Many people aspire to become an investment banker. But, very few succeed even after pursuing investment banking certification courses. Those who have applied for an investment banking job knows how hard it is to crack one. Even if you completed investment banking certification courses, you need to have that perseverance to crack the job of an investment banker. If you don’t have that perseverance, then this career option may not be right for you. An investment banker must have some essential skills to crack the job. Here are some of those skills that you can work on to ensure that you will crack your next investment banking job interview.
Analytical Ability
Analytical skill is one such thing without which you cannot become an investment banker, and even if you do become with a fluke, you will not progress much. If you don’t have analytical skills, then you will not be able to present to the prospective client the detailed investment plan or business venture analysis. That is why you need to incorporate the analytical skills with the investment banking certification courses.
Communication and Presentation Skills
The very basic skill that an investment banker must acquire is the ability to communicate with the prospective clients and the ability to persuade them to buy the investment banker’s business proposition with a stunning presentation. You have to convince your clients to believe in your ideas, and that could be done with stupendous communication skills, and the things that will help you to make them fall for that idea is the way you present to them by using slideshows, documents or spreadsheets.
Leadership and Management Skills
As an investment banker, there will times when you might have to act like a leader, or sometimes the company might ask you to lead a project. At such a situation, you will have to manage everything that is going on with the project. That is why only pursuing investment banking certification courses are not enough when it comes to landing an investment banker’s job because the men sitting on that interviewer’s chair will be judging you on the merit of how you can lead a team and manage the whole work process.
Ability to Handle Tough Situations
In a career of an investment banker, you will not have smooth sailing all the time. There will be some high tides that will make your ship wobble. How do you react to those tough situations? Can you conquer those unfamiliar territories and come out victorious? This is something that every interviewer wants to see in an aspiring investment banker. They are not that much interested in how many investment banking certification courses you have completed, it’s your ability to handle the pressure that makes the difference.
Having an Eye of an Entrepreneur
If you want to be successful in your investment banking career, then you need to have an eye of an entrepreneur. This is a skill that no investment banking certification courses can teach you. You need to have the ability to bring out business opportunities in the most unusual areas where others would back off. When you don’t have that entrepreneurship skill, you will not be able to bring out such business ideas. That is why try to develop it even while pursuing investment banking certification courses.
The Bottom Line
Every company would want to hire an asset which will provide a dividend to their organisation. That is why you need to make yourself a productive asset which a company just cannot let go. In this way, there is nothing that can stop you from becoming a successful investment banker.
Tag: Investment Banking
India’s Top Boutique Investment Banks
Boutique investment banks are a recent phenomenon and emerged more as an answer to the market-demands by startups and smaller enterprises. By small we mean deals less than Rs 200 Cr that large investment firms like JM Financial, JP Morgan, Goldman Sachs or Morgan Stanley find enviable.
Boutique Services:
Most large banks have large boards and payouts that make them cater to markets with large value and commissions of 0.5 to 2 % on value as their retainers. Small enterprises needing 10 to 100 Cr formed an encashable niche market for boutique investment firms who offered them the services the big banking investment firms refused.
A boutique investment firm will happily offer the same and maybe better services in the fields of fund-raising, bank debt, private equity, managing IPOs and advising on acquisitions, mergers and everything in between. From among the dozen or so firms that have grown overnight literally, we formed a watch-list.
Our Watch-List:
Our favourites on the watch-and-learn list are:
CV Subramanyam founded Veda Corp in 2003. Veda struck its first deal in 2004. They convinced Carlyle to partially buyout Newgen, a technology company for 10 million dollars. Since then there has been no looking back. They have done around 70 deals with a total business of 1.5 billion dollars. Veda is not very big and has a team size of 20 persons and offices in Bangalore, Hyderabad, Mumbai, and Chennai. They focus on South India where conservatism prevails, and businesses prefer to raise their funds in debt form rather than trade in equity.
Ripple Wave founders Mehul Savla and Vipul Shah started off in 2008. By May 2010 they had struck their first big deal. With over Rs 650Cr in just 3 business deals and a team of 4, this boutique investment service is going great guns.
MAPE started in 2001 by Jacob Mathews saw success in the same year. They have done business worth a whopping 3.5 billion dollars over 90 or so deals with a perhaps larger team size of 90.
The year 2008 saw Cogence Advisors founded by Rishi Sahai. Two months later they struck their debut deal. With a team size of 6, they have achieved 650 million dollars business over just 12 deals.
Equirius Capital also founded in 2008 by Ajay Garg had to wait till 2008 for their first successful deal closure. They have a volume of Rs 6,300 Cr in business over 52 deals and a team size of 20.
P2P set up its offices in India under Francois Montrelay. Their first deal came through in a few months in 2008 itself. Their business volume is over 100 million dollars and is single-handedly managed by Montrelay himself.
Conclusion:
Looking at our watch list, we find that if the big investors don’t wake up, they’ll find themselves edged out of the lower end (and small financing markets) by such boutique firms who are lean enough to make high profits on smaller deals. Money earns more money they say!
Reference:
economictimes.indiatimes.com/articleshow/30183390.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
https://www.businesstoday.in/magazine/cover-story/boutique-investment-banks/story/185848.html
What is the Big Challenge of Shadow Banking in India today?
Any investor with a semblance of market awareness would know by now about the hits that the Banking Sector has received. The NPAs truly brought to light some deep fractures in the banking practices currently, and it resulted in a reduction in the value of the stocks of many prominent banks.
However, owing to some corrective measures taken by the Reserve Bank and a change in the overarching structure, the banking sector has since been recovering from this fall.
However, these NPAs which are being addressed are only those that have been in possession of banks – the NBFCs are not included, in most cases. NBFC or Non-Banking Financial Companies are also in the same business of lending and borrowing, akin to banks in that respect. The NPAs in possession of these NBFCs also tend to have deep implications on market health and the economy.
Recently, the debt default by the IL&FS brought forth the depth of the financial risk that India’s NBFCs pose to the economy. IL&FS, or Infrastructure Leasing and Financial Services is actually a conglomerate which deals with financing and developing various infrastructure projects in the nation. This mini-crisis has worsened the capital adequacy and has contributed to the credit crunch happening today in India.
Many growing sectors were heavily dependent on NBFCs for credit, and these even include established sectors like Real Estate and the likes. Recently, a report by the Investment Banking Company Credit Suisse stated that the exposure of the NBFCs to an assortment of real estate companies could be as much as Rs. 20,000 Crores. This led to a downfall of the shares of Real Estate companies, and the economy was affected too.
The issue is that Banks is still reeling from the NPA issue that hit them head on, and are currently unable to neither increase the interest rates on their loans nor lend more to those real-estate companies that are looking for credit. This led to NBFCs taking the mantle, and this phenomenon is known as ‘shadow banking’. In India, the shadow banking sector of the lending agenies appears to be larger than that of the banks, which can have dire consequences in the economy of the nation too.
If you are interested in understanding more about the issue and about investment in general, take a look at the investment banking courses available on Imarticus Learning!
NBFCs Conceding Lost Ground to Banks
Non-Banking Financial Companies
Non-Banking Financial Companies act like banks in many ways, but there are a few differences between them and traditional banks. These organisations are registered under the companies act and may or may not come under the purview of Reserve Bank of India (RBI) depending on the type of NBFC. NBFCs are primarily involved in lending and credit activities just like banks. However, they may be classified into various kinds depending on their principal business.
- Asset Financing Companies
- Housing Finance Companies
- Merchant Banking Companies
- Investment Banking Companies
- Loan Company
- Infrastructure Finance Company
- Residuary Non-Banking Company
As is evident from the various classes of NBFCs given above, they act mostly like banks being involved in the disbursement of loans, an extension of credit and investment activities. Moreover, a class of NBFCs may even accept deposits from customers. However, the major difference between banks and NBFCs is that NBFCs cannot accept demand deposits and they do not partake in the payment and settlement system, that is, they cannot act as drawee banks for issued cheques.
Why did NBFCs gain in popularity?
NBFCs experienced a sudden spurt in their fortunes because of several reasons, not least of which were easy availability of liquidity. The borrowers were attracted to these companies as they were easier to deal with than banks. In spite of charging higher rates of interest, they were successful in expanding their credit growth because they were willing to lend money more easily thereby taking on greater risks. The faster processing rates, leniency and less stringent regulations prompted the growth of such companies. A major source of easy liquidity for these NBFCs has been mutual funds.
But the growth in the NBFC sector can somewhat also be attributed to mismanagement in banks. With bad loans and non-performing asset size continuously increasing, the loan books of banks did not experience the kind of growth that befitted them. The strict regulations by RBI made the lending activities of the banks more difficult. However, in the long run, such steps would prove to be beneficial as the balance sheets get healthier and returns on assets go up.
Liquidity Crunch in NBFCs
With the default of IL&FS on its loans, the market has suddenly turned cautious in dealing with NBFCs. The mutual funds no longer have the same level of confidence in non-banking financial companies as they used to have earlier. This has made things difficult for these companies who are no longer able to roll over their short-term loans as easily as they were able to a few months earlier. Housing and SME (Small and Medium Enterprises) sectors are major areas where the fallout effects of such phenomena are being observed.
Banks Are Set to Gain
With this squeeze in funds available to NBFCs, the institutions or organisations that are poised to gain are banks. The deposits in the banks have grown at a healthy rate of 30% Compounded annual growth rate, and the depositors continue to repose unwavering faith in banks. With the NPA (Non-Performing Assets) mess behind us, the banks look set to regain some of the lost ground that they may have conceded to non-banking financial companies.
With the infusion of fresh capital into banks, they have been accorded a new lease of life and are running at their full steam. Coming to their aid is better and more advanced technologies that are helping reduce operational times and making the customer’s experiences easier and hassle-free. As interest rates rise across the sector, the big, well-capitalised banks will look to make the best use of such lucrative conditions. The situation is ripe for these banks to make higher revenues not just by increasing the volumes but also the spreads on those balances.
A big cheer Christmas and New Year cheer seems to be on its way to cash in on the big banks!
The NBFC Fiasco in India and AI Linkage with the Sector
The Non-Banking Financial Companies (NBFC) sector in India, which is also called the shadow banking system, provides financial services similar to commercial banks, but they do so outside the typical banking regulations.
The trouble began with defaults by Infrastructure Leasing and Financial Services Ltd (IL&FS) since the end of August 2018. IL&FS which is classified by RBI as core Investment Company had a total consolidated debt nearing INR 1 lakh crore. Since the firm started missing its debt obligations, its ratings got abruptly downgraded from high investment grade (AAplus and AIplus) by rating agencies such as ICRA, CARE, etc. to junk status which indicates imminent or actual default status. This has stoked a fear of liquidity crunch in many of the banks, corporate and mutual funds that had stakes in IL&FS debt instruments.
The shadow banking sector is now comprised of over 11,400 firms. They have a consolidated balance sheet worth USD 304 billion or INR 22.1 trillion and are not as strictly regulated as banks. Since the biggest lenders to NBFC, the banks, have slowed down their lending to work through the USD 150 Billion in stressed assets, the NBFC has been attracting new investors.
Their lending pace has far exceeded the banks, and several of their cream firms have received top credit ratings including IL&FS. The ratings are now in question, and the growing concern is that many of these firms may have taken excessive credit risk by lending to individuals who have little means of paying back. There are also speculations surrounding lax regulation which might have turned these firms into money laundering portals.
How Can AI Make A Difference?
The financial sector is one of the largest beneficiaries of the developments in Artificial Intelligence and Machine Learning. NBFCs are increasingly developing and utilizing state-of-the-art technology to automate their processes of lending. Everything from loan origination, customer-onboarding and loan disbursement can now be driven by AI and Big Data technology. One of the major challenges has always been tapping into unbanked sections of the economy that have no credit data or history. Once considered unsafe, they now have the potential for huge business growth.
Technology now drives the credit underwriting process which previously required a small army of people to go through the paperwork. Advancements in AI have led to algorithms for alternate credit scores that utilise customer data from social media, mobile apps data and online behavioural patterns to gain an insight into them. This offers a reliable method for psychometric scores and predictive analysis for default. AI can also help extensively in fraud detection and loan disbursements to newer segments of customers. The role of AI can extend far beyond into the macrocosm and help in predicting potential financial crashes. Our ability to spot trouble at a distance is only as good as our ability to interpret existing data.
Recent advances in technology have armed the industry with tools that can gather and analyse vast amounts of data in real time to help make important decisions. Keeping that in mind, the promise of AI and data analysis to prevent any future financial crisis is compelling.
Investment Banking: All the Stats, Facts, and Data You’ll Ever Need to Know
So, you are looking to enter into the world of investment banking. Sitting on the fence would make no difference in your life. Making a career in investment banking is lucrative, but it comes with a cost. You have to work hard to understand what role the investment banking experts who deal with carrying out many financial analyses for their companies and work hard on financial models to help groups to make capital. Pursuing investment banking courses and developing expertise in this field can give a whopping salary of 80,000 USD per month or more. If you are interested in making a career in investment banking, check the following investment banking career facts and stats that are worthy of knowing about this domain.
Investment banking is not for people with finance majors
Of late, a number of investment banks and institutions are hiring people with engineering and computer science background as they have the experience and knowledge of coding. So, if you feel discouraged, then keep in mind that there are companies who hire people from another background as well including the ones with investment banking certification and having backgrounds of literature, science, finance, blockchain, etc. In other words, one of the investment banking career facts is that you can have any educational background to enter into this field.
Crack the quant interview to find a job
You must have heard about the interviews being conducted for the consulting jobs, these remain specialized. Similar is the case with the people opting for the Investment banking career. Once you complete your investment banking certification, your employer would ask to crack the quant interview.
These are the tests to judge your quantitative aptitude along with checking your knowledge regarding the technical subjects along with valuation or accounting. You may be asked to define certain financial statements along with putting the analysis of the same, while other interviewers would ask you to crack some brain teasers and ask them to solve it under pressure. Remember the investment banking career facts before you go for the interview.
Career in Investment Banking- Losing grounds
Though pursuing the Investment banking career is rewarding one interesting fact is that people are losing their interest in this field. The fact is people these days do not want to take up investment banking training. As per the reports of Harvard Business School in 2015, only 4 percent of students said they are looking for a career in investment banking. In fact a number of people working in investment banking are shifting to the Fintech world considering the bright future of Fintech. This has also reduced the admission in various investment banking courses.
The Revenues are also going down
If you check the latest figures in the domain of investment banking, the picture isn’t that rosy. The biggest investment banks in the world have witnessed a constant decline in revenue, which has started falling since 2016. As per reports, it has gone down from 79 billion USD in the first quarter of 2016 from 94 billion USD. This constitutes to around 15 percent, which is enormous in two years. As per the industry experts, this is regarded as the steepest decline in this sector ever witnessed before after 2009 when the revenue has gone down by 25 percent. So as compared to the other sectors, more and more people are looking out.
Long working hours under constant pressure
One of the vital investment banking career facts is that you have long working hours in this sector, which is not the case with other finance jobs. The work here is more challenging and complex and can give you a tough time working in this domain. As per reports of TransparentCareer, the average working hours of professionals in Investment Banking is around 77 hours, which is 11 hours a day in week.
Wrapping up
There are many more investment banking career facts, which are required to check before you decide upon entering into this career. However, don’t be discouraged if you find any negative thing about this career as there are many more lucrative things to enjoy in this field.
6 Books About Investment Banking You Should Read!
The field of Investment banking is highly specialized. In this domain, the financial entities are called investment banks that financially support the public and private corporations issue equity and deal with the debt securities. Investment banking also helps in facilitating corporate restructuring, along with mergers and acquisitions are commonly known as M&A and thus carry out a wide range of complex transactions.
If you are looking for the top books written on this subject, you have landed at the right place. Let’s check the top 6 Books About Investment Banking You Should Read as under:
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- Investment Banking: Valuation, Leveraged Buyouts, and Mergers And Acquisitions -By Joshua Rosenbaum & Joshua Pearl
This book is a complete Investment banking book, which brings all the technical concepts accessible to the readers. The authors have used a simple step-by-step method to explain the concepts of investment banking which include the study of the viability of a corporate sale, buyouts, and M&As.While explaining the concepts of investment banking and corporate finance, this book gives a stable foundation to the readers to get a comprehensive understanding of the prevailing ideas methods, and procedures found in the investment banking field.
- Investment Banking: Valuation, Leveraged Buyouts, and Mergers And Acquisitions -By Joshua Rosenbaum & Joshua Pearl
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- The Business Of Venture Capital – By Mahendra Ramsinghani
It is a complete book for people who are into the venture capital business. This book caters to people who are keen on exploring the meticulous art of boosting up venture funds, value creation, structuring investments, and studying exit pathways.This book helps people practicing in this area as they get the details of everything including sourcing investment options and carrying out the due diligence for negotiating various investments. It is the best companion to people who are into venture capital business and help you in getting detailed views about the leaders in this world on this subject. - Investment Banking For Dummies – By Matthew Krantz & Robert Johnson
This book is an excellent work in the investment banking field, which has a simple to understand approach when the authors have described the basic banking concepts and their day-to-day application in this real world. It starts with investment banking and its standing in the current market along with its role in M&As, critical corporate decisions, and buyouts.The authors have explained the role of investment bankers along with the way they work to make things happen. The book’s core focus is to develop a decent understanding of the main banking concepts and their practical implications like issuance of bonds & stocks, valuation of companies, and developing a financial model that makes things work. - Financial Modeling & Valuation: A Practical Guide To Investment Banking And Private Equity – By Paul Pignataro
It’s a complete guide for doing precise stock valuations seeking the help of financial modeling. The authors have explained these concepts seeking complete length and practical illustration overvaluation of the Wal-Mart with the help of financial modeling. It helps in developing a good skill of developing a good financial model for stock valuation. It also talks about the conventional valuation methods carried out by professionals. - Investment Banking Explained: An Insider’s Guide To The Industry- By Michael Fleuriet
This book gives insight into the investment banking operations industry and discusses in detail the way things work in this domain from the perspective of a veteran. It starts with the basics like key industry terms, strategies, and structures. The authors in the book have explained the broader concepts of this field like changing the perspective of the risk, leading firms, and methods of managing the same.It talks about the role of professionals like traders, financial brokers, fund managers and relationship managers, and others. You will get an insight into investment banking along with giving relevant information. - Investment Banks, Hedge Funds, And Private Equity -by David Stowell
The book has unleashed the complex relationship between investment banks and private equity and hedge funds. It also discusses the way the financial companies seeking the help of innovative business strategies sustained during the global meltdown of 2007 and 2008.It also addressed the impact over the financial companies and the way these have attracted the investor funds and strengthen their corporate power.
Conclusion
For the professionals working in the field of investment banking or the people who are keen on making their career in this field, they can find a wealth of literature on investment banking with these six books on this subject.
Top Investment Banking Interview Questions
Test of Personality:- The foremost key of any interview is to talk face to face with the candidate, and understand their perspectives towards the situations they’ll have to deal with, being in the company. The candidate should be prepared to answer questions like, ‘why do you want to pursue in Investment Banking?’ and the likewise.
What have you learned in the university that can be applied in the career?
The candidate without any Finance background or Economics must not think that they do not have anything to provide for a worthy answer to this question. Any degree with hard work shows the strength of efforts taken by the student which is required for every career; the extra-curricular activities must be mentioned.
Why do you want to become an investment officer?
You might say that the industry please you, or you like the rate of flux that it holds, to answer in a simple manner, but it is essential for the candidate to justify the board your reasons, and even the particular branch in finance and investment that they like.
Understanding your job, what do you think you’ll work as?
This question needs pre-research which must be done by the applicant sitting for the interview.
Also Read: Investment Banking Job Interviews
The candidate must be well read about the department and must know everything about the roles of the company they are filling in for with the market.
What opportunities are presented to financers by the financial downturn?
In the ‘bear market’ when the rates are falling, the traders might buy in a makeshift something they don’t own just to sell it, buying them back to return it when its price has fallen.
What are the current investment deals that the interviewing bank is involved in?
The candidate should do the proper reading about the tie-ups and the deals of the bank in which they are applying for the interview.
Explain the business model of the bank
Banks provide their clients with specific suggestions for finance; assist them in arranging the finance and other services like investment management and risk reduction. The main revenue resource hence comes from the fee they charge their clients for these services.
FEW QUESTIONS REGARDING THE BANK IN WHICH THE CANDIDATE HAS APPLIED FOR
- What are the shortcomings in the way our bank manages the system?
- What is the difference we have than our competitors
- Who is the CEO of the bank
- Which are the deals we have publicly announced ourselves in
FEW QUESTIONS REGARDING THE BANK THEORY WHICH MUST BE ON THE TIPS OF THE CANDIDATE
- What are the different ways to value a company, a share, and a bond?
- When is the good time to sell/buy an asset?
- What are the main issues to be associated in an M&A deal?
SOME CONCRETE QUESTIONS LIKE, THE ADVANTAGES AND DISADVANTAGES OF EQUITY FINANCE AND DEBT FINANCE TO A COMPANY RAISING FINANCE AND INVESTORS
- Raising money by selling shares gives the advantage of equity finance
- The disadvantage being in the risk if the company doesn’t prosper the money would be lost.
- The advantage for debt finance by raising money through loans.
- Debt of a reliable company is a safe investment but would lead t only a few large profits.
The candidate would be asked to define beta for a layman
- A beta of 1 means if the market moves, the stock moves with it.
- A beta< 1 means if the market moves a certain amount, the stock will move less than that
- A beta> 1 means if the market moves a certain amount, the stock will move more than that
A common definition like that of CAPM might be asked
The capital asset pricing model is a design to find the expected result of the investment, and therefore the appropriate discount rate for the company’s cash flow.
Bleak but very direct questions like, can a company have a negative book equity value?
The answer is a simple yes when the company is in the loss for a very long time.
Asking your opinions, like, if you have to pick one statement to look at, which one would it be?
The answer could be any (balance sheet, cash flow, income statement). Each has its advantages and justifications for profit.
What is the difference between commercial and investment banking?
- Commercial banks make deposits from the costumers and make consumer and commercial loans using those deposits.
- Investment banks form an intermediary between the companies and investors, does not allow deposits or take loans.
One of the standard questions, what is accretion and dilution?
- The asset growth through addition or subtraction is an accretion
- The reduction in earnings per share common stock is dilution
FEW OF THE ABBREVIATION BASED, OR DEFINITION BASED QUESTIONS
Simplest of all, yet unknown to many, what is another term for investment banking division?
Corporate finance
What is the formula for calculating working capital?
Working capital= current assets- current liabilities
What does WACC mean?
WACC stands for Weighted Average Cost of Capital.
What is a deferred Tax Asset?
It is created when any business pays more tax to the IRS than that is reported on their income statement.
WHAT IS A FAIRNESS OPINION?
It is an independent opinion on the price offered in a merger or acquisition, providing a fixed fee.
What is CAPM?
CAPM is the Capital Asset Pricing Model.
What is SWAP?
Swap is a difference between two interest rates between two currencies. Swap can be both negative and positive.
What is DCF?
DCF is an abbreviation for Discounted Cash Flow. It evaluates the estimation of lucrativeness of an investment opportunity.
Related Article: Placement Special: Finance Interview Tips
Things to Bear in Mind If You Want To Break Into Investment Banking
Getting a job in Investment Banking is not a cakewalk. The number of applicants is very high as compared to the number of vacancies. Even though it might seem tough to get into, doesn’t mean that you shouldn’t try. Though there are a few things you must remember if your ultimate aim is to break into investment banking.
1) Try To Intern At As Many Places As Possible
Internships help you go a long way. Even though it might seem like a lot to do with your college, but it is going to assist you in the long run. Many companies and banks tend you offer you a PPO, i.e., a pre-placement offer which can lead you to a full-time job once you graduate. But do remember that it is not necessary that an internship will come to fruition as a job in Investment banking, it is only a possibility which is highly dependent on the way you perform during the internship. Going for a banking course from a reputed organization can help you a lot.
Also Read : How to Become an Investment Banker
2) Polish Your Resume Well
A resume is the first thing that any employer is going to look at. If you want a good chance against the other applicants, your resume must be strong. Do not submit your resume anywhere without a cover letter. There is a set format for a resume that you must follow. Your resume must have the necessary quantifiable documents that will be required. Your CV must also have the proper diction along with the format and materials. Try to keep it only a page’s length as the chance of your employer going through multiple pages is quite low.
3) Build Up Your Network
It is essential to start networking at an early stage. Try contacting people who are already in this field, try to learn from them. Even though their work keeps them busy, it is possible that they still take out a little time to mentor you. You can go for a banking course, the other people you study with can become your contacts in the future. Investment Banking is a field that is very time demanding, so getting help before you are to start the job will help you understand the work better.
4) Do your Mock Interviews Before you Go for the Position
A potential employer isn’t going to ask you simple questions that you can answer with minimal practice or minimal knowledge. You need to be well prepared as it is possible that they will end up asking you technical questions. If you’ve gone for a banking course, it will help you be a little more prepared for this. You should have knowledge regarding accounting, mergers, financing, etc.
5) Pay More Attention to Behavioral Questions
Merely being able to answer the technical questions doesn’t mean that you will get the position. You must explain the different values that the problems could revolve around with stories and experience that you can quote. Try thinking about the possible questions that can be asked and try coming up with your experience from the past that can support your answer. Going for a banking course is highly recommended as it can help you prepare for the kind of work that you will have to do.
Investment Banking is not an easy field to get into, but it is a field that pays well. So it is time to start working hard and reap the benefits for the rest of your life.
Related Article : Different Types of Investment Banking Jobs
Four Trends Shaping The Future of Investment Banking in India
Investment banking industry emerged in India back in the 19th century. During that period, trading industries were established in the country by European banks. This led to many international banks showing interest in investment banking in India. However, in 1970, SBI started to spread its wings and then various national banks joined in this wave of business. In 1990’s, investment banking became one of the most sought-after industries in India. An extensive list of banks is now set up in India and offers a gamut of services like mergers and acquisitions, debt syndication, capital management and more.
The go-go period of investment banking that began in the mid-1980s and sustained up to the financial crisis appears to be on its way out, as the bigger banks shrink due to regulation and smaller, more focused firms, funds, and start-ups take a more significant share of the market. With changing time, various factors will shape the future of investment banking in India.
Also Read : What is the Scope of Investment Banking in the Future?
Investment Banking Trends
- Regulation: Regulation of the banking course in India will result in the flourishing of boutique investment banks as it helps them lure the senior bankers with cultural advantages of a more open partnership structure which the bigger banks had to give up when they went public. Additionally, they can also offer lesser overheads, fewer red-tape worries and bigger payouts on the principal amount. However, this growth will not be permanent and will be dependent on the financial abilities of the more prominent banks.
- Technology: Emerging technology is one of the factors that will have a tremendous impact in shaping the future of investment banking in India. Digitalization, AI, big data, mobile technologies, augmented and virtual reality will fast change the banking course across all financial sectors. E-trading has become the dominant technology in financial areas, hence, there is an urgent need to reform multiple trading platforms and investment banking IT systems. Technology will also promote safer work environments, enhance the customer experience and increase productivity.
- Infrastructure: A wave of new infrastructure schemes and programs has caught the attention of investors. From India to the USA, governments believe that spending on infrastructure will lead to domestic financial growth. There is a particular political interest to invest in infrastructure projects. Even investors are convinced easily to invest in such projects. Real estate and energy-related infrastructure spending are bound to make a significant impact on the future of investment banking in the country.
- Future generation: Millennial makeup about 50% of the world’s population. People under the age of 30 are referred to as millennial. Their production makes their norms and has grown with and adapted to the ever-changing technological era. They are digital natives with a different mindset and priorities as compared to their older generations. They will impact the banking course in India by evolving as mature investors who value a fun-oriented but, conscious lifestyle. They will innovate and form more effective and modern ways of investing and overthrow the conventional methods.
As time progresses, the more traditional and old ways of investment banking will be replaced, and a new wave of technology, population, infrastructure, analytics, customer experience, artificial intelligence, virtual and augmented reality and so on will take over the world of investment banking. To emerge as a global leader in finance, India needs to be more open to accepting these changing trends. These factors will not only guarantee success in the worldwide arena but will also enable the citizens to overcome various socio-economic issues and rise with the country.
Related Article: What is the Career Scope of Corporate Finance and Investment Banking?