What Do Investment Banks Do?

An investment bank isn’t just the average bank on the street corner where you can open up a checking account and deposit your paycheck. Instead, it is a specialized financial institution that offers a wide range of services for individuals or organizations handling large amounts of money.

In other words, investment banking is for large business corporations and specializes in handling the money in their accounts. While there are some regular banks that offer investment banking services, it is still a different sector of banking altogether.

Investment bankers are individuals who work for the institution in a number of ways, providing complex services for those needing a secure handle on their accounts.

What Services Do Investment Bankers Provide?

Let’s take a deeper look at some of the ways in which investment bankers perform their job duties. They typically perform one of four services:

1. Financial Analysis

Numbers talk. And it’s up to the investment banker to make those numbers talk the right way. When handling a huge business, there are a lot of factors that need to be considered when looking at the numbers. Professional expertise is required to correctly analyze the company’s finances in order to make good conclusions and insights. This can also help with informed investment decisions.

2. Management of Clients

Investment bankers (typically those in senior positions) are in charge of managing the client itself. This is one of the most important roles, as this is the key to keeping customers happy so the money continues to flow in. The day-to-day duties of someone in this position require the creation of reports, presentations, and demonstrations. Daily phone calls are also to be expected.

3. Data Management

Data determines everything. Without sufficient data, it is unclear how a client’s money should be handled. A good investment banker is someone who can truly crunch numbers all day, collecting data from as many sources as possible. Just as important as data collection is data storage, and it needs to be done right. Investment bankers get good at creating a system of data management that can help clients with everything from billing to balancing.

4. Being a Liaison

Dealing with clients often means dealing with third-party entities as well. There are teams of people involved with large-scale accounts, and the investment banker’s role is to communicate as effectively as possible. Being a good liaison means keeping up-to-date on the most accurate pieces of information while also being accommodating to the client’s needs.

How Do Investment Banks Make Money?

Providing financial analysis, management, and communication services is a very valuable thing, especially for high-profile clients. Big businesses need the help of investment bankers just as much as investment bankers need a paycheck from big businesses. The two work together in a mutually beneficial way.

The three main ways that investment banks make money include:

  • Charging a commission based on the amount of work done or the value of work done.
  • Adding a consulting fee that asks clients to pay just to have the initial review process.
  • Charging interest on any funds that have been raised due to the work of the investment bank.

Part of investment banking requires the granting of loans. These loans can come with an interest rate that the clients will ultimately have to pay the bank in return. The bigger the client, the higher the investment – and the bigger the payout in the end.

Investment Banking Career Path – Planning for a Job in IB

Investment banks are broken down into different investment banking divisions that serve a wide variety of high-profile clients. This includes multi-billion dollar corporations, government organizations, and other institutions. The role of an investment banker is to help these entities complete mergers and acquisitions, raise capital, and invest the right way.

Investment banking is one of the most demanding jobs in the financial market. Junior bankers and analysts easily work over 100 hours per week. Not to mention competition for a career in investment banking is very high.

What makes it worth it?

Investment banking is a highly profitable field, and you can be compensated quite well for your hard work. Planning a career as an investment banker might take some thought and strategy before you can decide if this is the right path for you. Take a look at this quick guide to planning a job in IB.

Getting the Interview

The first part of the prep work starts with landing a stellar interview. This step requires a lot of preparation on its own. You need to have a great resume that can tell your potential employer why you are the best fit for their team, in 60 seconds or less. Include specifics such as your school GPA, your relevant work experience, and what characteristics make you the best for the job.

Investment bankers value individuals who are competitive, quantitative, ambitious, passionate, detail-oriented, and well-spoken.

 

Becoming an Analyst

An analyst, or associate, is the entry-level job into the world of investment banking. Analysts typically start out from the undergraduate level, while associates have an MBA. You will typically stay in this position for a few years. Then, you will either go back to school or get promoted to a higher role. If you are good at taking on a lot of responsibility and you can act fast, you are more likely to climb your way up the investment banking ladder. Find more info about getting a job in an investment bank at your first try here.

 

Learning the Trade

It’s no secret that investment bankers are absolute experts when it comes to financial planning and number-crunching. Knowing the fundamentals of accounting can be really helpful when you’re yearning to get more on-the-job experience. Graduating from your university helped boost you into a good starting point on your way to becoming an investment banker. Take time to utilize more resources outside of your school network, to make sure you are on top of the latest financial trends and news.

 

Handling Financial Modeling

Financial modeling is something you will spend many hours doing as an investment banker. You should acquaint yourself with Microsoft Excel if you haven’t already, since you will be using spreadsheets quite a bit. The most common financial models you will make as an investment banker include:

  • M&A models
  • LBO models
  • DCF models

You should also figure out where you want your next step in the career path to be. Many analysts and associates who start out as financial modelers move on to work in private equity or data research. Some start working for a corporation as an in-house advisor. What you want to do is entirely up to you, but it is important to know what experiences and traits will best qualify you for that position.

How to Succeed At A Healthcare Job Interview

You’ve found the job of your dreams and you are waiting to be interviewed. A few tips for a successful job interview can increase your chances of landing the job you want.

  1. Present yourself as a professional

When you are interviewing for your first healthcare position, you are no longer a student. There are a number of ways you can present yourself as a professional who is ready for this position.

Regardless of your age, avoid a casual approach. This is not the time for jeans and t-shirts, or slang that you use with your friends. Do not bite your nails or make jokes. Dress and behave as a medical professional.

 

  1. Communicate that you like people

Interviewers do not want to hear that you are applying for the job simply because you need money. While this is true in any workplace, it is especially important in the healthcare field.

Regardless of the specific job, you will play an important role in many people’s lives. You will be dealing with patients, patients’ families, and other healthcare employees every day. You should truly enjoy working with people and communicate this in your job interview.

 

  1. Be honest about your experience

If you have recently graduated, you may think you do not have enough experience to mention during the interview. You probably have more experience than you realize, and it can help you get the position.

Start with your training and education. Let the interviewer know how you benefited from your classes, and how much you learned. If you received excellent grades or any special recognition, do not be afraid to talk about your accomplishments.

Life experience can count when you want to work in healthcare. Perhaps you provided care to an elderly relative, volunteered at a community center, or took care of young children. These are a few examples of experiences that will be relevant when you want the job.

 

  1. Be confident in yourself and your abilities

No one wants to hire a person who boasts and brags, but confidence is different. When you are confident, it is impossible for the interviewer to not notice. He or she will see you are knowledgeable, capable, and intelligent. The interviewer will see that you are the person who should be hired.

 

  1. Be prepared for questions

During an interview, you will be asked questions. Although you cannot foresee many questions in advance, you need to be ready to answer. Unless a question is especially difficult, you need to answer promptly and truthfully. If you do not understand a question, do not hesitate to ask for clarification.

 

  1. You should ask questions too

While the interview itself will help the interviewer decide if he or she wants to hire you, it is not only based on your answers. You will show that you are interested by asking questions.

The best questions to ask are related to the work you will be expected to do, and what an average work day will be like in the healthcare facility. When you present yourself as genuinely interested, you are more likely to be hired.

Healthcare facilities have many applicants. Many do not get as far as an interview. Start with these tips to make the most of this opportunity. This job interview may be your first step to your first position in healthcare.

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