Each day billions of dollars in financial transactions occur across the United States and the globe. People purchase goods and services, and companies accept funds from buyers. Manufacturers purchase supplies and provide their workers with paychecks. The world runs on a monetary-based system, and banks and financial service companies provide needed monetary services.
The industry can be divided into two large segments: banking services companies and investment services companies, although there is some overlap between the two segments. In general, though, banks focus primarily on providing their customers with traditional banking services such as checking and savings accounts, credit cards, and similar services, while financial services companies focus more on investment products and asset protection.
Common Financial Services Specialties
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.
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.
Employers hiring for investment banking internships recruit based on their own individual timelines. Recruiting for junior year internships begins early; some students may start the recruiting process in the spring semester of their sophomore year – others will find themselves applying …
The 2024 Virtual Insight Series is a professional development program for all undergraduate students interested in a career at Goldman Sachs. Students are welcome to join our virtual events and leverage our digital curriculum to complement their skill sets and …