Investment banking is not just about deposits and dealing with retail clients. Professionals in investment banking roles are financial advisors to corporates and governments. The role includes assisting companies in raising capital through stock and bond market, Initial Public Offering, Mergers and Acquisitions.
The job is all about dealing with big money in the hallowed corridors of big names in investment banking. No wonder the incentives and the dynamic nature of the job gives a psychological boost to this profile. You need a sound financial understanding and background as a starter.
In a pre-recession era Investment Banking was the most sought after job for MBA graduates. Take the example of Harvard MBA class of 2015, where just a 4% of students opted for a Career in investment banking as per a Bloomberg study. It ranks as the second most sought after job for MBA, Finance and has lost its top slot. The primary reason is strict regulations after recession and closing of many big banks. The average salary for investment bankers is $ 117,596 that is still above industry average. However, for MBA this salary is similar to other consulting and traditional career opportunities.
Hiring managers are now investing in a new policy for pooling new talent that focuses more on hiring undergraduate interns. A research by High Fliers shows that 2015 had investment banking hire the maximum number of interns in UK. The internships focus on finding the best talent for investment banking jobs and that makes the competition fierce.
Financial Times say that there has been a 40% rise in undergraduates opting for a Career in investment banking. As per Bloomberg, about 25% of undergraduates are pursuing an internship in investment banking. Goldman Sachs alone receives more than 15,000 applications every year. The first step starts with being an associate and your job there is filling excel with client details, after 2-3 years you get the role of an analyst, where this data entry is combined with small decision making.
So, if you are an undergraduate and forwarding your application for this job, certification courses in investment banking will certainly help your cause. It gives you a competitive advantage over rest of the applications. You stay one step ahead of your competition. Certifications take less time and you can stack them as you progress in your career. These programs are economical and give you a thorough understanding of investment banking. It puts you as a specialist, rather than just another undergraduate applying for a job.
Investment banking jobs need you to put in those tenuous and long work hours. You start as an associate creating prospectus, presentation and providing necessary data to clients. As you grow, the decision making or the Grunt job of Managing Director welcomes you. You help in strategic decision making, the IPO rates, Merger and Acquisition insight. As an Investment banker you come up with the best investment strategy for your clients. A certification gives you a definite head start in a scenario where firms are hiring undergraduates.