Ever since the damning global financial crisis of 2008, the lot of investment bankers have brightened once again, after a record of them were shown the doors during the financial crisis.
Though a lot of investment banking institutions is still waiting to make a comeback, yet things have been growing better in this part of the financial market. There are a lot more opportunities and economy growth fueled by the financial sector.
In short, if you want to make a career out of investment banking, then this is a never-before opportunity to enter the profession because the economies are improving and there is a great demand of skilled investment bankers, which has been somewhat lacking in the last couple of years.
Is commercial banking different from investment banking?
You cannot expect an investment bank to provide you with car loan, ATM card or open a savings account for you. Actually, these services are provided only by the commercial banks. These financial institutions get their revenue by levying exorbitant charges on loans as compared to the amount they pay on their consumer’s deposits.
Alternatively, investment banks give services as well as acts as financial advisors to businesses and corporations. They assist in the process of mergers and acquisition of different companies, issue securities and give advices to the corporations with respect to their financial requirements.
Here, the investment banks make money through service fees and commission charged for their business services.
How should you start with investment banking jobs?
The ideal way to start with investment banking jobs is to seek internships because they give you knowledge and experience to deal with future job responsibilities. Search for an internship position with a reputable investment banking organisation while you’re still completing studies.
Depending on your work performance, you can be absorbed within the same organisation once your studies are over. If not, start preparation to send in job applications. The resume should be crisp and simple, highlighting positive areas and career goals. Keep the resume relevant.
There is also an apt time to send in your job applications. The period between November and December is said to be a preferable one as far as sending in your resume is concerned. Although employers take up fresh recruits during the months of January and February, yet you sshouldn'tprocrastinate for the last moment to file in your applications.
The key to land up your first job is persistence. In this case, you may contact as many people as you want, but then don’t send them a generic application. Rather, streamline your approach to each and every employer. This may be a time-consuming affair, though.
In this route, you have send in a lot of applications regularly to get recruited because the competition is stiff but if you have the talent, you will find a desiring work profile in the investment banking industry. Remuneration is not high in the initial stages but as you begin to gain experience, knowledge and skill, the remuneration and work profile changes.
What is the status of investment banking in the global economy?
Simply put, investment banking is one of the most globalized forms of business on the planet. A lot of banks and investment institutions collapse or became bankrupt in the financial crisis of 2008. During this period, the investment banks came under fierce criticism with reasons like conflict of interest, cartel-like behaviour, unjustified large pay packages and opacity.
Despite the wave of criticisms, a new influx of government loans and strategic investment decisions has successfully brought the economy bank to a large extent, with investment banking opportunities rising across all related verticals.
The life of an investment banker is taxing but glamorous. Take for instance, an investment banker may be studying and tracking a particular corporation situated in Los Angeles or San Diego, but then that very day he/she might have to work with investors from the other part of the world like Singapore or Beijing or may be Pretoria.
Over the years, investment banking has changed from offering basic IPO services and brokerage to a suit of other services like proprietary training, investment management and securities research. Investment banking work is categorized in three ways:
1. Investment Banking – securities underwriting and advisory services.
2. Trading Investments – deals with broker and brokerage.
3. Asset Management – deals in sponsored investment funds
These three are the primary ways with which investment bankers raise revenue.
Type of employer you should choose for investment banking analyst jobs
One of the most important things to have a high flying career is to choose your employer very carefully before you make the jump. This is necessary for two reasons:
- The ‘right’ employer gives you the ‘right’ vehicle to build a flourishing career.
- If you switch jobs too frequently, then your prospective employer may get doubtful about your loyalty.
In fact, here is even an investment banking giant who has a policy that prevents it from getting fresh people from outside. This has been done to avoid hiring career jumpers and people who rank low on levels of loyalty.
Employers look for people who are a suitable ‘fit’ for the company and the industry. As such, they check educational credentials, skills, experience, knowledge and references. Similarly, you need to ascertain whether a certain employer will suit your career goals.
I understand that it’s not possible to predict career growth but some factors like company growth, employee career growth, employee attrition rate, employment policies and remuneration give a fair idea how working in a certain place will be.
You need to choose an employer who is willing to invest in you.
This is a great time to make foray into investment banking job sector. Start early by getting the necessary qualifications and you should also have a flair for finance and investments. Understand the global investment banking market and see which segments are likely to do well in future. Align yourself to a reputed and career oriented investment banking organisation to do well in future.