Five Amazing Things You Need To Know About Investment Banking

Five Amazing Things You Need To Know About Investment Banking
If you’re here, you are probably looking to get into investment banking, which is a good endeavour.
Investment banking is a lucrative career option. As much as it is rewarding, it is also competitive and challenging. 
Investment bankers are highly skilled in business finance, client communication, and salesmanship. Investment bankers are adept in concepts of debt, equity, and corporate valuation. 

According to Glassdoor, worldwide, the median salary for investment bankers in 2019 is $124,000. However, note that this includes experienced and entry-level investment bankers. For investment banking analysts, the entry-level role in investment banking, salary is $70,000. 

Still interested in a career in investment banking? Here are five facts which will help you –

1.  Investment banking is open to all majors

It is common knowledge that investment banking is for finance graduates, but is far from the truth. Many large investment banks are now hiring graduates with engineering and computer science. Many investment banks are open to hiring people with science and poetry background.
Additionally, pursuing investment banking certification has turned out another way for people with unrelated backgrounds to enter investment banking. 

2. Grueling work hours

Investment bankers are expected to put more than average work hours. Compared to other areas in finance – equity, vc, and others, investment banks tally the longest work hours. According to data careers report from Transparent Careers, an investment bank clocks nearly 11 hours a day. 

3. Excelling at quant interviews is a must to get into investment banking.

Investment banks conduct quant, short for quantitative, to assess candidates. This test checks knowledge of finance and analytical abilities of candidates. Further, the test may assess a candidates’ proficiency by asking them to analyze a financial model. Quant tests are a must to get into investment banking. 

4. Revenue is plummeting in investment banking

$94 billion, the revenue of investment banks in 2015, declined to $74 billion in the first half of 2016. By far, this is the steepest decline since the financial crisis since 2010. 
According to Aarkstore report, the global investment market size grew at 1.4 percent between 2014-2018.

5. North America is the largest market for investment banking. 

North America is the largest market for investment banking. It alone accounts for 48 percent of the overall market size. Credit Suisse, JPMorgan Chase & Co. Morgan Stanley, Bank of America Corporation, and Goldman Sachs Group Inc are the key players in global investment banking.  

Like the facts here? These are a handful of helpful facts which would assist in navigating through the investment banking landscape.  Making a career investment banking is getting tougher, and the focus of investment banks is steadily shifting to hire capable candidates who can sail through challenging market and add to their revenue -- a bullish task to accomplish!
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