A career in investment banking is
considered quite prestigious and can also be rewarding. However, you
should be aware of what is involved and what to expect before you
become an investment banker. Here is a complete guide that provides
you details about the different aspects you need to think about in
order to start a career in investment banking:
Training
You
can join the field of investment banking regardless of your
background, but you have to have a strong foundation in mathematics.
A prospective investment banker can have a bachelor’s degree in
mathematics, accounting, and finance and can also come from other
fields such as physics or computer science. Your employer provides
you with a great deal of training. Graduates who have just earned
their bachelor’s degree usually begin with an analyst role and
undergo a training program before starting a job. These training
programs are spread over several weeks and introduce you to new
principles of risk markets, financial modeling, and accounting and
financial statement analysis.
You
also learn presentation, communication and negotiation skills. After
completing your initial training, you may also take part in
continuing education provided by the employer. In addition, you need
just a bachelor’s degree for the entry-level investment banking
analyst positions, but you will need graduate degrees like Masters of
Business Administration (MBAs) and law degrees can also prove to be
useful if you want to move to other positions.
Certificate and Licensing
You
will be required to register with the Financial Industry Regulatory
Authority (FINRA) as a representative of your bank when you decide to
join the field of investment banking. You may also be required to
pass an examination, depending on your job responsibilities.
Moreover, you can also get voluntary certifications such as Chartered
Financial Analyst (CFA) credential, which is offered by the CFA
Institute.
Time
While
you can become an investment banking analyst immediately after
getting a bachelor’s degree, you need to have working experience of
two to three years and a graduate degree in order to reach the
associate status at an investment bank.
Earnings
The
investment bankers are grouped with commodities, securities and
financial services agents and they earn salaries of $70,000 and more.
Furthermore, investment bankers don’t just get base salaries from
their employer; they are also eligible for bonuses so it is possible
for you to earn substantial sums of money in this field.
Job Prospects
According
to statistics and predictions, the job prospects in the investment
banking industry are expected to rise by 11% by 2020. While there
will undoubtedly be additional jobs, it is also predicted that
competition for these positions will be intense and people with
voluntary certifications like CFA and graduate degrees will be in a
better position to land jobs. You will start your career at the
analyst level and then move onto an associate position with
additional education and experience.
After
associates, you can advance to the position of vice president with
experience. Once you have spent some time supervising associates and
analysts and interacting with clients, you can also become principals
or directors at your investment bank and focus on building and
developing relationships with new clients. Managing director is the
highest position in the field of investment banking and at this
level, your work is just to bring clients to the table. As you move
up the hierarchy, your earnings will increase.
You
can also visit websites of top investment banks for learning more
about the requirements and training process that are involved in
starting a career in investment banking.
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