Breaking into Investment Banking in 2020

Last updated on September 16, 2020

Investment banks create capital for organizations, governments, and other entities from the capital markets. They assist them to manage money. The major functions of investment banking involve:

• Raising money from capital markets
• Becoming middle-man and market shares
• Selling a business interest to investors
• Acting as company advisors
• Helping organizations to determine trades
• Facilitating mergers and acquisitions
• Determining trades for investors
• Underwriting new debt and equity securities
• Enabling sale of securities
• Guiding the issuers on stock issuance and placement

If helping businesses in funding, assisting clients in financial markets, and the aforementioned challenging tasks sound appealing, then getting into an investment banking career would be the right choice for you. Understanding what is expected helps you to stay focused on your career. Read on further to know how to get into an investment banking career.

A career in investment banking is rewarding and challenging. It is one of the most in-demand careers in the finance sector. According to PayScale, an entry-level Investment banker with less than one-year experience earns $76.09, (it includes tips, bonuses, and overtime pay). Reported salaries are highest ($100,000) at The Goldman Sachs Group, Inc. and Wells Fargo Bank pays the lowest ($60,000).

According to the U.S. Bureau of Labor Statistics, the job openings for all postings at investment banks are predicted to grow at an average rate through 2028.

Getting into Investment Banking career

There are three departments in investment banking that includes: front office, middle office, and back office. The front office comprises of investment banking and markets, middle office involves risk management, and back-office department includes technical and operational roles.

The prospective professionals must have an MBA in finance and related subjects from top business schools. Earning an investment banking certification is an added benefit to making your resume stand out.

Let us see how to gain successful entry into investment banking.

After an MBA:

You cannot solely depend on an MBA alone. It is recommended to start a network as early as possible. Having an MBA program from a top business school will give you credibility. Some of the top business schools include Columbia Business School, London Business School, Cornell University, Harvard Business School, Stanford Graduate School of Business, Yale School of Management, and so on.

From a non-target school:

Though it is difficult, it is not impossible. The professionals who get into investment banking from a non-target school serve as live examples to showcase that untired efforts lead to success. It is recommended to use the alumni network, attend informational interviews and sessions, make cold calls, send e-mails and have a stringent follow-up. Continuous networking might end up in getting an internship, a part-time or full-time job to start with a career in investment banking.

With no internship:

If you are from other backgrounds like sales, you can highlight people’s skills. If you have industrial skills like pharmaceutical, healthcare, chemical, and more. Being specialized in these fields is an added advantage to attend the interview and explain your perspective.

With no prior experience:

The investment banking world is a closed circuit as it does not announce most of the jobs openly. It is recommended to take as many courses and well-known investment banking certifications to gain entry. A certified investment banker is preferred to a non-certified one during the screening of applications. Keep yourself updated with the present situation.

Wrapping up:

Investment banks give importance to work experience. Your chances of getting a job is greater if you have an internship or work experience. Have mentors who can guide you through the top investment banks. Attend events and network as much as possible.

At the end of the day, there are no short cuts to have a career in investment banking. Hard work, networking, and continuous efforts will fetch you the most desired career.