Introduction
Investment banking is a highly competitive industry that requires a great deal of experience and education. However, it can be a very rewarding career with a great deal of opportunity for growth. In this blog post, we’ll explore how to get started in investment banking, including the necessary education and experience.
Introduction to Investment Banking
Investment is the acquisition of a particular value with the use of money in the hope of making more money and having a palatable future return. Investment is all about using money in a way that will bring in money in return, this is very essential and common amongst companies and entities. As simple as It may sound, without proper planning and calculated oversight, companies and entities can have a huge loss which is why most companies and individuals usually see a need to get an investment banker who understands how it works and who has the best experience and knowledge on what works and what may not work in any particular investment.
Training type for Investment Bankers
The typical training type in Investment banking is Offline.
Average training duration for Investment Banking
The average training duration for becoming an investment banker in Nigeria is a 4-5 years degree in Accounting, Finance, and Economics or other related courses.
Qualification required to become an Investment Banker
The average qualification to become an Investment banker is Bachelor’s / HND (Higher National Diploma).
Secondary school department to become an Investment Banker
To pursue a career in investment banking, you have to be in the COMMERCIALS department in your secondary school.
Tertiary fields for Investment Banking
- Accounting
- Economics
- Finance
or any other related fields
Career Path For Investment Bankers?
In pursuing a career in the investment banking industry, you will need to be certified in fields like Accounting, Finance, Economics, and other related fields. Also, you will need to apply for internships to widen your horizons. You will as well need to cultivate the habit of reading books that are related to your field and taking relevant courses online to foster your knowledge in the field. Joining communities is essential to staying current on what’s happening in your industry.
However, as someone passionate about becoming an Investment banker, you will need to know what you want and make your goals on which companies you want to work for vivid.
Professional grade in Investment Banking
The professional grades we have in investment banking range from;
- Analyst.
- Associate.
- Vice President.
- Director/Senior Vice President.
- Managing Director.
How long does it take at each professional stage in Investment Banking?
The average duration at each level of the professional stage in investment banking – Analyst is from the age of 22-27 and must have 2-3 years of experience to become an Associate in the field.
As an investment banking Associate, from the age 25-35 years and 3-4 years of experience to be a vice president.
As an Investment banking Vice-President, the age frame is from 28-40 years, and 3-4 years of experience to become a Director/Senior Vice President.
However, as a Senior Vice President, the age frame is from 32-45 years of age with 2-3 years of experience to become the Managing Director which is the highest level.
How much is the average salary of Investment Bankers?
As an Investment Analyst, the average salary is $85,000 Annually.
As an Associate, the average salary ranges from $100,000 Annually.
An investment Vice President earns an average salary of $120,000 Annually.
An investment Senior Vice President earns an average of $150,000 Annually.
The last professional grade is the Managing Director earns an average of $300,000 Annually.
This was said to be secluded from other entitlements and allowances.
Source: According to Cooperate Finance Institute.
Work type for Investment Bankers
The work type for investment bankers is on-site. This is because as an investment banker your duties include overseeing investments and meeting clients.
How long do Investment Bankers work?
Investment bankers’ work is typical from 9 am to 5 pm. However, this is if there is no emergency call to work even after work hours.
Occupational hazards in Investment Banking
The common basic occupational hazard in Investment banking is;
- Credit risk
- Market risk
- Operational risk
Credit risk in the investment banking system is experiencing no payback after issuing credit. Investment banking systems usually take this risk which could cause a big hitch in the system.
Market risk. As an investment banker, it is expected to predict and make an analysis of the market before any investment is made, a wrong analysis could cause a great loss for a client which in turn could affect you as an investment banker – it can cause a loss of job and emotional damages.
Operational risk factors are solely on the security of client’s data and information. Investment Bankers deal with a huge amount of money and also deal with a large control of a contract that must not be accessed by an outsider. These are possible basic problems an investment banker can face in the field.
Gender distribution in Investment Banking
Statistically, in Investment banking, the Male gender has the highest number with 72.3% in the industry. The female gender on the other hand has the lowest percentage of 22.0% leaving the industry dominated by male folks.
Talents suitable for becoming an Investment Banker
- Proven strong numerical and analytical skills
- Excellent teamwork and team leadership skills
- Communication and interpersonal skills
- Project and time management ability
- Dedication, energy, and commitment
- Self-confidence and the ability to make difficult decisions
- The ability to work under pressure and cope well in stressful situations.
What is the retirement age for Investment Bankers?
The average retirement age of an Investment banker in Nigeria is from age 65-70 years
Popular professionals in Investment Banking
- Nathaniel Rothschild (Net worth: $1 trillion)
- Jim Simons (Net worth: $23.5 billion)
How relevant is Investment Banking in other countries?
Investment banking is an essential part of banking systems, and it’s his services in both private and public companies and entities have earned its relevance and usefulness to countries in the diaspora. These countries include the European countries.
Fields related to Investment Banking
- Corporate Finance
- Portfolio Management
- Risk Management
- Financial Planning
- Commercial Banking
Branches of Investment Banking
- Underwriting
- M&A
- Sales and trading
- Equity research
- Asset management
- Commercial banking
- Retail banking
