The most fascinating and highly competitive job in the field of finance is investment banking. It is rewarding and at the same time highly demanding and a professional on average will work around 80-90 hours per week. The skills required to excel in this sector of finance are basic knowledge of financial statements of the companies that is profit and loss, balance sheet and cash flow statement, good practice and knowledge of excel, google sheets, and PowerPoint, analytical and mathematical skills, and also the great knowledge about financial modelling.
There are many roles offered in the investment banking sector, starting with financial analyst, account manager, relationship manager, business analyst, equity research analyst, research analyst, bank manager and finally chief financial officer. One should have at least a bachelors degree in the field of finance, or any other course related to finance in order to start with the position of analyst.
What is an investment bank?
Investment banking is a division of a bank or financial institution that provides services to governments, businesses, and institutions by providing underwriting (financing) and M&A advisory services. An investment bank acts as an intermediary between an investor (who has the money to invest) and a company (which needs capital to grow and run a business).
What does an investment bank do? There can be confusion between investment banks and the investment banking sector (IBD). A full-service investment bank offers a wide range of services including underwriting, M&A, sales and trading, equity research, wealth management, commercial banking and retail banking. The investment banking division of the bank only provides underwriting and M&A advisory services.
Full Bank offers the following services:
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Underwriting – Financing and underwriting groups work between investors and companies seeking to raise or go public through the IPO process. This feature is useful for primary markets or “new capital”.
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Mergers and Acquisitions (M& M&A) – An advisory role for a company’s buyers and sellers to manage the M& M&A process from start to finish.
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Sales & Trading – Mediation between buyers and sellers of securities in the secondary market. The investment banking distribution and trading group acts as a client’s agent and trades the company’s stock.
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Equity Research -A equity research group or “coverage” helps investors make investment decisions and helps them trade stocks.
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Asset Management -Manages the investment of a wide range of investors, including institutional and individual investors, across a variety of investment styles.
Investment Banking Career
Getting started with i-Banking is very difficult. There are far more applicants than positions, sometimes 100 to 1. The most common positions in i-banking (junior to senior) are:
- Analyst
- Associate
- Vice president
- Director
- Managing Director
- Head, vice-chair, or another unique title
The entry-level position in Investment Banking is the Analyst role. The next level up is Associate, which most people join from an MBA program. Beyond that, Investment Bankers are promoted to Vice President (or Director), Senior Vice President (or Executive Director), and finally the top role of Managing Director.
The entry-level position in Investment Banking is the Analyst role. The next level up is Associate, which most people join from an MBA program. Beyond that, Investment Bankers are promoted to Vice President (or Director), Senior Vice President (or Executive Director), and finally the top role of Managing Director.
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