Are you interested in building a career in the finance industry? Do you want to become an investment banker even without experience? If YES, then I advice you read on. Investment bankers work with large corporations and smaller companies to develop deals, such as selling stock shares, finding investors, applying for corporate loans, and handling the transfer of ownership between two companies. They analyze markets and offer investment advice to their employers.
While investment bankers are well paid because they are great assets to the businesses and organizations they work for, their job involves hard work. The job is extremely high pressure; investment bankers typically work beyond the 40-hour workweek. (So, if you are not ready for long hours of meticulous work, this job is not for you).
Becoming an Investment Banker – Education requirements
To become an investment banker, you need to obtain a Masters in Business Administration. Technically, all you need to enter the world of finance is a bachelor’s degree, but having an MBA will help you stand out in today’s highly competitive world of investment banking.
However, you may apply as a college graduate to be an entry-level analyst—just to ascertain whether you would like to continue as an investment banker. While working as an analyst, you will have the opportunity to accompany your investment banking mentor to meetings with clients. You will also have the chance to observe pitches and learn how ideas are sold as your mentor visits clients to discuss about future sales and mergers.
Becoming an Investment Banker – Required special skills
A solid education is not all you need to become a successful investment banker. You need to have a combination of analytical and social skills that allow you to easily decipher financial information and relay it back to people in a non-condescending manner. In addition, you need to understand the power of contacts and the art of using contacts to your advantage.
Contacts usually make the difference between successful and struggling investment bankers. Creative talent, high amount of communication and synthesizing skills, moderate amounts—at least—of sales ability and initiative, mathematical talent, and the ability to function well within a team are other skills that an investment banker must have to be successful.
Bear in mind, however, that each investment company has different expectations for their bankers, so there might be slight differences in the required skill set.
7 Easy Steps to Become an Investment Banker Without Experience
If what you have read so far in this post increased your zeal to enter the world of investment banking. Then read on to know the actual steps involved in becoming an investment banker.
1. Obtain your bachelor’s degree from an accredited and reputable college or university. This could be in any finance-related field, such as economics, marketing, banking/finance, business administration, accounting, mathematics, or any other. Bear in mind that “trivial” factors such as the reputation of the institution you studied as well as your grade may play a role in dictating your career prospects.
2. Improve on your oral communication skills, analytical skills, sales skills, and other skills that you need to have as an investment banker. Also, you should learn how to speak confidently in public and in the presence of people you have never met. As an investment banker, you will make frequent presentation to clients in a bid to gain their business.
3. Learn how to write compelling business proposals. This is necessary because, as an investment banker, you will be writing proposals to outline how a business deal will progress.
4. Apply to an investment banking firm as a college graduate to be an entry level analyst. This will help you understand more about the role of investment bankers and gain solid work experience before starting out yourself.
5. Read financial newspapers, journals, and blogs to follow trends in the investment banking industry and learn about current job openings. This can also help you know the environment and especially the history of investment banking companies that may turn out to be your employers in the future. Of course, investment banking firms are more than likely to hire candidates who know their history and understand their work environment.
6. Continue your education. While a Master’s in Business Administration (MBA) is not absolutely necessary for every investment banker position, it highly recommended because it is now becoming a requirement for most highly sought-after jobs.
Employment prospects
Even after attending the best schools and bagging impressive grades, you can still find yourself struggling to get a job. According to recent data from the united states, approximately 20,000 investment banker positions are open every year, and close to 200,000 applicants vie for these slots.
The industry’s competitive nature notwithstanding, you can easily get a job provided you have a solid network, and you have sterling credentials and a hungry ambition.