A career choice of being an investment banker will turn a person into a professional who works as a part of the monetary division and is primarily there in an organization to generate revenues for businesses, governments, or other organizations.
Here, we’ll go over the specifics of investment banking occupations, like how to become an investment banker, the career path for investment bankers, what an expert in this area does, how much they make, and what the ideal degrees are for investment banking.
The following is a list of the components that will be needed to prepare an investment banking profession that the market will crave.
List of subtopics:
Check out this Investment Banking Online Course video to learn more about the concepts of Investment Banking:
Investment Banking explained
Investment banking is one of the most complicated financial systems in existence. It serves a variety of goals and business interests. Imagine you are the owner of a huge business and you are hoping to make the most money possible from the upcoming project.
This is the time you seek investment banks and ask for their assistance in the deal to earn maximum revenue. Approaching investment banks in terms of revenue, raising capital and cost could be the best decision for your organization.
Banks that provide services of investment banking are categorized majorly into four types. These four types of Investment Banks are the following:
1. Bulge Bracket Investment Banks
The most well-known investment firms worldwide are covered by The Bulge Bracket Bank. Compared to other banks, they have the strongest brand values.
Goldman Sachs and JP Morgan are the real-time versions of the Bulge Bracket type.
2. Elite Boutique Investment Banks
They frequently pay their staff more than any other bank, including the one with the highest brand value, Bulge Bracket.
Lazar LLC, Moelis & Company, and Evercore Group LLC are the banks that fall under Elite Boutique.
3. Regional Boutique Investment Banks
These kinds of banks do not specialize in any particular industry or product. They will work on various projects for various clients from various local industries.
Raymond James and Robert W. Baird are the banks that fall under this category.
4. Middle Market Investment Banks
It concentrates on providing financial guidance and support to small, growing enterprises. It concentrates on the neighborhood’s middle-class clients and financial sector.
Jefferies and Macquarie are the banks that work as Middle Market Banks.
For its personnel, each type offers advantages and cons. Choosing a particular bank for the job of Investment Banker could be a hectic task. Let’s first examine who investment bankers are.
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Who is an Investment Banker?
What professors are to students, investment bankers are to investment banks. The bank offers its clients professionals who will assist them in managing and developing their ideas, and any significant projects that involve risks.
These are the individuals who are knowledgeable about where and how to invest money, as well as how to choose the best projects to work on. They also have insider knowledge about the results of their investments because they carefully consider all relevant factors.
It was just a glance at who investment bankers are. Let’s take a deep dive into their responsibilities.
Explore Investment Banking Career Path and get some good initiatives of becoming an investment banker
Responsibilities of Investment Bankers
Financial transactions and investment ventures bring different kinds of responsibility for investment bankers. Dealing with the big players in the market is not an easy task, investment bankers have to conduct the listed tasks.
- Gather significant information for financial decision-making by researching, analyzing, and researching numerous market reports and databases.
- Observe the current investing climate, identify risks associated with certain projects, and advise clients on how to proceed.
- Other administrative tasks include scheduling meetings, returning calls and emails, and organizing trips.
- Analyse, help with, and organize mergers and acquisitions for the benefit of their clients.
- To predict business performance, run daily financial metric calculations, financial modeling, and firm appraisals.
- To raise private or public cash, Investment Bankers may issue securities, underwrite municipal bonds, and conduct debt and equity sales.
Performing these duties is usually the major task of an investment banker. These can also be considered as the parameter for judging an investment banker whether he/she is an asset to the bank or not. However, becoming an investment banker involves various steps that one has to excel. Next, we will be discussing the same.
Check out our blog on Is Investment Banking a Good Career? for knowing the Pros & Cons of Investment Banker
How to become an Investment Banker?
The blog’s most crucial question is about to be addressed. Although, I know you were eagerly anticipating this section, however, the topic of investment banks and their bankers was just as crucial. Investment banks, however, have a long list of requirements when it comes to hiring an applicant. How about starting with the most basic necessity that is required to be an investment banker?
It is a higher secondary education(10+2), and one must clear it with more than 50% marks from a recognized board. If possible choose commerce as your stream for high secondary. So that you will have a grasp on the subjects like mathematics, accountancy, economics, and business.
Despite the diverse backgrounds of investment bankers, a solid foundation in mathematics is crucial. Earning degrees like a Bachelor of Commerce, a Bachelor of Arts in finance, and a Bachelor of Business Administration from a prestige university will be the next step towards investment banker.
Having a bachelor’s degree is enough when a person starts from the lower hierarchy and then goes for the post of an investment banker.
However, you must devote time to earning a master’s degree if your career goal is to work as an investment banker.
To outcast other competition, you can think of doing a doctorate too, like a Ph.D. in finance and banking.
Does the industry experience has more weightage than any degree? Exactly, this is the ace card of all of your hard work.
Not thinking of doing a Ph.D.? Well, then you must have a bachelor’s degree, and a Chartered Financial Analyst certification, and pursue an internship in an investment bank that lasts from 2 months to 1 year.
You might be granted the chance to work as an investment banker permanently depending on how well you perform throughout your internship.
Apart from the technical abilities, you should also build networks and connect yourself more to the world of investment banking. This trait will bring you lots of links that will help you in your upcoming profession.
Investing 5-6 years to seek a particular job? Too much to invest, right? If you experience these kinds of insecurities, you fit into the group of common people. Do not worry about it, it is a profession that guarantees you significant growth, so the risk is worth taking.
To add one more professional certificate to your resume, check out the course that is provided by the Intellipaat on Investment Banking Course.
Skills required to become an Investment Banker
Investment Bankers can’t be the ones who believe in a hit and trial methods. There should be a zero-risk plan for investing the client’s hard-earned money. This can’t be attained only with the help of degrees. There is a complete skill set that should be possessed by investment bankers to excel in their growth as well as the profit of the client.
The investment banker’s main objective should be to thoroughly investigate the market and to get acquainted with the climate of the market.
Ensuring that investment bankers’ judgment is not influenced by any type of false information and that they are able to provide their clients with accurate recommendations. Therefore it is mandatory to have strong numerical and analytical skills.
Interpersonal skills enable bankers to improve their working connections both with clients and within the company. Socialism is surely important in any career.
To succeed in any challenging situation, it is crucial to unite the entire team and unleash its full potential. Bring leadership abilities to investment bankers as a result.
Additionally, it is imperative to be open to constructive criticism and ready to adjust plans if necessary in light of customer or organizational requirements, bringing adaptability. Being insistent and stubborn will not spur a banker’s growth.
These are the major investment banking skills that should be endured by an investment banker. Asking too much from a person? Well, let’s find out why people are so driven for this goal.
Check out the video on how to get into Investment Banking:
Why become an Investment Banker?
When we say that working in investment banking is challenging, we mean that there may be times when you have to put your sanity and sleep aside to crunch numbers. But if you’re good at what you do, you’ll get paid well.
Your continual professional development will bring financial rewards to you. While assisting your client or organization’s financial success, you will also experience significant personal growth.
After a while of working as an investment banker, you can select from several more well-known financial jobs for later-life employment that is more reliable, satisfying, and laid-back.
How to Find a Job as an Investment Banker?
You can easily seek the job of an investment Banker by applying to an available position with an investment bank and financial advisory company. You may get PPO in your internship only. Once the aptitude test is cleared, you are left with the technical interview. Prepare for your interview by reviewing your fundamental finance concepts, financial modeling, and private equity.
It might be rewarding to invest in a career in investment banking. Investment banking is one of the most lucrative careers in the world and has a good reputation. If it is asking for hard work, it will also give you the sweetest fruit. I hope that you got an answer to the question you had before reading the blog.
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