Informative Guide On How To Be An Investment Banker

Investment banking is growing as a very important tool in the era of globalization for supporting economic growth and the expansion of industries in multiple sectors. The career choice as an investment banker may be a very promising one and can give an amazing start to the career. The industry is tremendously competitive and provides a vast pool of opportunities, income, and career escalation across the globe. To be one, you need to know about how to be one and what do Investment Bankers does. Read the following blog to know all about how to be an investment banker and their roles and responsibilities.

Know About How to start a career in Investment Banking

What Is It To Be An Investment Banker

The person who is an expert in managing all the finance and investment-related decisions for a financial institute, a company, or a bank is an Investment Banker. The investment banker’s role is to raise capital, raise investments, make financial strategies, and make all the finance related related decisions that need to be beneficial for the company. A mere degree is not sufficient to be an investment banker, you need to have real experience and a good way with numbers.

They work as guides to the senior management for decision enhancement and do not make decisions themselves. 

The person’s goal has to be to raise Capital and investment to improve the operations and financial portfolio of the company. Thus the investment banker must be a combination of qualification, skill, foresight, and network.

Skills Required To Be An Investment Banker

There are certain skills that the investment banker must have to fit the position efficiently, following are the skills:

Job Of An Investment Banker

The role of an investment banker is most critical in the company as they are involved in the financial market. Their duties include a wide range of financial activities like:

• Mergers and acquisitions counselling is the role of an investment banker. They analyze, negotiate, and help execute the mergers and acquisitions.
• Capital Raising is one of the most important and basic duties. They have to help companies organize IPOs, bonds, and securities in a way that improves the financial status of the company.
• The role of an investment banker is to be an advisory guide to the management and help them take the major financial and investment-related issues along with the merger and acquisition.
• Carrying out valuation metrics, conducting due diligence, and assessing the financial implications of strategic decisions is a part of financial modelling and analysis which is performed by an investment banker.
• Managing the risk through making strategies in advance for any kind of change in the market is one of the major responsibilities.
• Apart from the internal, managing the relationship with the client is also the role of an investment banker by providing intellectual counselling by knowing the client well in advance before making any decision.

Eligibility To Be An Investment Banker

The eligibility criteria for investment bankers vary from industry to industry and company to company. An FMCG company may offer the role to a B.Com graduate whereas a banking firm may offer it to a CA. The qualification goes from bachelor’s to CA, but it all depends on the knowledge and skills apart from the qualification. The basic framework is:

• Completing high school is the first step toward becoming one. With the commerce stream preferably, even if not you can opt for the finance-related subjects for graduation.
• A bachelor’s degree in finance, accountancy, or commerce-related fields can get you fresher roles in the investment-related fields as a junior analyst. From this, you will have to work your way up in the company and enter the pathway to be an investment banker. The lack of high education and specialized training may be a restriction in your pathway, overcome it with gaining skills and experience along the way.
• MBA covers all the verticals of business management, accounting, marketing, analysis, etc. therefore it is the widest avenue for entering this industry. An MBA with a finance specialization is the strongest field to get into investment banking.
• Being a CFA charted financial analyst opens up the door to being a financial investment for you.
• A chartered accountant is yet another preferred qualification. CA candidates are well trained in finance, money market, equity, security, IPO listing, etc. Therefore it makes them a preferred match for the IB industry.
• Apart from the educational qualifications certain other things can take you your way towards IB, that are, internships in the investment companies and financial sector, and career networking and skills land you good opportunities, in certain regions licensing can be needed, in USA certain certifications and standard match licensing is needed to be an investment banker.

Top Colleges Abroad To Pursue Investment Banking

Here is the list of a few top universities to pursue investment globally:

Advantages Of Becoming An Investment Banker

Investment banking is a lucrative career. The job comes with a lot of responsibilities but also with a lot of advantages. The following are the advantages:

• Potential profession: It offers a quick advancement in professional dynamics. Companies offer IB with theft rewards apart from salary. Entering the C suit of the company can be very possible with hard work, experience, and skills.
• Personal growth: The learning curve increases in the industry each day. You gain a lot of experience, skills, knowledge, and expertise in the field increasing your dimension of work dynamics. 
• Self-esteem development: Once you are recognized as a trustworthy and reliable investment banker, you get a lot of respect and admiration from your clients, colleagues, seniors, and contacts. They look up to you for your advice in matters and this improves your self-esteem and also your performance.

Also Read: Investment Banking jobs and its types

How to Be an Investment Banker?

To become an investment banker you will have to complete several years of schooling, obtain a license, and gain work experience. The steps to becoming an investment banker are as follows:

• Obtain a Bachelor’s Degree: The first step in becoming an investment banker is to earn a bachelor’s degree. You can take up undergraduate degree programs in business administration, statistics, or finance. You can gain an internship, and work experience during your college years.
• Graduate school studies: It is common among investment bankers to choose to a higer degree program like MBA to get higher positions and a higher salary.
• Work Experience: The next step is to gain work experience on the job. This includes attending seminars and conferences.
• Registration: As an investment banker you are required to register for a license from the Financial Industry Regulatory Authority (FINRA). This will allow you to sell services and investment products. To earn a FINRA, you will have to clear a series of examinations. After obtaining a license you need to enrol in continuing education so that you can maintain the industry standards.

Top Recruiters For Investment Bankers

Hers are some of the top companies that recruit Investment bankers:

Is it hard to become an investment banker?

Generally, it is difficult to become an investment banker. Investment banking is demanding and stressful work. An investment banker works more than 80 hours a week. Moreover, they deal with high-pressure circumstances. Therefore, an investment banker is required to have a good grasp of finance, economics, accounting, statistics, data analysis, and mathematics. They must also know about banking technology. Additionally, an investment banker is required to build relationships with rich people. Therefore, they need to have excellent communication skills.

Average Pay Of An Investment Banker

The average pay of an investment banker in different countries is: 

Country	Salary
USA	61,585 USD
UK	48,817 Euro
India	10,00,000 Rupees
Canada	87,637 CAD
Australia	97,131 AU
New Zealand	92,500 NZ

FAQs

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