The world is changing at a staggering rate and technology is considered to be the key driver for these changes around us . An analysis of technology and its uses show that it has permeated in almost every aspect of our life. According to Tero et al (2004) many activities are handled electronically due the acceptance of information technology at home as well as at workplace. Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions. According to Heikki et al. (2002), the transformation from the traditional banking towards e-banking has been a ‘leap’ change.
The evolution of electronic banking started from the use of automatic teller machines (ATM) and has passed through telephone banking, direct bill payment, electronic fund transfer and the revolutionary online banking (Alter, 2002). The future of electronic banking according to some is the acceptance of WAP enabled banking and interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted that among all the categories, online banking is the future of electronic financial transactions. The rise in the e-commerce and the use of internet in its facilitation along with the enhanced online security of transactions and sensitive information has been the core reasons for the penetration of online banking in everyday life . According to the latest official figures from the Office of National Statistics (ONS, 2006) indicate that subscriptions to the internet has grown more than 50% from 15 million in 2000 to 35 million in 2005 in the UK. It has also been estimated that 60% of the population in the UK use internet in their daily lives.
The fundamental shift towards the involvement of the customer in the financial service provision with the help of technology especially internet has helped in reduce costs of financial institutions as well as helped client to use the service at anytime and from virtually anywhere with access to an internet connection. According to theorists (Walfried et al., 2005) customer evaluation of the electronic services is influenced by attributions of success and failure in inter personal service situations. The use of electronic banking has removed the banking personnel that facilitate the transactions and has placed additional responsibilities on the customers to transact with the service. Although the use of E-banking is provided for the benefit of the customers but these changes require increased work or involvement on the part of customers. These and other factors might be seen as lesser service provided in terms of customer service. But these assumptions would be wrong if the customer knows the value of using the electronic service.
Thus it can be concluded that a fit between task i.e. the banking; technology i.e. the user interface and its reliability; and individuals i.e. the customers and their knowledge about using the service, is the key to successful E-banking services (Zigurs & Buckland, 1998).
You may be a small time entrepreneur just starting or a business or an executive with years of trading experience, either way you need to recognise the importance of efficient business banking. Your choice of account is a fundamental element in your business banking strategy and something that could seriously affect the progress of your business, be it large or small. Here are few advisory tips to help the small business owner to make the right banking choices and give your business the best chance of success.
If you are starting out as a limited company you will need to open a business account. While this may seem a chore, it is surprising how having a specialist business banking strategy can aid the clarity of your finances. On the other hand if you are operating as a sole trader you small business will not have to have its own account, you will be able to combine your personal and business finances. Finding a banking solution that accommodates both the needs of your small business and your personal life can be difficult, often, even as a sole trader it can be beneficial to have a dual banking strategy.
Another element of your business banking strategy should be the inclusion of a small business team in your account package. The advice that can be offered by these professionals can be invaluable and can help your business achieve success. While this type of banking solution may cost a little extra if you are not up to date with the latest financial developments, the effects can be catastrophic.
Of major importance for your small business is the banking charges that may be applicable to your account. Some of these fees will be fixed on a monthly basis while others may be based upon a pro rata system for each individual transaction that may be carried out. If your business is likely to perform many transactions it is advisable to take a monthly fixed charge option as it will probably work out cheaper.
Finding out about which banking extras come with your banking agreement is also important. These extras may include credit cards, free statements or internet and phone banking, which can be a beneficial. Some of these extras will be free for an initial period, so be financially wise and take advantage of this period and take all your can, after all when starting in business, the more help you can get while your business is small will pay dividends in the long run.
After making a detailed comparison of the different banking solutions offered by banks it will be time to open an account. Depending upon what type of company you will be running there are various pieces of information and documentation you will need for the process. Some banks may even ask for a business plan before they allow you to open account, this is an insurance on their part to assess whether your business model and idea is viable.
If starting a limited company you will need a Certificate of Incorporation before your banking can begin. You will also need several forms of identification, for yourself, but also for any other signatories that may have access to the account. This list of signatories will also need to be produced so the bank knows exactly who will have access to the funds.
It is worth remembering that you are not tied to any bank or account for life, it is possible to change. If you do sufficient research however you should not have to change and your business should benefit from having an effective banking system behind it. By following this brief advice you should be able to find an account that fulfils your business' needs and adds to the chances of success. Just how much do investment bankers actually earn? Most of the people who want to break into investment banking have no idea how much money is really involved.
Sure, the Managing Directors and other senior people make several million a year on average; group heads can make $10 million or more. And the CEO of an investment bank can make upwards of $20 million, with Goldman Sachs CEO Lloyd Blankfein making over $70 million in 2007.
But what does an entry-level investment banker - an investment banking analyst - actually make? Making six figures as a 23-year old just out of college is nice, but if you have to work 120 hours per week, you can't possibly be making that much per hour, right?
I honestly didn't know, so I had to investigate this and do some math myself. Could you actually make more working at McDonald 's than you could at Goldman Sachs, at least on an hourly basis?
For investment banking analysts, the best case scenario ever happened in 2007. Base salaries were $60,000 and bonuses were $90,000, for a total of $150,000 in compensation. Again, not bad for a 23-year old 's first "real-world job." But what about the hours? Typically, entry-level bankers work around 90-100 hours per week in their first year. This could be off by a bit, but we'll go with it for now.
With 52 weeks of work per year (nope, no vacation) and 90 hours per week, you would have earned $32.05 per hour in the 2006-2007 year. If you had worked 100 hours, that would have dropped to $28.85. Even if you had worked 140 hours a week, every week, you would still be at $20.60 per hour. And realistically it 's impossible to work that much consistently, so you could have only done better than that.
But times have not always been that good. After the Nasdaq crash and at the start of the last major recession, investment banking took a turn for the worst and bonuses disappeared. In 2001-2002, Analysts were lucky to get $10,000 for their bonuses. They still worked a lot, but mostly on marketing and pitching clients rather than doing deals and bringing in revenue.
A $10,000 bonus and $60,000 salary means $14.96 per hour at 90 hours a week. Believe it or not, that 's still above McDonald 's wages and is actually not even that bad relative to a lot of jobs in the US. But if you had worked 140 hours per week, consistently, back then? You would have made 9.62 per hour. According to a Wiki Answers page on McDonald 's , the wage is $9.30/hour for those under 17 and $9.57/hour after "4 months of training."
This is a very low wage, and it looks like even in the worst possible years of investment banking, hourly analyst wages never dropped this low. Actually, the above is not strictly true. What if you earned $0 for the bonus and only made the base salary of $60,000 while working 140 hours each week? That would be $8.24 per hour. Finally: below McDonald 's wages. So theoretically it is possible to earn less than a McDonald 's worker as an investment banking analyst, though not terribly likely. It could only happen if you worked a ridiculous amount in the very worst years of investment banking and got absolutely nothing for your bonus. Even with a looming US recession, this scenario seems unlikely to return anytime soon. So your hourly wages as an investment banking analyst should be safe.
Decided to go to law school, start working at a law firm, and realize you're actually more interested in finance and investment banking? You're not alone.
It 's fairly common for lawyers to switch into finance and investment banking specifically. There are several paths from law to investment banking. You can get a banking job immediately after finishing law school; you can work as a law firm Associate for several years and then transition over; and you can go to business school after practicing for several years and interview for banking jobs as you complete your MBA.
It sounds appealing to go immediately from law school into investment banking. However, it is difficult to pull off and most banks do not recruit someone immediately out of law school. They would have difficulty placing the candidate and deciding whether to make him an Analyst or Associate.This method becomes easier if you had finance experience prior to law school, in which case you just need to tell a good story about why you went to law school.If you haven't had this experience, it 's better to work for a few years at a law firm and transition over.Going to business school after law school is only recommended if you've practiced in a completely unrelated legal field like Intellectual Property or Environmental Law.
How To Work In Law And Then Switch To Banking
You need to Corporate Law. Don't even think about Intellectual Property, Litigation, or anything else. Do Corporate Law.Recruiting is ultimately a numbers game, and you increase your odds greatly if you have Corporate, Securities, or M&A legal experience.Once you have a few years experience working on transactions, you can consider switching into finance.Contact all your friends in the industry and ask for referrals to recruiters; contact former clients and ask about setting up informational meetings or discussing opportunities at their firms.
Target industries and clients you have experience with. If you worked with a lot of technology companies, go for technology investment banking firms; if you did Mergers And Acquisitions, go for the M&A departments at banks. Also, try for boutiques and middle-market firms rather than bulge brackets unless you work at one of the top few law firms - it will be much easier to get into smaller places.
How To Sell Your Story In Interviews
With a Corporate Law background, there are 2 main points you'll need to prove: 1) that you have quantitative and finance skills and 2) that you really want to make a big career change even if you're on Partner track at your law firm. You really need to focus on financial skills in your interview preparations. Know the 3 financial statements cold. Be able to explain models and valuation methods because they will ask you tons of questions here, especially if you were an English or History major and have no finance experience.
This is one of the few cases where getting a CFA might actually help you get into investment banking - it would give you the finance knowledge and show your interest in the field.
Making the case for a career change can actually be easier. You want to emphasize you were always interested in corporate finance and dealmaking, and went into Corporate Law for those reasons. However, you got frustrated with your inability to BE the dealmaker and how you had to just sit on the sidelines, and so now you want to switch into banking and be a player.
