Investment banking has got it all: power, status, money, adrenaline rush, and risk! A career in investment is always full of excitement and rewarding experiences. But it is also a journey which is filled with so many ups and downs. But first, you need to know a little bit about investment bank.
The investment bank is not like the commercial bank that allows you to simply withdraw or deposit money via your account. It is a specialized institution which deals with high finance such as shares, bonds, and stocks. The investment banks work by helping several companies to access the stock market and bond market to raise funds. They also like to solve difficult financial problems.
Investment banks also provide buying and selling services where they typically sell shares of IPOs. The buy side consists of working with hedge funds, pension funds, mutual funds and the public funds to maximize the returns. There are three offices of an investment bank and they are known as Front Office Investment Bank Services, Middle Office Investment Bank Services, and Back Office Investment Bank Services. Now, let’s see what skills do you need for investment banking career? Well, with the excellent reward there comes great responsibility! A career in investment banking offers you the opportunity to envision an important role in the world of finance which sounds incredible, as most of the top companies will be dependent on your mastery.
A career in investment banking is ideally suited for people who have an endless hunger to succeed, relentless work ethic, great ownership, enthusiasm, and the ability to stay focused while being involved into several projects. To handle the immense pressure in investment banking career, you are required to perform at the top of your game, always. The monetary reward and status in investment banking career are fantastic if you’re looking for it. There are different paths if you want a career in investment banking. The entry-level position is the role of the Investment banking analyst requires a bachelor’s degree specifically in finance or accounting, excellent mathematical and analytical skills, understanding of several equity transactions, strong technology skills especially in Microsoft PowerPoint and Excel, as you’ll be using them extensively.
The Investment banking analyst majorly works with the senior investment bankers, offers extensive research, and most importantly provides advice when it’s required. Associate investment banker, vice president are the mid-level positions that need an MBA in finance or economics from a premier b-school, along with strong network in the industry. To perform in this kind of roles, you need to have excellent skills to pitch and present the ideas to clients. The associate investment banker works extensively on analyzing the financial and operational functions of the targeted business sectors. He or she also creates financial models of different deal structures for client presentations. The Director, senior vice president, and management consultant are amongst the senior most positions. The requirement for these roles is the same as for mid-level positions. Other than that you must possess excellent sales and negotiation skills because you’ll be responsible for managing the huge network of industrial relationships.