An investment banker’s career follows a fairly predictable course. Junior to senior jobs in investment banking:
Analyst: Analysts are typically recent college graduates or employees with less than two years of experience. They are typically involved in data collecting, presentation creation, and basic financial data analysis. This experience is critical for any aspirant to be a good investment banker because it is during this time that most financial concepts are created.
Associate: An analyst is promoted to the position of associate after 3-4 years of experience, with extra responsibilities such as customer interaction and supervising a team of 4-5 analysts.
Vice President: A vice president is usually an investment banking expert with a wide range of project experience. A vice president is in charge of maintaining client relationships and ensuring operational efficiency at all levels of the organisation.
The Managing Director or Director: It is a highly senior position in investment banking, and it can only be attained after 15-20 years of expertise. An MD is usually in charge of generating new business and converting prospective consumers into actual customers.
A bachelor’s degree in accounting and finance is required for entry into the investment banking industry. Some of the world’s most prestigious investment banks seek master’s and MBA’s in finance with common courses including economics, marketing, mathematics, accounting, and financial reporting. Aspirants in this field need to have a licence in several stock exchange systems to advance.
Analysts are recruited from target schools’ undergraduate (B.Com or B.A.) programmes or other prestigious universities. An analyst is expected to stay for two to three years before being promoted, returning to business school, or moving on to something new.
MBA and/or other graduate student programs are used to recruit associates. Strong analysts can advance to associate jobs, but most analysts will need to return to school before being promoted. Analysts and associates have identical responsibilities however associates take on greater responsibility quickly and are promoted quickly. Both professions necessitate advanced financial modelling and presenting skills.
Many investment banks prefer chartered Financial Analysts with valid qualifications from CFA institutes. The CFA exam covers the whole investment banking process, including investment valuation, company analysis, and portfolio management.
Internships are extremely important during your bachelor’s or MBA programme.
Despite the fact that most entry-level investment bankers begin their careers as financial analysts, the investment banking career path truly begins with an internship. In reality, both large and small boutique banks hire entry-level staff from their annual crop of interns, so landing an internship while still in college is critical to your career.
An internship is a terrific way to expand your skill set while also receiving on-the-job training. This is especially significant in a technical and specialised field like investment banking. You’ll receive exposure to various aspects of the industry and be able to obtain an entry-level investment banking position that’s suited for you if you take on one or more internships during your undergraduate years.