We will be taking a closer look at a key Financial Services domain where Business Analysts are predominant – Investment.
Investment Banking as a discipline encompasses several vertical markets:
- Contributes to customers raising funds in capital markets and provides strategic advice on mergers and acquisitions (M&A).
Sales and trading
- Operated the buying and selling of financial products for profitability.
- Reviews companies and writes reports about their prospects, often with "buy" or "sell" ratings.
Global transaction banking
- Provides cash management, custody services, lending, and securities brokerage services to institutions.
Investment management / Portfolio management
- Manages various securities (shares, bonds, etc.) and other assets (e.g., real estate), to meet specified investment goals for the benefit of investors.
- Offers capital in exchange for share ownership rather than loans, and offer advice on management and strategy.
- Offers retail banking to consumers via secured loan, mortgage loan and unsecured loan.
- Involves analyzing the market and credit risk that traders are taking onto the balance sheet in conducting their daily trades, and setting limits on the amount of capital that they are able to trade in order to prevent "bad" trades having a detrimental effect on a desk overall.
- Responsible for an investment bank's funding, capital structure management, and liquidity risk monitoring.
- tracks and analyzes the capital flows of the firm, the Finance division is the principal adviser to senior management on essential areas such as controlling the firm's global risk exposure and the profitability and structure of the firm's various businesses via dedicated trading desk product control teams.
- Responsible for an investment bank's daily operations compliance with government regulations and internal regulations. Often also considered a back-office division.
If you have prior investment banking experience in front office / middle office / back office or operations, you may be a candidate to utilize your expertise and become a Business Analyst. The BA profession is not only Technology based, but also Business Domain centric. Based on your experience, you may even qualify for mid-level or senior-level Business Analyst positions.
Curious about what is out there? Check out the top 10 largest Investment Banking companies and check out who is hiring!