How to Become an Investment Banker? Step-by-Step Guide

Investment banking is one of the most sought-after and prestigious career paths in the finance industry. Known for its high earning potential, global exposure and strategic importance, this field attracts ambitious individuals who aspire to work on complex financial transactions and corporate deals. From raising capital and managing mergers to advising large corporations and investors, investment bankers play a vital role in shaping business growth and economic development.

For students and professionals with a strong interest in finance, numbers and market dynamics, investment banking offers a challenging yet rewarding career. In this blog, we will talk about how to become an investment banker, which is the first step toward building a successful future in this competitive domain.

Who is an Investment Banker?

An investment banker is a highly qualified professional whose primary role is to raise capital for corporations, businesses, or other entities.

Commonly, an investment banker is associated with an investment bank. However, some investment bankers also work as freelance agents.

Either way, an investment banker will be responsible for handling massive, complicated financial transactions. These may include planning an acquisition or merger for a company or group of clients.

Steps to Become an Investment Banker

1. Focus on Relevant Classes

Investment banking is a competitive field that requires a sharpened knowledge of all things finance. Start by taking finance, business and math classes in college to build your knowledge base.

This is especially true for those stepping into investment banking from a different field altogether.

2. Get a Degree from a Reputable School

This is probably the most obvious first step. Students from the accounting and business fields will find it easier to make it to the investment banking field. That does not mean that students from a background of fine arts cannot make it in the investment banking field.

However, it is safe to say that if you are interested in this field at all, you will naturally gravitate towards finance-related subjects from your graduation days themselves.

Try to get yourself enrolled in one of the best business colleges for your investment banking degree. The more reputable your college, the more opportunities you have to intern at a decent company.

3. Go for an Advanced Degree

Of course, you would get a job with just your bachelor’s degree, but having an advanced degree in your pocket will prove beneficial for you.

An MBA degree or a CFA specialisation would do wonders for your resume.

You can even check our MBA curriculum. We offer one of the most competitive MBA in Finance and Investment Banking.

4. Take an Online Investment Banking Course
   

If needed, you can also pursue an online investment banking course. There are plenty of online MBA courses that allow you to procure a degree without compromising your current job or work.

This can be a viable option for those who are looking for a career switch. You can study the financial course online while continuing with your job.

5. Secure a Good Internship

If your college places you in a good company, then you’re good. Otherwise, prepare to get yourself a good internship opportunity. For that, you will need to get in front of the right people.

Connect with people who have influence in this industry or those who can recommend you to such influential people. All you need to do is make a good impression.

An internship from a good company will not only add immensely to your CV but will also help you learn the ropes of the business better. When you have to learn, it is best to learn from the pros.

6. Making a Good Impression is Essential

As you already know, making a good impression is essential, but the question is, how can you make a good impression in front of these people? We, investment bankers and our clients, are among the richest people in the world, with very particular tastes and ideals.

To make an impression on them, you will have to look the part. In fact, a study by the U.K. government's Social Mobility Commission suggests that even subtle mistakes like an improper haircut or ostentatious shoes can discourage job givers completely.

7. Understand What Recruiters are Looking for

This also falls under making a good impression on the company recruiters. It would be easier to impress them if you knew what they are looking for. If you have your eyes set on one or two companies for your internship, take a look at their job requirement lists.

More or less, recruiters look for graduates from reputed business schools who demonstrate an interest in financial services and have the required knowledge and working skills to be a valuable addition to the company.

When you are talking to the recruiters, make sure you let them know your specialities. Mention any financial projects or enterprises that you have been a part of and what role you had to play there. This may seem like bragging, but it is important to let the recruiter know what’s special about you, especially when you are venturing out into a competitive field like investment banking.

8. Start Networking Early 

Investment bankers rely on their networks of investors to raise capital for their companies. A network is not built in a day, so you have to start early.

Socialise with as many people as you can, investors or potential clients. This is where the PR aspect of investment banking comes in.

A person with poor communication skills will find it hard to succeed in this field, even if they have all the necessary qualifications and knowledge.

9. Procure the Firm's Knowledge of the Financial Market

To be an investment banker, you will need to have a thorough knowledge of how the market works. This is as important at the start of your career as it is when you move on to better prospects.

You will have to know everything about the past and present market trends, as well as special knowledge of how the new generation of investors differs from the older generation. Research is key here and the more you learn, the better it will be for your career.

Key Responsibilities of an Investment Banker

Investment bankers perform several critical functions, including:

• Raising capital through equity and debt instruments
• Managing mergers and acquisitions (M&A)
• Advising clients on investment opportunities
• Asset and portfolio management
• Risk assessment and financial valuation

Potential Salary of an Investment Banker in India

The Scope of an Investment Banker

In a growing economy like India, there is ample demand for a qualified investment banker. Most MBA graduates gravitate toward investment banking because of its monetary benefits- and this is justified.

Investment bankers do take a hefty paycheck home. However, there is an array of career opportunities available for investment bankers.

Investment banking is a fast-paced job. It requires individuals to have complete and thorough knowledge about all the different changes that take place in the market.

Since the market changes quite a lot, there is a constant learning curve associated with the job. This makes investment bankers eligible for other higher posts. Also, a person with such detailed knowledge about market fluctuations should also be able to start their own entrepreneurship with ease.

The Growing Demand for Investment Bankers

The demand for investment bankers continues to rise due to increasing mergers, acquisitions, corporate restructuring and capital-raising activities across industries.

As businesses expand globally, they require skilled professionals to manage complex financial transactions, valuations and strategic advisory services. Growing startup ecosystems and private equity investments have further strengthened the need for investment banking expertise.

In India, rapid economic growth, foreign direct investments and the entry of multinational corporations have created strong opportunities for investment bankers. Financial hubs and capital markets are expanding, ensuring sustained demand for investment bankers.

What are Some of the Requirements of Becoming an Investment Banker?

How to become an investment banker is a question many finance graduates ask themselves. There is no particular requirement. A person from any field can pursue a career in investment banking. However, it is necessary that they have a strong base in mathematics and statistics.

Since investment banking is a specialised field, most people wait until they have completed their MBAs to step into this career path. But even fresh graduates can apply for a course in this field.

It is definitely important to have a good understanding of market economics in general, but other skills an investment banker must have include persuasion, perseverance and tenacity.

The field of investment banking is highly competitive and a good investment banker must have the communication and persuasion skills to convince clients to invest in their parent companies.

Individuals with good PR skills make excellent investment bankers.

Conclusion

Investment banking is an extremely competitive field. Even after securing a coveted role, professionals must continue to work exceptionally hard to retain their position, as performance expectations remain high. However, individuals who demonstrate dedication, discipline and efficiency can steadily progress and climb the professional ladder over time.

At BMU, we train you to become global leaders. Our MBA programme doesn't only focus on theoretical learning, but we give utmost preference to the experiential scope of understanding the concepts so that you can relate to real-life problems. Apply now!