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The industry of investment banking is one of the lucrative industries in the world of finance and offers interesting and speedy career growths to the deserving candidates. But before that let’s understand what investment banking is and what are the skills and qualifications required to become an investment banker.
When put in simple words is investment banking is a niche sect that is dedicated to helping larger companies or institutions to manage their capital. In other words, it is a branch of banking that manages, facilitates, and creates capital for companies, corporations, or even government entities.
Investment banks also help the larger companies with stock issuance and any other transactions they might need help with.
A banking professional in the investment banking industry also helps or advises her clients on how can they best manage their financial assets like real estate, equity funds, and debt funds among others.
As an investment banking professional, it is important to understand what makes investment banking different from commercial banking. In addition, what all qualifications and skills would one need to qualify for an investment banker. Not forgetting how to earn the relevant experience to enter into this lucrative field.
Investment Banking and Commercial Banking: The Difference!
The major difference between investment banks and commercial banks is their dealings! Yes, dealings – an investment bank deal with stocks, and bonds – that they buy or sell for organizations. Investment banks are also involved in helping these organizations in issuing IPOs. Commercial banks on the other hand mainly deal with deposits or loans for either individuals or companies.
In addition, investment banks are the mediators between investors and security issuers. They are also the ones who encourage new firms to go public. They support organizations associated with alliances and acquisitions and offer supporting services like Derivatives Trading, Market Making, Foreign Exchange, Equity Securities.
The steps to becoming an investment banker are similar to the ones you would follow for any other profession. Exception being –
- Basic college degree in related subjects like finance, mathematics, or accounting.
- Advanced degrees like MBA in finance would be an added bonus.
- Soft skills are a major plus when eyeing a role like excellent communication skills, presentation skills, and negotiation skills. Some of the soft skills that a banking professional would need to succeed in an investment banking industry.
- To stay calm under pressure
- It is important for professionals to work in a tandem with the team.
- Endurance is another skill you need to develop to succeed in this industry.
- Gift of gab is a skill you must have and develop further if you wish to succeed in the industry.
But all this said and done you would also need a third-party validation of your skills and qualifications. Yes, certification in investment banking from reputed credentialing bodies would give you an added advantage over the other candidates seeking the role of an investment banker in this lucrative field.
Experience is another bonus on your resume. But how to get it?
Internships in your answer here. Go for internships during your college, or even when you are out of college. Summer jobs are another way to gain experience in the field.
Hopefully, by now you would have a clear understanding of the investment banking industry and how you could enter this lucrative industry.
