Investment banking has been said to be one of the driving factors of the modern economy. It’s a competitive field that is packed with talented individuals who are looking for that next challenge. Becoming an investment banker means a career on Wall Street, prestige, and of course, plenty of money. But how do you become an investment banker? Let’s find out!
- Education
Going to college and getting a degree in finance or a similar field is the usual first step in becoming an investment banker. The knowledge collected through these degrees will familiarize you with concepts of economy, how different financial systems work, when and how different companies to source capital, and more. By getting a degree in finance or economics, you’re getting a fighting chance once you enter the workforce.
Can you become an investment banker without a degree? Sure, but you’ll have to work twice as hard as any college graduate to prove your worth. Remember, big investment funds and financial institutions are handling massive amounts of money. Putting someone with a college degree in finance or adjacent fields reduces their exposure.
- Aim High
Depending on where you want to work, your choice of schools will matter a lot. Small town colleges like the University of Huston Victoria, will help you land a job in investment banking, but if you’re looking to hit Wall Street, you’ll need to do better than that.
It is a known fact that most headhunters who scour the country for fresh potential start their journey in Ivy League schools. In fact, top-tier firms will put Ivy League education as a requirement for investment banking positions. If you don’t get into one of these prestigious colleges, don’t worry. There are other ways to achieve the same goal, although you need to be ready to work hard.
- Gain Experience
While degrees from prestigious schools will definitely make you an attractive candidate, any hands-on experience could prove to be the defining factor in your job application. If your resume lands on the table of a manager who appreciates results, there is a good chance that they will take you on.
Sometimes investment funds and other financial companies choose the candidate who has experience over a candidate who has a good degree. Learn the ropes of investment banking on your own, then fill out an investment banking cover letter template, send it to places where you want to work along with your CV, and wait. If you’ve done everything right, you’ll soon get a call.
- Take Internships
One way to gain experience is to take advantage of internships offered by big banks or investment companies. Although these are often offered exclusively to finance graduates, you could be lucky and land an internship without being ¾ through a finance degree.
The best way to see what internships are available out there is to start dialing numbers and writing emails. Put your name out there, get in touch with representatives of banks and financial institutions that offer internships, and see what can be done. Landing an internship means hands-on experience, and that’s often more valuable than your degree.
- It’s About Who You Know…
If there’s one truth about investment banking, it’s that who you know often trumps what you know. The work of investment bankers generally involves a lot of networking, talking with people in various industries, including finance. That’s how capital is secured. You’d be surprised just how many critical business meetings happened impromptu on a golf course somewhere, or in a bar after hours.
But how does any of this help you become an investment banker? If you get a degree, or gain enough relevant experience, moving among people who work in investment banking and becoming a part of that circle will greatly help you land a job.
- Take Advantage of Any Opportunity
We’ve all heard about people who started at the bottom, pulled themselves by their bootstraps, and reached the top. Such stories are romantic but rare. Especially if we’re talking about people who did everything by the book. In reality, things are a little different.
Everyone who is aiming high will use whatever means they have to reach their goals. So should you. Do you have an uncle who is a big shot in an investment firm? Ask him for help. Is your sister’s husband or your brother’s wife working in a Fortune 500 company? Work with them to find an angle to get in.
Don’t think that taking advantage of your opportunities somehow makes reaching the top unfair. That’s how it’s done in the real world. The competition is very high out there and knowing someone can very well be the boost you need to get ahead of people in your field.
- Be Thirsty
Before you double-check the title of this article, know that we’re talking about the thirst for success. Landing a job as a low-level investment banker is an important achievement, but definitely not the N zone of this industry. Once you land a job, you should keep reaching for better opportunities.
Gain as much experience as you can, network with other investment bankers, establish relationships with CEOs and CFOs of large companies, always have big game capital on speed dial, and you’ll start rising through the ranks.
- Learn How to Sell Yourself
At the end of the day, landing an interview for an investment banking position is all about how well you’re able to sell yourself to a company or bank. What you put in your CV matters and so does the contents of your cover letter.
Remember, dozens if not hundreds of such letters land on any hiring manager’s desk every day. Make sure that yours stands out. Learn how to make your experience stand out on paper and recognize the most valuable parts of your journey so far that could benefit a potential employer.
Hard Work Pays Off
Becoming an investment banker is not easy, no matter which side of the business you’re interested in. You’ll need to work hard, but all that effort will pay off as soon as you land your first big job.
