Understanding Investment Banking: How to Land a Job as an Investment Banker
The investment banking market is in huge demand. With an economy where development and research analysis players of the market such as JP Morgan, Barclays, Goldman Sachs, Merrill Lynch, Morgan Stanley, and Deutsche Bank are moving from traditional insurance industry operations to other activities such as acquisitions, mergers, and fundraising.
It can be a division of a financial institution that particularly serves corporations, governments, and institutions by giving capital raising, mergers, advisory services, and acquisitions or a bank. The investment bank also acts as an intermediary between investors and corporations.
The IB division of an investment bank helps these corporations, government and institutions raise capital to complete merger and acquisitions. With analysts working 100 hours a week, the demand for professionals in investment banking is high. Competition is extremely tough in this field, but the salary compensation is comparatively higher and the best part about the job is about the job role – it is deemed as high profile. Though the work is tough, it is rewarding enough.
How to become an investment banker?
When required to raise capitals to fund their business operations, most corporations and municipalities look up to investment banks for assistance. This is when an investment banker plays his role working with such entities. Being an investment banker, one needs to underwrite, securities for bonds, find buyers, or stock that help raise capital these organizations require.
Now to underwrite securities, an investment banker has the opportunity to usher corporations via processes such as mergers and acquisitions. To bring in positive implementation these experts must have in-depth knowledge regarding the current market’s economy. Besides this, they’re also supposed to be well-versed in the legal aspect for clients to meet for any kind of process.
Skills required to become an investment banker
Landing a career in the investment banking field is no cakewalk. Professionals expert in the IB field come from varied backgrounds, however, in-depth knowledge in mathematics is mandatory. Prospective investment bankers generally have a bachelor’s degree in accounting, mathematics, and finance. Some may come from a background such as physics and computer science as well.
Employers provide extensive training to their employees. Most freshers generally make an analyst job at the start of their career then gradually move to a higher job profile. Such training programs could carry on for weeks together. Training programs are considered valuable since they get introduced to principles of risk, markets, accounting, financial modeling, and financial statement analysis, etc. Skills required to get into a career in IB include analytical skills, management, and leadership skills, presentation and communication skills, networking skills and entrepreneurial skills.
A valuable way for professionals to gain experience before pursuing a career in the investment banking field is to pursue credible investment banking certification. However, having an internship program is often recommended for fresh graduates paving their way in becoming an investment banker. Advance your career in the investment banking field today and earn whopping paychecks.
One will often find such firms regularly hiring graduate interns providing them with mentorship and training.