How to Become an Investment Banker?

 

Who is an Investment Banker?

An investment banker is a highly qualified individual whose primary role is to raise funds for corporations, businesses or other communities. Commonly, an investment banker is associated with an investment bank. However, some investment bankers are known to work as freelance agents as well. Either way, an investment banker will be responsible for handling massive, complicated financial transactions. These may include planning an acquisition or merger for a company or group of clients.

Roles played by an investment banker

• The investment banker plays an essential role in corporations and businesses. One of the biggest responsibilities of an investment banker is to find qualified investors willing to invest money in the company’s bonds. Essentially, investment bankers use their resources and contacts to raise capital for the company’s business ventures.
• Investment bankers offer a variety of services to their clients. These include helping broker M&As, providing detailed information to clients looking to invest in new business opportunities.
• Asset management is also one of the crucial roles played by an investment banker. They help select the right combination of stocks, real estate trusts and investment tools of similar capacities to achieve the goal set by their clients.

The scope of an Investment banker

In a growing economy like India, there is ample demand for a qualified investment banker. Most MBA graduates gravitate toward investment banking because of its monetary benefits- and this is justified. Investment bankers do take a hefty paycheck home. However, there is an array of career opportunities available for investment bankers. Investment banking is a fast-paced job. It requires individuals to have complete and thorough knowledge about all the different changes that take place in the market. Since the market changes quite a lot, there is a constant learning curve associated with the job. This makes investment bankers eligible for other higher posts. Also, a person with such detailed knowledge about market fluctuations should also be able to start his own entrepreneurship with ease.

Demand for Investment Bankers

According to the U.S Bureau of Labor Statistics (BLS), job opportunities in the securities, commodities and financial fields will increase by 10 percent between 2014 and 2024. Because of this market upsurge, it is only natural that the demand for investment bankers will grow over the years. Also, as mentioned earlier, in a developing country like India, which is now welcoming multinational behemoths and their branches, the requirement for a good investment banker should be through the roof. Investment bankers can also use their training and experience to start their own new businesses. Therefore, one thing is for sure- pursuing a career in investment banking will never leave you short of job opportunities in the future.

What are some of the requirements of becoming an investment banker?

How to become an investment banker is a question many finance graduates ask themselves. There is no particular requirement. A person from any field can pursue a career in investment banking. However, it is necessary that they have a strong base in mathematics and statistics. Since investment banking is a specialized field, most people wait until they have completed their MBAs to step into this career path. But even fresh graduates can apply for a course in this field. It is definitely important to have a good knowledge of the market economics in general, but some other skills that an investment banker is required to have are persuasion, perseverance, and tenacity. The field of investment banking is highly competitive, and a good investment banker is required to have the communication and persuasion skills necessary to convince clients to invest in their parent companies. Individuals with good PR skills make excellent investment bankers.

• • Focus on relevant classes

Investment banking is a competitive field which requires a sharpened knowledge of all things finance. Start with taking finance, business, and math classes in college to build your knowledge base. This is especially true for those who are stepping into the world of investment banking from a different field altogether.

• • Get a degree from a reputed school

This is probably the most obvious first step. Students from accounting and business fields will find it easier to make it to the investment banking field. That does not mean that students from a background of fine arts cannot make it in the investment banking field. However, it is safe to say that if you are interested in this field at all, you will naturally gravitate towards finance related subjects from your graduation days itself. Try to get yourself enrolled in one of the best business colleges in your area for your investment banking degree. Chances are that the more reputed your college, the more opportunity you have to intern at a decent company.

• • Go for an advanced degree

Of course, you would get a job with just your bachelor’s degree but having an advanced degree in your pocket will prove beneficial for you. An MBA degree or a CFA specialization would do wonders for your resume. You can even check our MBA curriculam. We offer one of the most competitve degree in MBA in Finance and Investment Banking.

• • Take an online investment banking course

If need be, you can also pursue an investment banking course online. There are plenty of online MBA courses that allow you to procure a degree without compromising your current job or work. This can be a viable option for those who are looking for a career switch. You can study the financial course online while continuing with your job.

• • Land a good internship

If your college places you in a good company, then you’re good. Otherwise, prepare to get yourself a good internship opportunity. For that, you will need to advertise yourself in front of all the right people. Connect with people who have influence in this industry, or those who can recommend you to such influential people. All you need to do is make a good impression. An internship from a good company will not only add immensely to your CV but will also help you learn the ropes of the business better. When you have to learn, it is best to learn from the pros.

• • Making a good impression is essential

We talked about making a good impression in the point above, but the question is, how can you make a good impression in front of these people? Wee, investment bankers, and their clients are actually some of the richest people in the world with very particular tastes and ideals. To make an impression on them, you will have to look the part. In fact, a study by the U.K governments Social Mobility Commission suggests how even subtle mistakes like an improper haircut or ostentatious shoes can discourage job givers completely.

• • Understand what investment bank recruiters are looking for

This also falls under making a good impression on the company recruiters. It would be easier to impress them if you knew what they are looking for. If you have your eyes set on one or two companies for your internship, take a look at their job requirement lists. More or less, recruiters look for graduates from reputed business schools who demonstrate an interest in financial services and have the required knowledge and working skill to be a valuable addition to the company. When you are talking to the recruiters, make sure you let them know your specialties. Mention any financial projects or enterprises that you have been a part of, and what role you had to play there. This may seem like bragging, but it is important to let the recruiter know what’s special about you, especially when you are venturing out into a competitive field like investment banking.

• • Start networking early

Investment bankers rely upon their network of investors to draw capital for their company. A network is not built in a day, so you have to start early. Socialize with as many people as you can, investors or potential clients. This is where the PR aspect of investment banking comes in. A person with poor communication skills will find it hard to make it big in this field, even if they have all the necessary qualifications and knowledge.

• • Procure firm knowledge of the financial market

To be an investment banker, you will need to have a thorough knowledge of how the market works. This is as important at the start of your career as it is when you move on to better prospects. You will have to know everything about the past and present market trends, as well as special knowledge of how the new generation of investors differ from the older generation. Research is key here, and the more you learn, the better it will be for your career.

Conclusion

We have said it twice, we will say it again – investment banking is an extremely competitive field. Even when you land that dream job, you will need to work extremely hard to keep it, or else you will be replaced in a matter of days. If you are dedicated and efficient, then you will surely climb the upward ladder. At BMU, we train you to become global leaders. Our MBA programme doesn't only focus on theoretical learning but, we give utmost preference to experiential scope of understanding the concepts so that you can relate with real life problems.