If you are reading this right now then chances are that you know about investment banking. Probably, you are interested in exploring the opportunities in this field. But, for others who are here to learn, let’s begin with the basics.
WHAT IS INVESTMENT BANKING?
Broadly, an investment bank is a private company that provides services related to finance and other services to corporations, individuals and governments. It provides services like raising financial capital by underwriting or behaving as the client’s agent in the issuance of securities. It may also facilitate companies involved in mergers and acquisitions (M&A), and assist with ancillary areas such as trading of derivatives and equity securities, market making and FICC services.
An investment bank is different from a commercial bank and a retail bank because it does not accept deposits.
Some popular investment banks are JP Morgan, Barclays, Goldman Sachs, Deutsche Bank, Rothschild and Citibank among others.
WHY CHOOSE INVESTMENT BANKING?
If you have watched a few movies about investment bankers then probably you will just skip this section and read ahead.
In spite of the long hours of work, abnormal level of stress and continuous involvement in work, investment banking remains one of the most attractive jobs in town. The reasons to go for investment banking can be different for different people.
For some, it can be their inclination towards finance and for some, it can solely be the lucrative nature of the job. For others, it might be the high prestige attached to this career area. Also, not to forget, you get to work with some of the brightest minds in the industry.
HOW TO BECOME AN INVESTMENT BANKER?
Here comes the most important question. You know about it and you are tempted but what is the path to be followed to actually be known as an investment banker. It is a multi-step procedure that will need education, ambition, networks, hard work (maybe smart work).
So if you are motivated enough then keep on reading!
- Investment banking positions (increasing order of seniority) are; Analyst, Associate, VP, Director, Managing Director
- Investment bankers can hail from various backgrounds but being a crackerjack at mathematics is significant. You should have a bachelor’s degree in finance, accounting, economics or mathematics. But aspirants from other fields like computer science, liberal arts or physics can also tread on this path.
- Entry-level positions like analysts require only a bachelor’s degree but for higher levels, MBAs and CFAs are most common. A degree in Law or masters in financial mathematics may also be helpful.
- For those who are fascinated since the beginning, a good way to get the gist of this career option and make professional network is to do an internship. It can help you to be well-versed with the details of investment banking. Connections are of huge relevance while thinking of iBanking as a career choice.
- After getting the education part right, to land a job as an ibanker, you then need to concentrate largely on networking while still in school. Major investment banks recruit analysts and associates from top business schools and interns who have worked with them. So, if you are not an alumnus of a prestigious B-school or could not get the right internship then connections is the only thing that you can rely upon.
PROCESS AND TRAINING
Investment bankers undergo a rigorous period of training through their employer. These trainings can last up to several weeks and it helps new analysts with principles of accounting, markets, risk, financial statement analysis and financial modelling. They also learn about negotiation skills, presentation skills and communication.
Becoming an analyst is easier as compared to the higher positions in the hierarchy. Directly after your bachelor’s degree, you can aim to be an analyst. But, it can take three or more years of working experience and a higher level degree to move upward to positions like an associate.
After these steps, comes the role of your hustle and motivation to become an iBanker. You can learn more about the requirements and training process by visiting the websites of large investment banks such as Goldman Sachs and JP Morgan. These organizations detail the various programs they are offering for undergrads, graduates and experienced professionals as well.
Other than putting a huge amount of time and efforts in doing your further research, you can contact a LEVERAGE EDU expert today and bridge the gap between dreams and reality. We can have the most experienced and successful investment bankers in the country to mentor you and guide about iBanking like no one else.