Best Reason for Choosing an Investment Banking Career

Best Reason for Choosing an Investment Banking Career

Investment Banking (IB) career is a type of financial service that creates capital for individuals and companies by counseling on market strategies that can minimize their risks as well as maximize their returns on investment. They provide services for mergers, acquisitions, and restructuring. 

Several people are attracted to the investment banking careers, as it draws some of the best brains in finance. The handsome compensation that grows wildly with hierarchy within the companies is one of the major reasons to be in this field. Though there are several more interests, which are very significant and yet more humble reasons as well. 

In this article, let’s have a look at the top reasons why numerous are choosing an investment banking career.

Better learning experience 

One of the fundamental reasons is the ability to understand the analytical tools and learn on the job very much about the ins and outs of an investment banking career. Financial modeling is a big piece of an investment banker’s job, to perform valuations of investments and risks within the regulations of the knowns and unknowns. 

One can also get to experience the different systems while getting close and personal with the second benefit of being in this industry – the capacity to learn from real and big corporate transactions. To conclude, it is a wholesome learning knowledge that can at the same time propel one to bigger better roles within the IB realm or branch out into other paths like private equity, hedge funds, or even in one’s own firms. 

Attractive salaries and more 

Investment banking council of America (IBCA) is the best career option for individuals who are looking for the challenges of an analytical job profile and the rewards that come with it, namely compensation. It is demanding, hectic, stressful, and still manages to lure business and quant freshers around the world. 

An individual usually expends anywhere between 2 to over 5 years as an analyst, occasionally making close to USD 200,000 if they are successful. Very long hop skip and leaps later can be directed into the position of VP, Director, or even higher. 

Salaries are, by far, one of the best in the post-MBA career options. In the US, the moderate starting base salary for analysts is between USD 75,000 to USD 96,000 per annum. If one adds different bonuses like signing and stub bonus earnings, along the way, these salaries can shoot up to around USD 150,000 or more, even for first-year analysts. 

In complement to attractive salary and bonus, an investment banking career from IBCA also aids with health insurance, vacation, and profit-sharing or retirement packages. 

Stellar career growth  

Entry-level analysts in investment banking usually operate excel and PowerPoint work, track buying and selling, manage documentation and correspond with clients. The career progression from being an analyst to a managing director can endure more than 12 years. 

The below table gives a glimpse of specific career progression in the Investment Banking career industry if one meets all the excelling standards of performance

From To Average Period 
Analyst Associate with MBA 2 years 
Associate (typically MBA) Vice President 3 years 
Vice President Senior Vice President 3-4 years 
Senior Vice President Managing Director 2-3 years 

However, the USA and other banking hubs like in the UK, housing some of the banking elites like JPMorgan Chase, Goldman Sachs, Citi, Wells Fargo, Bank of America, and more, pay some of the highest salaries in the enterprise. Others like India and Canada have a much smaller industry and pay substantially lower when corresponded to USA and UK.   

Acquire Investment Banking Certification 

To be a portion of this rapidly-growing industry doing a Chartered Investment Banking Professional (CIBP™) investment banking certification is the best option. One will have a lot of opportunities to learn and improve their skills because they will be in the industry where they will be surrounded by a highly talented group of individuals. As one will be working in a competitive environment, a certification will offer the best learning pathway.

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