By Harrison Heaton
Can’t put a price on this Advice
Everyone knows how lucrative and sexy the title of an investment banker holds, and more specifically the monetary reward you get from being a great one. However, there are hidden sacrifices and obligations that make this seemingly ideal occupation on the surface rather unappealing. It is called work for a reason and with this occupation there is no room for laziness.
Before giving the following advice, I want to make sure you, the reader of this article and explorer of the financial industry, know what you are getting into before continuing to be curious. Around 100 hour work weeks is a thing that beginner investment bankers have to do, no exceptions. Big financial institutions need to see that you are committed to your craft and put in your best effort and time to develop your skills and build your knowledge. With this being said, these 100 hour work weeks are not light work. It is challenging, rigorous, always changing, and most of all draining to the point where family, physical well being, and hobbies might need to be pushed aside. Yet, if you put in your time, in the near future you will be rewarded with a career path of financial success and a rapidly growing career.
Now that you know some of the sacrifices that need to be made, I will tell you exactly how you can get your foot in the door, and how to achieve your goals while working in this industry. First thing is first, big time financial institutions love to see that you are educated, and that you are educated from a credible source. So college and university is a must, and from a top ranked school makes a dramatic difference. Many companies and firms hire from their target schools specifically, often filling up reserved spaces with new talent from these admirable schools and not saving any room for other lower ranked schools. This is by no way saying you can not achieve your dreams of being an investment banker, but it does provide you with an easier opportunity.
In the visual above, we can see the number of Investment banking analysts for their respected financial institution and what school they went to. Ivy Leagues and top 30 universities are these big institutions' bread and butter, and are usually the stomping grounds of most of the management/executives in these financial institutions.
Practical application is the key to landing the occupation of your choice in your desired field, so these big financial institutions love to see hard earned internships in which you actually put your knowledge and abilities to the test. Exposure to the work culture/atmosphere is the reason for providing your potential employer reason to choose you over the individual next to you. However, these internships are not the only thing they look for. They want to see that you went beyond the expected, so obtaining your CFA or accounting qualifications can put you at the top of the resume list. These are just as important as your higher education and some investment firms even hold these as equal meaning they hold the same weight in the interview and job application process.
This goes hand and hand with networking which is another essential factor in succeeding at your career. Investment bankers find abundant amounts of capital and try to convince high worth individuals and companies to trust them in investing it for them for higher than average returns. So being able to network and doing it well can exponentially speed up your success as an investment banker and all it takes is knowing the right people. Investment bankers are the MVPs behind IPOs, mergers and acquisitions, and other events that may land them a high fee, so being able to sell yourself and potentially expand your web to higher, more reputable people will take you a long way. Their first impression of you is absolutely vital in securing their trust in you. Investment bankers work with the highest net worth individuals and people that are the movers and shakers of the world. These people have select groups, live in specific places and drive luxurious cars, so being able to fit in with these people could make all the difference.
Now with this being said, the more important concepts that make an investment banker successful are internal. Investing in yourself and having core competencies are the characteristics of a successful banker. These concepts within you include not only being mentally able, but also having an immense amount of discipline, an entrepreneurial spirit, global/worldly minded and having the ability to build relationships. These 5 concepts formulate the perfect recipe for success, and when you pair them all together you can achieve wonders. Having intellectual curiosity to explore more in depth analysis and subject matter while having the diligence to never give up and staying disciplined is similar to a boulder in the way that it could never be broken. This matched with ambition to expand and being openly internationally minded is the ideal banker. Knowing you have what it takes inside but still being hungry for success is the standard expected from big financial institutions.
Ultimately, it is up to you and what you do with your time as an investment banker that determines your success or failure. Being able minded with the necessary skill set and quantitative analysis while still staying hungry to prove yourself is really what it boils down to once you are in. Yet, when it comes to landing a job, what you look like on paper is absolutely essential and includes your education, involvement, and work experience.
Work Cited
Zucchi, Kristina. “The Top 5 Skills an Investment Banker Needs.” Investopedia, Investopedia, 19 May 2021, https://www.investopedia.com/articles/professionals/091714/top-5-skills-investment-banker-needs.asp.
Prosple, Team. “Must-Have Skills for Your Investment Banking Career.” GradAustralia, GradAustralia, 7 Dec. 2020, https://gradaustralia.com.au/career-planning/must-have-skills-for-your-investment-banking-career.
Ting, Matt. “Investment Banking Target School List (Using Data).” Peak Frameworks, 22 June 2021, https://www.peakframeworks.com/post/ib-target-schools.
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