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How To Become An Investment Banker

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How to become an Investment banker

So if you read the first section as a freshman, and have transitioned into your sophomore year, great! Youre on track.

If youre a sophomore whos just getting started, thats okay, theres still plenty of time.

Read through the previous section on Freshman year, and make sure you start working on those tasks. You can easily catch up.

Sophomore year is, in my opinion, the most crucial year. Why?

Thats when you prepare to apply for the big investment banking internships for junior year summer.

Most investment banking blogs agree:

Summer internships are important because having one will dramatically increase your chances of getting full-time interviews and offers.

If the economy is bad, you might not even have a shot at full-time interviews if you havent had an internship and many bulge bracket investment banks fill their entire analyst classes with summer interns.

Even if the market is frothy, an internship still gives you a big advantage, and even more importantly, gives you more options than someone without an internship.

on your resume to help yourself stand out when you start applying for internships.

If you really want to become an investment banker, that experience is key.

The big bulge bracket investment banks open their applications in mid-July now. Its getting earlier and earlier every year.

This is what the investment banks will be looking at on your resume:

  • Your Previous Experience
  • Who You Can Name Drop
  • Heres how you should prioritize your sophomore year:

    Approach To The Right Personnel

    The best way to get your application heard in Investment Banking is to find the right personnel and approach to him directly. While writing a job application, it is required to highlight all the key points in the mail body or cover letter to attract the right eyeballs.

    Usually, you should directly reach out to either Associates or Vice Presidents as they are influential in hiring process in Investment Banking industry other than the HRs.

    Do An Investment Banking Internship

    Many of the top banking institutions, including Barclays, Goldman Sachs, J.P. Morgan, Morgan Stanley and the RBS Group, offer summer internships in investment banking.

    For instance, J.P. Morgan offers a nine-week investment banking analyst programme for penultimate-year university students, where you’ll learn key technical skills by working on deals and transactions for the company’s clients.

    On-the-job-experience and practical skills training give you the perfect grounding in investment banking. The best-performing students may receive full-time job offers upon completion.

    However, it’s important to get the facts you need before you apply so you can make an informed decision. To do this, first learn about the different work experience opportunities and choose one that best suits your interests. By watching short videos of employees sharing their career stories, you’ll get an idea as to whether investment banking is for you.

    When preparing your application, it’s worth finding out what’s required in the selection process. In addition to ensuring your CV stands out and is a true reflection of your skills and abilities , you may also have to write an essay. Make sure that your CV is tailored to the job description and specific internship you’re applying for, and show there’s a clear match.

    This advice is also applicable to those looking at finance graduate schemes while still at university, as you’ll be prepared for making applications once you’re about to graduate.

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    Is An Investment Banking Career Right For Me

    Before you apply for an investment banking role, consider your answer to the question Why investment banking? a question posed at the beginning of many interviews for careers in investment banking. If you are unsure how to verbalize your answer to this questionespecially if your main motivation is a higher salary or a career at a prestigious institutionconsider highlighting some of these qualities if they describe you well.

    Eligibility Criteria For Becoming An Investment Banker

    How To Become An Investment Banker UK

    The eligibility criterion for the role of investment banker varies across sectors and companies. While an FMCG company can be assumed to offer the job to a B.Com graduate, top financial institutes prefer MBA graduates. Apart from the educational qualification starting from graduation and going as high as Chartered Accountant, in-depth knowledge of business, finance, economics, and maths can give you an edge over regular candidates with no background in business and finance.

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    Cons Of Becoming An Investment Banker

    • It is an extremely demanding and stressful job that cannot be said to be for everyone.
    • There is no work-life balance in the field since the job requires candidates to be on alert at all times of the day.
    • It is a high-risk field since the jobs and growth of candidates are majorly dependent on markets, which can crash.
    • Investment Banking professionals are often diagnosed with health issues related to stress or overworking.
    • Automation and AI are causing a reduction in job availability in the sector.
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    Who Can I Work For As An Investment Banker

    Investment banking employers come in three distinct flavours. First are the big international investment banks. Names most people with an interest in the industry will have heard of. J.P.Morgan, Morgan Stanley, Goldman Sachs.

    Then you have the investment banking divisions of large commercial banks such as Bank of America, Citigroup and Barclays. Finally, the specialist, or boutique, independents. Names such as Allen & Company, Rothschild and Lazard.

    The worlds big financial centres are London and New York, plus smaller but no less important cities including Frankfurt, Paris and Tokyo.

    In London investment banks are usually divided into three categories. These are international investment banks, investment banking departments of large commercial banks and finally, specialist independent investment banks.

    When applying to work for banks you should research their size and reputation. Larger banks can offer larger accounts, but your career progression may be quicker in a smaller organisation. Some are known for their work in debt capital while others might be strong in mergers and acquisitions

    You might consider working for other employers offering relevant experience. These include the London Stock Exchange , The Bank of England, stockbrokers and investment firms.

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    Essential Skills And Qualities

    In investment banking, employers usually require you to demonstrate commercial awareness and a knowledge of financial markets and sectors. You will also need to possess the following:

    • Strong numerical and analytical skills usually backed up by a relevant degree
    • Excellent teamwork and leadership skills
    • Effective communication and interpersonal skills
    • The ability to manage time effectively
    • The self-confidence and decisiveness to make difficult decisions
    • The ability to work within a stressful environment and remain calm under pressure

    How To Become An Investment Banker: Quick Guide

    How to become an Investment Banker

    Investment banking is a major segment in banking operations. It aids in the raising of capital as well as the provision of financial consultancy services. In most cases, it deals with large financial transactions. As an investment banker, you have a significant role in making mergers and acquisitions work. There are numerous occasions when you are needed to make presentations on certain activities. This is why having exceptional verbal and written communication skills is significant.

    Investment bankers find themselves spending a lot of time doing market research. This aims at knowing the principles behind certain investments. Such polishing makes you a better resource when it comes to consultations. This is especially when large capitals are involved. There are certain requirements for you to be a fully-fledged investment banker.

    Atthe tertiary level, there are relevant courses that give you a path to financial investment. Having a college degree in finance or economics puts you on the right track. The option of accounting and business studies is also relevant. Before making an enrollment at the college, take time to make consultations with academic advisors. They will offer guidance on which programs match your career goals.

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    Soft Skills Needed To Become An Investment Banker

    Investment bankers need to have an arsenal of skills ready at their disposal. It is crucial to develop both technical and soft skills in order to be successful in this field. While you have learned and applied the technical skills throughout college and your internship experience, the soft skills you need to develop are just as important.

    What Can I Expect From A Career As An Investment Banker

    Your experience as an investment banker will usually depend on your specialism. Initially that is shaped by whether you become a corporate investment banker or an operational investment banker.

    As a corporate investment banker you generate business and perform client-facing duties, while in operations you ensure that business is conducted in an efficient manner, with money transferred as it should.

    Corporate investment bankers advise businesses, organisation and governments on achieving financial goals and implementing financial plans over various periods of time.

    You will have key duties during a typical two-stage corporate finance deal:

    • Origination – assessing desirability, which can be a creative idea from the bank rather than the client. This requires a deep understanding of a sector and extensive research
    • Execution – negotiating and structuring detailed terms of a deal.

    As an operations specialist you are involved in developing new systems that maximise efficiencies and profitability.

    You will be responsible for overseeing that transactions are cleared and reconciled in accordance with all regulations and control requirements.

    Your operations duties will usually involve:

    • Reconciling systems by monitoring data flow from the revenue-generating front office to the operations systems
    • Checking activity and reports of daily transactions
    • Liaising with clients on transaction settlements
    • Troubleshooting system problems.

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    How Long Does It Take To Become An Investment Banker

    Undergraduate degree 3 years

    Internships during your degree

    Masters degree 1 year

    After you have achieved an undergraduate degree, typically three years, you can go directly into a job in an investment bank. If you have worked hard, achieved good grades and have gained experience through internships, then direct employment is a possibility.

    You could also study a Masters degree, which takes one year if you study full time, and can help you jump straight into an investment banker role.

    Typical Qualifications To Become A Investment Banker

    How to Become an Investment Banker

    Investment Bankers are almost always required to have at least a bachelors degree in finance, economics, accounting, statistics, or a related field. An MBA is not required for this position but is desired by most employers. Investment Bankers can earn certifications such as Chartered Financial Analyst or Financial Modeling and Valuation Analysis , which is for corporate financiers. These certifications are not required but may give a competitive boost to the job-seeking Investment Banker.

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    Earn A Bachelor’s Degree

    To gain an entry-level position with an investment bank, you need to earn a three or four-year bachelor’s degree. You can get a Bachelor of Commerce , a Bachelor of Arts in finance, a Bachelor of Arts in economics and a Bachelor of Business Administration in finance. While the exact syllabus is different for each programme, you may cover subjects like mathematics, accounting, economics, financial management, corporate finance, investment, taxation, data analytics and business administration.

    What Certifications Are Required

    Professional certifications are rarely required to get started in investment banking or to progress into senior positions. That said, the Chartered Financial Analyst designation, awarded by the CFA Institute, can potentially provide a leg up in the job market. This professional designation is generally considered the most important certification for professionals working in the investment field. It is available to investment analysts and other types of financial analysts who have a minimum of four years of qualifying experience. Candidates must pass three examinations to earn the designation.

    Investment bankers have to obtain appropriate licenses from the Financial Industry Regulatory Authority , an oversight body responsible for securities firms and brokers operating in the United States. As the licensing process requires sponsorship from an employing firm, professionals in the investment banking career track typically complete licensing requirements after getting hired. Many investment bankers require Series 63 and Series 79 licenses, although requirements can vary depending on the job.

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    How To Become An Investment Banker: A Step

    Investment banking is a well-compensated field of work that comes with many responsibilities. An investment banker provides investment services to multiple clients, helping them raise the resources required for investments. Investment bankers might spend one day listing an IPO and the next financing deals. To become an investment banker, you need to have a diversified skill set.

    This article will provide you with step-by-step guidance on how to become an investment banker.

    Should I Become An Investment Banker

    How to become an Investment banker

    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.

    • High earning potential
    • Growth and development as a graduate
    • To deal with high-profile transactions.

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    Where Can I Study Investment Banking

    If youre 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.

    • Providence University

    Network With Experienced Professionals:

    Choosing to network with the right group of people is just as important as the skills and information you learn in college. For the young and eager finance professional, you may want to consider reaching out to junior-level bankers and analysts on who are working at firms youre interested in. Talking to finance professionals online and in-person is a great way to get your name out there and could give you future opportunities to become an investment banker.

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    Skills And Requirements To Be An Investment Banker

    The investment banking field has gained interest over the years as investment bankers are generally very well-paid. To be an investment banker is not a childs play specific skills, like

  • Outstanding number-crunching abilities,
  • Persuasive skills and Negotiation Skills
  • Time management skills
  • They must be well-versed in the behaviour of financial markets and in the legal requirements that investment banks and their clients must meet for each process.
  • Awareness of common e-commerce technologies.
  • Ability to implement strategies to increase business growth through the use of the web.
  • Understanding of how e-commerce fits into the banking industry
  • Development of skills needed to manage mergers and acquisitions between businesses
  • Understanding of the laws governing capital structure changes.
  • Ability to consult with clients about financially healthy mergers and acquisitions.
  • Awareness of different types of investments available, and the pros and cons of each.
  • Ability to consult with clients on investment opportunities best suited to their goals
  • Understanding of various portfolio selection models.
  • Exceptional verbal and written communication skills,
  • and the capacity to work very long and grueling hours.
  • Get A Bachelors Degree

    How to Become an Investment Banker?

    If youre considering a career in the financial markets, applying and going to college is the first step in your future investment banking career. Investment banks are interested in hiring graduates from all financial areas, not just securities. Specific degrees, like in Finance and Economics, can help give you essential expertise and understanding. Mathematics and business degrees can also serve as appropriate degrees for the world of finance.

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    Senior Year: Are You Sure You Really Want To Get Into Investment Banking

    Welcome to your senior year.

    At this point, youre likely in one of these buckets:

  • You started earlier, listened to the advice in the previous sections and have already been offered a full-time role as an investment banking analyst. Well done!
  • You had an internship last summer that was somewhat related to investment banking, but still not banking.
  • You had an internship last summer that was unrelated to banking
  • You still have no internship or relevant experience
  • Lets start in reverse order.

    What Qualifications Do I Need To Be An Investment Banker

    Generally, you need at least a bachelor’s degree in finance, economics, accounting or business to get an entry-level position with an investment bank. You can improve your prospects with a master’s degree or a doctorate. It may also help to work on improving your communication and interpersonal skills.

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    About That Good Impression

    Investment bankers work with, and for, some of the worlds richest people. These people wear select clothes, drive select cars, and vacation in select places. They spend their time with people like themselves and give their money to people who understand them and share their culture.

    If youre not part of that crowd, it can be tough to break in. A study by the U.K. governments Social Mobility Commission provides a fascinating insight into how subtle mistakes, like wearing the wrong color shoes or having the wrong haircut, can be enough to derail job seekers. If those things weren’t part of your background, it helps to be a quick study, at least to the extent of being able to blend in during your early years in this field, according to some included in the U.K. study.

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