If you’re a fan of the Margin Call, chances are you have already thought about how to become an investment banker. Let’s dive into this blog to help you navigate how to become investment banker.
Investment banking is a financial service industry that helps clients raise capital and provide advice on mergers and acquisitions, financial restructuring, and other strategic initiatives. It’s a challenging profession that requires both wit and grit. Investment banking involves a lot of knowledge and expertise in analytical and mathematical skills, with the rewards being steep as well. It has been found that the global average salary for an investment banker is $117,6261 fueling it to be one of the most lucrative fields.
In addition, the future of this profession looks bright. The Bureau of Labor Statistics (BLS) came up with a report that showed a rise in employment by 10% by 20312. This rate is much more than in other professions.
Needless to say, a career in investment banking offers a high career growth potential. It’s expected to grow by 8.5% in 2023. In addition, completing investment banking courses from any reputed college can help you become an effective Investment banker.
Are you still thinking about how to become an investment banker in India? Well, don’t worry, as you’ve come to the right place! In this blog, we’ll go over all the necessary details about becoming an investment banker, ranging from prerequisites to frequently asked questions about investment banking.
What’s the role of an investment banker?
An investment banker is a trained financial expert who helps companies, investors, and governments to raise funds for company activities. In addition, they serve as a mediator between investors and companies. Investment bankers decide the security prices, aid companies in managing funds and resources, and increase share prices. They also provide valuable counsel during complicated business procedures like acquisitions and mergers.
Therefore, an expert investment banker must be equipped with some specific skillsets and traits. These traits can help you find success in your career. Enrolling in an investment banker degree can help you develop the right skill sets and networking skills.
Let’s check out some of the skills that an expert investment banker must possess:
- Decision-making skills
An investment banker’s main responsibility is making important decisions for companies, clients, and businesses. Several individuals and companies go to investment bankers for guidance. Therefore, an IB must understand trends and offer good investment decisions/advice.
- Communication skills
Investment bankers typically talk to several experts in important positions on a daily basis. That might include major stakeholders, managers, clients, and even coworkers. Therefore, the ability to understand, voice, and communicate your idea clearly plays a major role for investment bankers.
- Analytical and mathematical skills
An analytical mind is crucial for understanding the number game, at least in the investment banking sector. A good analyst can easily decode a graphical representation of a financial statement or easily think through a financial problem and come up with a feasible solution. Such skills allow them to solve monetary problems by slicing the problem into several micro categories.
After that, IBs come up with strategies for each of these problems. Experiencing these problems first-hand can be very different from what you’d think. Therefore enrolling in investment banking courses can help you get this skill set.
Branches of Investment Banking
Traditionally, investment banking can be divided into two broad categories that candidates can explore as per their field of interest. Investment bankers are usually required to work in these two branches-
- Corporate Financial Banking:
In this branch of Investment banking, investment bankers are required to raise capital for companies and individuals by doing smart investments, stocks, and bonds. They are also responsible for handling mergers and acquisitions.
- Industry Coverage Banking:
Investment bankers are required to target specific businesses. Investment bankers must be aware of the latest market trends in a particular industrial sector. Reporting the findings to stakeholders and clients is an investment banker’s daily task in industry coverage.
Eligibility criteria for becoming an investment banker
The need for expert investment bankers has increased with the rise in the number of companies and businesses globally. While new local FMCG companies might offer the role to a B.com graduate, most elite financial organizations still prefer MBA graduates from a finance background.
Keeping educational qualifications aside, a strong understanding of finance, maths, and economics is imperative to succeed in this career. An MBA course that features enrolling in an MBA course can give you access to several investment banker courses. This will provide you with an edge over your peers.
Let’s dive into all the ways how you can become an investment banker:
- Bachelor’s Degree
Candidates who choose to complete investment banking courses after 12th graduation are eligible to work for any entry-level job position in the sector of investment banking. For example, you can join an investment company as an intern or a bank as a Junior Analyst. After that, you can easily work your way up with hard work, diligence, and commitment.
During this period, an intern gains practical experience and often learns a lot from their mentors. They also begin to understand the workings of the investment banking industry. They are also taught the art of persuasion and negotiation during this time. The average pay for an intern from the investment banking industry is 4.9 Lakhs per annum.
- MBA In Finance
Doing an MBA in Finance is the easiest way for a candidate to enter the IB industry. The course includes almost all the required subjects like marketing, business management, and financial analysis. Such subjects and practices can set you up for the best investment banking career. In addition, the course will help you to meet like-minded people and build connections and industry experts.
Doing an MBA in Finance will also allow you to get recruited in many industries like Equity management, financial analysis, and accounting. Needless to say, finance is the absolute center for any business organization or company.
Therefore, an investment banker must possess excellence in handling financial situations to do his job correctly. MBA students from a finance background are eligible to take up jobs in several sectors, including banking, insurance, fintech, and startups.
- Chartered Financial Analyst (CFA)
If you’re already a Chartered Finance Analyst, becoming an investment banker can get easy for you. As CFA is aligned with the investment banking industry, you can easily get into most reputed financial organizations, banking institutions, investment firms, and management consultancy companies.
CFA is also considered to be a stairway to improvement as an investment banker. This extensive course features three different exams along with 4,000 hours of work experience. As the need for financial experts grows, the demand for CFA charters also increases.
How to excel as an Investment banker?
Do you wish to become a part of the investment banking tribe? Consider availing Master of Business administration offered by Golden Gate University to kick-start your dream career as an investment banker!
By availing this MBA and investment banker degree, you can also have an alumni status and a WES recognized course, which will help you get work in global institutions. In addition, this investment banker course also gives you extensive practical experience through multiple case studies and projects.
Check out the course to know more.
Conclusion
How to become investment banker is a widely searched question by aspirants. Knowing the right steps can help you take the lead, while possessing the right degree can offer you an edge over others. Our blog compiles some of the most significant steps you can take to become an investment banker. Take leads and start preparing for your journey to become a successful investment banker!
FAQs
- What’s the average salary of an entry-level investment banker?
In India, it was found that the average salary for an entry-level- investment banker ranges between 4 lakhs and 10 lakhs per annum.
- Does this MBA course offer flexible classes?
Yes, this online course features asynchronous classes, which lets students complete the course at their own pace.
- How to become investment banker in India?
You can enroll in an MBA program to access an investment banker course and be eligible to work for the top financial institutions in our country. Top programs such as GGU Master of Business Administration can be an exceptional addition to your resume.
