How to Pursue a Career in Investment Banking : A Complete Guide
The Indian Banking sector has been going through a paradigm shift in recent times. Gone are those days when banks only catered deposit and withdrawal services in savings accounts and fixed deposits. As private players like HDFC, ICICI, and Axis emerged to prominence, the concept of Investment Banking made its debut in the Indian financial space.
Investment Banking, as the name suggests, is primarily focused on making the right investment decisions with customers’ funds. In the evolving banking scenario of India, Investment Banking is an impressive career option for passionate and motivated individuals. With a great scope of professional growth, Investment Banking can also be your stepping stone for bigger careers like wealth management and entrepreneurship.
If you are thinking about establishing a career in Investment Banking, stay tuned to this post till the end to learn how Investment Banking can be an enriching career path for you. But first, let’s discuss a bit about the ongoing changes in the Indian Banking industry.
How the Indian Banking Sector Has Evolved in a Decade
Indian banks have gone through a lot of changes in the past decade or so. The digital payment revolution has made the bank’s premises uncluttered and free from customers with petty tasks like cash transactions and passbook printing. Now, e-hubs offer the convenience of cash deposits & withdrawals, passbook printing, and cheque deposits.
One more innovation we must mention that changed the whole game is the Unified Payment Interface (UPI). Thanks to the introduction of UPI, India has seen the rise of several FinTech startups like Paytm & Phonepe, which have become an integral part of our life catering to e-payments.
As the branches are left with very little day-to-day operational tasks, banks are using the branches to market their product and services. One such service is wealth management which has seen a lot of growth across banks. All the big banks including HDFC, SBI, ICICI have started their wealth management vertical which is focused on the onboarding of wealthy customers for curated financial services.
For example, SBI has opened more than 100 wealth branches in the last decade dedicated to providing investment banking services. So, it’s pretty evident that Investment Banking has already started leaving its mark, and the trend will only grow in the coming decade. Thus, it is the right time for growth-driven individuals to take up the profession of an investment banker.
Why Investment Banking is the Future
The future of banking will be very different from the way it is today. With emerging technologies, diverse business models, and changing expectations of consumers, banks will have to create innovative strategies to be prepared for the banking environment of 2030. In this novel environment, the ability of investment banks to invent and tackle differential insights from existing data will be its competitive advantage.
As the Indian middle-income group grows, the demand for curated financial services will skyrocket. Rich people don’t want to wait in queues to address their financial needs. They want financial advisers to take care of their wealth with customised solutions. India is well on course to become a $5 trillion economy by 2030. As our society prospers, the market for Investment Banking will also grow alongside.
How to Become a Successful Investment Banker
This field attracts young millennials because of its earning potential and prestige. To become a successful Investment Banker, you will need a practical mindset and the ability to think out of the box. Building a career as an Investment Banker involves multiple steps that will require ambition, education, hard work, and networking with the right people. Following are the steps to become an Investment Banker in simple pointers
- Pass the X+2 exam, preferably in Commerce stream
- Finish up the college and get a bachelor’s degree, preferably in accountancy or business management
- Study MBA in Finance (not mandatory)
- Do professional certification courses in Investment Banking
- Take proper preparations and search for vacancies in various different banks and financial institutes
- Apply for the same and attend as many interviews as you can before cracking one
You can hail from any academic background and still become an Investment Banker, but being strong in finance and mathematics will give you an edge during recruitment drives. A bachelor’s degree is sufficient for an entry-level position, but for higher levels, we’d recommend a CFA, an MBA, or a certification course in Investment Banking.
Here are the popular courses that might give you a headwind in your Investment Banking career:
- MBA in Finance: Having an MBA degree in Finance will surely be beneficial for any banking professional, including investment bankers. However, it is a full-time post-graduation course that requires both monetary and time resources.
- PGCM in Investment Banking: PGCM or Post Graduate Certification in Management is a quick way of earning knowledge and credentials for any field. PGCM in Investment Banking is the way to go for Investment Banking aspirants who want to start quickly rather than spending two years doing a full-fledged MBA.
- Certified Financial Planner (CFP): This is also a must-do course to progress your career as Investment Banker. CFP is a globally recognised certification program that covers anything and everything related to financial planning.
- Chartered Financial Analyst (CFA): The gold standard of Investment Banking, the CFA Program has two levels of certifications. From portfolio management to equity research, CFA covers all the vital aspects of Investment Banking.
While there are several platforms offering these courses at a cheap rate, none can compete with IMS Proschool’s offerings. With Proschool’s certification courses, you’ll gain in-depth knowledge on accounting, financial modelling, communication, presentation skills, and negotiation skills.
Proschool’s Investment Banking courses will enable you to perform all the tasks associated with Investment Banking. Thanks to the handpicked faculty team and experiential learning methodology, IMS Proschool will give you a competitive edge over other candidates.
IMS Proschool offers top-level certifications in association with CIMA, ACCA, NSDC and Comtia+. It doesn’t end here as Proschool offers placement assistance after completion of courses. With the help of mock interviews, resume building, and soft skill nurturing, IMS Proschool will make you job-ready.
Job Roles and Responsibilities of Investment Bankers
Investment Banking is a vast area where one has to perform a multitude of tasks. From offering advice on the stock market to performing financial research, everything falls under Investment Banking. In short, Investment Bankers have to do anything and everything to invest clients’ money in the right instruments for maximum gains. Following are some common job roles of Investment Bankers:
- Financial Advisor- As a financial advisor, your job will be to provide all sorts of financial advice (investing in stocks, retirement planning, etc.) to your clients.
- Business Analyst- Business Analysts analyse a business by documenting its processes and systems, identifying vulnerabilities in the business model and suggesting solutions.
- Relationship Manager- The role of a Relationship Manager is to build healthy relationships with business clients and customers and seek out novel business opportunities.
- Accounts Manager- Account Managers act as a connecting link between the employer and employees/ customers and are accountable for the daily management of multiple clients’ accounts with the particular business.
- Research Analyst- If you become a Research Analyst, your job role will be to research, interpret, analyse data related to markets, accounting/ finance and prepare research reports on assets and securities.
- Equity Research Analyst- The primary role of an Equity Research Analyst is to conduct detailed research and prepare reports on individual stocks and thus, help investors with important decisions pertaining to purchasing, holding and selling of stocks.
- Chief Financial Officer- CFO is a corporate officer who manages a company’s financial strategy and operations and therefore, has substantial input in the capital structure and investments of the company. This is one of the most elite jobs you can get through years of experience as an Investment Banker.
Perks of Being an Investment Banker
A career in Investment Banking offers a lot of perks and benefits. Apart from the high-end salary package, an Investment Banking career offers growth in every aspect of one’s life. Following are some of the reasons why you should consider becoming an Investment Banker.
Substantial Salary Package
Investment Banking offers class-leading salary packages. While you’re in charge of others’ wealth, you’ll also make a substantial wealth of your own at the end of an illustrated career in Investment Banking. Freshers usually fetch anywhere between 5-10 lakhs INR packages. As you gradually grow, your salary will also grow and can end up in 8-digits if you’re really good at your job.
Unlimited Growth Potential
Investment Bankers are considered to be the most talented individuals in the banking industry. For them, the sky is the limit. A career in Investment Banking comes with a lot of promotional scopes. The most talented individuals can reach the top and become the head of a financial institute.
Liaison with Established People
A career in Investment Banking exposes you to high society personalities. You’ll get in touch with successful individuals in every field of work. As you help them manage their wealth, you can also ask for favours at personal capacity for your benefit. However, you need to have good networking skills to have good public relations in the first place.
An Eventful Lifestyle
As an Investment Banker, you’ll be attending success parties in 5-star hotels and resorts. Being an Investment Banker, you’ll most definitely lead a colourful life. Investment Banking is not a dull desk job that might bore you well into your career. You’ll have something interesting and challenging on your plate.
As lucrative and rewarding as it might sound, becoming an affluent Investment Banker is not everyone’s cup of tea. It requires years of experience and hard work to reach the top of the ladder. If you aim to be a successful Investment Banker, you must work for it. The process of which starts with garnering knowledge about Investment Banking.
And what better way to acquire knowledge on Investment Banking than doing a certified course? IMS Proschool offers a unique opportunity to learn from industry experts and kickstart your career in Investment Banking. With the courses offered by IMS Proschool, you’ll develop the skill sets required to triumph in the field of Investment Banking.