The Various Roles & Responsibilities of an Investment Banker
March 19, 2020
It is not your salary that makes you rich; it is your spending habit _ Charles A. Laff
The entire setting of the economy in the twenty-first century is undergoing a radical evolution and advancement. India is categorised amongst the globe’s seventh-largest economy that falls in-between Italy and France. However, recent challenges in the economic landscape, such as the downfall of the nation’s GDP growth to 5.7%, rapid year-on-year growth in population, advancing business prospects, and degradation of infrastructure are consistently creating new subjects of concern for the government.
With these significantly arising complexities and intricacies, the government is becoming reliant on potential banking systems and strategies to cope with the current state of the economy. Introducing Blockchain system, advanced loaning systems, justifiable taxations on businesses are some of the solutions that today’s world of finance is banking on when it comes to meeting the monetary challenges, making financial decisions, and setting fiscal policies for meeting the nation’s monetary needs. To that end, investment banking rises as one of the essential channels of banking operations that enables individuals and organisations to raise their capital.
Investment bankers are entrusted with crucial and complex roles and responsibilities that make their job a highly skilled as well as a highly lucrative one. In this article today, let us have a look at the key roles and responsibilities that investment bankers have to take care of.
Managing Mergers and Acquisitions
Merging is a very popular term that we often get to hear in the corporate world these days. Managing acquisitions and mergers is one of the core responsibilities of investment bankers as they are the biggest contributors to the operation of merging and acquisition. Their task also involves facilitating and structuring the acquisition to an order to add decorum to the attainment of a deal. It involves calculating the worth of an approximate acquisition and aiding the clientele to reach a fair percentage of profit.
The second eminent contribution of an investment banker is to deliver their clients with potential insights on significant banking affairs. Investment bankers act as trusted partners who present their clientele with highly accurate and strategic advice on the emerging challenges and complex financial aspects. This requires a global and in-depth understanding of the finance world, both from the client and organisational standpoints.
Handling Interest Conflicts
Since there is a high risk of conflict problems involved in financial matters, investment bankers play the crucial role of closely identifying, evaluating, and handling the conflicts of interest pertaining to such transactions. Besides, it is also the responsibility of investment bankers to follow certain rules and strategies to maintain the Chinese wall. The Chinese wall is a universal norm that can be considered a fine line or rather an information barrier between the two organisations or departments, which prevents data leakage that could end up in conflicts of interest.
Research on Financial Aspects
Research is an extremely imperative aspect in the industry of finance due to the frequent waves of changing trends, customer expectations, economic conditions, and governmental norms. Investment bankers are responsible for researching and scrutinising dynamic aspects and layers of financial ongoing to deliver cutting-edge financial advice and suggestions to their clients. Macroeconomic research, quantitative analysis, and credit research are some of the crucial areas on which investment bankers perform.
So here, we provided you with a brief overview of the fundamental roles and responsibilities of that an investment banker has to shoulder. However, the modern environment of finance demands these professionals to contribute in more high-end ways, and possess tech-savvy skills, knowledge of global best practices, an understanding of the multi-cultural client pool, and a strategic approach to thrive amongst the competition. An ideal platform to equip yourself with all the requisite qualities is the Post Graduate Certificate Programme in Investment Banking (PGCPIB) by IIM Indore. The programme aims to prepare the participants for the varied aspects of an investment banker’s job profile like asset management, security valuation, M&As, portfolio management, and much more. Delivered in association with Times TSW as the exclusive delivery partner in India, IIM Indore’s Post Graduate Certificate Programme in Investment Banking has been designed to equip the participants with all the necessary skills and know-how that can help one grow as a successful investment banker in the 21st-century business landscape.