Study For An Investment Banker Degree
Employers dedicate sizeable resources to training their staff in this area, but a Bachelors degree is normally expected for most investment banking graduate jobs. It doesn’t necessarily have to be in a finance-related subject, but it should have a strong maths focus, such as economics, business or management. A grade of 2:1 or above is typically required by the top investment banks.
If you’re ready to apply for university and already set on a career in the financial markets, there are a number of options when it comes to specialist investment banker qualifications.
Firstly, there’s the three-year full-time BSc Finance at the University of Reading, which is an affiliated Chartered Financial Analyst programme.
The London Institute of Banking & Finance offers the industry-recognised BSc Finance, Investment and Risk, as well as the BSc Banking and Finance, which includes an optional one-year industry placement.
The CFA Society of the UK offers the entry-level Certificate in Investment Management award, delivering the threshold competency knowledge in research analysis, portfolio management and other key investment activities. You can either do this Level 4 qualification through self-study and by registering for the IMC exam yourself, or through a recognised training provider such as BPP or Kaplan.
As you consider continuing professional development and studying for further investment banker qualifications, you can enrol onto the Chartered Financial Analyst programme.
Entry Level Investment Banking Analyst
Becoming an analyst is the first step in starting a career in investment banking. Because analysts are the lowest position in the investment banking hierarchy, its their job to do whatever it takes to support their superiors in closing deals. This includes completing tasks such as putting together presentations, financial analysis/underwriting, communicating with clients, and random administrative tasks.
Analyst positions in investment banking are highly selective, however, a bachelors degree from a top ranked school and/or an MBA can help you get into an interview.
Careers After Investment Banking
You might start investment banking and think this is exactly where Im supposed to be. But its just as likely, if not more so, that at some point you might want to pivot into a new career. Research suggests that young Australians are likely to have 17 different jobs over five careers in our working life. So how is that a perk of investment banking? There is no denying that any role within an investment bank will train you in adaptable, transferable skills that will set you up for the future. With your freshly sharpened analytical tool chest, youll find yourself in a strong position to transition into the buy-side of banking or move into consulting, or launch your own business or a huge range of other options .
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Do An Investment Banking Internship
Many of the top banking institutions, including Barclays, Goldman Sachs, J.P. Morgan, Morgan Stanley and the RBS Group, offer summer internships in investment banking.
For instance, J.P. Morgan offers 10 to 12-week investment banking internships for penultimate-year university students. You’ll get to learn key technical skills by working on deals and transactions for the company’s clients.
On-the-job-experience and practical skills training give you the perfect grounding in investment banking. The best-performing students may receive full-time job offers upon completion.
However, it’s important to make an informed decision by first learning about the different work experience opportunities and choosing one that best suits your interests. Watch short videos of employees sharing their career stories to get an idea as to whether investment banking is for you.
When preparing your application, discover what’s required in the selection process. In addition to ensuring your CV is a true reflection of your skills and abilities , ensure it’s tailored to the job description and specific internship you’re applying for.
This advice is also applicable to those looking at finance graduate schemes while still at university. As investment banks place such strong importance on work experience, to progress to a graduate scheme your chances of success will be greater if you’ve already undertaken an internship or work placement with them.
An Internship Is Very Critical During Bachelors Or Mba
Although most entry-level investment bankers start as financial analysts, the investment banking career track really begins with an internship. In fact, both large banks and smaller boutique banks recruit entry-level employees from their yearly crop of interns, so securing an internship during college is key to setting yourself up for success.
An internship is a fantastic opportunity to build your skill set and get on-the-job training. This is especially important in a field like investment banking which is both technical and specific. By taking on one or more internships during your time in college, youll gain exposure to many facets of the industry and be able to find an entry-level investment banking job thats right for you.
This will typically be a summer internship during your junior or senior year and will lead to an offer for a full-time financial analyst role.
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The Core Services Of An Investment Bank
At a high level, the Investment Banking Division offers four core services:
- M& A advise clients on the sale and purchase of companies.
- Restructuring help clients work through periods of financial distress.
- Equityworkwith the Capital Markets division to raise Investor capital for clients.
- Debt work with the Capital Markets division to raise Lender capital for clients.
For each of the services above, Investment Banks earn a fee.
Banks charge feesbased on a percentage of the sale value of a Business or the money raised.
Which Qualifications Can Help With A Career In Investment Banking
The number of applicants who wish to embrace a career in investment banking means those who are looking for an additional edge should seriously consider obtaining professional qualifications in order to boost their CVs and resumes. Not only will these certifications provide a greater knowledge base, but they can also help to secure a sought-after position. Lets take a look at a handful of options in greater detail.
Investment Banking Analyst Job Description
As an Analyst, youre in charge of Excel and PowerPoint work and administrative tasks such as tracking buyers and sellers, managing the data room and deal documents, and responding to requests from clients and potential clients.
Age Range: Most full-time Analysts have just finished undergrad, while some have completed Masters programs, military service, or another full-time role, so well say 22-27.
Investment Banking Analyst Salary + Bonus: This varies from year to year, but base salaries tend to be between $100K and $125K USD at large banks, with bonuses that are roughly 0.5x to 1.0x that base salary. Total compensation is often in the $150K $250K range .
Investment Banking Analyst Hours: Youll be in the office for 70-85 hours per week, but you wont be working for that entire time. Investment banking hours are long, but theres also significant downtime.
Youll work less on weekends, and sometimes youll get a protected weekend where you get Friday night into Saturday off.
A long time ago, some groups were known for making Analysts work consistent 90-100+ hour workweeks, but that is rare now.
Register And Pass Applicable Securities Exams
To work as an investment banking analyst, you are required to register as a representative with your bank via the Financial Industry Regulatory Authority . Also, depending on what type of work you plan to do, you might need to pass securities licensing exams. The most common type of credential is the Chartered Financial Analyst , which is offered via the CFA Institute. To become a registered member, you must have at least four years of investing experience and complete the CFA program, which is a three-part course that covers investment valuation, portfolio management, and company analysis.
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Fintech/ Banking App Developers
App Developers are also in high demand across industries. The move digital was always coming, but it was greatly accelerated by lockdowns which further pushed a lot of business activity online. The salaries for talented app developers has gone through the roof and it represents one of the better opportunities in finance/ tech.
Why Work In Such A Crazy Role
If youre asking yourself, Why in the world would I want one of these jobs?its a fair question.
The answer comes down to three primary factors:
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Investment Banking Exit Options And Opportunities
One of the main reasons many people want to get into investment banking in the first place is the wealth of exit opportunities that such a role can deliver.
Investment banking is a great place to start a financial career, as it helps to build some highly transferable skills that can be used to secure roles that offer similar levels of compensation, but with better work/life balance.
Networking with clients, investors and colleagues can also help to open doors and means that investment bankers might be first in line for some exciting, rewarding and lucrative positions as they become available.
Having said this, you might also wish to progress to a higher level within your current firm. A professional qualification may help make the difference here.
For anyone looking to switch financial careers, popular routes from investment banking include moving into areas such as investment research, corporate development or private equity. Alternatively moves to other areas such as risk analysis, sales and trading, internal auditing, and associate investment strategists are available.
Investment Banking Director Job Description
Directors are also called Senior Vice Presidents or Senior VPs , and sometimes there are other variations like Executive Directors or Principals.
This level is a mix between what VPs and MDs do, and the role differs depending on the bank and group.
Sometimes Directors focus on developing relationships and winning clients, and other times they do more execution work and project management like VPs.
But no matter what a Director does, he/she will have to move closer to winning clients to advance to the next level: Managing Director.
Age Range: You must have been an Associate and VP to get here, so the minimum age is probably in the low 30s. Well say 32-45, with 45 on the high end and plausible mostly if you went to business school late.
Investment Banking Director Salary + Bonus: Theres a bit of a bump over VP-level compensation, but not necessarily a dramatic one the typical range for total compensation might be $800K to $1.2 million per year, with the majority in the bonus .
Investment Banking Director Hours: The hours drop to around 50-60 per week, but required work travel picks up.
Promotion Time: Its probably an average of 2-3 years to get promoted to Managing Director, assuming you perform well enough to justify it.
Investment Banking Director Exit Opportunities: Your options are, once again, join a normal company or switch banks.
Why A Career In Investment Banking
Many people are drawn to the investment banking career path for the money: even at the mid-levels, youll be in the top 1% of income earners in most states and countries.
Others are attracted by the excitement of deals and high-stakes negotiations with important people such as CEOs and Board Chairs some are fascinated by deal mechanics as well.
And still others are attracted to investment banking careers because of the exit opportunities, particularly the ones available to junior bankers such as Analysts and Associates.
Salary Of Investment Banker
- Senior Level Salary 580000
A senior investment bankers pay is influenced by a variety of variables, including their level of experience and employer. An investment bankers compensation ranges from roughly Rs. 250000 per month to over Rs. 550000 per month at the highest echelons.
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Frequently Asked Questions On Banking As A Good Career Path
What do you mean by banking?
Banking entails taking care of other peoples money. The interest earned on these loans is what ultimately helps the bank turn a profit for its shareholders. If youre looking for a place to put your money and get some cash back, youre looking for a bank. On the other hand, they might offer additional banking services.
Who introduced banking?
Charles Montagu, 1st Earl of Halifax, in 1694.
What is a bank and its functions?
A banks primary role is to accept deposits from the public and then make loans to support economic growth in the areas of agriculture, industry, trade, and commerce. Bank earns more income on loans and advances from customers, but pays less on on deposits.
Is Banking A Good Career Path?
Yes, it is.
What are banking services and its importance?
The term banking refers to the business of accepting deposits and making loans or investments using those funds. It makes it easier for people to buy and sell goods and services by offering a monetary system and other services. Thus, banking serves as a crucial supporting role in commercial exchange.
Tips To Become A Investment Banker
Investment Banking is an extremely competitive industry. Landing a position at a firm within a financial hub will be difficult. Examine the different types of investment banking you want to do and the type of bank youd like to work at. Youll need to be sure that the culture of the bank you want to work at is a good fit for you and your aspirations.
Location matters for this job. Youll likely need to be in a larger city and you should look into banks in the region that youd like to live in before applying to jobs because it is unlikely that youll find an investment banking job that is fully remote. The school you go to also matters for this position. Investment banking firms will often hire candidates from specific schools. If you havent gone to school yet, consider this when applying.
Beyond your resume and technical qualifications, youll need to stand out among a large pool of candidates through three major questions: Why should we hire you?, Why do you want to work at this bank in particular?, and Why did you choose an investment banking career? These questions may be expressed in a way that tests your culture-fit, by asking about how youve acted in team settings or challenges. Practice these particular questions through mock-interviews, with anyone you can – like friends, family, classmates, a mentor, or even in your mirror or on camera by yourself. Youll need to know your answers to these questions and be able to say them with confidence.
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Merger & Acquisitions Asset Management Raising Capital
Lets start with a disclaimer you may have exceptional analytical skills, feed off finance, and crunch numbers and analyse data faster than the speed of light. But, be warned, you might still not make the cut as an investment banker.
So what do those Wall Street hotshots have that you dont?
Apart from oodles of talent, those Wall Street prima donnas have a certain type of personality that is suited to this high-octane career. You either have it or you dont.
So, deconstructed, heres what the glamorous world of an investment banker really looks like: he or she has guts of steel, an insatiable appetite for risk, never plugs out of work, has a willingness to spend 12 hours a day or more hunched behind a computer screen, has a fetish for spreadsheets, a tolerance for abnormally high levels of stress, and foregoes anything that even remotely resembles a personal life.
Yes, being an investment banker can get pretty insane. So what exactly does this career involve? You are blessed with financial acumen but should you have investment banking on your checklist?
Education Needed For Ib
There is no specific career path for investment banking, but investment banks do have a preference for numerative degrees.
Increasingly, that means engineering and physics graduates find their way into the profession, but most commonly, they hire from the traditional fields of economics, finance, business, and management.
And of course, itâs no harm to be from a prestigious school but not an absolute necessity.
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What Can I Expect From A Career As An Investment Banker
Your experience as an investment banker will usually depend on your specialism. Initially that is shaped by whether you become a corporate investment banker or an operational investment banker.
As a corporate investment banker you generate business and perform client-facing duties, while in operations you ensure that business is conducted in an efficient manner, with money transferred as it should.
Corporate investment bankers advise businesses, organisation and governments on achieving financial goals and implementing financial plans over various periods of time.
You will have key duties during a typical two-stage corporate finance deal:
- Origination – assessing desirability, which can be a creative idea from the bank rather than the client. This requires a deep understanding of a sector and extensive research
- Execution – negotiating and structuring detailed terms of a deal.
As an operations specialist you are involved in developing new systems that maximise efficiencies and profitability.
You will be responsible for overseeing that transactions are cleared and reconciled in accordance with all regulations and control requirements.
Your operations duties will usually involve:
- Reconciling systems by monitoring data flow from the revenue-generating front office to the operations systems
- Checking activity and reports of daily transactions
- Liaising with clients on transaction settlements
- Troubleshooting system problems.