Investment banking has always been considered a prestigious career choice. Although sometimes challenging and hard, the pay is great, the benefits are good, and the job security is excellent.

But is it worth it? Is it possible to get into investment banking without going through a top school or having connections?

Yes, it is possible to land a job at an investment bank without attending Ivy League schools or being connected to someone who already works there. Some banks hire from outside their network.

But before you proceed with your next move, you should know about the career path. Is it really that difficult and challenging? Here are some things you should know about being an investment banker.

What is an investment banker?

An investment banker is a highly skilled professional who offers various financial services to businesses, governments, and investors. They provide various financial services, including debt and equity offerings, corporate finance, merger, and acquisition advisory, risk management consulting, cash flow analysis, treasury operations, and asset management.

Investment bankers work closely with corporations, governments, and institutional investors to advise on financing options such as issuing shares, raising money through bond sales, negotiating mergers and acquisitions, and managing portfolios of assets.

They help companies get easy access to business loans and issue stocks and bonds. They enable setting prices for securities, allocating resources, negotiating deals, and managing investments.

Many investment bankers also offer financial advice and consultation about what types of securities to issue, when and where to issue them and what prices to set for each security. They may even do underwriting for municipal bonds.

What exactly is the job of an investment banker?

An investment banker works for a firm that provides brokerage, asset management, research, trading, and advisory services to corporations, governments, and institutions. Their job is not easy at times and challenging, which involves advising companies about how best to invest their money.

Investment bankers are responsible for analyzing data and deciding what investments to make. For example, they might look into whether a company is profitable and whether it could benefit from mergers and acquisitions.

Investment banking firms typically employ analysts who study financial statements and other documents to learn about companies. Analysts examine everything, from easy to difficult data, from sales figures to profits and costs. This helps investment banks decide whether a particular stock is worth buying or selling.

Analysts also help investment banks advise companies on how much debt they should take out to finance projects like building factories. Sometimes they work directly for investment banks, while others work independently.

What is the average time it takes to become an investment banker?

According to a report, the average tenure of an investment banking career is seven years. In addition to working for a bank, there are many different roles within the industry – including analyst, trader, portfolio manager, risk officer, compliance officer, etc. Most people start in one role and move into others over time. However, some choose to specialize early on.

Passing your 10+2 difficult exams takes around three to four years to complete your bachelor’s degree. Then, you can do a two-year postgraduate program. This allows you to focus on certain areas such as economics, finance, accounting, law, management, marketing, and strategy.

If you decide to pursue a Ph.D., it takes you another 3–6 years. Certificates are usually awarded in less than four years.

How Can I Obtain a Position in Investment Banking?

The easy way to get into investment banking is to go straight to the source – the people hiring for the roles you want. This isn’t always possible, especially if you don’t know anyone in the industry, but it’s still worth considering. You’ll find out about the culture, how the interview process works, and what questions you might ask.

You won’t necessarily learn everything there is to know about investment banking. Still, you’ll get a feel for what life is like inside one of the world’s largest financial institutions.

Here are some tips to help you land your dream role:

1. Networking and resume

The first step toward getting into investment banking is to network. This includes networking events like industry conferences and happy hours where you can meet people from different backgrounds and industries.

If you are interested in working at one of the big banks, it is important to ensure you know what companies are hiring. LinkedIn is a great place to start looking for job openings.

You will likely receive several interviews over the next few months. Once you land an offer, you will most likely be asked to complete an internship. A good resume and cover letter will help you stand out from the competition.

2. Taking the Interview Process Into Account

The investment banking interview process is very structured. Banks move quickly to screen resumes and conduct challenging first-round interviews with easy to difficult questions. They conduct on-site interviews for candidates that pass those initial filters. And finally, they make job offers.

In addition to the standard resume screening and phone screens, bankers are looking for candidates that demonstrate strong communication skills, a good understanding of financial markets, and analytical abilities that solve difficult situations and data. In many cases, candidates must prepare for multiple rounds of interviews.

Interviewers look for candidates that show interest in the firm and understand how it works. Candidates are asked about their career goals and what motivates them. Interviewers want to know whether you are willing to work hard and learn fast. They ask questions like: “What do you think we could improve?” and “Why did you choose us over another bank?”

The benefits and drawbacks of working as an investment banker

Investment banking has its perks but also comes with challenges. Here are some things to consider before leaping.

Pros

1) It’s a high-paying job. The average salary for an investment banker is $160k per year. However, this figure varies depending on the size of the company and the type of position you hold.

2) There are lots of opportunities to travel. If you love traveling, this may be the perfect opportunity. Many investment banks have offices all around the globe.

3) You will gain valuable experience. As an investment banker, you’ll learn more than just finance. You’ll also know about marketing, sales, operations, and human resources. All of these areas will come in handy when you leave the industry.

4) Smart people will surround you. Most investment bankers are extremely intelligent. They’re constantly learning and growing. This makes them a great resource for future employers.

5) You can build relationships. Investing in people is a key part of the investment banking culture. Your colleagues will become friends and confidants.

6) You will have access to top talent. Some of the best minds in the business work in investment banking. These individuals often go on to lead successful careers outside of the industry.

7) You will have a lot of responsibility. Investment banking requires a lot of attention to detail. You’ll need to stay organized and keep track of everything.

8) You will have a flexible schedule. Most investment bankers work long hours. But because there are so few employees, you won’t feel overwhelmed.

Cons

1) It takes a lot of effort. Investment banking is very competitive. To stand out, you’ll need to put in the extra effort. This includes studying for exams, attending conferences, and staying updated with current events.

2) You will have to deal with rejection. To succeed, you’ll need to overcome any fears you may have. Rejection is a natural part of the process.

3) You may encounter burnout. Because of the intense nature of the job, many investment bankers suffer from stress and exhaustion.

4) You may find yourself bored. After spending years honing your analytical skills, you may feel uninspired.

5) You may miss the excitement of entrepreneurship. Entrepreneurship involves taking risks and making decisions quickly. Investment banking doesn’t offer this type of environment.

6) The pay may not be what you expect. Many investment bankers earn less than $100k per year. If you want to make more, you’ll need to look elsewhere.

7) You may not like long hours. Investment banking is a 24/7 industry. You’ll often be required to stay late and travel frequently.

How hard is it to become an investment banker?

Is it difficult and challenging being an investment banker? The answer depends on who you ask. For some, it’s a dream job. For others, it’s a grueling career that leaves little time for anything else. Ultimately, it comes down to how much you enjoy working in finance.

If you’re looking for a challenging career where you can make a real impact, investing in banking might be right for you.

With Lancerbee, you can prepare for the needed tools to land the interview and even land a job as an investment banker.

We provide professional guidance through every step of the hiring process. We’ve covered everything from crafting a winning cover letter to creating a compelling resume.

Our experts will:

• Help you identify the right role for you

• Create a winning cover letter and resume

• Share interview tips

• Provide feedback after each round of revisions

• Offer personalized coaching throughout the process

Contact us today to get started.