How To Become An Investment Banker

Having an impressive investment portfolio is a smart way of not just taking care of your finances, but having your finances take care of you. But this is not just something that happens on an individual level. Even large companies and corporations invest and borrow money for financial success.

An Investment banker is an individual who provides financial services and financial help to large companies, they create a platform for individuals to invest in larger corporations, and larger corporations to invest in other facets of the economy.

To become an investment banker, you would need to earn a bachelor's degree, obtain a graduate degree, gain certification, and gain hands-on experience. This will allow you to gain skills and expertise in both the theoretical and practical aspects of investment banking.

Let us take a closer look at this extremely lucrative career.

What Is An Investment Banker?

An investment banker uses very strategic ways to grow and expand an organization's funding and finances. They do so by raising capital from stock or making smart loan decisions and taking investments from potential investors.

They advise corporations about when to make investments into the organization accessible to others and when it should not happen. They are also involved with advising and helping organizations make merger and acquisition decisions.

What Does An Investment banker Do?

If there is anything pertaining to investment into or out of an organization, an investment banker will be involved. This aspect of the finances of an organization is managed and advised by an Investment banker.

They work with organizations to raise funds from public or private investors, they handle all legal processes in line with investments, mergers, and acquisitions.

Investment bankers don't only monitor the investments and interests that are shown to an organization in terms of publicly trading organizations having outsiders buy stocks in the company, but they also monitor the investment portfolios of the organization itself in terms of the investment interests that it shows in other companies or organizations.

Having healthy investment portfolios, and even healthy debt can keep a business financially afloat. It lies with the investment banker to make sure that the best financial decisions are made for an organization.

Steps To Become An Investment Banker

Step One: Obtain A Bachelor's Degree

The first step you need to take to become an investment banker is to obtain a bachelor's degree. This degree can be in finance, business administration, or business management, as each program will cover important aspects of finance and investment.

Step Two: Get A Graduate Degree

Whether you pursue a master's degree in finance or a master's in business administration, getting a graduate degree will equip you with the superior expertise that you need to be a proficient and expert investment banker.

You may want to pursue courses that give you direct access to financial analyst content to help you better understand the investment markets and the investment side of the economy.

Step Three: Gain Certification

Once again, dealing with finances is not something that should be taken lightly or taken with a pinch of salt. It is an extremely sensitive career to have and there is a lot at stake. For that reason, you would need to meet specific requirements and you would need to become a chartered financial analyst.

You need to meet all state and federal requirements before you take your certification assessments, so be sure to check the requirements well before time to make sure you qualify for the certification.

Step Four: Gain Experience

On-the-job training is the best way to gain hands-on industry experience. Starting at an entry-level would be the ideal starting point, and with your qualifications, you can quickly climb up the corporate ladder. However, an entry-level role gives you experience while still working under more experienced investment bankers which will ultimately benefit you and teach you skills that only come from years of experience.

Step Five: Climb The Ladder

Once you gain experience, you can begin vying for higher roles and before you know it, you could hold the position of an investment banker within a large corporate entity.

What Degree Do You Need To Be An Investment Banker?

At the very least, you would need a bachelor's degree to become an investment banker. However, having a graduate degree in the form of a master's degree will better your chances of career and salary growth.

What Is The Average Salary For Investment Bankers?

According to the U.S. Bureau of Labor Statistics (BLS), financial analysts, which is the general career field that investment bankers fall under, earn a median annual salary of $95,570.

What Makes A Good Investment Banker?

There are many factors that contribute to making you a good investment banker. Aside from the skill and understanding, you would need to have experience and expertise in finances and in economics and the investment climate, you would also need to be extremely good at working with numbers and budgets.

Over and above the learned skills that you will acquire, you will be handling large sums of money and advising organizations on how to manage and handle these finances. This requires you to have integrity and honesty to handle these funds correctly.

You would also need to be able to communicate well and be able to successfully network with potential clients. Presenting a good first impression and creating a good reputation with existing clients is a great way to further grow your career.

FAQs

Who Becomes An Investment Banker?

People who are usually numerically inclined and who have a knack for finances are usually the individuals who find interest incoming investment bankers. They would also need to have the appropriate qualifications and certifications.

What Is The Job Outlook For Investment Bankers?

The BLS states that financial analysts can expect to see a projected 9% growth over the next decade with about 32,000 jobs opening on average each year.

Conclusion

If you always thought that you were good at handling finances, and investments and that you were numerically inclined, perhaps you could put your innate skills to work by pursuing a career as an investment banker.