How to Become an Investment Banker in the UK

How to Become an Investment Banker in the UK

Mark Armstrong

What Exactly does an Investment Banker do?Investment banking can be a highly lucrative career, and you can become an investment banker to provide in-depth financial services to individuals, companies, governmental authorities, or other private institutions. The job of an investment banker is to give clients necessary advice and assistance so that they can make the right financial decisions and choose the most profitable investments. If this type of position interests you, you will need to have a few qualifications in order to become a successful investment banker.

The goal of investment banking is to help your customers complete mergers and acquisitions, raise capital funds, and make smart investment decisions. Becoming an investment banker can be an exciting job, but it can also be very demanding. The investment banking field is highly competitive so you will need to be aware of a few things before you begin to pursue this type of career.

How much does an Investment Banker Usually Make?The figure that you will make once you become an investment banker will entirely depend on your experience level and the types of clients that you have. On average, investment bankers make about £30,000 to well over £100,000 per year. Since the high and low figures are so far apart, you may be wondering which types of investment bankers make £30,000 and which make £100,000. As in many other industries, bringing more experience, qualifications, and insight to the table can make a world of difference in exactly how much you will make.

How Long Will You Need to Work Daily as an Investment Banker?Investment banking professionals definitely put a lot of time into their profession. You can work around the clock if your job and a particular deal call for it. Typically, investment bankers will be at their desks before 8am and leave after 6pm, but there may be certain times during the night when they may need to complete a closing. This shows just how important it is to be dedicated to this profession. While the financial gains that you can see from investment banking are staggering at times, it is important to note that you will be competing with other people every step of the way.

Deciding to Pursue Investment BankingOnce you feel confident that investment banking is the right career path for you, you will need to ensure that you meet all of the minimum requirements, obtain a related degree, and learn a second language. While investment bankers will typically on need to complete a bachelor’s degree in order to find a position, you will need to be aware of the intense demands placed on these financial experts. You will be providing advice and financial guidance to people that wish to make an investment, so you will need to be able to be knowledgeable about many different factors relating to investment and finance.

Traits of an Investment BankerYou should be able to recall facts, events, and related news from memory. An investment banker’s task is to analyze the investment markets to decide which are the best opportunities for their clients. TO do this well, you will also need to develop a thorough understanding of the financial markets, the economic trends, and the nature of investments. You need to be a decisive and confident decision maker, and you need to be able to communicate verbally and in written form with your clients.

Investment bankers usually do best with strong mathematical skills. They will also put their analytical skills to good use when they are comparing markets and different investment opportunities. You should also be aware that a penchant for negotiation and an interest in finance and investments will help you succeed as an investment banker.

Another important trait that you will find in most investment bankers is the ability to speak candidly about complex subjects. Your oral communication skills are definitely important when you are attempting to gain new business and convince clients that you are the best candidate to provide investment advice. Investment bankers must often present information to their clients to help them decide on the best financial decisions to make.

Formal Education and QualificationsTo find a job as an investment banker, you will need to have a bachelor’s degree in a related discipline. It is not absolutely essential that your degree is related to finance, economics, accounting, mathematics, business, or statistics; however, it will help you get your foot in the door when you begin applying for jobs. Investment banks will recruit people that have what is referred to as a 2:1 (first class honours degree). You will need to be able to show proof of two A level three H grades in order to qualify for a degree.

It is best to pursue an education at a top school in the UK so that you can appeal to more investment banks. You will be able to not only show that you have a strong education from a great school, but you can also form some valuable contacts.

Do You Need a Secondary Degree?Some entrants into this career field may also have a secondary degree of some sort like a Masters in Business (MBA) or an MSc in a related discipline. Also, the ability to communicate in another language is also a very useful asset to have when you are entering the investment banking market.

Training Investment Bankers NeedIn addition to getting a degree from a university in the UK, you will also need to go through some technical training. Most investment bankers spend their first few years analyzing data and learning more about the markets. This is one of the best ways to get started because it will allow you to gain insight into the markets so that you can make better decisions for your clients.

While you are fulfilling your training requirements, you may want to consider taking additional classes in business or proposal writing. These can be beneficial when you are attempting to explain to clients why you are the best candidate to advise them on their financial matters. Training should involve complex analysis of market trends, investment opportunities, and a thorough understanding of regulatory practices in the UK.

Gaining Experience through TrainingInvestment banking training usually involves a more ‘hands on’ approach to learning how to analyze the markets. Once you acquire more experience and training on investments, finance, and banking, you will be able to take advantage of many more opportunities in your chosen career field. It is important to note that you can begin your career as an investment banker as an analyst so that you can become more knowledgeable about trends, investments, regulatory policies, technical aspects, and many other areas that you will need to master in order to give sound investment advice to your clients.

The CISI – Certification in Corporate FinanceThis certification will help you excel in this job field by giving you the working knowledge that you need to stay competitive. The CISI will allow you to demonstrate that you have a deep understanding of the role of regulatory and technical aspects in investment banking and other related financial fields. The Financial Services Skill Council (FSSC) has recognized this document as an “Appropriate Examination for the Corporate Finance Adviser.”

How do You Get a Certification in Corporate Finance?You will need to complete a series of tests on your knowledge of legislative and regulatory sanctions in the UK, as well as any related rules, procedures, or legislation.

There are two units to this certification, and you will need to be able to show understanding on the first (Corporate Finance Regulation) and the second (Corporate Finance Technical Foundations).

While this may seem like a really detailed process, these are all aspects that you will need to know and understand in order to do well with investment banking. The CISI is now used to meet RDR (Retail Distribution Review) Standards in regards to providing sound corporate finance advice. Instead of providing RDR qualifications at a level 3, entrants will now need to be able to prove that their qualifications meet a level 4 exam. The CISI is now offering a Certificate for Investment that incorporates a level 4 qualification document called the Certificate for Securities and Derivatives.

Preparing for the CISIYou can take the exam at any time of the year. The exam is fully computer based, and this allows you greater flexibility. However, you will have to visit a certified testing centre in order to complete the exam. You can study for the exam in several different ways. Programs are available that will help you learn more about what the exam will cover, and it will also pinpoint areas where you need to improve before you take the exam.

Entering the FieldAfter your education and training is complete, you will need to be able to find a way to enter the market. Most investment bankers start out at the bottom and work their way up the chain of command. The first 3 years of your career may be spent as an analyst, while the next 3 will be spent as a fund manager. This is a lucrative job, but you can even build yourself up to vice president of the company in just a few more years after your initial entrance into the field.

Networking and Creating ContactOne of the most important things that you can do as a prospective investment banker is to take some initiative and meet people in the industry. This will help you develop stronger relationships with people in the field so that you can find some new opportunities. You cannot rely on online applications to get you where you want to go with investment banking, instead you will have to really start talking to people to get a handle on the opportunities that you have in your area. Networking can land you job interviews, job offers, and client requests so you need to make sure that you are putting in the effort so that you can get the position that you want.

Networking Strategies for Investment Bankers: Cold Call or Relationship BuildingYou can network in two main ways: cold-calling or developing relationships with people. Investment banking is a broad industry, and you will find a number of different interviews, trips, and sessions that will allow you to gain information and insight while expanding your contact list so that you can find more offers in the future. If you don’t have time to start developing relationships, cold-call a couple of local banks and ask them about the process of becoming an investment banker. If you’re cold-calling companies, the trick is to be persistent. If you simply tell them that you are looking for a position, you are likely to hear “we’re not hiring.” Pursue that further. Ask them if you can speak to the person in charge of recruiting and find out as much information as you can on how they recruit new bankers for their team. Even if the bank rejects you, you will need to stay motivated and call them again.

With investment banking, you will just need to overcome the rejection and continue to pursue the banks that you know can give you the job opportunity that you are looking for.

Taking on the Challenge of Investment BankingFinancial Advice is a very important element of many corporations, businesses, governments, and wealthy individuals. If you are interested in finance and business and you want to make a career out of finding the best investment opportunities, investment banking is definitely worthy of further exploration.

Breaking into investment banking will be a great experience if you are motivated, dedicated, and willing to push yourself to achieving your goals. You need to be thorough, meticulous, and pay attention to every detail in order to become a successful investment banker. Are you up to the challenge?

For more information on investment banking and the CISI Certificate in CorporateFinance, visit the following website.http://www.benedix.co.uk/careers-research/professional-qualifications/investmentbanking-qualifications-cis-certificate-in-corporate-finance/

For a free consultation about the qualifications process, phone 0208 742 9749

For a list of the top universities in the UK, you can view a full table of the 2012rankings at the website below.http://www.thecompleteuniversityguide.co.uk/league-tables/rankings

I am a Media graduate based in Liverpool, England. I have written this article on behalf of http://www.brightsparkstraining.com.

I am in the early stages of what I hope will be a successful and enjoyable career as a writer.

(www.abndigital.com) Samantha Loring speaks with Eric Musau, Research Analyst at Standard Investment Bank, looking at the latest financial news driving the Kenyan Market.
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