Are you looking forward to starting a career in finance? Learn here about the must-have investment banking skills. Investment Banking can fetch your salary from 25,000 right up to 5,00000/- as a Senior Investment Banking Professional. Investment banking is the in thing today which brings home a very good pay packet if you can do good sales talk. It is a special area of banking that helps people and companies to secure funds and offers financial advice, regarding capital.
It helps you to manage your funds and think of long-term and short-term investments and how you can play strategically so that your finances will always support you and come to your rescue at every step of the way. There are so many investment banks to choose from today, that, it has become difficult for us to make the right choice.
Knowing more about investment banking helps us to develop certain skills, and to leverage the best way of utilisation of funds at the right moments. To become an investment banker, enrolment in a good course is essential and the priority of the program should be not only to enhance subject knowledge but also to hone certain skills and aptitudes to become a good investment banker.
There are several Universities and Government institutions that have floated well-researched programs in finance and investment banking recognizing the need of the hour. These educational institutions provide Bachelor’s and Postgraduate degree courses. Enrolling in courses like Banking and Commerce, MBA, and courses connected to Economics or Finance are most suitable for those candidates interested in this area.
One can visualize the investment banking skills required to become an employee of some of the internationally reputed Investment Banks such as JP Morgan, Morgan Stanley, Barclays, ICICI Bank, Goldman Sachs, Deutsche Bank, Rothschild, Citibank, and Kotak Mahindra Bank.
Importance of Investment Bankers
Investment Bankers act as advisors or consultants about financial deals and mergers and acquisitions. They help organizations to make money for further growth and development saving the company’s own time and money for the same. They make good decisions in selling equity, studying spreadsheets, assessing financial statements, client portfolio presentations, and interactions including the making of the investment contract.
Their area is issuing debts and raising money for those companies they act as advisors to. They search for better investment opportunities to limit risks and return profiles. Through team effort, they evaluate and make assessments for their clientele adopting several methods to accomplish their goals. They recruit investors for client International Payment Orders (IPO).
They create financial models to avoid debt and equity and to assist financial planning decisions and good investments. They assist in preparing reports and official letters. After surveys and industry research, they promote relationships to gain new clients.
You will be given the chance to travel and meet new people.
Travel Allowance and a dearness allowance will be provided based on the city of travel. A decent salary with very good perks and increments based on performance will be given. Along with this, all medical reimbursements professional growth and development initiatives, and remote work opportunities should be included.
Later on, maybe you can even move into becoming an entrepreneur where your knowledge and expertise in financial matters can be an essential tool. Investment bankers are required in the agricultural sector which will be a win-win case for both- agriculturalists and investment bankers. Agriculturalists need someone to invest money in their moments of financial crisis and investment bankers can make use of this opportunity to lend them the money they require and make a profit.
This requires proper assessment, a skill the investment banker is equipped with. If a potential candidate possesses the knowledge of aspects related to agriculture like seasonal crops, weather conditions, water availability, and climate-related factors and social conditions before he invests, it will be beneficial to him. He has the skill to assess and estimate whether he should invest and when he will get his returns.
The second aspect is that investment bankers can buy large areas of farmland for cultivation. As years pass, the agricultural land will not increase but the demand for agricultural products like grains, food crops, biofuel, and fodder for animals for meat production will also increase along with the rise in population. This demand will never decrease.
This is a good opportunity and time for investment bankers to invest. The investment banker should be able to gauge the farmland, what crop to grow, where to invest what is the pricing, and also how to make use of investments to make more profit.
Skills Required in a Good Investment Banker:
Careers in finance can be extremely satisfying in terms of the money and privileges you can earn, but very challenging with too much work pressure and long hours of work. The ability to adapt to different emotional and intellectual requirements is essential for candidates hoping to make a career as an investment banker, and this is what recruiters and employers are looking for.
Investment banking is one of the most important and sought-after roles out of the various roles available in investment firms. They help in conducting transactions within the organization, between organizations, and between the organization and the market.
Investment bankers require certain very specific skills for the challenging tasks up ahead. Some of the skills highly in demand and deemed essential are:
• Intelligence
• Discipline
• Time Management
• Resourceful
• Innovative
• Open-mindedness
• Relationship Building Skills
• Ethics
After an interview, candidates are absorbed into firms, and sometimes they can’t figure out why they were selected because there were other candidates who had better scores or seemed more eligible than them. But what investment banking skills the employer is looking for in his choice of candidate would be something totally different.
They look for an altogether different set of skills and competencies which would be something totally different. They look for an altogether different set of skills and competencies that would be more suitable for a career in investment banking. It has been observed that these are some of the top qualities that an investment banker needs and if lacking these are the investment banking skills he must acquire.
1. Intelligence
This is perhaps the most obvious characteristic. An individual’s intelligence helps him to learn and grasp fast, especially subjects like analytics, mathematics, finance, and economics. This goes a long way toward performing many of the job requirements. They are alert and perceptive and seldom miss any detail. But it goes beyond these basic core competencies.
Investment banking also requires financial skills, analytical skills, and the ability to understand how much and how well your colleagues and team members will contribute to the nature of the work ahead. He is a born leader. Problem solving becomes their forte and they are able to think out of the box in such matters.
Areas of study often drive the intellectual skills and propel this type of problem-solving nature and the curiosity to apply subjects learned such as mathematics, accounting, physics, economics, engineering, and other certificate programs like the Chartered Financial Analyst (CFA).
2. Discipline
To be able to work with speed precision and discipline is a cause for envy. Most well-paid jobs hire personnel who have these capabilities. It is true that investment bankers earn high salaries but it is at the cost of very tedious hours of work under great pressure, challenges, emergencies, very little time for leisure, and a disciplined focus only on work.
Their performance indexes are high and the need to perform according to the demands is top priority. The need to be motivated and goal-oriented without losing focus is of utmost importance for them. If not disciplined at the outset nothing can be really achieved.
So, the innate discipline that propels you forward should either make you a trendsetter or you will have to cultivate this skill to achieve company goals. Without a disciplined mindset, nothing can be achieved.
3. Time Management
Time Management is an important quality regarding any job. To deliver projects within the timeline, not to cross deadlines, and to make decisions for timely completion of work is an admirable quality. This skill doesn’t go unnoticed by the higher-ups. In fact, making strategic decisions on time is a much-coveted skill or ability, which makes you much sought after.
Along with this, a temperament with a problem-solving attitude can be a double bonus for the person too. It is time management as a team that will help the company to reach its target.
4. Resourceful
To be confident, perceptive, and alert and to rise to the occasion is a commendable quality with respect to investment banking skills. The expertise in matters of company policies and Government regulations is an asset to the Investment Banking personnel. It goes without saying his knowledge in the field is to be up to date and updated from time to time.
As an Investment Banking Personnel to be able to see the larger picture from the available data and to pursue with zeal and focus is a quality much appreciated. Upon hitting a roadblock what to do next, where can I get the resources whom can I call and depend on and where will there be availability of resources be within his grasp? Networking and building a group of like-minded men in the field is based on your interpersonal skills.
5. Innovative
Innovation and creativity. are very highly regarded investment banking skills. New perspectives and better solutions with an out-of-the-box kind of thinking leading to the final goal is what company employees are looking for. New improved products catering to several requirements of people and market needs, leads to better business.
Often in this career individuals are made to perceive a situation from a different perspective, and all the knowledge learned from texts and classrooms can come to your rescue.
Subjects like Sciences and Social Sciences all help in a deeper insight into the role to be played. If the classes on becoming an entrepreneur and how to move into international business were planned and designed for students, then they could provide a space for innovative thinking. Those interested in the field also need to be highly skilled in research and analysis.
6. Open-mindedness
Being open to expanding business and embracing differences of other cultures and societies can make you more cosmopolitan in outlook. Being proactive and being able to liaise with powerful people around is a great skill. The ability to speak varied languages and to interact with other nationalities is an extra tool to absorb the changing scenarios in other societies.
A deeper understanding of people and worlds expands the ability to work in and from other locations which can foster even international trade. Combining knowledge, and understanding, with an ability to communicate in more than one language is much sought after in investment banking skills.
Subjects like Sociology and Anthropology will pave the way for more tolerance and open doors for more business. Even spending time to enroll in the study abroad programs, can help in changing perspectives and giving way to new opportunities for business building.
Check here for the best investment banking courses:
- Investment Banking Courses in India
- Investment Banking Courses in Bangalore
- Investment Banking Courses in Pune
7. Relationship Building Skills
Developing people skills is an important investment banking skill, especially in the financial sector. This skill may seem easy but it requires knowledge and alertness to mood changes a conscious effort to build rapport with personnel and a lot of tolerance and patience while dealing with people.
To be diplomatic, friendly, and humorous without forgetting the purpose, and getting things on the required track is a skill to be mastered. As an investment banker, you need to be a smooth talker, and making people believe you have their best interests at heart and that you are reliable and dependable and can be reached out to, at any time, is of great importance.
Relationship-building skills involve dealing with very tough non-commit people who could be morose and wanting to see the last of you. You still pursue with high energy and a positive attitude to be a successful investment banker. So, a strong set of interpersonal skills goes a long way in acquiring and keeping clients.
8. Ethics
Ethics is a very important quality required for any job. The devotion and loyalty to your company will pay rich dividends. The integrity of personnel and the ability of someone to vouch for another’s integrity is enough reason for you to be absorbed into the workforce. While attempting to increase the profit or capital of a company, the investment banker needs to adopt only scrupulous methods.
No devious means should be implemented to make quick money or put the company into a precarious position leading to bankruptcy. The assessment of the performance of the company lies in the hands of the Investment Banking Professional who plays a pivotal role in all financial decisions.
Education:
A Bachelor’s degree in business, finance, economics, or similar fields is ideal for pursuing investment banking skills. Even an advanced program in the same subjects would be beneficial. It is an added bonus if you have experience in the financial sector banking or investments. More degrees or certifications from small-term or short-term courses to enable effective financial transactions is an added feather in the cap of the investment banker. Knowledge of policies, regulations, and licensing acts will all work to your advantage.
Key Takeaways
In the past education in reputed institutions that offer courses that are in great demand was enough to acquire a suitable job. But this is not enough today. Developing certain inborn skills or fine-tuning existing skills is the lever on which an individual becomes successful. Subject knowledge can be acquired but to use essential skills to your own advantage is an art in itself of learning and using these skills appropriately.
And there is no easy way but to cultivate and develop this skill. A career in Finance can be a very successful one. But it also involves long hours of work, unpredictable challenging situations, and the need to work under pressure but at the same time keep the ball rolling with a genial attitude as though this too will pass.
Investment banking skills can be divided into 2 kinds those that are concrete that you possess or that you need to cultivate or those that are abstract and those that you need to inculcate.
A good investment banker should equip himself with knowledge of finance, math, and economics which he has an affinity for, and develop and sharpen his financial acumen of current methods of analyzing data, market research, and surveys and find creative and innovative ways of problem-solving by scrutinizing spreadsheets and avoiding risks or disasters to company essentially. Intelligence to grasp, comprehend, and gauge is crucial.
The natural curiosity of being a solution finder and the ability to make decisions in the twinkling of an eye and to take ownership of that decision is an admirable skill. Discipline in maintaining timelines, goals, and working hours and boosting the morale of team players like a true leader is yet another takeaway. Eventually, the rise of an entrepreneurial professional can help society and the world with his unique contributions to fostering a better world environment and global community.
Frequently Asked Questions
1. Will these skill sets help me to become a good investment banker?
Yes, the above skills and characteristics will help mold you into an investment banker and help you acquire the necessary qualities that recruitment firms are looking for in their candidates. There are also other sectors in Finance as mentioned above that you can get placed in.
2. If I develop these skills what are the opportunities open to me?
The opportunities for an investment banker are immense in the modern competitive world. All banking sector jobs will give preference to investment banking skills professionals. Apart from this, Investment companies, Insurance companies, and offices that function in the financial sector require the services of investment bankers.
3. I have no background in Banking or Economics, will I be able to become an investment banking professional?
With the basic education (Graduation) in India and the fundamental knowledge in Mathematics and Economics can assist you in the financial sector. On top of this additional knowledge can be acquired through one of the courses in Investment Banking listed above to master subject knowledge and certain top-priority skills required in the field.
4. What are the key performance areas for a good investment banker?
The key performance areas for an investment banker are based on the benefits of investment decisions. The ratio of investment to returns will be measured in addition to the short-term and long-term gains. Customer satisfaction, retention and improving the customer base is another Key Performance Area (KPA).
Conclusion:
It is essential to equip ourselves well in today’s competitive world. The hunt for a respectable white-collar job that will fetch us a good pay packet with all incentives and emoluments is on. So, with sound motivation, a good market survey, and a powerful network you are on the road to success. Sometimes we don’t have certain skills or we have a latent talent that is yet to be tapped or honed.
And for this, we need to develop the above-mentioned investment banking skills and acquire the required knowledge or the know-how of things and for this, we need to enroll in good courses. Learning to become a smart go-getter, who is decisive and willing to take up challenges and has good financial acumen can become a successful Investment banker.