- Investment Banker
Who is a Investment Banker?
The individual investor should act consistently as an investor and not as a speculator ~ Ben Graham
Do you want to assist big companies as well as several government entities to raise capital? Or do you want to provide people with financial consultancy? Yes, you can do that. All you need to do do is get into the profession of an investment banker and help an organisation go public. If you wish to be a part of a financial institution where you can be the person who motivates the investors to invest in companies and in turn raise capital for these companies to operate, being an investment banker is a suitable career choice for you. If you want to know what is an investment banker or how to be a successful investment banker, then stay tuned with us. We will provide you with all the answers.
Individuals who opt for a career as investment bankers are professionals who work as a part of a financial institution and is primarily connected to raising capital for corporations, governments, or other entities. Investment bankers are trained with the ability to save people’s time and money by identifying the risks involved in a particular project before a business moves forward. Investment bankers are termed as the experts who have their fingers on the pulse of current financial and investing climate. Almost every business and non profit organisations are required help from investment bankers for advice on how best to plan their investment.
Investment Banker in a Nutshell
Individuals who opt for a career as investment bankers work in a specific section of banking related to the invention and generation of capital for other organisations, governments, and other entities. Investment bankers work for the organisations and underwrite new debts and equity securities for every type of company, aid in the sale of securities, as well as help to facilitate mergers and acquisitions, reorganisations, and broker trades for both institutions and private investors. Banking advisory jobs involves the issuing of securities as a means of raising money for the client groups, along with generating the documentation for securities and exchange commission necessary for a company to go public.
Quick Facts for Investment Banker
Average Salary in India
Male, Female, Others
Individuals can take up a career as investment bankers, it is not gender-specific. Males, women, and others can choose a career as investment bankers. Finance and investment is a field that supports every gender. Both men and women interested in finance and accounting can choose a career in investment banking. As an investment banker, all a candidate requires is to become more knowledgeable and continue developing his/her skills as he/she grows in the finance and investment industry. Over time, candidates grow more confident irrespective of their gender. An investment banker is required to be involved in assessment and research which can be accomplished by anyone possessing appropriate qualifications.
Any special needs
Everyone, including those with physical disabilities, is appropriate for individuals who opt for a career as investment bankers. The career as investment banker is well suited to everyone, even those with special needs. The finance and investment sector is an industry where the capability of an individual solely depends on the job and individual itself. Employment as an investment banker is sometimes overwhelming and employees might be required to work overtime. However, being a desk job, investment banking becomes a suitable career for people with special needs. People with special needs, if they produce accurate qualifications and skills can surely work as well as excel in investment banking.
Table of Contents for Investment Banker
What is the role of Investment Banker?
Jobs in investment banks include a variety of duties. Investment bankers are the professionals who help their clients in raising funds in capital markets by issuing debt or selling equity in the organisations. Investment banker’s other job duties include assisting clients with mergers and acquisitions and advising them on unique investment opportunities such as derivatives. Investment bankers perform various job duties for their potential customers. There are few organisations where each investment banker performs different duties, while at others, employees are specialised, with different bankers performing different jobs. Individuals who opt for a career as an investment banker are the head of a team dedicated to raise capital by issuing bonds. The team is full of aggressive salespeople, each having a large contact list of leads from which to solicit investment business.
As an investment banker, one is required to use letters and phone calls to contact delinquent customers. Individuals who opt for a career as investment bankers are also responsible for overseeing the business financial collection department. An investment banker supervises staff to confirm all finance owed to the company is billed and received correctly and in a timely manner. Most often, they are required to work for investing companies or collection agencies, but other types of businesses may also employ investment bankers to collect funds.
The type of organisation an investment banker works for will determine their particular responsibilities, however, there are several main duties all investment bankers perform. As an investment banker, they are required to supervise a staff of collections personnel, they are responsible for minimizing financial losses, a large part of an investment banker job entails regularly reporting the fund and investment department’s progress and statistics.
Investment managers are responsible for a variety of tasks including sales expansion, expansion into new international markets, better financing terms, reduction in bad debt reserves, actionable economic knowledge, protection against non-payment and catastrophic loss, increase in sales and profits, improved lender relationship.
Tax planning can take a number of different forms. Investment bankers often help companies and people address certain tax issues and find a feasible solution for how to maximise their possible tax returns and minimize tax accountability. There are various investment advisors who also help individuals with the preparation of their tax returns.
The investment file is a document that belongs to the customer which consists of a collection of data about an individual’s borrowing and repaying activity. The file contains the data that determines the investment score of a customer. Investment bankers are required to manage the investment files in order to keep track of their customers' financial reports.
Investment bankers are responsible for managing the assets of various corporations, along with helping them with the investment portfolio by mapping out how one should be investing and in which types of investments.
Types of a Investment Banker
Financial Planner: Financial planner is a person qualified in investment and finance who helps individuals and corporations meet their long-term financial goals. After consulting with clients, a financial planner starts analyzing factors like client’s goals, risk tolerance, life or corporate stages, and identifies a suitable class of investments for them. The financial planner works closely with both individuals and corporations to help them attain their financial objectives. A financial planner works over several factors like budgeting, investments, saving for retirement, tax planning, insurance coverage, and more.
Credit manager: A credit manager/specialist is defined as a professional working for an organisation to manage and supervise credit management and make decisions concerning credit limits. However, the role of a credit manager is variable in its scope. The position of a credit manager is accountable for the entire credit granting process, including the continuous application of credit policies. As a credit manager, one is required to periodically review the credits of existing customers, and also assess the creditworthiness of potential customers, with the aim of optimising company sales along with bad debt losses.
Certified management accountant: Certified Management Accountant is a person who possesses knowledge in the areas of financial planning, analysis, control, decision support, and professional ethics. They work inside organisations of all sizes, industries, and types, including manufacturing and services, public and private enterprises, not-for-profit organisations, academic institutions, government entities, and multinational corporations worldwide.
Accountant: A person who is person a career as accountant is responsible for ensuring that the company does not go overboard with the expenses and deplete its coffers. Accountants play an important part in business operations; their duties include collection, recording, analysing and presentation of a company’s financial operations to the stakeholders. The role of an accountant can change if the company is large.
Financial Advisor: A career as financial advisor is all about assessing one’s financial situation, understanding what one wants to do with his or her money, and helping in creating a plan to reach one’s financial objectives. He or she helps individuals and corporations to reduce spending, pay off their debt, and save and invest for the future.
Account Manager: A person who is pursuing career as account manager directly deals with clients. He or she make beneficial relationships with their clients and keep a record of other beneficial contacts. Key account manager responsibilities include collecting all the necessary information about their clients such as the identification documents.
What is the workplace/work environment of Investment Banker like?
Individuals who opt for a career as an investment banker supervise the operations of retail stores and investment bureaus and the extent and size of the operation decide each manager’s duties and responsibilities. In small firms, investment bankers are expected to help customers fill out the application for investment lending. They are required to check on the reference list and decide whether the investment has to be granted or not. They also handle customer complaints and check for late payments. However, in large firms, investment bankers are required to perform all the jobs provided by the small firms along with making final investment decisions. They are also required to manage the hiring and supervision of investment checkers and other employees in their department.
Does Investment Banker require travelling?
Customer investment bankers spend most of their working time in the office itself unless they are required to visit a client or firm for some new investment lending project. Individuals who opt for a career as an investment banker are required to travel business plants and industries in order to interview existing and potential clients.
Investment bankers are expected to work full time. Individuals who opt for a career as investment bankers usually work for forty hours per week. Sometimes, when the work pressure is more and they are required to accomplish a project in less time, their working hours may extend to 45-50 hours per week.
Individuals who opt for a career as an investment banker are employed on a permanent basis as well as on a contract basis. The nature of work for investment bankers depends on the task allotted to them, some are recruited by big management and finance firms and industries while some are recruited by private organisations to meet a particular assignment or conduct research. Investment management is a service-based industry that requires the employees to work as per the requirements of a specific project. There are a variety of roles and responsibilities that are to be accomplished by investment bankers.
Individuals who opt for a career as investment bankers spend most of their working time in the office itself unless they are required to visit a client or firm for some new investment lending project.
Presence in Geographical Area
When it comes to the finance and marketing sector, certain cities like New Delhi, Mumbai, Noida/Gurugram, Bengaluru, Chennai, Hyderabad seem to offer more than the rest in terms of opportunities, salary, and career growth. Mumbai is home to a maximum number of financial institutions including the Reserve Bank of India, and State Bank of India. New Delhi is a political capital of the country, follows suit where finance jobs are galore. New Delhi has an excellent amalgamation of industries and corporates, ranging from IT to manufacturing to media to consultancies along with a very strong presence of finance and banking. Bangalore, also known as silicon valley is the country's IT capital. Along with jobs in the IT sector, banking and financial services also offer substantial career opportunities for candidates. The above-mentioned cities are some of the best destinations for a career in finance or investment management.
Time pressure is considered moderate in the case of investment bankers. Investment bankers are expected to work full time. Individuals who opt for a career as investment bankers usually work for forty hours per week. Sometimes, when the work pressure is more and they are required to accomplish a project in less time, their working hours may extend to 45-50 hours per week.
Individuals who opt for a career as an investment banker are expected to work full time. They usually work for forty hours per week. Customer investment bankers spend most of their working time in the office itself unless they are required to visit a client or firm for some new investment lending project. However, when the work pressure is expected high they might be required to work overtime.
Weekly Hours of Work
Min 50 Hours
Individuals who opt for a career as an investment banker are expected to work full time. They usually work for forty hours per week. Sometimes, when the work pressure is more and they are required to accomplish a project in less time, their working hours may extend to 45-50 hours per week.
How to become a Investment Banker?
What are the skills and qualities required to become a/an Investment Banker?
Decision-making skills: Investment bankers are required to review investment processes of their potential corporations along with managing the financial losses and gain for the firm. Hence it is important to possess accurate decision-making skills and be able to conduct a proper judgment.
Patience: Investment banking is a task that requires a lot of awareness and precautions before taking a decision. There are times when investment bankers are required to manage their staff along with supervising the financial reports which require them to remain calm under pressure. Only proper confidence and calmness can ensure an appropriate result.
Numerical ability: Investment bankers are responsible for determining the investment worthiness of their potential corporations, individuals who opt for a career as an investment banker are also required to calculate financial reports of individual customers and firms. Investment banking is a task that involves a lot of accounting and mathematics. Hence, possessing a high level of numeracy skills is a must for excelling in the field.
Leadership: Individuals who opt for a career as investment bankers lead a huge team filled with aggressive and intelligent salespeople. They supervise and oversee the staff working with them. They are required to manage the work of each and every employee who works under their supervision. In a scenario like this, exhibiting excellent leadership skills and teamwork skills are mandatory for investment bankers. Jobs in investment banks require leadership skill to manage banking advisory jobs.
Organising skills: Investment bankers oversee a big staff and supervise almost every customer's details personally, they are required to work under the proper organisation. With so much responsibility and work, comes the responsibility of managing the staff. Investment bankers are required to work in a team with proper organisational conduct and so are required to possess proper organisational skills in addition to teamwork skills.
Attention to detail: Investment banking involves accounting, money losses, analyses of information, and data of customers and the investing department. There is a big pile of numerical data that is to be handled by the investment bankers. They must possess accuracy in calculations since a single mistake can result in a big hazard.
Communication skills: Investment bankers work with a big staff, they supervise and oversee professionals working under them. Individuals who opt for a career as an investment banker also manage the customers and directly interact with them in order to conduct proper research for investment worthiness. Investment bankers are also required to conduct meetings and present their projects in front of clients and customers. It is important for investment bankers to possess good spoken and written communication skills.
Active learning: Active learning involves understanding the implications of new information for both current and future problem solving and decision making which is an important asset for employees working in investment banking.
Critical thinking: Management of the investment department requires sharp critical thinking skills that involve using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
Also read - Skills required to become a financial planner
Which certifications and internships can be helpful in becoming Investment Banker?
|Become a Smart Investment Advisor ||Investment Analysis and Portfolio Management |
|Introduction to Investments ||Certified Investment Banking Operations Professional |
|Post Graduate Certificate Programme in Investment Banking |
Internships are a great way to learn applications and practical skills for any programme. The internship programmes done by the student include weightage for the final semester or completion of course. Talent, skills, investment banking degree and experience are the most important assets for students. The competition is fierce and adding skills with the help of internships helps the students to gain industry experience and become market-ready. In order to get these internships, students are required to e-mail the related authority with their resume and statement of purpose to make careers investment banking. These are the factors responsible for the selection or rejection of a candidate. Also, there are organisations that take the help of assessment exams in order to judge the caliber of candidates. Most companies offer a feasible stipend to their interns. The stipend varies depending on the roles and responsibilities assigned to the candidates. Accountancy, operations, subject matter expert, online teaching, research and stock trading, management are some of the most popular fields and posts that offer internships in the investment banking sector.
Career Path Progression for Investment Banker
Interns: Candidates are required to work as an intern for a firm or organisation in order to get industry exposure and learn applications of the tools taught in college. Candidates can work for various organisations for positions such as accountant, finance operator, subject matter expert, online teacher, research and stock trader, management supervisor assistant. These roles are chosen on the basis of interests and requirements the students possess. Generally, internships are unpaid and students are required to work under the supervision of professionals. However, if possessing strong technical skills along with a good academic background, these types of investment bankers get paid for their internship.
Junior investment banker: The junior investment banker is a position offered to the entry-level candidate in investment management. Junior investment bankers work under the supervision of senior investment bankers or general managers. Roles and responsibilities of a junior investment banker include meeting applicants and potential customers to understand their loan requirements, gathering loan information based on specific criteria, analyzing and verifying applicants financial information, explaining and presenting different financial investment options to the potential customers, presenting approval and rejection decisions to management, ensuring investment terms and conditions comply with government regulations.
Senior investment banker: Senior investment bankers are responsible for overseeing the interns and junior staff in addition to the responsibility for researching and evaluating the client’s investment worthiness, creating investment scoring models to predict risks, approving or rejecting the loan requests, based on credibility and potential revenues and losses, calculation and setting of interest rates, negotiating loan terms with clients, monitoring payments, maintaining records of loan applications, following up with the clients to manage debt settlements and loan renewals, ensuring all lending procedures comply with regulations, developing, reviewing, and updating organisation’s investment policies. As an investment banker/specialist, one is required to use letters and phone calls to contact delinquent customers. These types of investment bankers oversee the business financial collection department.
Investment Banker Jobs and Salaries
- Average Salary 25000
- Starting Salary 20000
- Junior Level Salary 20000
- Senior Level Salary 40000
Investment banking interns work for an organisation in order to get industry exposure and learn applications of the tools taught in college. Interns work for various organisations for positions such as accountant, finance operator, subject matter expert, online teacher, research and stock trader, management supervisor assistant.
The interns in investment banking are paid a feasible amount of stipend. Since almost all the interns are freshers with little to no experience, the stipend received depends on their skills, projects, and duties assigned to them. However, the minimum stipend is somewhere around Rs. 20,000 per month. The mid-level stipend for interns with more responsibilities earn up to Rs. 30,000 per month. For an intern with extraordinary skills and few projects in hand, the monthly stipend can go as high as up to Rs. 40,000 including bonuses, tips, and overtime pay.
Junior investment banker
- Average Salary 65000
- Starting Salary 50000
- Junior Level Salary 50000
- Senior Level Salary 120000
Roles and responsibilities of a junior investment banker include meeting applicants and potential customers to understand their loan requirements, gathering loan information based on specific criteria, analyzing and verifying applicants financial information, explaining and presenting different financial investment options to the potential customers, presenting approval and rejection decisions to management, ensuring investment terms and conditions comply with government regulations.
For an entry-level position, with less than 1 years of experience, an investment banker earns an initial pay of Rs. 50,000 per month. After gaining some experience, a junior investment banking can earn upto Rs. 70,000 per month. The top-level salary for the position of junior investment banker is somewhere around 1.2 lakh per month which includes bonuses, tips, and overtime pay.
Senior investment banker
- Average Salary 250000
- Starting Salary 120000
- Junior Level Salary 120000
- Senior Level Salary 550000
Senior investment banker performs various job duties for his/her potential customers. There are few organisations where each investment banker performs different duties, while at others, employees are specialised, with different bankers performing different jobs. Investment banker is the head of a team dedicated to raise capitals by issuing bonds.
The salary of a senior investment banker depends on a number of factors, such as the experience and the company where the person is working. The average salary of an investment banker is around Rs. 250000 per month whereas at the highest levels, it can go above Rs. 550000 per month.
Assistant Bank Manager
State Bank of India, Yes Bank Ltd., Punjab National Bank, ICICI Bank Limited, HDFC Bank Ltd., Kotak Mahindra Bank
- Average Salary 38000
- Junior Level Salary 34000
- Senior Level Salary 79000
An assistant bank manager is responsible for ensuring that institution runs smoothly. He or she strengthens or establishes relationships with current and prospective customers. He or she hires, trains and supervises customer service representative and financial service managers. An assistant bank manager monitors financial activities of bank. His or her work responsibilities involve performing audits, reviewing reports and managing cash levels.
The salary varies depending on skills, work responsibilities and experience of assistant bank managers. An entry-level assistant bank manager could earn more than Rs. 400,000 per annum. A senior-level assistant bank manager could earn more than Rs. 900,000 per annum.
Assistant General Bank Manager
State Bank of India, Punjab National Bank, ICICI Bank Limited, Kotak Mahindra Bank, HDFC Bank Ltd.
- Average Salary 108000
A career as an assistant general bank manager is a subordinate to a general manager. He or she is responsible for schedule generation, overseeing standard procedures and operations of financial institute and other disciplinary actions.
The salary varies depending on skills, experience and work responsibilities of an assistant general bank manager. An assistant general bank manager earns an average salary of Rs. 1,300,000 per annum.
Deputy General Bank Manager
HDFC Bank Ltd., Kotak Mahindra Bank, ICICI Bank Limited, State Bank of India, Punjab National Bank
- Average Salary 167000
- Junior Level Salary 47000
- Senior Level Salary 181000
A Deputy General Bank Manager is a senior-level job role. He or she is involved in learning the functioning of General Bank Manager or CEO. A deputy general manager is responsible for improving labor processes in the branches of bank they visit. He or she serves as the project manager. A Deputy General Bank Manager is majorly involved in performing the similar tasks that a General Bank Manager does.
The salary of a Deputy General Bank Manager varies depending on skills, functions and experience. The size of the financial institution and its location also plays a great role in salary. An entry-level Deputy General Bank Manager could earn more than Rs. 500,000 per annum. A senior-level Deputy General Bank Manager could earn more than Rs. 2,100,000 per annum.
What is the job outlook for Investment Banker?
The job market for investment banking is huge. Investment bankers are in demand in a wide range of industries and businesses along with banks and investment rating agencies. There are several industries like auto manufacturers, retail store chains, and even utilities and energy companies that extend investment to their customers and require investment bankers to do it for them. Investment management is a job that builds a pathway to have a career as an investment banker, portfolio manager, or loan or trust manager. Do you want to know about how to be a successful investment banker? We will be providing you with all the details of it. Investment bankers have a variety of options to work from fields to locals. A fair share of investment bankers works for lending institutions such as banks, or insurance companies. In addition to this, there is a great requirement of investment bankers in investment, working for an asset manager or private equity firm on the position of bond analyst, or for rating agencies like Moody's or Standards & Poor, determining the risk involved in a company or country. Careers investment banking is now pursued by many students these days.
There are a plethora of opportunities for investment management professionals with appropriate skills and knowledge. The roles and responsibilities of an investment banker vary from organisation to organisation. There are several factors deciding the responsibilities of an investment banker such as the field organisation is related to, the post of the investment banker, the economic involvement, and dependency of the firm on external factors. With the slow and steady growth of the Indian economy, the job scenario in various sectors has started improving at a rapid pace. There are several sectors such as finance, accounting, Information technology that require investment bankers to uplift their customer support and manage the finance of their firm. Whether the job seekers are looking for accountant jobs or jobs in finance, there are a lot of options available in almost all the major cities of India. investment bankers can directly apply for the form that they wish to work for. Retailers, manufacturers, sales offices employee various investment workers. Both government and private companies list jobs in the investment field. Investment bankers can excel in positions of increased supervisory responsibility in the department or organisation that they are working in.
There are various professional certifications available for investment management employees that can be of big help in the process of advancement. There are investment bankers who are highly qualified and advance to positions in general management in their organisation.
Frequently Asked Questions for Investment Banker
Que. What does an investment banker do?Ans.
Investment banker performs various job duties for his/her potential customers. There are few organisations where each investment banker performs different duties, while at others, an employee is specialised, with different bankers performing different jobs. Investment banker is the head of a team dedicated to raise capitals by issuing bonds. The team is full of aggressive salespeople, each having a large contact list of leads from which to solicit investment business.
Que. What are the duties of an investment banker?Ans.
The job duties of an investment banker can include a variety of duties. However, the major job duties of an investment banker include management, supervision, sales work, tax planning, management and customers investment records, and investment planning.
Que. What makes a good investment banker?Ans.
The best investment bankers are able to motivate the people around them and make them feel valued. They should have a good working relationship with the sales department and be involved in the sales process from the moment a customer is given investment terms.
Que. What is an investment banker’s salary?Ans.
An investment banker with entry-level and less than one year of experience is expected to earn between Rs. 8 lakh to Rs. 10 lakh per annum which includes tips, bonuses, and overtime pay. An investment banker with intermediate experience of one to four years is expected to gain an annual pay package of Rs. 15 lakh to Rs. 30 lakh per annum. After some advancement and with the experience of five to nine years, investment management professionals are expected to earn somewhere between Rs. 36 lakh to Rs. 40 lakh annually. An experienced professional of ten to fifteen years easily earns between Rs. 55 lakh to 70 lakh per annum.
Que. What is the role of Financial Planner?Ans.
Financial planners help people in maintaining their finances and projects. They help in defining financial goals for their clients, for example when the client will be using their savings and what they’ll be using it for. To make a plan in accordance with the client’s financial situation, they are required to know personal as well as professional and financial information about their clients and further use this data to create projections and accomplish their client’s goals.
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Questions related to Investment Banker
How do I become an investment banker after a B.Tech in mathematics and computing?
Essentially, investment bankers are financial advisors to corporations and, in some cases, to governments. They help their clients raise money. That may mean issuing stock, floating a bond, negotiating the acquisition of a rival company, or arranging the sale of the company itself.
- There is no specific degree to become an investment banker, with investment banks hiring graduates from most subject areas. However, transferable skills from degrees like economics, business, mathematics and finance can give you an advantage.
- Financial literacy and confidence with numbers is a prerequisite to be successful in this career
- A person taking up a career in this field should have high resilience and the ability to face the consequences when things get tough
- Combination of spreadsheet, accounting and legal skills.
- Strong, professional communication ability is an important characteristic of an investment banker
- Good numerical skills
- Excellent team leadership and teamwork skills are required for a successful investment banker.
Hope this helps!!!
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