What are the roles of an Investment Banker?

You have probably heard about investment bankers, and you are considering a career in finance. Let us explore what investment bankers do.

What does investment banking mean?

Investment banks are intermediaries between investors such as companies and financial markets. They provide financial advice, trade stocks on behalf of their clients, assist businesses to become publicly traded and help during acquisitions and mergers. They also research market trends and advice their clients to make profitable financial decisions.

Unlike retail banks that offer checking and savings accounts, investment banks assist firms in getting revenue. For example, investment bankers help investors obtain resources to buy or sell assets.

What are the roles of investment bankers?

Investment bankers are the intermediary between corporate clients and their banks. Therefore, they are essential to investors who want to earn revenue for their activities. Investment bankers guide businesses through large financial transactions and processes such as mergers, acquisitions, public listing, and raising money through issuing securities.

In addition, investment bankers utilize financial models to assess the cost of financial instruments, ascertain possible risks and returns, prepare investment reports and present them to their corporate clients.

How do I become an investment banker?

Investment banking jobs are gratifying, and you could potentially grow your career in the financial industry. However, the position is highly competitive, and it would be best to stand out from other candidates.

Education

The first qualification you need is an undergraduate degree. For example, if you want a career as a financial banker, choosing a business-related major such as accounting, mathematics, and finance would be best. However, even if you studied a major unrelated to finance, for example, humanities or foreign language, you can still apply the skills learned to investment banking.

Investment banking internship

Completing an investment banking internship is an excellent way to get real-life experience. You will gain the required skills and knowledge that will help you secure jobs in the future. Additionally, you are likely to be considered for employment in the company where you undertook your internship. Finally, an internship helps you form professional networks and develop relationships with employers and colleagues who can mentor or act as your referees.

Pass securities exam and register with FINRA

You should register with the Financial Industry Regulatory Authority to represent your investment bank as an investment banker. Moreover, you might be required to pass securities exams to get an operating license where applicable.

Become a CFA charter holder

You can give yourself an edge and stand out as an investment banker by attaining a CFA certification. The CFA Institute offers chartered financial analyst (CFA) accreditation. The charter is for investment and financial professionals, and its curriculum covers topics in investment and finance.

Additionally, the curriculum covers portfolio management, financial analysis, derivatives, stocks, bonds, and ethics. The course is offered internationally and recognized as the gold standard for all financial analysts. Earning the CFA certification will help you stand out in the workplace and network through the CFA societies.

Benefits of earning a CFA designation as an investment banker

Although challenging, earning a CFA designation is beneficial as an investment banker for several reasons.

1. CFA is the gold standard for finance and investment professionals

If your goal is to advance your career in finance or investment, earning a CFA designation is an excellent investment. You enjoy global career mobility since it is recognized internationally as the gold standard for investment and finance professionals. There are more than 164,000 CFA charter holders all over the world.

The qualification is precisely the same for all candidates globally. Consequently, your CFA charter is recognized by employers regardless of where you earned it.

2. Earning a CFA designation will enhance your financial career

A CFA designation will enhance your career in the financial industry whether you are already employed or want to make a change. Additionally, the CFA designation complements other professionals who specialize in financial services and want to broaden their expertise in the field.

3. CFA enhances your knowledge in finance

The CFA exams are hard to pass because the curriculum equips you with extensive graduate-level knowledge of finance. Additionally, the CFA Institute regularly updates the learning material to ensure that it remains relevant. Consequently, having a CFA designation indicates that you have the required in-depth financial knowledge and technical skills for a potential employee.

4. CFA charter holders have unique networking platforms

The CFA Institute offers the program globally, and as a result, there are more than 164,000 CFA charter holders from 164 countries. In addition, CFA societies present a unique opportunity for you to network with other CFA charter holders.

Additionally, CFA charter holders enjoy higher salary increments compared to non-holders. An internationally recognized designation also gives you a better chance of working for global firms with better pay.

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