An investment banking career is undoubtedly going to be extremely rewarding and lucrative in days to come. Amongst the plethora of roles in investment firms, one of the most sought-after high-profile jobs is investment banking.
The primary roles of an investment banker are to facilitate transactions amongst two firms such as acquisitions or mergers and aid companies who wish to go public (IPOs). They are also responsible for the creation of investment models to aid in business plans in an organization.
Becoming an investment banker can be a challenging feat because they are required to have various tangible and intangible skills. Additionally, it is a mandate in their field of expertise to have a vast and thorough knowledge of the industry, adequate market information, know-how of tools and software, and also information on newly-emerging advancements in the market.
Things to look out for in investment banking
- Industries and innovations in domains: Investment bankers have the responsibility to be aware of the latest advancements in the sector they are specializing in and the technologies that are being introduced. This helps them stay updated about the domain they are working with to help their clients more effectively. Investment bankers must be armed with extensive industry knowledge and also with information on how other companies are faring in the same domain.
- IPOs, M&As, and market information: Knowing about active or ongoing mergers and acquisitions is essential for investment bankers. Investment banking operations professionals are required to stay updated on recent IPOs and about companies that are planning to go public. Market research is absolutely crucial for investment bankers and they must always look for market information (both existing companies and startups) on their radar.
- State-of-the-art tools and software: Investment bankers must be capable of using analytical software such as Tableau and SAS (Statistical Analysis Software). Professionals in this domain are also expected to be able to use risk management software, business intelligence tools (such as Power BI) and even ERP (Enterprise Resource Planning) systems in order to carry out financial analytics.Since most MNCs and corporate/commercial banks are adopting these software or similar tools, professionals in investment banking must be aware of these technologies and how they can be incorporated.
- International affairs and geo-politics: Global affairs and national occurrences can alter the course of a project or influence the revenue of companies or markets. An entire domain or sector can get affected by political or economical factors.For example, if two countries are engaged in political issues, then it can affect the import or export of certain goods, thus hampering the operations of a company or even a sector. This was seen in the case of companies that import Chinese products or use raw materials such as plastic granules from China.
- Corporate banking and commercial awareness: Commercial awareness is the understanding of how to make a company successful. When it comes to investment banking, by being aware of how similar products, services or companies are faring, one can help his/her clients grow their business and gain revenue.Being aware of corporate banking or commercial banking trends is also important for professionals in this domain. Investment banking operations professionals must be able to help their organization make good investments or provide loans to businesses that will be able to pay them back. Due to this, it is essential for investment bankers to be aware of good and bad investments.
A career in investment banking requires certain skills and detailed knowledge about the market. These skills can be easily acquired if you learn investment banking by taking up a reputable investment banker course.