Investment banking is a lucrative and passionate aspect of the financial sector which can be pursued by anyone provided you have the grit and drive for it. Read on to know how?
A richly rewarding career, investment banking can be an option for those who have an eye for numbers and detail. Working in investment banking industry does not only mean long hours and highly volatile markets and stressful life. It is also an opportunity for those who are interested in setting up their own career trajectory and succeed. Today, thousands of individuals are looking for investment banking course in order to consider it as a career.
Investment banking sector does require a lot of sacrifices and hard work and dedication. That being said, it is also one of those careers that has a high rate of job satisfaction. The sense of accomplishment, high salaries and a symbol of respect and dignity are some of the things that come with pursuing a career in investment banking.
Here are the top characters of those who want to have a career in investment banking.
Positivity
Since investment banking is a high-pressure work portfolio, it is not only important to have the skillset to thrive, it is also important to always have a cool and collected mindset towards work. A positive and growth-based attitude goes a long way in the investment banking industry. Being able to turn a dynamic and high-intensity atmosphere to a happy and positive one can help increase the overall productivity of the company.
Passion comes First
First and foremost quality one must have while pursuing an investment banking training is the passion to go great work. One must be able to completely immersive oneself in the task and love what you do in order to succeed in investment banking as a career.
Quality vs Quantity
Everyone who works in investment banking will tell you that it is important to focus on getting quality over quantity. Those who approach work with an attitude to just churn out cases in a factory mode will have difficulty thriving in this industry. Highly focused and specialized work on one factor of the work in order to achieve the best quality is the approach one must take while working in investment banking.
Resilience
Another great attribute that investment bankers have is the ability to build long lasting relationships through excellent communication skills and also be to sustain and retain them. Every time one facing a roadblock, one must be able to adapt and be resilient. This trait is important in this field as the dynamics of the industry is ever changing. So one must be able to make quick, smart decisions and continue to do the same for a long period of time. This also involves nurturing relationships with clients.
Conclusion
For those who are proficient in finance in their schooling years, investment banking is an option to consider for a successful career.
Tag: Investment banking course
Is a Career in Investment Banking Lucrative For Any Individual?
For many, investment banking is a career that gives the best of all worlds-job satisfaction, money and a respectable lifestyle. Read onto to find out why everyone wants to join this industry.
Fancy suits and briefcases and a gait with pride are only the exterior attributes of an investment banker. Today, many are vying to join the extremely competitive and challenging workforce of an investment banking company. This is predominantly due to the fact that a career in investment banking is highly lucrative and rewarding. Many educational institutes are also providing investment banking certifications to help support the influx of candidates who want to pursue a career in this field. Individuals who have completed an investment banking course are prolific, intelligent and detail-oriented which many banking firms look for.
Here are the top reasons why many individuals are considering a career in investment banking.
High Salaries
One of the biggest reasons many people join this industry is due to the fact that most banking and fintech firms provide high salaries to both freshers and seasoned professionals. This is mainly due to the fact that these are the people who are dealing with money, to begin with. Everyone is highly competitive and earning big pay cheques which can support a good luxurious lifestyle.
Interesting work portfolio
Investment bankers get to work on deals and plan strategies for their clients which in itself is fun work. Many get to be part of massive decision making when it comes to large MNCs in various industries thereby adding curiosity and challenge to the work. Individuals also get to work with the smartest and most driven bankers in the financial sector, thereby creating a good work atmosphere. From raising capital for a startup to looking at mergers or acquisitions, there are many responsibilities that one gets to take care of as an investment banker.
Symbol of Pride
Investment banking is a field that is revered the world over due to the competitive and volatile nature of the industry. It is a matter of pride and dominance which drives many individuals to join the field. The job adds a prestigious feeling and helps them achieve respect in the community. The earnings derived from an investment banking career can set you up for a comfortable and respectable lifestyle and also help individuals better plan their own personal investments.
Conclusion
Investment banking is a great career choice if you are passionate about numbers, you are driven and looking for a luxurious lifestyle.
What Are The Career Prospects in Corporate Banking?
Corporate banking is a fantastic field for dynamic, driven individuals who have a passion for numbers. In this article, we try to outline the various career choices available in corporate banking.
Corporate banking is commonly known as business banking, and it deals with corporate customers whereas retail banking focuses predominantly on individuals. Everyone from small to large businesses avails their financial services from corporate banking companies. One of the best things about joining the corporate banking workforce is that there is no niche skill set that needs to be acquired in order to thrive in this field. Those with an undergraduate degree can get a certification in investment banking course and can pursue a career in the field.
Jobs in this industry are highly prestigious and require individuals who are hardworking, smart and ambitious. It is challenging, and one gets to work with the best of talent in the financial sector. These career opportunities in corporate banking are also high salaries roles which means that one can look forward to a luxurious and comfortable lifestyle. One of the best things about corporate banking is the fact that one can learn different types of functions on a rotational basis within an organization before specializing in one.
There are many career options that one can consider after finishing a course in investment banking training.
Investment Banking
One of the largest job opportunities in corporate banking is investment banking. Enabling companies to understand the financial attributes of their business including how much capital to raise, how to manage their assets and also look into mergers and acquisitions is something that investment bankers do. Anyone with the right qualification, hard work and passion can pursue a career in investment banking.
Relationship Manager
Just like in retail banking, corporate banking also requires individuals who have good communications skills and can build lasting relationships with clients. A relationship manager in corporate banking is responsible for acquiring, retaining and ensuring customer success. For example, an associate corporate banker who is looking to take on additional responsibilities can establish a strong relationship with the client and upsell the additional services provided by corporate banks.
Trading
The stock market and trading can be another option in corporate banking. It is a high risk and high-pressure job which one can pursue and achieve great rewards. Individuals who have pursued investment banking training can also work in the stock market.
Auditing
Auditing is the process of organizing a company’s financial records and makes sure that the board is aware of everything. If one is organized, methodical and can thrive in a high-pressure environment, then auditing is an option for you. Auditors have a deep knowledge of the companies workings and are able to provide strategic inputs when it comes to taking business decisions thereby aiding the success and growth of a company.
Conclusion
Corporate banking has many different career paths that one can pursue in order to accomplish a successful career trajectory.
Is Online Financial Modeling Training in Advanced Excel Beneficial?
Is Online Financial Modeling Training in Advanced Excel Beneficial?
Investment banks provide financial services to corporations, companies, and governments based on their expert knowledge of finance-related concepts. These services can include raising capital, facilitating mergers and acquisitions, and managing money markets. People who work at investment banks have to not only have a deep understanding of finance and accounting but should also be able to crunch large amounts of data in order to derive conclusions from improving financial portfolios.
One of the main tools used to crunch this data in Microsoft Excel. In order to have a career in investment banking, you will have to crunch huge amounts of data sets and work on large financial models. For such a scenario, Excel proves itself to be an invaluable financial data analysis tool.
Since the scope and range of the work are very large and varied, it is imperative to have an advanced understanding of how Excel works. This will allow you to use Excel effectively and efficiently while allowing you to manage the data. Knowing the right shortcuts will reduce the amount of time you will spend crunching numbers and having a good knowledge of Excel will also teach you how to sift through large data sets to glean the right information and patterns.
Excel is used to generate financial modeling which is a key element of investment banking. In fact, any investment banker will attest to the emphasis laid on Excel during their investment banking training. With Excel, you will be able to use your knowledge in finance, business metrics, and accounting to make forecasts of a company in the future. This allows the company to see their progress through hard numbers and will enable them to make decisions that are good for their company.
Financial modelling can be of many types, focusing on certain scenarios. Company A might be looking to increase its footprint in a new market. As an investment banker, you can propose to the company that acquiring Company B which has already made inroads into the said market will greatly benefit them. However, this claim will have to be backed by hard numbers. This is where Excel plays a role. Using the software, you can crunch large numbers of data related to Company B’s numbers, the cost of acquisition for Company A, and how and when the investment will pay off in the future.
Another scenario is when Company A is looking to raise capital but does not want to approach banks for a loan due to the high-interest rates. An investment bank can crunch numbers using Excel to suggest releasing an IPO.
There are many online advanced Excel courses available that are geared towards improving your skills in finance. Most of these courses are free and will help you gain an insight into the world of banking while also giving you important, time-saving tools that will prove essential in your finance career.
Do make sure that you look around the various courses and select one that fills in the gaps of knowledge you might have regarding Excel. You can learn how to use Excel at any stage in your education or career. An investment banking course might not focus on developing an understanding of Excel, and you might have to learn it elsewhere.
Start a Career in Investment Banking – A Definitive Guide
An investment banker is responsible for raising or securing money for corporations or firms to fund their operations. Their scope of work includes ushering companies through complex processes such as acquisitions, mergers, and IPOs. In order to do this, investment bankers should have immediate and in-depth knowledge of how financial markets and forces work along with the legal requirements.
If you are looking to start a career in investment banking, then there are several steps you can take in order to become a successful one. One of the first criteria that you must meet is getting a bachelor’s degree. While a degree in math, finance, or accounting is preferable, you can become an investment banker with any degree. While in college, take up any electives that offer insight into finance and work closely with professors who teach finance.
During the break before your last year of college, apply for internships at all the investment banking firms. Even if you do not like some of the firms, interviewing with them will give you experience and you’ll know what to expect. Secure an internship for two to three months and build relationships within the firm.
You could also go a step further and enroll yourself in an industry relevant investment banking course that will round out your resume and make you a valuable hire. These courses are designed to give you in-depth knowledge of financial products, operational risks, and regulation. Most of these courses also prepare you to take up finance related certification.
After you have finished your bachelor’s degree, apply to all the placement opportunities your college offers. Be sure to create a CV that is concise and to the point. Do not have a CV that is longer than a single page and keep it professional while also including all your extra-curricular activities. At this stage, you should focus on the interview process as this is the make or break point.
Read up on financial developments that have happened in the past year. You do not need an expert level of understanding of the events but a basic idea of what is happening in the financial world and its concepts. You will also be asked basic questions on the concepts of investment banking and it will serve you well to study the answers to them beforehand.
If you have had investment banking training before at college or in an institute, you will be prepared for the interview more than your fellow college mates. However, it is still important that you do your homework before going for the interview. Read up on the firm you are interviewing with and focus on their recent deals.
It is also important that you admit that you don’t know the answer to a particular question instead of giving an answer that you’ve just made up. These firms aren’t looking for someone with all the answers, rather they are looking for someone who has the correct mindset and attitude.
Main Differences Between ‘Operational Risk’ and ‘Operations Risk’
The prospect of losing something due to operations or logistics in any business is daunting. However, for those conducting business, the main difference between operational and operations risks need to be understood. Here is how.
One of the biggest challenges that any company faces is its ability to understand and embrace risk. The risk could be associated with various aspects of the business including operation-based or operational risk or risk of changing. Adapting and evolving to change can be the greatest asset of a company when it comes to dealing with risks. This is a difficult function for many and it is mainly since one does not understand fully what risks are involved when it comes to running a business.
To start with the basics let us try and understand the main risks in the field of investment banking. If one is pursuing a career in investment banking, they must be able to firstly function in a high risk, high return environment. So innately the job comes with its own set of challenges. Operational risk is defined as the risk of change in value which can cause actual losses which can be due to several factors such as loss of processes, people and systems or external events such as a legal risk. It is linked to good management and quality assurance as well, so it is an important aspect of any business process. Individuals who have investment banking training will be able to assess the operational risk and make appropriate forecasts.
Similarly, operations risk can be the ones associated with decision making and strategy. A plan may be formulated to conduct the business in a certain way and there may be naturally occurring operations risk which adds losses to the business. This can again be planned in such a way that the business minimizes or mitigates the risk associated with conducting the business.
Investment bankers who have completed an investment banking course are highly attuned to understanding the operational risks that come with the business. Hence, they are equipped to deal with the same in a manner that benefits the company in the long-run.
Here are the top ways banks deal with operational risk.
Capital buffer
Operational risks can sometimes have disastrous effects on the company. It can be due to errors made by employees or processes while dealing with the clients or a function. In order to manage this kind of a risk, companies keep a contingency plan or a capital buffer to ensure that the impact can be managed. This is like a Plan B for the company in case things go wrong. Investment bankers recommend putting away a certain percentage of the capital for such scenarios while assessing the business proposition.
Becoming more Digital
As the world moves towards digital transformation, many organizations are considering artificial intelligence and machine learning to reduce operational risk. This is proving to be effective to a large degree as machines can perform the tasks required in a seamless fashion with zero errors.
Conclusion
While risk is an unavoidable reality of conducting business, when one can distinguish between the various types of risk, they are in a better position to take a decision which will impact the growth and success of the company.
How Much Money Do Investment Bankers Make?
How Much Money Do Investment Bankers Make?
Investment banking is a lucrative, yet demanding career path which requires hard work, good attitude and excellent communication skills. Read onto find out the biggest perks of this career.
Investment banking is an envied coveted industry that many aspire for. It holds a status symbol in the society and investment bankers earn the respect of their peers and neighbors. You may be wondering why this job is so valued. This is mainly since it is a high risk, high return kind of an opportunity. A career in investment banking is lucrative from the start and builds up to ensure that individuals in the field can lead a luxurious lifestyle.
Many companies also provide their employees in finance with an opportunity to learn and understand the field of investment banking better by pursuing investment banking training. This, in turn, will also help the company evaluate the decisions made by bankers to raise funds for their business. Individuals who work in their field need to have qualities such as charisma, grit and quick thinking. Investment banking also requires dedication and ability to cope with a high-pressure work environment.
Even beginners who have completed an investment banking course can expect salaries of 50,000 dollars in the U.S. making it a big career for many. On the downside though, there is a huge demand to invest long working hours to achieve success in the field.
While the hours are long, the base fee that investment bankers start at ranges between 25-35$ per hour but it also entirely depends on the firm that they work for on Wall Street. Read onto to find out the different elements of the money that investment bankers make.
In their 20s
If an individual has started their career in investment banking in their early 20s, this is the time that requires the most amount of time and dedication to learning the tricks of the trade. Typically, investment bankers spend between 60-100 hours per week at work and can earn up to 100,000$ annually not counting the bonus depending on their work. The entry level role for an investment banker is that of an analyst and this predominantly deals with a lot of paperwork.
In their 30s
As they progress, the next role in question for investment bankers in that of an Associate who can earn anywhere between 100,000-120,000$ per annum. A talented young analyst can also aspire for the role of an associate at the beginning of their career and earn a big pay cheque. The salaries are also completely dependent upon the ranking of the firm, the clients and size of the firm.
In their 40s
Someone who has moved up the ladder in investment banking can aspire to be a Vice President or a Director in their late 30s to early 40s. Their pay cheques can range between 120,000 to 300,000 $ or for someone very senior it can be up to a million dollars. Investment bankers are well paid mainly since they are responsible for making or breaking a company and its business and their skill-set is very niche.
Conclusion
A lucrative career path, investment banking may demand long working hours, quick thinking in a stressful situation and more. However, the results can be deeply rewarding to individuals who pursue the same.
Career Benefits from Investment Banking Boot Camps And Modeling And Valuation Courses
Investment banking is one of the hottest careers available right now. It offers high salaries and an exciting career dealing with corporate acquisitions and mergers. Investment bankers help corporations and companies raise funds for different opportunities and walk them through dealings with other companies. Becoming a successful investment banker involves a fundamental and intimate knowledge of financial systems and products, operational challenges, and regulatory requirements.
If you are thinking about making the transition to investment banking, you might be wondering about the value of the multitude of investment banking courses available and their impact on your career. These courses come in all shapes and forms, and you have to check their offerings in order to match it to your expectations. Here are a few things you must keep in mind when going for investment banking training. One of the first things you will want to check is if the course you are interested in is an investment banking certification. Not all investment banking courses give you a certification, and not all of the certified ones are industry recognized. Some of the courses will prepare you to take industry certification exams, but you need to make sure that it is an exam that is valid or recognized in the region you want to work.
Make sure that you research the tutors as they are very important in regards to what you learn. Ideally, they should be industry experts and should provide knowledge that they are familiar with. Once you know the instructor, you will be able to understand the scope and direction of the course. Some courses provide general knowledge about investment banking while other courses focus on exploring concepts in detail.
Now that you know what to look for in investment banking courses, you need to understand how they can help your career. One of the most important things a course will give you is finance related knowledge. Depending on your previous knowledge and the course you pick, you will learn concepts of business valuations, debt securities, capital markets, cash equities, money markets, derivatives markets, and deal structuring.
A good course will incorporate experiential learning through live case studies along with classroom training. This will give you the ability to apply all the concepts you have learned and made you a more valuable employee.
One of the most important things your course should cover is the interview process and how to ace it. Apart from knowing your concepts, you should also stay up to date with financial news and corporations. A good course will conduct mock interviews and give you valuable feedback on how to improve your interviewing skills. A major hurdle most interested candidates face is the interview portion where they find themselves unable to convey why they are good hires.
The bottom line is that there are plenty of courses and opportunities to improve your knowledge available to those interested in investment banking. It is important that you do your due diligence and research these courses and the companies that offer the course. Do not fall for any claims of 100% placements. These courses are viewed as something that adds value to an already strong CV, and you should focus on your primary education first before looking into a certification course in investment banking.
Where is Nifty Heading and Where Will it Stop?
Investors are unable to gauge the Nifty trends due to frequent market corrections in 2018 especially in the emerging Indian economy and financial markets with substantial erosion of wealth. There is no predicting where the Nifty is heading to or where it could stop.
What do market factors suggest?
In bull-markets large-caps tend to outperform over mid and small-caps. Hence since the financial year 2018, a bear and bullish market where market-breath on rallies is reduced appear to have emerged. In 2018 March the NIFTY breached the low of 9,950 and hit an all-time high of 11,760 on August 28th. Small-cap indices had lower tops as they peaked in 2018 January while a few large-cap stocks aided this high.
Bull markets and scams are conjoint:
Often the bull markets are resultants of financial scams. 1992 April had Harshad Mehta using fraudulent means to use the banking channels to actively finance his playing the stock markets and led to the major crash of a bullish market. Ketan Parekh was instrumental in crashing the 98 to 2001 bull market with his being exposed late 2001. The crash of markets in 2008 was attributed to global factors which were also tainted and had a bull market prevailing.
In 2009 January Satyam Computers revealed Rs 14,000 crores fraudulent accounting practices by its founder. Again Punjab National Bank in January 2019 exposed the scam of Nirav Modi the diamantaire with a 260 crore scam in LOUs. This was also followed by the ILFS scam with a Rs 96,000 crore scam in defaulting dues which threatened to crash the economy itself.
Nifty will stop short of the 10,000:
Long-term data analytics of the stock market and trends show a major trend upset since 2018 September. The Nifty index appears to be headed downwards for the next couple of months and could be a result of the correction applied in 2018 January when the index stood at 11,761 points and not at the highest of 11,760 in August.
As in the parlance of Elliot Wave, the Nifty structure appears as with an expanded flat in the form of Wave B with three legs and a counter-trend rally. Nifty should rise to the top of the Wave-A followed by a rally in the ranges from 9,950 to 11,760 as in the Wave-B which will be predictably followed by Wave-C the disastrous ending. The value of the Expanded Flat is below the origin of Wave-B, and the corrections applied from the top of 11,760 are sufficient to predict a disaster in the nature of Wave-C.
9, 950 is the index value of the commencement of Wave B and hence suggest the Nifty will end at this level. Read with other corrections Nifty should pan out at 9,700. In parting, this prediction appears to be also influenced by the major event of Parliament election which could delay the movement by an additional 2 to 3 months. Do a remarkable course in data analytics course for financial analysts at Imarticus Learning to further understand financial trends.
Investment Banking Business Model and Financial Stability
Investment banking is the clear winner when it comes to advisory and mediation roles. It takes care of investing from end to end, by assessing the risk and evaluating the flow of credit.
Not only do they cater to private investors, but also to large and small companies alike, and also to governmental organizations. With so much to offer, how does investment banking generate revenue and profit? How does an investment bank thrive? This article attempts to answer these questions by taking a look at the business or financial model of investment banks and their methods for financial stability.
Financial modeling is crucial during decision-making. The prices are decided by the financial model. Previous trends are analyzed, changes are incorporated, and future trends are predicted. These are important data points that aid in making the right decisions. Financial modeling helps investment bankers in equity research and credit ratings. The models are used to analyze the value of a company, thereby deciding whether to go for a merger or an acquisition. Companies use the financial model to assess their standing and growth.
Investment banks receive a commission for all the successful transactions they make between agreeing parties. The bigger the deal, the more they earn! They earn money through trading by employing traders to invest in shares and derivatives. The banks also receive asset management fees from their clients for evaluating and protecting their assets. For all the advisory and compliance roles, the banks charge the corresponding service fees. Investment banks generate revenue from dividends too. They receive income for underwriting stocks and bonds. Investment banks spend a huge chunk of their resources on research and analysis. Once through research is done and reports are generated, the important data and insights are sold to hedge funds and mutual funds managers.
Some investment banks also generate revenue by performing wealth management roles.
There are a few business models in investment banking that can be used during turbulent times, for higher performance. These are :
Flow Monster: This business model demands competitive pricing, strong sales relationships, high-quality research, and highly efficient technology.
Product Specialist: Holds conviction to a particular product or technology or type of trade. Here, the product managers must be fully knowledgeable about the product and what differentiates them.
Risk Master: This business model tries to ace risk assessment and management. Calculated and intelligent risks are taken. It is not a common model but is quite successful.
To enhance and optimize their business models, investment banks can try to focus on client-centric initiatives. Smooth onboarding and regulatory checks are generally expected. Simplifying the IT infrastructure, reducing overheads helps in reducing operational costs. Investment banks can invest in financial technologies to help overcome technological glitches and improve stability. Often ignored is the organizational structure in investment banks. By changing the internal culture and hierarchy, sometimes a lot can be achieved. Having said that, maintaining standard procedures is equally important.
These are areas where the banks can work on to maximize efficiency and maintain financial stability.
Financial technology plays a major role in investment banking. Currently, there is no unified structure for all the technologies used. They are diverse and heavily layered, which increases the complexity of regulation. Cybersecurity is a major challenge for the banking sector. Commonly suggested, is the two-factor authentication method for verification of identity.
Financial engineering requirements sometimes determine the success of banking. A flexible model that evolves with the ever growing and changing technology, that is more adaptable is the need of the hour for Investment Banking Courses and business models. It is generally suggested that the banks spend considerable resources on strategy and optimization to avoid bad transactions and financial instability. To turn around investment banking, some fundamental, yet simple transformations are required. And finally, investment banks need to address the disruptors and attackers of the economy, so as to adapt to changing ecosystems and maintaining a resilient system.