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05th June 2023
If you don’t understand how to become an investment banker, achieving success in this highly prized, lucrative and competitive field will be extremely difficult.
This guide explores everything you need to know around understanding the role of an investment banker, how postgraduate education can help you build your investment banking career, what kind of jobs you could get, and where you could study.
Preparing carefully for your investment banking education will allow you to tailor your course type, module choice, work experience and extracurricular activities towards maximising your professional prospects in this high-pressure sector.
So, keep reading to learn more about investment banking requirements and start advancing your career as an investment banker.
CONTENTS
Investment banking is a highly competitive, intellectually demanding profession that offers professionals high rewards for success. Investment bankers are involved in providing a variety of financial services to clients which can range from individuals to companies, financial institutions and even national governments.
It’s always changing and always challenging, and draws a wide range of ambitious graduates due to the creative, analytical and exploratory tasks that it often asks of them. Investment banking brings together economic theory, advanced data analytics and specialised financial services to create a fascinating, applied field.
It almost goes without saying that one of the biggest draws to this profession is the impressive investment banking salary that you could achieve quite quickly into your career. Salaries in general are significantly higher than other career types, with the starting wage being between £30k and £40k, and average UK wages sitting at nearly £50,000 per year (Glassdoor 2023). Salary potential for experienced and senior analysts, especially when bonuses and commissions are included, go well into six figures.
The educational requirements for banking will differ depending on the particular area of investment banking or finance that you want to go in to. Despite this, getting a relevant postgraduate qualification is highly recommended in almost all cases. Graduates who only have an undergraduate degree will struggle to distinguish themselves against peers with advanced degrees in areas like finance, business administration and economics.
Above all else, employers of investment bankers are looking for evidence of experience, intelligence and soft skills like resilience, leadership and creativity. A postgraduate degree will help you build a specialised knowledge base and is key to developing necessary skills for investment banking.
Another invaluable element of postgraduate study in banking is how it helps you in gaining work experience in finance. Through the university’s connections and career services, completing at least one investment banking internship should be on every postgraduate student’s to-do list during their studies.
It’s fantastic for networking and building professional relationships, and shows potential employers that you’re familiar and capable with the real-world, professional challenges of investment banking.
Once you graduate, finding roles and preparing for your investment banking interviews is crucial. A strong cover letter or resume will be the heart of your investment banking application, and should be impressive after your postgraduate studies and work experience.
With persistence and an intelligent approach to applications, leveraging the professional connections you’ve built and highlighting your strengths, you should be successful in launching your investment banking career.
The educational requirements to become an investment banker will differ from university to university. They’ll also change depending on the level of study you’re applying to – whether a taught master’s, research master’s or even doctoral level study – as well as the subject of the course.
Typically, applicants to a postgraduate course in financial services, accountancy or business administration will need a 2:2 at undergraduate level. While accountancy postgraduate degrees can be applied to from most subject backgrounds, getting onto a course in economics or investment banking will often require a relevant undergraduate qualification.
Having relevant professional experience, or professional qualifications, can help you secure a place on a course in place of the typical academic credentials. Completion of an interview is also usually required.
Investment banking jobs are highly competitive, with cohorts of talented and driven postgraduate leavers all working towards a range of graduate roles and training pathways.
Standing out to potential employers through your skillset will allow you to maximise your chances of landing a job in investment banking.
Some of the important investment banking skills needed to succeed include:
Analytical intelligence
Investment banking is based on understanding and acting on large amounts of data. Being able to combine mathematical principles with economic theory, knowledge of financial regulations and data analysis skills is one of the core competencies of investment bankers.
Diligence
Long hours, tight deadlines, fast-changing circumstances and intense demands from managers and peers are all a part of many investment banking roles. Thriving in this environment is important.
Communication
Working with others, helping them understand your thoughts and findings, and building positive client relationships will help you contribute to the success of your firm and make valuable professional connections.
Creativity
Investment banking is an exploratory and competititve field, where professionals are working hard to find new opportunities for wealth building and advantages over peers. Being able to see new routes and approach problems from new angles will set you apart from other investment bankers.
Investment banking firms typically value postgraduates who have qualifications in areas like finance, accounting and business (such as business administration). As such, there is a huge range of postgraduate courses to choose from in the UK in financial services across 145 unis.
You can use the postgraduate course search tool to browse, filter and select from these options, creating a shortlist and finding your perfect postgraduate study option.
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