How To Build An Investment Banking Career

How to build a banking investment career, including education, training and how to find a job.

Investment banking is deservedly one of the most respected career paths available today. The profession involves challenging work at every level, attracts the highest caliber of employees, and pays top dollar. As a result, the screening system to get a foot in the door is rigorous, and once you've successfully secured an investment banking job, you will find yourself in fierce competition with your colleagues for top bonuses.

Entry Points for Investment Banking Careers

There are three traditional entry points for investment banking careers: as an analyst, as a post-MBA associate, and in one's later career. Let's examine each one.

Every investment bank recruits a large class of analysts each year from the top undergraduate institutions. The analyst position offers an unparalleled degree of challenge and responsibility for young professionals, but the experience typically demands more than eighty hours a week for two years straight. Virtually all analysts are hired directly out of four-year undergraduate institutions. All possess stellar grades, a poised interview presence, and a very timely approach to interviewing and resume preparation - analyst interviewing typically occurs in September and October of senior year.

Investment banks also recruit large classes of associates from top MBA programs. Although a few analysts go on to become associates, the associate position is usually seen as the beginning of the investment banking career path - from associate to vice president to managing director and beyond. Associates assume responsibility for all aspects of investment banking marketing materials (pitchbooks), and deal execution. Virtually all associates are hired from summer associate positions at the same bank - meaning interviews in the first year of business school are very likely to determine job choices later on.

Finally, there are those who join investment banking later in their careers. This is the most cyclical of all investment banking intakes. Some years banks are desperate for people, and other years there are hiring freezes and it is impossible to enter the industry. When opportunity strikes, it pays to be prepared. This means having a resume with significant experience at either a smaller boutique investment bank, or a major commercial bank or asset manager. Furthermore, it means keeping in touch with contacts in the industry so you will know when banks are soliciting resumes.

Once you're in the door, it's time to build your successful interview into a successful career.
Article source: essortment.com

Inside Investment Banking (IIB)

If you are eager to apply for investment banking roles, visit the IIB website. It is authored by five young investment bankers who all succeeded to break into investment banking without a degree from Harvard and without an internship from Goldman. They’ve created the IIB website to share their experiences and help others to do the same. Click here to visit Inside Investment Banking

Ideal Candidate For Investment Banking

One of the most common questions my readers ask is - what makes me an ideal candidate for investment banking? It is obvious that those who don’t have a degree from Harvard or without any intern experience from Goldman may think that they are in a less competitive position.  In fact, it is not.  Some very successful bankers don’t even study finance at college.   And on this planet, there isn’t a degree to train students to become a president.  What make things happen is ‘YOU’.   

I’ve recently clipped this article which should help you gain a better understanding of the business and find out whether you can be an ideal investment banking candidate.  Find out what employers look for and see if you have those qualities.  The article is quite long, here is an extraction. 

Communication Is Key

Investment bankers need to be effective team players with excellent communication skills in order to avoid disconnects and wasted effort. Investment banks communicate with external parties such as clients, accountants, consultants and lawyers. Furthermore, many client representatives tend to be extremely scrutinizing, well-respected and often short-tempered, and you'll need to know how to deal with them…… 

Not Your Average Nine to Five

Due to the long hours involved, work stamina is required. When deadlines approach for deals, consecutive all nighters are a frequent occurrence.  

The late-night hours, client demands and finite number-crunching lead to relatively high attrition and burn-out rates. In many circumstances, analysts will stockpile several bonuses and move on to another career after a few years. The intellectual stimulation and challenging rigors of high-level corporate finance and executive level analyses, however, do provide a context where those who seek to exert themselves can find comfort and satisfaction in a prestigious and lucrative career. The classes of top business schools are dotted with former investment bankers wanting to go back to school to earn master's degrees. The low- to mid-six-figure compensation packages piled up over the years provide ample cash supplies for graduate school. Alternatively, there is an opposing and convincing view that experience counts for more when compared to a graduate degree. 

Rising To The Top

It is common for a rising star to specialize in a particular industry, whether it is in real estate, health care, energy, retail, transportation or infrastructure. As an investment banker progresses throughout his or her career and becomes involved in a multitude of projects, he or she becomes able to quickly apply industry norms, ratios, trends, forecasts and typical performance benchmarks. 

During the first few years, the analyst/associate conducts financial and operational grunt work. An associate's progression to a principal or director role, however, requires a higher level of responsibility in business development, and the ability to generate revenue for the department or firm. Assuming a supervisory role for a project, and becoming the primary contact for clients, along with training and recruiting, are appropriate adjuncts to business development and revenue generation. 

Differentiating Yourself From The Crowd

Investment banks seek high academic achievement, involvement in campus leadership positions, stellar communication skills and internships at well-regarded companies and nonprofit organizations. The applicant needs to be able to convey raw mental and emotional horsepower, a solid sense of direction in terms of goals and objectives and credible step-by-step supporting actions that have been taken to arrive at those objectives.  

Students and young professionals who possess broader or non-business academic curricula, or who worked at nonprofits, traveled overseas, volunteered and who display a burning curiosity and desire to explore this field, should resolve to apply and reapply for investment banking roles. There is a minimum requirement for a basic understanding of finance for your chances to be enhanced. But as long as the applicant conveys authenticity in his or her endeavors and possesses the passion and determination to explore investment banking as a career, an opportunity will often open up. Do not underestimate people's respect and admiration for someone who follows his or her conscience and dreams. Remind yourself that many of the world's most successful business leaders did not study finance or accounting - if they even received a college diploma at all.  

The Bottom Line

Applicants with a true passion for finance, market and organizational analysis should apply and reapply for investment banking roles, conduct self-study on finance, business, management and leadership. They should also secure impressive standardized test scores, differentiate themselves by volunteering or leading groups, and network with current or former investment bankers. If you're an energetic professional with strong valuation skills and the ability to interact with others, this challenging and rewarding job may be just what you're looking for.  Source:  Investopedia

 

Inside Investment Banking (IIB)

If you are eager to apply for investment banking roles, visit the IIB website.  It is authored by five young investment bankers who all succeeded to break into investment banking without a degree from Harvard and without an internship from Goldman.  They’ve created the IIB website to share their experiences and help others to do the same. Click here to visit Inside Investment Banking

Job Interview - Questions to Ask and Avoid

No job interview is easy, especially investment banking interviews.  You need to be smart in answering as well as asking questions.  Knowing what questions to ask and avoid is one of your keys to success.  Although asking intelligent questions won’t guarantee an offer, but asking bad or inappropriate questions will definitely kill.  I’ve recently read an article from Jimmy Sweeny which contains valuable tips about what to ask and avoid over a job interview.  Here's the article.

Questions to ASK and AVOID during your next job interview…

The phone call you've waited for has finally come! You've been invited in for a job interview. Now your nerves are on edge. You know what to wear but you may not know what questions to ask or avoid, or if you'll even have an opportunity to speak up other than to answer questions fired at you.

Don't worry. There will be time for you to voice your concerns and inquiries. The important thing is to know what questions to ask and which ones to set aside—for now. Keep in mind that interviewers want to speak with job seekers who are sharp, confident, and professional. This is no time to be passive and overly polite, though courtesy is always appropriate. Remember, you're vying for the job you want. Take an active role in asking questions by being prepared ahead of time.  

Consider These: 

• What factors about this company are attractive to you?
• What makes this firm a great place to build a career?
• How do you see the future of this company?
• What is the most challenging aspect of working for this organization?
• In your opinion, what would be the biggest adjustment for someone new?

Answers to these questions can help you decide whether or not this is the place you want to work. They will also help you respond to the questions you're asked. You'll be ready to answer in a way that will show you were listening, paying attention, and taking note of management's vision and objectives for the company. 

Questions to Avoid 

Steer clear of questions that you can answer yourself by doing a bit of basic research online—such as the kind of work you'd be doing, or the level of leadership that would be expected of you or the focus of the company. Walk into the interview armed with as much information as possible and then ask only those questions that will help you decide whether to accept or decline the job offer if it is presented. 

Also avoid asking questions related to salary, benefits, vacation, sick days and so on. At this point you have not yet been offered the position. You are being 'screened.'

There will come a time and place to discuss pay and benefits, but the interview is not that place.

Use What You Learn

The most important thing you can do during an interview is to show yourself as someone the hiring manager wants. Focus on displaying your skills and experience and how you can fit the profile of the person the interviewer is looking for. This gives you leverage for negotiating salary and benefits when the job offer comes through.

Be aware of the impression you'd make if you ask questions that have nothing to do with the job opportunity. An interview is not a social visit or a time to talk about sports and hobbies. It's a business meeting that has one purpose: to determine if you are the right person to fill the opening. If the interviewer asks a few questions about your interests, it's fine to answer them honestly. He or she wants to get to know you—but avoid getting off-track with long-winded responses that take the focus off the job.

Common sense is your best ally. Be yourself. Do your homework. Show up neatly dressed. Arrive on time. Know the right questions to ask, and the ones to avoid. And bring enthusiasm, a smile, and a firm handshake.

© Written By Jimmy Sweeney

President of CareerJimmy and Author of the new, Amazing Cover Letter Creator and Secret Career Document