Investment Banker Skills And Responsibilities Explained In Detail

September 12, 2023 Anuja Maniyala Investment Banking, Knowledge

Are you searching for content on Investment Banker Skills and Responsibilities? If yes, you came across the right page. Investment banking is a booming sector and many candidates are trying to find the best educational entities to acquire the essential skills of an investment banker. You will learn about almost everything about the investment banking career today with the help of this article. You got a chance to understand investment banking, skills to become a banker in the industry, career prospects, and ways to find an appropriate training institute.

Investment Banking

Investment banking is a branch of financial services that deal with customers’ needs for raising capital, investing, and mergers & acquisitions. The primary purpose of investment banking is to raise money for governments, companies, and other similar entities. Underwriting equity securities and new debt are some of the activities performed for all kinds of corporations. These banks are known for facilitating reorganizations, broker trades, and mergers and acquisitions for private investors and institutions. They are famous for the management of the financial aspects of big projects.

Investment Banker

An investment banker is an individual who has a degree or equivalent certification in finance and accounting domain to utilize his skills to perform the activities in an investment bank. An investment banker must have a certain set of skills to compete with their fellow employees. Some of the essential skills for an investment banker are mentioned below.

Skills of an Investment Banker

Intellect
Discipline
Creativity
Open-mindedness
Social Skills

Intellect:

An individual with a strong intellect and grip on analytics, finances, economics, and mathematics is the best fit for a role in an investment bank. Having these will allow you effortlessly get your dream job. That being said, you also need a lot of curiosity to understand the processes and understand the contribution of colleagues to the team’s success.

Complex problems may arise at any point and innovative solutions are required to solve them. This means you must have the ability to understand the issue and curate a solution to fix it. That is possible when you have the intellectual skills to handle complex problems. Intellectual skills can be acquired by grasping the concepts of mathematics, science like engineering, economics, and physics along with the basics of finance/accounting through educational certification programs.

Discipline:

Investment bankers earn high salaries compared to other banking jobs. However, survival in the field is not as easy as it may seem. You need self-discipline, hardworking nature, and diligence to complete the tasks within the deadlines. Also, you may be required to spend extra hours at work to handle complex situations. Any employee in the investment banking field starting from the entry-level to the top position works under pressure. They need to meet all the demands of their clients and bosses. Their work is keenly observed by the higher officials. This indicates that an investment banker needs a lot of self-motivation to deliver projects that have changing demands under pressure. Their work is no less exhausting compared to the efforts of medicos and other critical job profiles.

Creativity:

You may assume that creativity is only confined to the art field. But the fact is even the investment banking profession needs creativity. As discussed earlier, complex problems keep arising at one point or the other and they require the employee to come up with innovative solutions to solve them along with diversifying the portfolios with the inclusion of new products or services for maximization of returns. The professionals must view things from different angles to curate solutions and this ability can be acquired with the help of academics like social science and science that promote innovative thinking.

Open-mindedness:

The world runs on globalization which has paved the way for more growth opportunities for all sectors. Having broad-mindedness will allow you to understand different societies and cultures that further promote the acquisition of the ability to work for international businesses. Utilizing that quality to understand cultures and societies will allow you to communicate in more than one language. When you can interact with people from different diversities, you open doors for more growth opportunities to enter your life. One way to become open-minded is to choose courses that focus on anthropology, and sociology, along with advanced linguistics skills. For example, you can join a program that teaches students to speak in Mandarin. You also have the option to contact study abroad programs that help students gain these kinds of skills.

Social Skills:

Having the above-mentioned qualities and skills will definitely get you placed in an investment bank. However, to thrive in the field, you need good relationship-building skills. The skills to handle difficult people, exude a positive attitude towards life and work, have high energy to talk to clients enthusiastically, and assure them that you understand their needs and help them are crucial to building and maintaining professional relationships in the bank. Investment banks charge money to offer their services, this means having great interpersonal skills will help you acquire new clients and retain the old ones with ease. This is one of the main qualities included under both the Investment Banker Skills and Responsibilities section as you cannot survive without social skills.

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Responsibilities of an Investment Banker

Now that we have finished the first part of Investment Banker Skills and Responsibilities, let’s move on to the second part. A professional working in an investment bank has several responsibilities, a few of which are listed below.

Develop various financial models to value equity and debt for capital-raising transactions, mergers, and acquisitions.
Carry out various valuation methods – precedents, DCF, and comparable companies.
Come up with recommendations for private equity transactions, valuations, product offerings, and mergers & acquisitions.
Prepare and review materials related to the financing of the client like management presentations, pitchbooks, and investment memoranda.
Build and maintain relationships with fresh clients and current clients to promote business expansion.
Perform research, due diligence, analysis, and documentation essential for live transactions.
Make presentations for clientele portfolios.
Act as a point of contact for clients for critical issues, relevant news, and current events

Career Prospects for Investment Bankers

A career is an important part of one’s life journey. You must pick a career that can allow you to grow in all aspects and keep you satisfied. As we have learned about Investment Banker Skills and Responsibilities in the earlier paragraphs, let’s move to understand the set of opportunities available for Individuals who complete a course in investment banking or finance/accounting domain.

Teller
Client Associate
Banker
Branch Manager
Financial Associate
Financial Analyst
Portfolio Analyst
Financial Planner
Financial Advisor
Equity Analyst
Investment banking analyst
Private equity associate

Teller:

Tellers are professionals whose responsibilities include clearing queries of customers, accepting deposits, and assisting clients with ATM or related services. They are also expected to open fresh accounts for clients or amend the existing ones. They have the basic knowledge to guide a client on the type of account, bank balance, and any aspect that deals with the client’s personal information. Tellers are the first point of contact for the clients which is why they must have the best soft skills.

Client Associate:

Client associates perform clerical tasks in investment banks and offices like answering customer requests and questions. They track money transactions and movements and prepare forms along with other administrative activities. They also assist the seniors with daily operations such as managing schedules, greeting customers, and filing documents.

Banker:

The top priorities of a banker are to handle the firm’s business and private clients. They manage the investment portfolios like making changes in operating assets if required. They have the duty to meet the clients to have discussions on investments and other related activities. They are usually good at offering advice to their customers. They are involved in the creation of financial portfolios for the clients as per their risk tolerance and needs. Sometimes they are given additional tasks like approval of loans.

Branch Manager:

As the name suggests, these professionals manage the day-to-day operations of a financial institution like a bank. Large banks give them the scope to set up, train, and supervise candidates to serve the bank in a chosen branch. Whereas smaller banks let them get exposed to the financial industry in general along with giving them the power to manage more employees.

Financial Associate:

Financial associates have the responsibility to help potential clients choose a financial product for themselves. Their advice on retirement plans, investment portfolios, and related financial products makes them helpful for clients. They have the skills to assist a client in transferring money, opening accounts, and creating financial plans. They are knowledgeable professionals; know about almost every area of a bank including loan services and deposits.

Financial Analyst:

These individuals own the responsibility to evaluate and analyze an industry/sector/company’s financial performance. They collect data from various sources to identify market trends and accordingly make suggestions as per their findings. They assist firms to prepare for mergers and acquisitions. They also help the companies in developing public filings alongside forecasting stock price fluctuations and market growth. The creation of a financial statement budget or steps linked to the maintenance of the financial health of a firm can also be part of a financial analyst’s responsibilities.

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Portfolio Analyst:

An employee who deals with the evaluation and analysis of a company’s portfolio is a portfolio analyst. Their duties include analyzing potential stock sales or purchases which may be long, day, or short trading. Their entry into a team facilitates portfolio preparation and making decisions as per the prepared portfolios. This position may need you to understand Investment Banker Skills and Responsibilities to some extent as both the roles have similar characteristics.

Financial Planner:

As the name suggests, these professionals help their clients in making financial plans and managing their money. They utilize their economic, financial skills and accounting communications to support clients in every area of investment budgeting and planning. Financial planners are masters at guiding clients in setting up accounts at a financial institution like a bank, choosing investment portfolios, managing risk, and making decisions.

Financial Advisor:

As simple as it sounds, employees who offer financial guidance and advice to clients are called financial advisors. Their job is to review portfolios and make investment recommendations. These people are usually hired by families or individuals to prepare and manage a financial plan to improve their financial position.

Equity Analyst:

Equity analysts gather and analyze data related to the stock price of a company and make recommendations. They research present market trends and determine the worth of a company based on the provided financial information. They also take charge to find the company’s competitors’ financial data to determine potential sales, purchases, and mergers.

Investment Banking Analyst:

An investment banking analyst evaluates a company’s market position, current financial health, along with its future prospects. Evaluation of mergers and acquisitions is also part of their work profile. They perform research on the pricing of bonds, stocks, and similar securities. Their way of determining the value of a stock involves researching economic trends and industry forecasts. This role requires you to have all knowledge about the Investment Banker Skills and Responsibilities as it is similar in nature.

Private Equity Associate:

Private equity associates assist clients in purchasing equity securities and advise investment structure and strategies. They help the clients to decide on the type of securities to buy or sell from a company or evaluation of a company to determine if it’s a good fit for a private equity buyout or not. They also share new investment opportunities existing in the market with the clients.

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Tips to Find the Best Educational Institute for Investment Banking Course

It is quite common for individuals to pursue their career in investment banking after reading Investment Banker Skills and Responsibilities as they challenge an individual’s ability to work in a demanding environment. If you are one such soul, consider the below courses.

Post Graduate Certificate Program in Investment Banking
Certified Investment Banking Operations Professional program
Investment Banking (CIIB) certification
Financial Modelling Online Course

There are a range of educational entities offering courses on the subject which makes it difficult to choose a program for any aspiring investment banker. This is why a list of tips is shared below to eliminate the confusion.

Type
Specialities
Research focus
Teaching quality
Graduate outcomes
Student body
International experiences
Facilities
Atmosphere
Cost

Type:

Public entities are run by the government and they rely on it for funds. Whereas private institutions are independent; collect tuition fees from students. If you feel a public college can cater to your needs, take admission to it. Else contact the private entities.

Specialities:

Some ed-tech companies focus only on academic finance/accounting courses like financial modeling and valuation. Whereas others concentrate on teaching the students with live projects. Gain clarity on your knowledge and skills requirements to choose the course.

Research Focus:

Some universities or colleges restrict themselves to educating the learners on limited markets whereas a few focus on enlightening the students on international markets as well.

Teaching Quality:

How your tutors make an effort to educate you and help you understand concepts is very important. This is why you must try to get references from friends and family. Another way to get answers to your questions is by visiting the website of college or checking Google reviews to understand their service quality through student reviews.

Graduate Outcomes:

The main purpose of joining an educational entity is to gain knowledge and skills that help you in thriving in the investment banking industry. A certificate issued by the institute can help you get a job at a faster pace.

Student Body:

Are you being taught along with international students or are you a part of a bunch of regional learners? Pick is an ed-tech company that trains learners from all over the world as it can expose you to cultural diversity that promotes open-mindedness.

International Experiences:

Do you want to study abroad? Answering this question is important if you are planning to move abroad to pursue your goals. International opportunities allow you to grow and offer a higher salary package for investment bankers. Also as discussed earlier, having knowledge about more financial markets opens doors for international opportunities.

Facilities:

Technological advancement has made life easier. Most educational entities are ready to educate you through an online platform. Traditional colleges have the scope to offer a wide range of facilities like libraries, student study spaces, residencies, and eateries. If you choose the latter option, you must check with the college department for more details. On the other hand, if you are comfortable attending live sessions, you may only have to ask for access to study material, placement assistance, and support to clear your queries.

Atmosphere:

If you picked the online entity, attend a demo class to understand the teaching style and question and answer session carried out by the tutors. If they are friendly and approachable, go for it. If you decide to enter a traditional college, pay a visit to the campus and make a decision as per your comfort. If the facilities and services don’t seem to match their words, move on to searching for another institute.

Cost:

It is important to decide your budget for education. Different institutes have different course fees. Choose the entity that is affordable for you but never the opposite. Take a loan if you believe the course is worth it.

Conclusion on Investment Banker Skills and Responsibilities :

Investment Banking is a career option for many students whose educational background is finance/accounting. Having knowledge about Investment Banker Skills and Responsibilities will let you decide your professional journey. Investment banking is a sector in the financial industry that deals with customers’ needs for raising capital, investing, and mergers & acquisitions. An investment banker is an individual who works for a bank that handles raising capital, mergers, acquisitions, and investing. An investment banker must possess the below set of skills to thrive in the industry.

Intellect
Discipline
Creativity
Open-mindedness
Social Skills

The professional serving an investment bank’s financial operations will have responsibilities like developing financial models for the valuation of the company, implementing valuation methods, sharing recommendations on financing activities of clients, preparing and reviewing crucial documents, building and maintaining professional relationships, performing market research, making presentations for clients, and acting as a link between bank and client for facilitating transactions.

An individual who completes a course in the finance/accounting domain will have the opportunity to enter the investment banking industry as any of the below professionals.

Teller
Client Associate
Banker
Branch Manager
Financial Associate
Financial Analyst
Portfolio Analyst
Financial Planner
Financial Advisor
Equity Analyst
Investment banking analyst
Private equity associate

It is natural for curious beings to aim for investment banking post reading the Investment Banker Skills and Responsibilities as they indicate that being a professional in a financial sector is not everyone’s cup of tea; it requires special qualities and skills. A simple way to find the best college to avail of an investment banking certification program is to consider the below points in relation to the educational entity.

Type
Specialities
Research focus
Teaching quality
Graduate outcomes
Student body
International experiences
Facilities
Atmosphere
Cost

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FAQs on Investment Banker Skills and Responsibilities

Q. Is it easy to enter the investment banking field as a banker?

Yes, it is easy to enter the investment banking industry if you have a basic degree in finance/accounting domain. Some institutes offer a comprehensive course in investment banking to educate the learners on the basics and deep concepts of the subject. Availing of such courses will give you the opportunity to become an investment banker as well. Make sure to seek programs that offer certifications to have a competitive edge in the market.

Q. What are Investment Banker Skills and Responsibilities?

Skills that an investment banker requires are Intellect, discipline, creativity, open-mindedness, and social skills. The common responsibilities of a budding employee in an investment bank are developing financial models for the valuation of the company, implementing valuation methods, sharing recommendations on financing activities of clients, preparing and reviewing crucial documents, building and maintaining professional relationships, performing market research, making presentations for clients, and acting as a link between bank and client for facilitating transactions. Once you understand the Investment Banker Skills and Responsibilities, you are free to pick a relevant educational program and thrive in the financial sector that deals with mergers and acquisitions.

Q. Can I enter an investment bank only as an investment banker?

No, there is a range of career options at your reach post-acquisition of relevant knowledge and skills. You can enter the financial sector as any one of the below professionals.

Teller
Client Associate
Banker
Branch Manager
Financial Associate
Financial Analyst
Portfolio Analyst
Financial Planner
Financial Advisor
Equity Analyst
Investment banking analyst
Private equity associate

Author: Anuja Maniyala

Anuja Maniyala is a intern at IIM SKILLS. She worked as a creative content writer for AADOX and Quoteslyfe in the past. She has identified her passion for writing after working as a banker in some well-known companies like Wipro and HSBC. Her current target is to become an author of a unique and creative self-help book. Her enthusiasm and curiosity to learn about the human mind and behavior makes her different from the rest of the world.