Excellent academic skills, financial knowledge, and a strong work ethic are all required to become an investment banker. A job as an investment banker is viewed as one of the most sought after in the financial services industry. An investment banker is both a financial expert and a strong negotiator, and they are responsible for orchestrating large financial transaction on behalf of banks, governments, and other large business organizations.
An investment banker (often known as an ibanker) is employed by an investment banking firm. A firm will be contracted by companies when they are required. An investment banker could be called on to negotiate a company merger, help to float a company on the stock market for the first time, or to help find a way to salvage a company facing financial hardship.
Education Requirements to Become an Investment Banker
To become an investment banker you will most likely require postgraduate qualifications. Many that work in this field are recruited by firms straight out of college. If you’re in high school, work on getting good grades and look for a place in a leading college.
You’ll need to start out by completing a bachelors degree in business administration, commerce, accounting, or finance. Investment banking firms prefer to hire candidates with a masters in business administration, or an MBA. So after you complete your undergraduate degree, you might wish to take steps towards achieving this.
In some instances, graduates from other fields such as business or law, are employed by investment banking firms and trained on the job. Usually these candidates go on to complete postgraduate qualifications while they are still working.
Preference will be given to those that attend the leading schools in the country. Also, taking part in extracurricular activities can make you stand out during the hiring process.
Completing internships while you are studying is of the utmost importance if you would like to become an investment banker. Many investment banking firms will give summer jobs to students as a trial for a full time job after graduation.
Investment Banker Job Description
An investment banker is responsible for negotiating financial transactions between businesses. For instance, a merger or a buy out between two companies would involve a investment banking firm there to negotiate the deal. An investment banker will also be contracted by a company to advise them on ventures they may be considering. An investment banker will often be called into a company facing financial hardship to look at ways to get them out of the red.
When you become an investment banker, you will need to draw on a broad range of skills. Firstly, you must have plenty of knowledge regarding finance, and the way that businesses operate. This will allow you to understand the companies you work with, and to be able to find ways to improve them. You also need to be a strong negotiator. The contracts that investment bankers work on often involve multiple parties that do not always see eye to eye.
Here are some of the duties of an investment banker:
- Analyzing financial data
- Preparing reports on findings
- Negotiating mergers
- Weighing risk and reward on financial ventures
- Financial risk management
When you become an investment banker, you will most likely be employed straight from college to work within an investment banking firm. There you will be trained on the job while you work as a junior banker. With experience, you could expect to be promoted to the role of an ibanker. You could also rise to become the head of department.
Many investment bankers go on to become company partners, vice-presidents, presidents, and chief executive officers later in their career.
Some similar roles to that of investment banker include:
- Bank Underwriter
- Internal Auditor
- Financial Analyst
- Financial Planner
If you are looking for a challenging role within finance that will allow you access to some of the top jobs in the financial industry, then you might like to become an investment banker. While you will need to work hard at your studies to attain the role, there is a very good earning capacity and good job security available, as well as good opportunities for advancement.