Investment banks are essential to businesses because they enable them to raise the funds necessary for expansion into new markets or corporate growth.
If you are looking to enter investment banking or brokerage services, make sure you do extensive research on the market viability and demand for the career you want to pursue. You can choose the profession that is perfect for you by staying educated about the careers that are in high demand.
In this article, you will learn everything you need to know about investment banking as a good career path and the jobs that are available in the finance industry.
Who is an Investment Banker?
A person who works directly for a financial institution and is primarily focused on generating cash for businesses, governments, or other entities is known as an investment banker.
Investment bankers try to help these businesses get the money they need by doing things like underwriting the sale of stock or bonds. Investment banks can help clients with other kinds of transactions, like mergers and acquisitions (M&A), which take place when one firm tries to buy another or when a company is put up for sale. What one company is willing to pay for another is typically determined by the company valuations that investment banks produce.
Businesses and non-profits often talk to investment bankers to get advice on how to finance their growth in the best way. A banker who specializes in investments can also help with making sure that rules are followed and setting prices for financial products.
Is investment bankers/brokers’ service a good career path?
According to the Bureau of Labor Statistics (BLS), sales agents for securities, commodities, and financial services are expected to see an employment increase of 10% between 2021 and 2031, Investment bankers are included in this group.
Investment bankers are in high demand because they provide financial advice to businesses, governments, and even the military. They are supposed to help their clients get money, either by selling stocks or by negotiating the purchase of a competing business. There is reliability and financial security in this line of work. People who work in this sector learn about a wide range of other fields and help raise the nation’s capital through their jobs.
Investment bankers work anywhere between 60 and 100 hours per week, longer hours are usual for analysts, and as you advance in the world of investment banking, you get more free time at the expense of more responsibility. Long hours are normal for investment bankers, but they may be rewarding; even for an entry-level analyst, incomes can range from $80,000 to over $200,000 annually.
However, advancing in the ranks might call for some advanced degrees. Analysts usually have a bachelor’s degree, while associates often have a master’s degree in business administration or finance. If you want to work as an investment banker, you need a bachelor’s degree as a minimum level of education. A master’s degree in business management is nevertheless preferred.
Related: Is Major Banks A Good Career Path?
The professional path in investment banking can be satisfying, lucrative, and difficult. In general, it can be a great career choice if you like helping people reach their big goals, working with clients, and crunching numbers.
Top 5 Investment banks in the U.S. and their total assets
- JPMorgan Chase & Co., $3.31 trillion
- Bank of America Corporation, $2.41 trillion
- Wells Fargo & Co., $1.71 trillion
- Citigroup Inc., $1.71 trillion
- Morgan Stanley: 1.1 trillion
Jobs available in Investment bankers/brokers services, and the Average annual salary in the United States
1. Equity trader: $84978
The purchasing and selling of stocks, bonds, commodities, and other financial instruments are the responsibility of equity traders. Equity traders must have the ability to quickly assess market trends and decide whether to purchase or sell at any given moment.
2. Financial consultant: $73824
Financial consultants, also known as financial advisors, offer their clients advice on issues relating to insurance, taxes, investments, and retirement planning to help them achieve their financial objectives.
3. Investment executive: $89325
Based on their needs and preferences, investment managers assist customers in finding the finest investments. As a result, investment executives are in charge of determining customer needs, researching suitable investments, and assisting clients in choosing where to put their money or other assets.
4. Investment Banking Division Analyst: $81531
The intermediaries between companies searching for capital and investors eager to invest in fresh, profitable businesses are investment banking analysts. They use several tactics to achieve financial success for the business and the investor.
5. Loan Officer-$180553
Business, real estate, and credit loan applications are reviewed and approved by loan officers. They are experts at determining a loan applicant’s financial situation. Among the duties are reviewing loan files and updating account data.
6. Regulatory Reporting Accountant-$90,346
A regulatory accountant conducts research and examines regulatory pronouncements, reporting specifications, and other accounting documents. They then present management with their analysis and recommendations.
7. Asset manager-$73,228
On behalf of their clients, asset managers trade, manage, and invest assets like money, bonds, equities, precious metals, commodities, and real estate. They give their clients advice on how to buy assets and also track, negotiate, and put in place plans to increase the value and revenue of assets.
8. Actuary- $78,000
These are statisticians who are skilled at estimating the financial implications of various investments using data. They can also determine uncertainty to guide investors away from possible dangerous risks.
9. Investment bank broker-$82,570
An investment broker is a financial expert who executes investment deals on behalf of clients. These experts can buy and sell securities on customers’ behalf, including stocks, bonds, mutual funds, and other financial products.
10. Manager of property and casualty insurance underwriter
The manager of property and casualty underwriting is responsible for managing and supervising the underwriting program for property and casualty insurance for both individuals and/or groups. And also implement risk-related policies and procedures.
For people looking to begin a career in finance, an investment banking career is a great choice. It is regarded as one of the biggest professional pathways. It also comes with stability and financial security. Although working as an investment banker can be stressful, the experience gained in the field gives people excellent transferable skills.
Investment banking is appealing to some despite the long hours and stress because of the high pay, intriguing work, fantastic exposure, and transferable skills obtained even at a junior level, which can aid you in future career changes and exit chances.