If you want to work in finance where professionals earn an average of $102,510 per year, you may want to learn how to become an investment banker. Investment bankers play a major role in corporate finance by helping connect investors and businesses in need of financing. Their major role is to help companies go public, but bankers may also get involved with mergers and acquisitions by helping structure deals or give solid advice. Since these bankers are experts in complex areas of finance that are highly regulated, they must complete advanced training to develop formal finance knowledge and skills. Read on and discover the most direct path that you must travel down to become a qualified investment banker.
Earn Your Bachelor’s Degree
The very first step to getting your formal training is to earn your 4-year degree. Since there is no Bachelor’s degree program that focuses specifically on investment banking, you will need to decide which type of banking-related major is best for you. Some of the best choices for prospective investment bankers include: accounting, economics, finance, mathematics, business or even engineering since engineers tend to thrive in this field.
Secure an Internship
Gaining practical experience in a banking environment can really help you in the future. One way to start building your reputation is to complete an internship with a well known firm or a smaller boutique bank. Some of the opportunities are extremely competitive so it is important to apply to multiple opportunities at once. This will give invaluable experience that you need to get licensed and also a leg up on the competition when you are ready to apply for a permanent entry-level role.
Apply to a Graduate Degree Program
The best type of graduate program to enroll in when you specifically want to work in investment banking is an MBA program. The primary reason for this is because MBA’s learn to be well-rounded business professionals and this attracts banks from all over. In fact, as you complete your two years of business school, you will find that banks will come to your school to recruit. Since they come to you, this would be the best route to go. It is still possible to land an interview and then get a job offer with a Master’s degree in a different discipline, but MBAs are what banks are looking for.
Get Hired and Complete Your Training
As an entry-level banker with no experience in structuring finance deals, you will find that most of the big name bankers will have intensive training to help you get licensed. You must pass the training and earn your license to keep your job. According to the Financial Industry Regulatory Authority, you will need to take the Series 79 exam and the Series 7 exam to get your investment banking license before you can take on clients. Once you have your license and a successful track record, you will be marketable to other banks.
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The demand for investment bankers is projected to grow by 11% within the next few years, according to the Bureau of Labor Statistics. Since this is average, you need to stand out by earning your graduate degree and by filling internship roles successfully. Make sure to choose an accredited program and then research all of the banks hiring so that you can become an investment banker with the best in the business.
