Investment banking is basically about making money. A lot of money! These people from the banking sector buy and sell financial instruments (any type of asset to buy or sell) on the financial markets on behalf of their clients, as well as for themselves (at the owner’s offices). It is truly one of the main areas of the banking and financial world; it offers the possibility of earning more salaries and attracts some of the most passionate financial minds in the world. Investment banking as a career is the most profitable career.
So how does the investment banking scene work? Well, it’s about getting the most out of the financial markets; buy and sell the assets offered, or that you own at the right time to get the best return on investment.
Success in investment banking
Bank workers are generally very well organized and have strong IT skills. They have good communication skills, and excellent at dealing with people, and they are mainly service-oriented.
Financial institutions hire honest and trustworthy candidates. They are also looking for people who can correctly calculate and balance numbers. Because the federal government regulates many aspects of the banking industry, their employees are required to follow all of the rules and regulations that banks must follow.
Banking is a service industry. To be successful, you have to love working with people. Bank employees enjoy dealing with people from all phases of life and all kinds of financial situations.
Applicants who are interested to make investment baking as a career should have at least a high school diploma or a GED(General Educational Development) for most entry-level positions. A college diploma in accounting, finance, business, communications, economics, marketing or IT will help the job seeker not only when they are first hired, but also when looking for promotions in the banking sector.
Banks offer many functions and career path options. Most banking companies offer great benefits, including medical and disability insurance, sick and vacation leave, and retirement options. Banking businesses are highly regulated and supervised financial transactions, making them safe, pleasant, and rewarding workplaces. These careers offer integrity and stability.
There are many possibilities to broaden your knowledge and skills in a bank. Most banks offer on-the-job training and encourage you to continue your education through a variety of courses, seminars, and training programs. Banks often set up tuition and reimbursement programs for job-related courses to help employees build capacity for current and future positions. Many large banks have dedicated training departments to help employees maximize their skills and talents through bank training programs.
What investment bankers do
The assistance of an investment banker is often requested by clients in the following areas:
• Underwriting – Capital raising and underwriting groups work between investors and companies who wish to raise funds or go public through the IPO process. Underwriting serves the primary market or “new capital”.
• Mergers and Acquisitions (M&A) – Advisory roles for buyers and sellers of companies, management of the M&A process from start to finish.
• Sales and trading – Match buyers and sellers of securities on the secondary market. The investment banking sales and negotiation groups act as agents for clients and can also negotiate the company’s equity.
• Equity Research – Research from the equity research group or “hedging” of securities helps investors make investment decisions and supports equity trading.
• Asset Management – Investment management for a wide range of investors, including institutions and individuals, in a wide range of investment styles.
HOW TO BECOME AN INVESTMENT BANKER?
Here is the most important question. You know it and you are tempted but what is the way to be really known as an investment banker. It is a multi-step procedure that will require education, ambition, networking, hard work (maybe smart work).
So, if you are motivated enough, keep reading!
Investment banking positions (ascending order of seniority) are; Analyst, partner, vice-president, director, general manager.
Investment bankers can come from a variety of backgrounds, but being a crackerjack in math is important. You must have a bachelor’s degree in finance, accounting, economics, or mathematics. But aspirants from other fields like IT, liberal arts, or physics can also follow this path.
Entry-level positions like analysts only require a bachelor’s degree, but for higher levels, MBAs and CFAs are the most common. A law degree or master’s degree in financial mathematics can also be helpful.
For those who are fascinated by the start, a good way to understand the essentials of this career option and to do professional networking is to do an internship. It can help you get to know the details of investment banking well. Connections are of great importance when you consider iBanking as a career choice.
After having studied the education part well, in order to get a job as a banker, you must focus largely on networking during your studies. The major investment banks recruit analysts and associates from the best business schools and interns who have worked with them. So if you’re not alumni of a prestigious B school or can’t get the right internship, relationships are the only thing you can count on.
Career path in investment banking
If you want to make investment banking a career the financial sector is the fastest growing sector in India right now because, as we all know, India is a developing economy, and every minute a new project is approved, which means that the flow of money in the market is also increasing. So, where business and money rise, investment bankers came on the scene.
Some points which supported the above lines are:
The government is more interested in the process of decentralization at the moment, which is reflected in the merger of banks and the privatization of banks and public sector companies that provide the foundation for investment banking.
Due to the high FDI (foreign direct investment) in the country and other investments in the market, the needs of investment bankers are increased because the investment issue required a competent person who has a good knowledge of everything who counts.
The investment banker is a prestigious profession and ensures respect and a good career. Representatives related to finance are always respected in the market because where the question of money comes to respect and the class is already there. Thus, the giants and other companies that recruit investment bankers provide a living wage and other compensation. There are some details regarding the salary in the market in different positions are as follows:
Salary (per month):
Relationship manager- 18K to 25K
Senior Relationship Manager- 30K to 40K
Associate Director (Investment)-50K to 65K
Senior Manager (Investment)- 75K to 90K
In addition to the salary, the investment bankers also receive the commission, when the agreement is finalized. The commission can vary from one agreement to another. Salary is therefore not a concern in the area of the investment market.
The banking sector is the backbone of each country because a strong bank is the sign of a strong economy. In addition, the gross domestic product (GDP) of a country depends on investment and business in the territory of a country, so it is not strange to say that investment banking services directly influence the GDP from the country. Thus, the investment bankers who are the representatives of the investment banks really pursue the important task of the country. They help entrepreneurs and other commercial entities to spread their business so that they contribute to the development process of our country.
In addition, they help businesses and businesses to merge in order to overcome the losses suffered. All of these tasks are really enjoyable. Finally, the only thing that is necessary to illustrate here is that the flawless reputation of investment banking must be maintained and this responsibility should be with our young and talented investment bankers who have a career in investment banking. And we really hope they won’t let our country fall apart.