Investment banking

Investment Banking (familiarly called ‘I-banking’) is undoubtedly one of the most aspirational areas in Finance. What is Investment Banking? Many people think, given the name, that I-banking means to manage the investments of companies and individuals. Not so! Investment banking, firstly, is a service offered to a business, not an individual. Secondly, it is to do with raising funds for the business, not investing it.

I-banking, therefore, is broadly in two areas:

  1. Mergers and Acquisitions (M&A): Advising a company which wants to be acquired, or wants to acquire another. For example, Myntra acquired Jabong in 2016. Each of them was advised by an I banking firm. Private Equity & Venture Capital, which involves funds investing in companies, also falls within this category.
  2. Merchant Banking or Issue Management: This function involves advising a company which wants to raise money, from the public via issuing shares or bonds. Here is a list of companies which are looking to issue shares and raise money: http://www.moneycontrol.com/ipo/upcoming_issues.php. They would be advised by an I-banking firm.

Note that graduates are not recruited into an I-Banking business role. Having an MBA or a post-graduate degree in Finance from a premier MBA institute is a MUST.

So what does a graduate do? As a graduate, you can still work in the support functions of an Investment Banking firm. Which brings us to the third area of I banking: In the US and Europe, Financial Markets is also included in Investment banking. Many of the processes of the Financial Markets trading divisions of MNC banks – research, analysis, settling the trades – are outsourced to India.

All these KPOs hire graduates and engineers, at salaries ranging from INR 3-6 lakh p.a. Though it is a support role, a few years of experience in such roles can set the right foundation for a postgraduate program and a future career in I banking.

Goldman Sachs now employs about 5,000 staff in Bangalore.In 2019, it expects to open a $250m campus on Bangalore’s traffic-clogged outer ring road that will be able to accommodate 9,000 people” –fromFinancial Times’ article – The new back office: inside Goldman Sachs’ Bangalore hub

Especially if you are an Engineer, do read our article – 8 Steps from ‘Engineer’ to ‘Investment Banker’

Here’s a list of some of the top Financial Markets/ I banking KPOs in India. Note that, if it is a KPO owned by the MNC bank itself, it is called ‘Shared Service’, as it offers the outsourcing service to all the banks of that group across countries. For example, Deutsche Bank group has banks in 8 countries; the Deutsche Bank Shared Services KPO in India would manage the outsourced processes for all the 8 countries.

City

KPO

Website

Mumbai Deutsche Bank Shared Services https://www.db.com/india/
Chennai BNP Paribas Shared Services http://indiasolutions.bnpparibas.co.in
Mumbai JP Morgan https://www.jpmorgan.com/country/IN/EN/about
Bangalore HSBC http://www.hsbc.co.in/1/2/homepage
Mumbai, Bangalore Goldman Sachs http://www.goldmansachs.com/worldwide/india/
Mumbai Nomura http://www.nomura.com/
Gurgaon Citibank https://www.online.citibank.co.in/
Pune UBS https://www.ubs.com/in/en.html
Bangalore SocieteGenerale https://www.societegenerale.com/india
Bangalore EXL Service https://www.exlservice.com/

With all this information, now the question is how do you get there?

1. Build a Network:

Build a strong network with Alumni from your college working with these KPOs through Linkedin and other social platforms. Understand the job, and how they cracked their interviews.

2. Off-campus efforts:

The first hurdle is always to get an interview call. If you’re from one of the top graduate colleges and these large I-Banks come to your campus to recruit – you have an added advantage. Else, you’re on your own! Connecting to the business heads of these banks on Linkedin will get you the necessary interview calls. You can also email them.

Prepare a smart, 5-6 line, CUSTOMISED cover note and CV to support the cold emailing.

3. Add a Strong Certification to CV:

Add a recognized, practical and job-oriented certification to your CV. This will not only help you gain the practical knowledge required to crack interviews but also showcase your initiative and passion towards the role.

You can have a look at FLIP’s two very popular certification programs recommended for graduates aspiring to a career in Investment Banking.

a) – FLIP – NCFM: Capital Markets International

This course gives an excellent introduction to Capital Markets, in the US & UK. This  Course is used by leading IT companies to enhance software professionals’ domain knowledge in BFS. It leads to a powerful FLIP NCFM Certification, issued by the NSE.

You will be eligible for Foundation program for any aspirant to BFS-Capital Markets vertical in an IT/KPO.

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b) – FLIP-NCFM: Investment Banking Operations International:

This program covers the Investment banking operations in international markets. It includes the trade life cycle of equities, fixed income, foreign exchange, structured products, and derivatives. Ideal for those looking for a career in the aspirational area of Investment Banking.

You will be eligible for Analyst/Associate roles in IT/KPOs including Captive KPOs of international banks.

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Hope this article was helpful! We wish you the best in your pursuit of a career in Investment Banking.

How can a graduate get into Investment Banking?

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