Finance is an expansive area of work consisting of a multitude of segments that are interesting to get a job in. One such sphere that is catching the attention of every second finance professional is investment banking. It has gained unparalleled importance amongst job seekers on account of the exorbitant salaries and countless incentives that this domain has to offer. If you are an aspirant of an IB job, you are at the right place to seek information that will help you accomplish your goal of becoming an investment banker.
Before providing you with tips on how to become an IB professional, I will give a brief about what investment banking means. So, here it is.
Investment Banking – Significance
Investment banking is one of the most essential divisions of banking operation which helps companies and individuals raise capital. Investment Banks are also known for advising clients on financial matters, such as the management of assets like debt funds, equity funds, real estate and so on.
They act as a mediator between investors and security issuers along with encouraging companies to go public. In some cases, they buy the shares of a company at a certain price which is suggested by experts to resell them while in other cases, they sell shares to the public on behalf of the issuers and charge a commission. Investment Banks act as a brace for companies going through mergers and acquisition by offering them services like foreign exchange, derivatives trading, market making, fixed income instruments, equity securities and so on.
What it takes to Become an Investment Banking Professional
The field of investment banking welcomes professionals from a plethora of educational backgrounds on a condition that they have strong foundational knowledge in mathematics. In general cases, people who apply for IB jobs have a bachelor’s or master’s degree in subjects like finance, accounting, mathematics, and other related spheres of knowledge. Also, investment banks prefer hiring people holding investment banking certifications.
In the initial phase, it is the theoretical learnings gained by you during our investment banking certification program that helps you land a job in this sector. But, once you join a bank or firm, you are required to go through intense sessions of training to learn a wide array of topics, such as principles of the market, financial modeling, risk along with accounting. As a freshman in IB, you are usually offered the position of an analyst and to justify that role, you are also needed to acquire skills regarding communication, negotiation, and presentation.
The Growth Prospects in Investment Banking
If you are a graduate, you may have to start your career as an analyst and can hope to get promoted to the associate level after 2 to 3 years of hard work. Presuming that you own a master’s degree, you can begin your career with capturing an associate post. And, once you are settled in your job and the learning process kicks off, you can expect to reach the VP position in the next 5 years where you will receive the chance of dealing with clients.