Investment Banking is the process of helping companies raise capital and manage risk through various financial instruments. Investment banks have several divisions, including the front office, middle office, and back office. Each sector plays an important role in making money for the bank and managing risk. Here are the differences between these different types of divisions. Investing banking firms can be classified as either full service or boutique banks.
Investment banks also offer advisory banking services. Their clients include large corporations and governments. There are also non-full-service banks, which provide niche financial services. For example, FICC, or the Fixed Income Clearing Corporation, is a bank that handles settlement and delivery of fix income assets. Lastly, middle market banks provide financial services to smaller businesses, local governments, and nonprofits.
While most people don’t have direct contact with investment banks, they do affect almost every aspect of our lives. Investment banks offer advice to many different entities throughout society, and this influence can help guide our financial decisions. It’s important to understand the role investment banks play in our lives and learn more about their work. These institutions are vital to the financial world.
Many investment banks offer paid internships, which can count toward your experience requirement and help you network. Additionally, some investment banking firms will give preference to candidates with advanced degrees from a business school. However, it’s important to research and understand what each position requires before committing to an advanced degree program.