Author: Rajul Raman

CitiBank was founded in 1812 in New York. Today, it is one of the world’s leading banks with their core activities as: safeguarding assets, lending money, making payments, and accessing the capital markets on behalf of their clients. 

With over 200 years of experience under their belt, CitiBank is also one of the most coveted when it comes to aspirants looking to work in banking. With a community of 220,000 employees spanning the world, CitiBank is known for offering its employees the opportunity to make a difference and grow their careers exponentially. 

Hence, if you are looking to launch your investment banking career, it is safe to assume that CitiBank is one of the top choices on your list. But amidst intense competition, how do you get into an institution as historic and legendary as CitiBank? Here are 3 solid ways: 

1. Learn and Connect With What They Do and Stand For

The recruiters at CitiBank insist that you know everything there is to know about the organisation. Hence, you should spend a considerable amount of time before you interview to thoroughly research the company and understand what it means to work at CitiBank. 

You can find a thorough description of Citi and its various functions and operations on their website. Once you have done this, focus on their values and how those connect to you. CitiBank emphasises that they responsibly provide financial services that enable growth and economic progress. They also deeply care about responsible finance and ethics.

This is a great opportunity for you to take stock of your professional journey so far and pick out examples which might resonate with these values. It could be an initiative you led that focused on fair finance or a class project where you were able to demonstrate business ethics. Use these examples to your strength during the application and interview process. 

2. Show that you are ready for a challenge

A Citi campus recruiter shares that you must remember that there is always a requirement for the role that you may have not been exposed to in the past. Hence, “focus on a plan of action to bridge the gap in your current skill set.”

During the hiring process, recruiters aren’t simply looking for those who are fully prepared to start a role at CitiBank. They understand that any new role requires a learning process. Hence, you must show that you are keen and ready for this learning. You can do so by researching the role thoroughly, identifying which areas you have and don’t have the knowledge and skills for, and then presenting to the recruiter how you will equip yourselves for these areas. To do this, share examples of past professional endeavours where you have gone out of your way to learn a new skill. It may not even be directly related to investment banking such as learning a language or a sport.

However, if you would rather choose to gain extra foundational knowledge of investment banking, you can take courses such as the Investment Banking pathway by FMI. This shows initiative, the ability to go the extra mile, and manage and organise your tasks well.

3. Network with existing employees

This may seem like a cliched step when trying to land your dream job but you would be surprised to know how few aspirants actually go through with it. While you might feel shy or hesitant to connect with existing employees at CitiBank, this slightly uncomfortable step has the potential of unlocking wide avenues for you.
A Citi employee herself recommends the following:

Hence, it means that this is standard practice, and you should not hold yourself back. Using LinkedIn, you can set up a short chat or if possible, an informational interview in-person. The amount of knowledge and experience you will gain from this interaction surpasses any theoretical information that you may get from reading profile after profile online. 

CONCLUSION

CitiBank is a premier institute for you to consider for starting your investment banking career. Contrary to what you might have heard, banking recruiters care significantly about your personality, the effort you make to understand and connect with the company, and the ability to handle a challenge head-on. Ensure you demonstrate these skills through your application and interview, and you will be one step closer to landing your dream role! 

Barclays is a British bank that engages in retail banking, credit card provision, investment banking, corporate banking, and wealth management. It has two divisions:

  • Barclays UK: As the name suggests, this division operates in the UK and provides financial services in the country.
  • Barclays International: This division works across the world to provide corporate and investment banking as well as wealth management services to its international clients outside the UK. 

Barclays was founded in 1896, and since then it has garnered quite a name for itself. Their positive work culture and constant drive to make their employees’ lives better have made it a prime place to work at. This is why Barclays receives a massive number of applications every year.

Here are three tips to help you become an investment banker at Barclays Investment Bank:

1. A customised CV

The first opportunity for you to get noticed is when they assess your resume. It needs to stand out from the rest! Barclays emphasises the importance of a well-rounded and tailored resume for the role you are applying for.

A large number of resumes are received by recruiters every year. By customising yours to suit and fulfil the key requirements, your chance of getting hired at Barclays will increase drastically. Make sure to thoroughly study the role you are applying for and its job description. You can also try to look at the LinkedIn profiles of those already working in the positions you aspire for. Then, highlight the crucial skills you have that fulfil Barclays’ requirements. 

Make sure that your CV is concise and doesn’t have unnecessary information. Use the limited space to your advantage by highlighting your most impressive traits and skills. It is also important to add real-life examples and metrics to support these. For example, for an investment banking analyst position, you can highlight your passion for using data to solve problems. Then add an example where you have done this. 

Hear from those who started their early careers at Barclays

2. Embody their company mindset

Barclays, as an investment bank, places high importance on its work culture, purpose, values, and company mindset. This is powered by three keywords:

  • Empower
  • Challenge
  • Drive 

These words form the crux of everything the company does, invests in, the employees it hires, and how they provide solutions for its clients. If you can show the recruiters that you have the same mindset and operate with the same values, you will be creating a great impression. 

Even in investment banking, Barclays wants to work towards innovation and sustainability, and they look for employees who align with this purpose. Include situations where you have demonstrated the skills they value or where you have had success with this mindset. 

3. Prepare for and ace the assessments

Once you have created your application on their website and uploaded your resume, it is time to take the Barclays assessments. These assessments are tools used by the investment bank to test your aptitude in different areas. Some of the assessments you will have to give are:

  • Numerical reasoning test
  • Logical reasoning test
  • Situational judgement test
  • Verbal reasoning test
  • Personality questionnaire

Don’t worry, you will be able to do a few practice questions before you give the final tests. The theoretical knowledge needed for these tests is very basic, high school level knowledge. If you have prepared for any competitive exam like the SAT or the GMAT, you will be able to breeze through most of these tests. 

Make sure to read what exactly each test will be measuring and give your answers accordingly. If a question will be testing your leadership skills, try to pick an answer that will cater to that skill in the best way. 

CONCLUSION

Investment banking at Barclays is a dream for many. By using these tips you can make this dream your reality! To enhance your profile even further, you can take the Investment Banking Course by FMI. This course will help you brush up on your investment banking skills and knowledge and give you an edge with your application.

If you use these tips and do a thorough study on Barclays, you will be in a great position to get hired! Good luck!

Bank of America is an American multinational investment bank. It is headquartered in North Carolina, U.S. Currently, BoA is the second largest bank in the U.S., the first being JP Morgan Chase. Bank of America is included in the Big Four banks in the U.S., the other being JP Morgan Chase, Well Fargo, and Citibank.

Around the 1900s, BoA was known as the Bank of Italy. They were able to stand out at that time as well with their special banking services for immigrants. Most banks at that time were only serving exclusive American citizens but BoA was the first to provide services to immigrants as well.

Even today, Bank of America is a highly sought-after place to work. Every year, they get large numbers of applicants for a variety of roles. Here are three ways to increase your chances of getting hired at BoA even if you are low on experience:

1. Align with and embody their core values

“Our purpose is to help make financial lives better through the power of every connection. This is the foundation for how we operate our business, work with our clients and make a positive impact in communities around the world.”

As you can see above, BoA strongly emphasises positive attitude and the importance of connections. They believe that their employees are the central driving forces of their purpose. During BoA’s hiring process, if you can show that you already embody their purpose, your application will stand out among the rest.

By aligning with and embracing this value and purpose, you will be able to boost your chance of getting hired at BoA. You can highlight experiences or instances where your positive attitude led to meaningful and helpful connections. Or even how you were able to use your connections to have a positive impact on others.

2. Ability to harness your uniqueness

A key part of the work culture at BoA is diversity and inclusion. They believe that diversity in the workplace is the biggest contributor to the freshness of ideas and innovation. They hire a variety of applicants based on this mindset. The important point to note here is that they want people who can harness their uniqueness to create change.

If you have no experience in investment banking, you must be able to show that you can create and execute authentic solutions. In your resume or interview, highlight instances where you were able to use your unique qualities to create a positive impact. You can also talk about any situations where you were able to solve complex problems while being true to yourself.

3. Rich and varied skills

Having the right and a variety of skills is crucial for your application if you have no work experience. There are mainly two types of skills that you need:

  • Technical skills
  • Intangible skills

Technical skills include financial modelling, using excel for finance, financial analysis, etc. These are the practical skills you will need at your job to come up with accurate calculations and for running simulations for solutions. 

Intangible skills carry a greater focus at BoA. The company’s working model is employee-centric and relies heavily on its employees being able to connect with clients and other stakeholders. They are looking for people with good leadership skills, open-mindedness, authenticity, and respectful nature. If an employee cannot respect their values and purpose, they will likely not be chosen. 

While you work on these skills, don’t forget the practical knowledge also needed to ace your interviews and have a stellar resume! You can take The Investment Banking Course by FMI to deep dive into the foundation learning needed for investment banking aspirants.

CONCLUSION

If you don’t have work experience, don’t worry too much! There is no doubt that it does add to your application overall. However,many people are hired by investment banks without it as well. You have to show that your profile aligns with the bank’s values and core purpose. 

It is important to have a well-rounded resume and profile if you don’t have experience. Focus on aligning with their core values, staying true to yourself, and having a mix of skills in your resume to get hired at a premium bank like the Bank of America. 

Deutsche Bank is a German multinational investment bank. It provides a host of financial services to various companies. The bank’s headquarters are in Frankfurt, Germany. Deutsche Bank has operations spread across 58 countries and was ranked the 21st largest bank in 2021. It has four major branches: corporate banking, investment banking, asset management, and private banking. 

Every year, the bank gets a large number of applications for varied roles. However, there are certain things that they focus on and require from all their candidates. Here are three ways you can increase your chances of getting a job at Deutsche Bank.

1. Academic achievement

It is important to have a good academic background for most roles in the finance industry. However, Deutsche Bank has specifically mentioned academic achievement as an important factor for getting hired on their website. They do not require a maths or economics-related degree. However, if you are applying for a role that uses these core subjects, having numerical knowledge is a must.

They assess candidates based on multiple academic factors apart from their GPAs. Some factors they consider are:

  • Scholarships
  • Honour rolls
  • Leading student organizations
  • Awards in specific subjects/courses
  • GPA

These are areas you can work on while completing your undergraduate degree in college. It is vital to look at your academic performance from a holistic point of view and not only focus on your grades. The Bank is looking for sharp, outstanding minds who genuinely want to work and excel in Deutsche Bank. 

By showcasing a solid academic profile, you will portray that you are capable of adapting to the speed and intensity of learning required at the Bank. To increase your chances of getting a job, you must work on your academics and excel in the same.

2. Key behavioral skills

There are certain non-negotiable skills that Deutsche Bank looks for in all candidates. They place high emphasis on collaborative skills. Being able to bring together a diverse group of people and get them to work together is exactly what they are looking for. 

They clearly mention on their website:

“There are a number of important attributes we measure through our assessment process, such as key behavioural skills related to working with people and tasks, as well as your core values and motivation. What’s more, you’re passionate about building a career in global banking, and have a deep interest in your chosen field.”

Apart from outstanding team-playing and leadership, communication skills are kept. Many roles at investment banks are client-facing. The candidates are mandatorily required to know English and be fluent in it. German is only required for candidates seeking roles in the country. 

Deutsche Bank’s website mentions “hunger to learn” multiple times. This is a clear indicator that this is another non-negotiable factor for the bank. They are seeking people passionate about global banking and those who are curious to learn constantly. 

In addition to these intangible skills, they also require knowledge and technical skills. Numeracy, financial analysis, excel, etc. are crucial if you want to get hired at Deutsche Bank. You can enroll in the Investment Banking Course by FMI to kickstart your basic IB knowledge journey. The course includes all the foundational information you will need to get this job!

3. An impressive interview

How you perform in the interview is vital in deciding whether you get the job or not. It is important to ace the Deutsche Bank interview and here are some tips to do that:

  • When you are asked, “Why Deutsche Bank?” make sure you focus on the projects/deals they have worked on and how these have done better than their competitors.
  • As mentioned before, they are looking for people who can work well in teams. Make sure you highlight this skill when asked about your strengths or when you’re asked for an introduction. Include examples where you have demonstrated these skills because only mentioning them will not be enough.
  • Be up to date with everything DB! If you can, talk to their employees before the interview as it will help you get a deeper insight into the bank and its workings. Know the pivotal deals and projects they have undertaken and use this information while answering the questions.

Since most interviews are on video, you are given a little time after each question to prepare. Think over your answer and tweak it to match DB’s requirements.

Conclusion

Deutsche Bank can provide you with great learning and experience for your career. If you follow these tips and scan their website for more, you will drastically increase your chances of getting hired there. Tweak your resume and answers according to what they are looking for, and gain real-time experience through their internships and graduate programmes. Good luck!

If you are a tech student who’s attracted to the glam of Investment Banking, there are many ways for you to make it in this industry. Contrary to popular belief, you don’t need to be skilled in mathematics, finance, and economics only to become an investment banker. In fact, being from a different background can work majorly to your advantage if you are willing to work a tad bit harder. Here are 5 ways tech students can pivot towards investment banking:

1. Show that your skills are transferable

You will need to demonstrate in your interviews and applications that what you have learned in tech can be used in investment banking. This is particularly applicable if you have mastered data and analytical skills during your tech education. You can also show other non-technical skills such as extreme attention to detail, ability to solve a challenge, working on deadlines, and so on. 

In your interviews, you will definitely be asked how your tech background makes you a good fit. You should use real-life examples to explain how technology has set you for a career in investment banking. This field is ultimately a numbers game, and anyone who has a solid knack for data can excel as an i-Banker. 

2. Networking

There’s rarely any industry where you won’t need to network. If you especially belong to a field different from investment banking such as tech, networking with the right individuals can give you a foot into the door. You can look for others with a similar background and understand their journey to evaluate your career choices. 

You can start networking with your college alumni base to begin with. You will definitely be able to spot someone in the investment banking industry. You will need to step out of your comfort zone and be open to asking intriguing questions that can give you an edge over others and make you memorable.  

3. A holistic resume

Your resume is a peek into your professional journey, and at any interview you will be asked to take the interviewer through your resume. What matters to investment banking recruiters isn’t just any one type of profile. If you are someone with varied interests and the ability to follow through on them, a recruiter will definitely be interested in knowing your profile further. 

Since investment banking is numbers-driven, your resume should also reflect measurable results and not simply a description of what you did. This is also an opportunity to show the interviewer that you have other transferable skills such as leadership, team work, presentation, and communication.

4. Have IB knowledge and skills

Regardless of which background you come from, if you have an understanding of investment banking, it will always be a huge plus for your candidature. This helps even more if your previous experience isn’t directly related to investment banking. It shows initiative and a hunger to learn. 

You don’t need to gain a degree in finance to prove to the hiring team that you are qualified and passionate about investment banking. A rich and thorough course can teach you all basic concepts about the field and help you feel more prepared. For example, FMI offers a highly exhaustive beginner course on investment banking. This is perfect for those who are looking to enter the industry with some foundational knowledge about banks, capital markets, mergers and acquisitions, trade lifecycle etc. 

5. Create a great first impression

Human psyche dictates that confidence and a great first impression go far beyond technical knowledge. Hence, regardless of the job you are aiming for, along with the proper research and preparation for it, you should also focus on building your confidence. Many elements play a role in boosting this, be it your body language, clothes, eye contact, eloquence and so on. Any of these done wrong can deter a recruiter from hiring you especially in the investment banking world where you would work with high-profile clients. 

Hence, while you focus on widening your understanding of investment banking and finance, you must not forget to work on this aspect of job application and interviewing. You can build your confidence by talking to strangers, networking, talking to yourself in the mirror, taking a short public speaking course, and participating in mock interviews. 

Conclusion 

Investment banking isn’t meant only for a select few. More than your technical skills, what will differentiate you is your ability to communicate, think strategically, and leave a mark. If you are from a tech background but have the lofty dreams to become an investment banker, it is 100% possible. You should focus on combining the right IB knowledge with an all-round resume, the ability to network, leave a remarkable first impression, and demonstrate that your tech skills are an advantage! 

We wouldn’t be lying if we said that many enter the investment banking industry in search of lucrative pay packages. It is common knowledge that the salary of a newbie investment banker can go up to $100,000 including the bonuses. But is this something that just gets handed to you? Absolutely not. To be in the top league of earners in this industry, you have to find a way to differentiate yourself and make a mark. 

We bring you three such solid ways:

1. An impressive skill set

There is no circumventing this. You definitely need an impressive skill set to work in the investment banking industry, regardless of your division. While it is believed that you must have a finance degree to enter this career, that’s not entirely true. Many from varied backgrounds have gone on to become successful investment bankers. 

What makes this possible is a mix of remarkable technical and transferable skills that make you and your candidature highly unique. While a high degree of interest in investment banking is a no brainer when it comes to the right skills, you also need to supplement that with technical skills in terms of education and courses. 

For example, your background may be in finance, economics, mathematics, statistics or an unrelated field but you will need an understanding of technical investment banking at least at the basic level. The best way to do this is through an exhaustive course such as FMI’s Investment Banking pathway. You will be able to learn everything about investment banking basics, which will help strengthen your foundation for working in this industry.

Besides these directly related skills, you can set yourself apart through a range of non-technical skills such as: 

  • Analytics
  • Networking 
  • Leadership qualities
  • Communication 

This set of skills will shape who you are during your interviews as well as once you start your job in the industry. For example, if you are excellent at networking, you will be able to use that to form connections within your company. This will help others know who you are and allow you to gain information about various departments. When the time comes for a promotion or special project, managers are more likely to choose someone whom they know and someone who has worked hard to take initiative. Similarly, strong communication skills will help you cast a strong impression on your clients.

2. Internship experience

An internship is the best segue into the professional world for young individuals. This is your opportunity to put your theoretical knowledge into action and understand the inner workings of the industry. Most IB interns also get hired full-time. Hence, this is a great chance to make an impression while you’re still learning the ropes. 

You don’t need to worry about only bagging an internship at the top firms such as JP Morgan or Goldman Sachs. If you can make an impression at a startup or a smaller investment bank, you will have equal if not greater opportunities to learn and showcase your skills. 

Internship experience is vital for an investment banker and will boost your confidence for when you start your full-time role. This will then automatically improve your communication and networking abilities allowing you to stand out and earn a well-deserved salary. 

3. A never-ending passion for data

Investment banking is a numbers game. So, if you are an aspiring i-Banker, you will highly benefit if you love numbers and analysing data. If you can master this skill to make useful predictions for your clients and firm, you will be a star at your company! This will also help you like your job further as many run away from the “maths” part of investment banking. It can help you distinguish yourself as someone with a sharp eye and great attention to detail. 

You can start early by taking data analytics or statistics courses in college or by self-educating yourself through online courses. If you are someone who enjoys real-time learning, FMI also offers an Excel for Finance course, which is perfect for anyone looking to sharpen their data analytics skills.

Conclusion

Investment banking is a profession that attracts hundreds of thousands of individuals each year. So, if you are looking to be different from the crowd, you will need to work a little harder to succeed financially as well as to have an enriching career. A unique skill set, stellar internship experience, and a knack for data are three definite traits that can help you get closer to your 6-figure dream!

“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.” -Dr. Seuss

A career in investment banking is a unique learning opportunity. From handling clients to recognising small errors that can cost millions, there are many potential lessons in this field. This is perhaps why around 40% of junior-level i-Bankers leave the industry and pivot to other roles within three to four years. They gain considerable knowledge in a short frame of time and develop corresponding skills. 

The industry itself is wide with many divisions and functions under each investment bank. Before you decide whether investment banking is a career that suits you, it is important to spend time gaining deeper knowledge about the industry. Even if you already work in investment banking, it is still vital to devote time to learning further about it in order to grow in your career. Here are three major reasons you should invest more time learning about this ever expanding industry: 

1. Building a strong foundation

It is extremely important to have a strong foundational knowledge of investment banking, capital markets, global markets, asset management and all its innerworkings. Ideally, you should know:

  • Everything about the role you are applying for
  • Basic financial knowledge
  • Valuation techniques
  • Debt vs Equity
  • Equity and currency markets

Acquiring this will help you evaluate how suitable you are for a role in this highly sought-after industry. The learning will also help you answer the questions asked in investment banking interviews with confidence and ease. 

A great way to begin building your foundational knowledge is by opting for the Investment Banking Course by FMI. It includes chapters about the different branches of investment banks and the skills needed to survive in each. You will also be able to access a mathematics course and a mergers and acquisitions simulation, which are more in line with practically applying what you have learned.

2. Keeping up with industry trends

The investment banking industry is highly globalised. All i-Bankers and applying candidates must know industry news and trends at any given time. Successful investment bankers can recognise these and adapt easily. 

There are certain trends like sustainable investing (ESG) and AI integration that started developing years ago but are only seeing the tide turn now. By studying the industry, it is easier to recognise and capitalise on these trends. You must also spend more time learning about the forces that are shaping up the industry currently. This will help you ace your interviews and possibly stand out in your chosen firm. It will also position you as someone who goes the extra mile to understand their profession.

3. Easier transition into your actual role

The transition from studying to starting a job can be challenging. It is an uncharted territory and a new, demanding environment. To ease yourself into the investment banking world, you should begin your learning journey early. It is not only limited to courses and books. You can gain practical experience through internship opportunities or even discussions with investment bankers. 

By having theoretical, practical, and real-world knowledge about the industry, you will be able to transition into your job more smoothly. You will also understand what to realistically expect from your job role, how to excel at it, and how you can truly create an impact on your clients. 

CONCLUSION:

The investment banking industry has multiple domains, divisions, and functions. To keep up with what’s happening in the industry, you must actively work toward expanding your knowledge and understanding of it. Even before joining it, you must spend a considerable time learning about investment banking and its related field from courses, internships, simulations, etc. 

This will help you ace your interviews, transition easily into your role, and excel at your job! Happy learning!

The investment banking industry is highly selective when it comes to recruiting talent. A top-notch education alone may not be enough to sustain a successful career in this field. You will need to layer it up with tangible and intangible skills that help you stand out and establish your identity as an i-Banker. Here are some add-ons you can try to master:

1. Specialised skills

Skills for any profession can be broadly divided into two categories:

  • Technical skills
  • Intangible skills

Technical skills are those that help you solve specific problems using models, applications, software, or other tangible and measurable methods. For investment banking, technical skills that are needed and are non-negotiable are:

  • Analytical thinking
  • Financial modelling
  • Numerical skills
  • Spreadsheet proficiency

You can gain a primer on investment banking through an overarching course like the Investment Banking pathway by FMI.

Intangible skills can be slightly more difficult to measure. However, these span across careers and can be helpful to anyone. For investment bankers, these skills can highly impact your banking career and recruiters look for them in potential candidates. These include:

  • Ability to work in a team
  • Creativity while solving problems
  • Discipline and time management
  • Interpersonal skills to build relations with clients

These skills can be sharpened with practice and interacting with a variety of people on a regular basis be it strangers or your co-workers. This will help build your confidence and turn you into a better public speaker. 

2. A hunger to learn

This is essential and indispensable for any profession that you care about. The investment banking industry is extremely dynamic and everyone who makes it big is constantly open to learning. To keep up with industry trends, you must have an optimistic approach to learning and evolving 

Before you enter the industry, you can do internships or finish courses that will help you get an understanding of the field. These will not only help you widen your knowledge and skills but also increase your chances of selection during recruitment.

If you have made it and landed a job in investment banking, you must not become complacent! You must keep up with the news, the trends, the updates with all your clients, and in general, the financial world to enjoy the learning process.

3. Good communication

A lot of people do not understand or know this, but investment banking is primarily a sales job. Most roles in the industry involve interactions with clients. There are a few backend jobs, however, they will not be in complete isolation either. All roles will require a decent amount of interaction.

Most roles involve high levels of relationship building with clients and selling them ideas that they may not be open to. This requires an exceptional communication ability. Being able to speak and conduct yourself properly will help you win big in the investment banking industry. 

4. Having a global perspective

The ability to think globally is extremely valuable in the investment banking industry as your clients could hail from varied backgrounds. As we know, the world is becoming increasingly globalised and interconnected. 

Having international clients or MNC clients will push you to become more receptive to diversity and preferences of a global audience. So, try to expand your worldly perspective. 

Moreover, being sensitive to different people’s needs will help you come up with innovative solutions for your clients. You will be able to provide them with excellent services and help your firm grow. So make sure you work on this and stay open-minded!

CONCLUSION:

Investment banking is a popular industry and is recruiting hundreds of thousands of individuals at a given time. To make the cut and to then grow in this industry, you must look at skills and resources that set you apart. Technical and transferable skills, a passion for learning, excellent communication, and a global perspective are four major areas where you can differentiate yourself. 

It is no doubt that investment banking gives the impression of a glamorous career from the outside. However, while it does offer perks, it also requires a great deal of knowledge, resilience, and skill to make it as a successful investment banker. 

To test where you stand in your proficiency as an aspiring i-Banker, here’s an interactive quiz. Each question answered correctly will get you a point. Add your points in the end and check to see how well you bode and where you need improvement. 

Q1. Mergers and acquisitions mean the same thing

Options:
1. True – they are synonyms
2. False – they mean different things

CORRECT ANSWER: False

Q2. What is the crown jewel defence?

Options:
1. The target company tries to take over and acquire the bidder instead of letting themselves get acquired.
2. Under this strategy, the target company decides to sell its most valuable assets/branches of business.
3. Top executives and employees are given extra benefits and severance packages in case the company gets acquired and they are terminated.

CORRECT ANSWER: Option 2

Q3. Which type of listing provides higher liquidity to the company?

Options:
1. Secondary listing
2. IPO
3. Dual listing
4. Cross-listings

CORRECT ANSWER: Option 3

Q4. All IPO-listed companies are financially stable

Options:
1. True
2. False
3. Maybe

CORRECT ANSWER: False: this is a big myth!

Q5. Which college major is needed to become an investment banker?

Options:
1. Finance
2. Economics
3. Arts/Humanities
4. No one college major will get you into i-Banking. They accept all majors!

CORRECT ANSWER: Option 4: Skills matter the most!

Q6. Which investment bank is currently the world leader?

Options:
1. Goldman Sachs
2. JP Morgan
3. Barclays
4. Bank of America

CORRECT ANSWER: Option 2

Q7. In the corporate finance life cycle, sales are the highest in which stage?

Options:
1. Growth
2. Decline
3. Maturity
4. Introductory

CORRECT ANSWER: Option 3

Q8. Investment bankers only have one job: to raise capital

Options:
1. True
2. False

CORRECT ANSWER: FALSE! i-Banking has many divisions and diverse roles.

Q9. Which is the world’s largest stock exchange?

Options:
1. Bombay Stock Exchange
2. National Stock Exchange
3. New York Stock Exchange
4. London Stock Exchange

CORRECT ANSWER: 3.

Q10. Where would you find the world’s oldest stock exchange?

Options:
1. India
2. United States of America
3. United Kingdom
4. Amsterdam

CORRECT ANSWER: 4. The Amsterdam Stock Exchange is touted as the oldest securities market in the world. It is believed to have become operational in 1602 after the establishment of the Dutch East India Company (VOC).

Q11. Which of these is a method for company valuation?

Options:
1. Discounted Cash Flow
2. Future Cash Flow
3. Current Cash Flow
4. Shares Sold

CORRECT ANSWER: 1. The DCF method calculates a company’s valuation based on expected future cash flows

Q12. Which term is used to describe standard settlement instructions added to transactions?

Options:
1. Lifecycle of a trade
2. Trade enrichment
3. Trade payout
4. Trade settlement

CORRECT ANSWER: 2.

Q13. The forex market operates 24/7, 5 days a week

Options:
1. True
2. False

CORRECT ANSWER: 1.

RESULTS:

If your score falls between:

1-3: you need serious assistance with your knowledge and skills

4-6: you are getting there! A little brushing up will help you get on track

7-8: Congrats, you are mostly set to become an investment banker!

To expand your knowledge base and ensure you have both theoretical and hands-on practice in this industry, you can avail a range of courses by FMI. These include Investment Banking, Global Markets, M&As, Foreign Exchange Markets, Portfolio Management, and so on. With the help of these resources, you will stand out from the typical applicant and already have a solid foundation before you begin working in the complex investment banking world!

Financial analysis is a significant part of all investment banking deals. It refers to the process undertaken to analyse and evaluate projects, companies, or other financial transactions based on their returns, performance, and suitability to the investment bank.

Financial analysts have to use multiple analysis techniques like fundamental and trend analysis to derive their conclusions. So being thorough with these concepts and having the right analytical and problem-solving skills is key for this role. Any errors made during a financial analysis process can cost an investment bank massive resources. Here are 3 major mistakes to avoid while conducting financial analysis:

1. Ignoring footnotes in financial statements

This is a common mistake that many financial analysts commit during financial analysis. However, you must rectify this mistake. Footnotes contain vital information about how the company has calculated and arrived at the values given in the statement. 

Footnotes often contain numerical values. It is a good practice for financial analysts to compute these values in the calculations given above and check if everything still matches and makes sense. Sometimes companies use footnotes to hide the inconsistencies and distortions they have made in their financial statements. 

If you get into the habit of reading and evaluating footnotes with the same effort as the rest of the statement, you will surely see positive results. Your understanding of the company’s financials will be better and in the end, you will be able to deliver a better deal. Moreover, by paying attention to these details, you will be able to set yourself apart from your colleagues.

2. Analysing financial statements from a third-party provider

This is a common practice in the financial analysis field and not a good one at that! Most financial analysts, especially beginners, use third-party sources to source financial statements of companies. These third-party sources include Yahoo, Bloomberg, Ticker, etc.

The issue with analysing financial statements from these sources is that they have pre-made templates for all types of financial statements. They then mold the statements published by the companies to fit these templates. They do not make numerical changes. They do, however, make changes in how the data is arranged and how much importance is allotted to each field of data. 

Third-party sources do this to ensure comparability. A common investor wants to be able to compare multiple companies and their financials seamlessly and having templates helps with that. But financial analysts need to dive deeper than that.

To do so, they must use the financial statements authentically published by the companies. These tools follow the standard format and present information as it is. By evaluating and analysing the information in unedited statements, a credible financial analyst will be able to follow the narrative created by the company. This will help the financial analyst check the quantitative data against the qualitative and see if the story of the company checks out in a larger context. 

3. Not taking adjustments into account

This is a huge no-no! There are many adjustments that a financial analyst must make will analysing the numbers given and calculating for their desired criteria. If these corrections are not made, the results can be inaccurate and incomplete. 

Entries like write-offs, one-time data, deferred revenues, etc. must be adjusted. If these are not taken into account, the financial picture and health of a company may become distorted. So, make sure you change the statements by incorporating these adjustments. 

CONCLUSION:

We have discussed the common mistakes financial analysts make during their analysis. But there is a way to avoid these mistakes and ensure your results are accurate. This can be through solidifying basic foundational knowledge and skills. 

You can try out this course by FMI on global financial analysis. It will help you learn or revise all types of analyses and ensure your knowledge is up to date with the global market. You can also take a quiz at the end of the course to test your skills! It is a helpful course for aspiring financial analysts, already working financial analysts, and anyone else who might want to do a thorough analysis of companies or projects.