Investment banking is a dynamic field that is getting popular among high school students interested in finance, providing high-paying and stimulating job opportunities along with a great exposure to the finance world. Additionally, the expertise and relevant skills gained in this field can lead to numerous high-roles in finance, making it the most preferable path for any fresher looking to break into IB.
What educational qualifications are required to enter Investment Banking?
Professional Certification
- CFA (Chartered Financial Analyst)
Having a CFA Certification is a valuable asset for students that can facilitate career entry into investment banking. It is a globally recognized credential offered by the CFA Institute and is divided into three levels and you need to clear all three levels to earn the charter. However, if you are CFA Level 2 pass out or preparing for Level 3, you can still apply for the job opportunities available to get into investment banking.
Duration – It includes three levels that can be completed in 2-4 years depending completely upon the student’s expertise and pace.
Course Content – It primarily focuses on investment analysis, portfolio management, financial reporting and ethical standards. It’s highly regarded for its worldwide-accreditation.
Job Prospect – CFA is the prestigious credential that is highly sought after in industries like investment banking, management consulting, hedge funds, mutual funds, brokerage firms, insurance, and investment firms.
ROI – Known for its outstanding ROIs due to its affordable cost and high earning potential.
- FRM (Financial Risk Manager)
FRM is a globally recognized certification and securing this certification is a desirable asset for those looking to start a career in investment banking, particularly in risk management roles.
Duration – It consist of two exams that can be typically completed in 2 years
Course Content –
- Part I: Risk Management Foundations, Quantitative Analysis, Financial Markets, Valuation Models.
- Part II: Market Risk, Credit Risk, Operational Risk, Investment Management, Current Issues.
Job Prospect – These professionals are in high demand across various industries for roles including risk analyst, risk manager, and chief risk officer in banks, asset management firms, and consulting agencies.
ROI – Great ROI due to affordable cost compared to other advanced qualifications.
Post Graduate Degree
MBA in Finance
MBA Finance graduates are more likely to be considered for investment banking roles. If an applicant possesses a degree from Top Tier colleges then it becomes quite easy for them to enter the field of Investment banking. This respected degree provides networking opportunities and a solid understanding of business operations.
Duration – Obtaining a master degree usually takes 2 years to complete but can be varied if pursued through part-time or distance mode.
Course Content – This degree covers everything required in the IB sector including finance, accounting, business acumen, marketing, financial analysis, management consulting and accounting knowledge. Investment Banking is a mix of all these concepts with majors in finance.
Job Prospect – It provides access to various IB opportunities at major investment banks and financial firms.
ROI – It generally comes with high cost if pursued from the top colleges, but can lead to high pay scale and career advancement.
Bachelor Degree
Obtaining a bachelor degree in any field is the minimum requirement to step into the IB landscape. Graduates can typically be hired for entry-level positions and work as an intern. Candidates coming from Top-Tier colleges may get the chance to land a position as Analyst or Junior Analyst. While starting a career in investment banking after graduation is possible, it demands practical experience, in-depth knowledge and additional qualification.
What are the skills required for Investment Banking?
Skills play a crucial role to break into investment banking. Aspirants acquiring these skills can very easily get into investment banking compared to those who lacked them.
- Analytical Skills – It is important for candidates to improve their analytical ability as it is an essential skill required for working on research and financial modeling and help in learning these quickly.
- Quantitative Skills – If your math is not strong then IB is not an ideal industry for you. A candidate must possess good quantitative skills to thrive in investment banking.
- Financial Knowledge – A basic knowledge about financial concepts is essential to start your career in investment banking. It would be helpful in cracking interviews related to the finance field, no employers would trust your capabilities if you lack finance knowledge.
- MS Excel Knowledge – If you are proficient in using Excel, it will enable you to efficiently handle financial modeling, analysis, and reporting tasks, which are critical in the industry.
- Financial Modeling – It’s a highly sought-after skill required by the finance industry. Investment bankers mainly work on building financial models so candidates who can prepare models from scratch are more attractive to potential employers.
- Valuation: As an investment banker, being proficient in the valuation of companies and businesses is crucial. Valuation is a key part of your daily responsibilities, whether you’re advising on M&A deals, working on IPOs, or managing client portfolios. Mastering this skill before you start your career will give you a significant edge in the industry.
Conclusion
Investment banking is a demanding field that offers a promising career with high earning potential and global recognition.Students can kick start their career by pursuing the relevant qualification and acquiring necessary skills and gaining practical knowledge which can further enhance their chances to secure a position in Investment Banking.
For aspirants looking to break into Investment banking, investing in the right courses and honing relevant skills will open the door to a successful career in IB. The WallStreet School has designed a well structured investment banking course to excel in the competitive field.
To learn more about the course, visit The WallStreet School and brush up your skills that align with industry demands.
