Would you love to help people fix their financial problems? If yes! Then, becoming an investment banker in 2024 is your surest bet.
A lot of people who want to earn a living by becoming an investment banker ask questions like; Why investment banking? Where can I learn investment banking? and so on.
We will give you an overview of what and who an investment banker is. You will also learn how you can become an investment banker and that includes the best schools that offer degree programs in investment banking or related programs.
To get the best of this publication, we advise that you read in between lines so that you don’t skip the most important part.
Table of Contents
- What Is Investment Banking?
- What Do Investment Bankers Do?
- Why Investment Banking?
- How Can I Become An Investment Banker?
- Where Can I Study Investment Banking?
- Where Do Investment Bankers Work?
- How Much Does It Cost To Become An Investment Banker?
- Investment Bankers Salary
- Investment Bankers Career Prospects
- Frequently Asked Questions
- Conclusion
- Reference
- We Also Recommend
What Is Investment Banking?
Investment Banking is a type of segment in banking operation that helps individuals or organizations raise capital and provide financial consultancy services to them.
Investment Bankers act as intermediaries between security issuers and investors and help new firms to go public.
According to Wikipedia.org, an Investment bank is a financial services company or Corporate division that engages in advisory-based financial transactions on behalf of individuals, corporations, and governments.
Types of Investment Banking
Basically, in an investment banking division, bankers are typically shared into two groups and that includes the product and industry. However, the three most common product groups are mergers and acquisitions, restructuring, and leveraged finance. In addition, there are also product groups within securities underwriting.
The largest investment Banks are noted with the following;
What Do Investment Bankers Do?
The role of investment bankers include;
Why Investment Banking?
Becoming an investment banker in the UK typically requires years of academic study and internships. Commonly, you will head into a graduate role after university, putting in the hours to gain as much experience as possible.
Investment bankers are renowned for working long hours, so you will need to show commitment and enthusiasm early on in your career. You will also need strong financial and commercial awareness, keeping up to date with the latest affairs.
Successful investment bankers usually have a strong background in mathematics, excellent negotiation skills and the ability to work in high-pressure environments.
Investment bankers are renowned for working long hours, so you will need to show commitment and enthusiasm early in your career. You will also need strong financial awareness, keeping up to date with the latest affairs.
Successful investment bankers usually have a strong background in mathematics, excellent negotiation skills and the ability to work in high-pressure environments.
By working as an investment banker you can expect:
How Can I Become An Investment Banker?
The first step to choosing any career path is to get all the information about it including the jobs, schools, and salary. Actually, the minimum requirement for an entry-level in any banking career is to get a bachelor’s degree.
Basically, this career part begins from high school to the advanced degree level. So, pre-requisite classes for banking program includes courses such as business, finance and even math classes during college can be a practical way to build your knowledge base.
This is especially true if you’re coming to investment banking from a non-traditional major like English or history. Here is the step-by-step guide on how you can become a certified investment banker.
#1 Earn A Degree
A college degree in finance or economics is typically the starting point for entry-level jobs at an investment bank. Accounting and business are also common educational backgrounds.
While liberal arts majors can get jobs on Wall Street, if you have your heart set on investment banking, you’ll be tilting the odds in your favor if you stick to the traditional fields of study that are most closely aligned with your career goals.
Investment banks recruit from the best colleges and universities in the world. In the U.S. In Great Britain, the London School of Economics is consistently the top choice, with University College London, the University of Cambridge, the University of Oxford, and the University of Warwick among the perennial leaders.
Remember, investment banking is a global enterprise with New York, London, Hong Kong, and Tokyo serving as home to the major banks that employ many of the world’s most successful.
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#2 Apply For Internship
Most entry-level investment bankers start as financial analysts, the investment banking career track really begins with an internship. In fact, both large banks and smaller boutique banks recruit entry-level employees from their yearly crop of interns, so securing an internship during college is key to setting yourself up for success.
This will typically be a summer internship during your junior or senior year and (if successful) will lead to an offer for a full-time financial analyst role.
#3 Build your network
Investment banking is as much about who you know as about what you know so building your professional network is crucial to landing an outstanding job after graduation.
An effective way to do this is through internships and networking events, particularly those aimed at college students and recent graduates. Attending recruiting events can also be helpful since you’ll be able to meet with recruiters in person.
#4 Get A Licensure
In order to represent a bank or financial institution as an investment banker, it requires these professionals to register with the Financial Industry Regulatory Authority (FINRA), which includes an examination based on their specific work.
#5 Apply For Advanced Degree
You do not need a Master’s degree to follow an investment banking career, but it can make you a desirable candidate and give you an advantage over others. If you choose to study for a Masters’s degree, look at areas that will be beneficial to potential employers.
Areas such as finance, investment management, and wealth management are usually sought after, but business administration and computer science can also be fantastic choices. Developing complex quantitative skills can make you highly employable.
Where Can I Study Investment Banking?
If you’re set for a career in the financial markets and wondering which school you should enroll in. There are a number of options when it comes to specialist investment banker qualifications. Here are the best finance schools in the world.
Harvard University
Harvard University basically offers 12 finance courses, with at least two taken on campus. Weekend on-campus options are available. You begin by completing three stipulated degree courses as outlined on the degree requirements page.
Usually, while completing your third-degree course, you submit the admission application. As you progress through the program, you choose from courses offered on campus or online, year-round in the fall, spring, or summer.
Additionally, graduate tuition per course is $2,840. The total tuition cost of earning the degree is approximately $35,000.
Boston University
Boston College offers a degree in finance through the School of Management. Basically, students take a number of courses in basic finance, corporate finance, investment banking, and more.
So you will learn how to make important financial decisions as well as how to assess risk and returns.
Wharton University of Pennsylvania
The Department of Finance at Wharton University specializes in courses that entails the overall economic context affecting a firm’s investments, cooperate and international finance.
Other investments bankers programs are;
Where Do Investment Bankers Work?
A career as an investment banker can allow you to work in different areas of an investment bank. This could be in corporate finance, debt capital markets or equity capital markets.
You will typically start in a junior position such as an analyst or an associate. These two to three year positions will give you the training to progress to associate level.
With further experience and training, you could move onto a senior position, managing both analysts and associates. After 10-15 years of working in the industry, you could be looking to move up to director roles. You will need to show true commitment to the career path to progress to higher roles. Strong performance and a desire to succeed are key to progress.
Check out this scholarship opportunity for Banking and Finance Masters student
How Much Does It Cost To Become An Investment Banker?
A four-year degree program in investment banking typically costs $25,000 from an accredited private university. Similarly, the same degree program from a public university costs an average of about $6,600.
Investment Bankers Salary
The US Bureau of Labor Statistics groups investment bankers with securities, commodities, and financial services sales agents, and this group earned a median yearly salary of $71,720 in 2012.
Investment bankers’ base salaries are often supplemented with bonuses from their employer, so one’s earnings in this field can be quite high, reaching past $100,000 within a few years as an analyst.
Below is the breakdown of the Investment banker’s salary based on Wall Street Oasis(WSO).
Investment Bankers Career Prospects
Most Investment bankers begin their careers at the analyst level and, with experience and additional education, they advance into associate positions. Others enter the field as associates after working in another industry and earning a graduate degree such as an MBA.
With experience, these associates can become vice presidents at their banks, supervising analysts and associates and interacting more directly with clients. After some time as a vice president, investment bankers may then become directors or principals at their bank and further focus on building relationships with new and existing clients.
One of the highest positions an investment banker can reach is managing director, and at this level they work almost exclusively on bringing in new business.
As investment bankers move up the hierarchy of their bank, their base salary increases, but their potential for bonus earnings increases much more.
Frequently Asked Questions
With a degree in investment banking, you can become or work in a company as financial analysts, insurance managers, financial examiners, personal financial advisors, financial advisors, brokers, and investment bankers.
Banca Monte dei Paschi di Siena also known as BMPS, is the oldest surviving bank in the world. It was founded in 1472 by order of the Magistrature of the Republic of Siena as the Monte di Pietà and has been in continuous operation since then.
Investment banks provide four primary types of services: raising capital, advising in mergers and acquisitions, executing securities sales and trading, and performing general advisory services. Most of the major Wall Street firms are active in each of these categories.
Conclusion
A career in investment banking can be very Lucrative and fulfilling. Just like other financial professions, your career path begins from high school. Firstly, focus on the selection of finance or banking related courses like mathematics, computer, and ICT because they’ll provide the foundation you will need for advanced coursework in Finance and Economics.
Also, consider English too because they teach communication skills that you’ll need in your later practice and also focus on maintaining good academic scores and CGPA.
After graduation, your next step is a four-year bachelor of science degree. Carefully review the admissions requirements for the banking colleges you’re interested in attending.
There are many institutions across the world that offer banking and finance programs and that include both online and on campus. However, you can actually become an investment banker without a degree but you may need a certification if you desire a better opportunity in the financial market.
Reference
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