Skills You Need to be an Investment Banker

Some of the skills you need to be an investment banker can only be sourced in your in-depth knowledge base about Mathematics, Economics, and of course the philosophy of business and project management. Having all these outlined commands can be a very good foundation for the building of your career in the banking industry, much more you deciding to become an investment banker.

Investment banking for bankers pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. An investment bank may also assist companies involved in mergers and acquisitions and provide ancillary services.

They also maintain prime brokerage and asset management departments in conjunction with their investment research businesses.

As an industry, they can be broken up into three tiers. These are:

  • Bulge Bracket (upper tier)
  • Middle Market (mid-level businesses)
  • Boutique market (specialized businesses)

By functions, investment banking industry is also divided into private and public functions with a screen separating the two to prevent information from crossing.

  • Private Function

The private areas of the bank deal with private insider information that may not be publicly disclosed.

  • Public Function

The public areas, such as stock analysis, deal with public information.

Considering the formality that surround the professional situation of the investment banking industry, being an investment banker could demand just a lot of skills that you will need to get trained for.

Investment bankers functions that aspect of investment banking which involves helping customers raise funds in capital markets, giving advice on mergers and acquisitions, and of course, subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target.

Below in this content is the comprehensive highlight of the skills you need to be an investment banker:

  • Have Global Exposure to the Capital Market

In such a complex, unpredictable and volatile industry, you need a thorough understanding of the markets and the economy. A trained professional will rely on their education and research before making an informed decision.

There are only a handful of rouge countries nowadays. Chances are you will be employed by a multinational firm. You will be exposed to a lot of transactions that are done on a global scale. You might also meet other professionals from foreign lands.

Nevertheless, even if employed by a local firm, it’s inevitable that you will be exposed to global transactions as well. Investment bankers can’t work the stock market without a certification that ensures they have the knowledge.

  • Build Profitable Relationship

A part of your investment job description will involve building relationships with clients. Don’t expect you can sell your firm’s services without the need for good customer relationships. After all, your counterparties are human too. Humans are social in nature.

From time to time, you get to meet investors or corporate investment bankers alike. Building healthy relationships with them, even if you still have no business with them, could prove beneficial.

  • Presentation Skills

As an investment banker, don’t expect your job to end with the financial model’s finalization. You will still have to present it to clients or your team. The trickiest part of being a presenter is the fact that you are going to face a lot of different people.

Read Also: Skills Needed for Investment Banking Internships

Always be eager to volunteer as the presenter in your classroom or office. Watching YouTube videos like this one will also help you out. Then, gather up enough confidence to face and conquer the crowd or your business audience.

  • Discipline

Investment banking jobs are usually stressful. These posts will make you work long hours and under tight deadlines. Due to stress, there would be a lot of temptations for you to stop working and enjoy a leisurely life.

If you are someone without enough discipline, you will quickly give up on a job in the financial services industry. That’s why recruiters look for individuals that are disciplined enough to get their work done.

  • Financial Modelling Skills

Candidates with a financial modelling certification are more likely to get a job in investment banking. It’s a vital tool used by many experts across the field. Financial models help investment professionals with several tasks.

You can create M&A models, financial statements, company valuations, profit and loss statements and other relevant reports. It helps to make data more accessible and coherent. Financial modelling can also help with making predictions and identifying risks.

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