According to Glassdoor, the average salary for an Investment-Banker is USD 86,643 in the USA.
Investment banking is a unique type of banking operation. It helps customers (individuals as well as firms) to raise capital and helps them with financial consultancy guidance. Many times, investment banks also assist their clients in managing their various financial assets like Debt Funds, Real Estate, Equity Funds, and many more.
Investment banking acts as a mediator between investors and security issues and enables new companies to go public. They buy all the available shares at a price decided by their seniors and then they resell those shares to the public or just sell their client’s shares and make a commission on each share sold. Investment banks also assist firms linked with alliances and acquisitions and then provide support services like Derivatives Trading, Market Making, Fixed income instruments, Foreign Exchange, Equity Securities, and Commodities. Read more about blue world city.
What educational background is essential for being a professional in Investment banking?
The working professionals in investment banking come from various educational backgrounds, but a sound foundation in mathematics is a must. To work in Investment Banking, you must possess a bachelor’s degree in accounting, mathematics, finance, or some other field.
Investment bankers are subjected to a serious training period by their organization to learn about risk, markets, accounting, and financial modeling principles. Freshers can also apply where they begin as analysts. In addition to this, they learn other soft skills like presentation skills, communication, and negotiation. MBAs (Master of Business Administration degrees) are the most well-known qualification among investment bankers.
Investment Banking Certifications
1. Chartered Investment Banking Professional (CIBP™)
The CIBP™ is a perfectly designed investment banking certification from the Investment Banking Council of America (IBCA) that validates a person’s knowledge and skills in advanced tools and techniques that are very helpful in financial analysis and decision-making when a complex situation exists. It helps a person to learn and make a systematic approach to leveraged buyouts, IPOs, restructuring, mergers, and acquisitions, etc. In brief, it tops-up the professional business degree and helps to enter the investment banking industry very quickly and easily
2. Chartered Financial Analyst (CFA) certification
CFA certification is a well-known certification in the finance field. It is conferred to the professionals by the Chartered Financial Analyst Institute. To be a qualified professional, one should appear for the CFA examination that tests the individual’s aptitude and knowledge in finance.
3. Certified Public Accountant (CPA) Certification
CPA is a certification in the advanced accounting field. It is conferred to the professional by the well-known and reputed American Institute of Certified Public Accountants in the finance and accounting industry.
4. Financial Modeling Certification
Financial Modeling is a widely acknowledged and essential financial certification. It helps facilitate the financial experts to make extensive models for interpreting financial accounts and offering investment analysis. This can be achieved by assessing various situations to reach good business solutions and thereby assist them in taking better decisions. This can be done by studying and gathering past reports of the company.
5. Financial Risk Manager (FRM) Certification
FRM is one of the most acceptable credentials in the area of this study and work. It is an excellently well-placed course that is regularly updated to include any developments and improvements in quantitative analysis and risk management.
Most of the graduates begin their careers as Investment banking analysts. After 2 to 3 years of experience, they get promoted to an associate position. Individuals with an MBA degree can be given the option of direct entry at the associate level. Again, after this promotion and experience of additional 3 to 4 years, they get promoted to Vice President (VP) level. They regularly communicate with customers and can have their own clients. The next step is to become a director or executive director, which is not an easy route but requires a lot of dedicated approaches and work profiles.