The following article discusses the career path of Investment Banker. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Investment Bankers.
When a government entity, organization, or company wants to grow their capital, they often do so by using the help of an investment banker. These professionals work in financial institutions and they are trained to understand the financial health of organizations, and also what capital needs they have and what their goals are. Based on that, they develop strategies to increase capital. They are the liaison between those who need to raise money, and those who want to invest money.
One key element of the role of investment bankers is to take on a retainer and gain insight into their client’s full financial information, even if it is sensitive in nature. They develop a strategy based on that and then make financial decisions in an attempt to increase funds. In a sense, therefore, they are salespeople who recommend taking on loans, buying stocks and bonds, and so on.
Other job duties of an investment banker include:
– Helping their clients to raise private and public money through equity and/or debt
– Creating financial models in order to assist with M&As (mergers and acquisitions) and in relation to FP&A (financial planning and analysis) communications
- Using different methodologies to complete valuation analyses
- Researching companies and industries to create new business
- Holding overarching responsibility over the full transaction process
Where We Work
According to the U.S. Bureau of Labor Statistics, there were 375,700 securities, commodities, and financial services sales agents in 2016. Investment bankers are included in this category. The largest employers of these professionals were:
- Securities, commodity contracts, and other financial investments and related activities: 43%
- Depository credit intermediation: 35%
- Nondepository credit intermediation: 6%
- Self-employed workers: 5%
- Management of companies and enterprises: 4%
How to Become
Generally speaking, an investment banker will have an undergraduate degree in a field related to finance. Most also complete the master in business administration (MBA).
An investment banker needs to have a bachelor’s degree as a minimum, but most now also hold an MBA in order to get ahead. The MBA is necessary because it ensures that there has been exposure to business practices in the real world. Holding an MBA also usually leads to a large signing bonus and more job prospects.
That said, on the job training is also very important. It is during this training that an investment banker will learn about the different services and products that are available. They will also often be trained on selling strategies and securities analyses and have an opportunity to experience different departments.
Investment bankers must be officially registered with the Financial Industry Regulatory Authority (FINERA) as a representative of the firm. They must pass various examinations for this. They should also be licensed to sell the various products that they offer. Furthermore, their FINRA license is conditional and must be maintained through continuous education, including on new financial services and products and on legal requirements in the industry.
It is also common for investment bankers to obtain CFA (chartered financial analyst) registration through the CFA Institute. This is not a requirement, however. CFA registration can be obtained while working.
Investment bankers are often subjected to the “up or out” policy. This means that, after two or three years, they either receive a promotion, or their contract is terminated. This is a policy that ensures more people have a chance to enter into investment banking, bringing in new talent.
Traits & Qualities
The most effective investment bankers have the following traits to some degree or other:
- Strong analytical skills
- Excellent customer service skills
- Great decision-making skills
- Detail oriented
- Ability to take initiative
- Strong math skills
- Excellent interpersonal skills
- Great communication skills
- Most Reported
Salary by State
The following section lists Investment Banker salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, Illinois had the largest quoted salary of $135,341 while Florida had the smallest quoted salary of $64,711.
Top 20 National Employers
According to Indeed.com, the following states had employers looking to hire a Investment Banker. The quoted salary figure represents the average salary from all job postings by this employer.
|Employer Name||Location||Average Salary|
|Bank of America Merrill Lynch Investment Banker||New York||$275,477|
|Selby Jennings Investment Banker||New York||$156,569|
|eFinancial Careers Investment Banker||New York||$144,503|
|UBS Investment Banker||New York||$129,033|
|Nomura Investment Banker||New York||$112,818|
|Robert Half Finance & Accounting Investment Banker||Georgia||$111,812|
|DeBellis, Catherine & Morreale Investment Banker||New York||$106,103|
|M&A Services Investment Banker||New York||$100,000|
- Investment banking – Wikipedia
- Investment Bankers Association
- Investment Management Degree
- Best MBA Concentrations for CEO’s & Executives
- What Can I Do with a MBA in Finance?
- Online MBA Accounting Programs
- How to Get Your Employer to Pay for Your MBA Degree
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