Banking & Finance
American banking entities are going global and growing internationally, especially in Latin America and Asia. Many major banks actively hire U.S.- educated Asians and Latin Americans to develop banking business overseas. The Economic and Monetary Union of the European Union (in which 16 European countries have merged their individual currencies into a single new currency, the euro) was created in 1999; many feel it will encourage highly favorable business conditions and opportunities throughout Europe for American banking institutions. Banking and financial services professionals who have specialized language skills, a desire to travel, and knowledge of these emerging markets will advance quickly.
As banks continue to compete with investment firms, they will seek out finance professionals who can develop products for the corporate market. Investment products and mutual funds are a booming part of commercial banking. This will continue to grow as pending deregulations attempt to remove barriers between commercial and investment banking.
What is investment banking? Is it investing? Is it banking? Really, it is neither. Investment banking, or I-banking, as it is often called, is the term used to describe the business of raising capital for companies and governments and advising them on financing and merger alternatives. Capital essentially means money. Companies need cash in order to grow and expand their businesses; investment banks sell securities (debt and equity) to investors in order to raise this cash. These securities can come in the form of stocks, bonds, or loans. Once issued, these securities trade in the global financial markets.
Investment banks act as intermediaries between an issuer of securities and the investing public, distributing an offering through their dealer networks or direct sales to clients. Services offered, in addition to underwriting, typically include asset securitization, structuring corporate mergers and acquisitions, and arranging private placements of debt or equity securities. When working with clients, an investment banker offers his or her expert advice and counseling on pricing securities to be offered for sale, filing the registration documents with government agencies, managing the sales distribution syndicate, and communicating periodically with the investor community.
The insurance industry comprises companies and people who develop insurance policies and sell, administrate, and regulate them. Some insurance companies offer investment products and employ people who develop, sell, administrate, or service these products. Insurance is about managing risk, for both the insurance company and its customers. The company must make sure it collects enough money in premiums to offset customers’ claims while still maintaining a profit. Customers use insurance to minimize risk to their finances in the case of lost or damaged property, lawsuits, illness or accident, business interruption, or premature death.
Today, there are few items of value that can’t be insured. The most common insurance policies are business insurance, car/vehicle insurance, health insurance, home/rental insurance, life insurance, and other property/casualty insurance policies.