The path to becoming an investment banker

By July 8, 2019 ,
certified investment banker

Among many other job roles, investment banking has emerged as a lucrative option. It is a demanding job role with demand for individuals with good analytical and numerical skills. Though companies hire individuals irrespective of their background, MBAs in finance are mostly preferred for this role, given their prowess in finance. Most MBAs step into investment banking because of the monetary benefit, which is justified.

Most students from b-schools take a step in investment banking once they graduate. However, the MBA isn’t mandatory, as long as, one holds requisite skills. So how can one become a certified investment banker? Before we get to that, let’s see the work that investment bankers do.

What do investment bankers do?

Generally, investment bankers are associated with major investment banks. Names such as Goldman Sachs, Morgan and Stanley, etc are common banks where investment bankers find employment. Here investment bankers help businesses raise money for their business. For this, they are required to build contacts with investors who may be willing to invest.

Investment bankers also broker M&A deals and facilitate funding for companies looking to raise capital for their existing business or new ventures.

Asset management is another factor that investment bankers look after. They help clients to build an efficient portfolio with the right selection of stocks, real estate trust, and other investment tools to achieve profits set by clients.

Where can investment bankers find employment?

According to America’s BLS (Bureau of labor statistics) job opportunities in securities, capital market, and finance will grow by 10 percent between 2020 and 2024. This presents an opportunity for investment bankers to grow and find ample work opportunities. Investment banks, private equity firms, hedge funds, insurance companies, and venture capitalists are a few places where investment bankers can find jobs.

What are the requirements to become an investment banker?

There’s no specified path to becoming an investment banker. Though having a finance background is helpful, it is not mandatory. People from any background can pursue a career in investment banking. Strong experience with mathematics or finance is a plus point. There are short-term investment banking certifications that can be pursued to start off in investment banking.

As mentioned earlier, a lot of graduates wait till MBA, before getting into investment banking, but the fact is even fresh graduates can start their career in it.

To become an investment banker, you need to have good knowledge of market economics, strong communication skills, persuasion, tenacity, and perseverance.

Investment bankers are required to persuade their clients to invest in their parent companies. For this, they require persuasion, and since plenty of rejection is a part of the job, so they are required to have perseverance.

Finally, let’s see how can one become an investment banker.

How to become an investment banker?

If you come from a different background, get knowledge of finance. This is extremely important. You can start with finance, math, or business lessons. 

Further, you can go for a degree in investment banking. Universities and colleges offer investment banking degrees for which you can go. If you’re already a graduate, part-time degrees are also available. Check with colleges and universities in your area.
As said earlier, you can also go for investment banking certifications.

Additionally, you can go for Internships. They are very helpful in equipping with the skills required for investment banking.