth study and analysis of everyday operations of an investment bank with a main focus on the trade life cycle.

Since Anti Money Laundering course also involves risk management and regulations, the candidate must be well versed in these areas as well. The other skills these specialists must possess are,

Ability to conduct investigation and risk assessment of the suspicious banking events and take the appropriate actions.
Ability to propose actions to the management based on the investigation conducted
Must recommend new rules and regulations to the business management team for the success of the efforts, processes, and policies.
Must follow the emerging trends in the field and constantly conduct research on the ongoing financial issues and conduct an analysis of the same.
Most importantly, he or she must have a strong analytical mind, communication skills, pay attention to the minute details, and be able to make quick decisions.

Conclusion

For those who are still confused about their career options, think about the various banking courses to choose after graduation. Any banking course, especially concerning the investment bank is a good career option for newcomers and professionals equally.