Business

The Real Deal: Job Role of an Investment Banker

You better be Vince, Ari or the head of Warner. Now don’t just say you haven’t heard these names. And if you haven’t seen Entourage, then you’re missing on a lot of things. But just in case, you have not seen the movie yet, you can think investment bankers to be like real estate agents – but instead of houses, they’ll be real estate agents for companies.

In the same manner, as a real estate agent introduces buyers and sellers of property, so does an investment banker. The only difference is, bankers will be introducing buyers and sellers of companies trying to make a good deal.

What do investment bankers do?

Well, they invest money, right?

Yes, they do invest money. But it is not as simple as it sounds, it is much more complicated.

Anecdotally, investment banking is one of the most prestigious professions most finance individuals thrive for. Although it possesses features that are financially rewarding in the banking industry, getting there is equally challenging.

As an investment banking professional, it is not unusual for you to put in 80 – 100 hours of work in a week. Well, it doesn’t seem horrifying as it sounds as some may likely believe it to be. Most people hear the term “investment banking” but do not have a clear understanding of what the profession entails.

Before moving further, you should know the financial services that the investment banks provide.

In simple terms, investment banks primarily exist to facilitate capital funding through the investment that takes place in government entities (municipalities or states) or corporations. They offer financial services through activities such as underwriting (find buyers or investors) the issuance for bonds and stocks.

For instance, if you hear that a company is going public and is willing to offer stock shares to investors for the very first time through an initial public offering (IPO), it is when the investment bank is typically the entity that is handling the IPO.

Besides this, an investment banking professional also carries the responsibility of assisting clients in transactions such as mergers and acquisitions. This takes place where one company is looking to acquire the other company that is offered for sale.

Can you beat it as an investment banker?

When it comes to making that decision of becoming an investment banking professional, it is important to look at the prerequisites for the job role.

Being an investment banker comes with an array of skills and responsibilities. From managing multiple administrative duties to conducting industry research to tracking financial trends. the roles and responsibilities depend on the industry and the firm you’re working for.

Getting into a career in investment banking requires professionals to have a foundation in mathematics. Earning a bachelor’s degree in finance, accounting, and mathematics is ideal.

However, with upcoming work trends, the current workforce is expected to keep up the pace with changing work scenarios. Investing in certification programs such as investment banking certification is preferable by potential employers these days.

For ambitious and high performing individuals from the finance background, taking up an investment banking career is considered lucrative and prestigious. 

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