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Is Investment Banking Possible Without a Finance Background?

Investment bankers are deft jugglers of numbers around the clock. They play with numbers and are scrupulous in the analytics of these numbers. It is true, that investment banking does prefer a finance background. But what if someone did not acquire a finance degree? What if the non-financers crouched in pursuit of joining investment banking? What do you think? Is investment banking possible without a finance background? This article will acquaint you with this concept in detail.

Is Investment Banking without finance background

 

Investment banking jobs are a big ask in the present framework. People tend to join investment banks because of their salary structure, fast growth, enormous opportunities and a great source of networking. Though investment bankers are up to their eyes in work all the time, the word stress does not peak in their glossary, but they are still the most enviable persons.

They are the most longed-for people on Wall Street. Do you ever wonder what exactly they do that keeps them so busy and demanding?  Let us first check out the roles and positions of investment bankers, then we will tune in with the topic of is investment banking possible without a finance background or not.

 

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Investment Banking: Description

Investment banking deals with investment banks and investment bankers. Investment banks are a part of the banking sector that deals with the bull and bear market. They render assistance in levering up the finances. The investment banks act as an intermediary between the investors and the borrowers.

For its unflawed function, the investment bank offers many services. These service bouquets of investment banking help it gain more clients, offer the best services to clients and get more and more business, which in return enhances the bank’s profit. Some of the services offered by investment banks are:

  • Mergers and Acquisitions (M&A)
  • Underwriting
  • Sales and Trading
  • Equity Financing
  • Debt Financing
  • Research
  • Initial Public Offerings (IPO)

These are some of the functions of investment banking through which they raise capital from the investors to offer it to the borrower company.

This was in brief the idea behind investment banking. The main purpose of investment banking and the functions or services of investment banking. Now, we can discuss the roles or what work investment bankers perform.

Job Responsibilities of Investment Bankers

Investment bankers are the one who carries out the entire services of the investment banks. They are the vertebrae of the investment banks. Here we will discuss some of the job roles of investment bankers which will give a greater glimpse of the topic, is investment banking possible without a finance background?

  • The investment bankers are responsible for raising funds. They raise funds from investors by taking into consideration all the services associated with investment banking.
  • Investment bankers also develop many financial models. Some of the financial models are merger models, budget models, forecast models, IPO models and many others as such. They create these financial models to understand the risk involved and study other financial details.
  • They are responsible for carrying out a detailed analysis of the cash flow involved in a particular transaction.
  • They are responsible for offering all the services to the bank’s clients. They also conduct all the services and assist the clients in selecting the services. They make their audiences understand which service will provide the best profit margin.
  • The investment bankers are responsible for preparing pitchbooks. What are pitchbooks? The Vice Presidents and the Directors usually carry the pitchbooks. This book contains an elaborate description and pictorial representations of the various services that the investment bank is offering to its clients.
  • One of the major responsibilities of the investment banker is selling. After attaining a certain position, like Vice President or Director, they are required to pitch or sell customers their services. This helps them in gaining business for their firm.
  • Another aspect of the roles of investment bankers is engaging with the customers. They tie a good relation with their customers which earn them more profit.
  • The investment bankers are responsible for generating reports of various financial transactions, their progress and other aspects related to them. Due to this, they are well-versed in Microsoft Excel and Microsoft PowerPoint.
  • Research work is another aspect that investment bankers focus on. They need to do plenty of research work. This involves research about the clients, various organizations, economic conditions, market analysis and regulatory norms and conditions.
  • The last is providing proper advice to the customers. They guide the customers about the services that they are offering. They also guide them on which service to go for that will yield their benefits.

These are some of the basic responsibilities that investment bankers have to perform in their banking careers.

So, it is visible, that the celebrities of Wall Street and Dalal Street are not only playing with numbers they have to handle sales, make reports, face customers and also have to be good leaders. It is quite a varied zone. Now the question arises, is investment banking possible without a finance background? What do you think? Check with the skills that will help you become an investment banker.

A Must Check,

Skills of an Investment Banker

It is understood that when the topic is investment banking possible without a finance background or not is tick-tocking on your head, it is difficult to concentrate on the skills. However, knowing the skills will help you identify which area you should focus on when aiming for your job. An investment banker has to acquire the following skills to establish himself in the industry.

  • As we have seen the responsibilities of investment bankers, it is evident that they should possess strong analytical skills.
  • Only analytics is not much of a help until and unless it is combined with communication skills. This is important as you need to present your reports to your seniors. Also, as you step up the ladder, you will face customers. This is when possessing communication skills will be a boon.
  • As one alone cannot perform the whole financial transaction, so team player wins the race.
  • Investment bankers should inculcate leadership qualities. This will help them to grow in their career goal.
  • They should have patience and should be able to work in stressful situations.
  • Investment bankers should have a deep love for numbers, economic situations, finance and bull and bear market regulations.
  • The most important skill that the investment banker should acquire is time management.
  • As people are also involved in the direct selling of their services, they should be a perfect negotiator and should be very much dedicated towards their work.

These are some of the skills that are essential to becoming an investment banker. As you have got the details of the skills required, now you can see which areas you need to improve.

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Is Investment Banking Possible Without a Finance Background

By now we have deeply understood the roles and responsibilities of an investment banker. We have also seen the skills that are essential for becoming an investment banker. Now we can proceed with the discussion, is investment banking possible without a finance background or not.

It is indubitably agreed that investment banking involves a lot of numbers and finance. A perfect knowledge of finance is a great help for working in the investment sector.  The subject of finance guides us about all the financial tools like debt, equity, stock, shares, dividends and others as such. Having a base in finance means, an aspirer also possesses knowledge in Mergers and Acquisitions, Underwriting and other various financial terms and terminologies. A background in finance also teaches about the various accounting theories that are essential in the banking sector.

Having mastery over these subject matters helps the aspirers to be confident, crack the job interviews and perform great in their career in investment banking. It also helps them to understand the job area and the tasks to be done in a better way as they are already familiar with the jargon, terminologies and concepts. People with a finance background are already motivated to join in this sector for better opportunities.

A degree in finance involves studying subjects like corporate finance, economics, financial mathematics, statistics, financial reporting, behavioural finance, investment management, capital markets and banking.

Although the above facts hold correct to achieve a job in investment banking, the recent trends show a slight change.

At present time, an investment banking aspirant is not judged only on finance background, they select people from any background other than finance too. When we say is investment banking possible without a finance background, we can proceed with a nod, provided the candidate has the other required skills.

Nowadays, investment firms or investment banks are looking out for a difference in thought processes. Usually, people with the same background think the same, so a candidate with a different background can create a difference in thought which can be beneficial for the bank.

Selecting candidates from different spheres creates a diverse workforce. A diverse workforce provides better ideas for improvement.

Investment banks are not only looking for candidates with good financial knowledge, they need candidates with good management skills, interpersonal skills and people having a great interest in working in the sector. This is driving them to look beyond their financial background.

The inclusion of candidates with various backgrounds will aid in innovation. So, investment banks are seeking measures by which they can innovate and reinvent themselves.

Candidates with experience in sales and management will help the investment banks to gain more customers which will also assist in the business growth of the banks. The management students will help to conduct the work smoothly and efficiently.

Nowadays, if we think that is investment banking possible without a finance background, many firms say yes because with the changing landmarks people want to go for a change and more development. The information technology sector also can contribute to the investment banking sector. They help in the analysis of reports smoothly by using the latest technologies. They also aid in detecting errors or bugs that may cause a hindrance to work. They can help in creating many financial and trading platforms that will be a benefit for the firm.

Candidates who are smart and have good communication skills can be an important resource for the company. Students with financial backgrounds no doubt can help to make financial transactions and aid in other financial details, but employees with good communication skills can be an effective tool as they can communicate properly with clients which can make the relation with the client strong.

Many candidates have achieved a degree in finance but may not be willing to work in an investment bank or may not be able to work with full dedication. A candidate possessing all other skills that an investment banking sector requires, but a non-finance student should be welcomed in the investment banking clan. The bank can provide necessary pieces of training to these types of candidates, who are willing to work in the sector, but are holding themselves back because they are categorized as non-finance persons.

Non-finance aspirants after gaining knowledge in finance after joining investment banks can become multi-talented employees. They can carry out the financial transaction well and along with that can use their previously gained knowledge and expertise to make some new changes or development or innovate the practices of the investment bank.

All these factors are leading to a change in the system of recruitment in the investment banking sector. Many firms are not only concentrating on the finance degree but also a lot more. This is the reason why the skills of an investment banker have been discussed in the previous section of the article. Aspirants with the required skills are also eligible for getting an investment banker job.

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No doubt, finance background students will benefit from that extra margin, but, non-financers also are not ignored. But they should have great determination and passion towards their jobs and roles. They should be enthralled by getting an opportunity to work in the investment banking sector and prove themselves as a hardworking and smart person for the job. The role of an investment banker demands fast learners. So, people who are eager to work with numbers and are passionate about finance can have a big chance to try their luck in the investment banking sector. It will also help people who are willing to for career transition into investment banking without a finance background.

All the above-mentioned reasons and the changing environment in the investment banking sector thus provide non-finance persons also an equal chance. So, when discussing on the topic is investment banking possible without a finance background, it can be said that people with lots of interest in in finance and numbers can be voted in for the investment banking sector without a finance degree.

The next part of the article will deal with, the 5 secret tips that will help a non-finance candidate to bag a job opportunity. These are the tips, that you should act upon to get a career in investment banks.  These tips concentrate on self-improving and attaining the maximum knowledge that is necessary to become an investment banker.

Secret Tips to Bag Investment Banking Jobs

This part of the article is the most intriguing aspect. Now since we are done with the topic is investment banking possible without a finance background, we can check further. For candidates looking for a career transition into investment banking, or candidates who do not have any finance degree but are eager to join the industry, these five tips can help them to become an investment banker.

Enroll in an Investment Banking Course or Boot Camps

This is probably the best way to grab an investment baking job. Give your career a second chance. It is usually believed that when your passion meets the work, you are bound to excel.

There are plenty of online as well as offline courses available in investment banking. These courses will help you to gain knowledge and a deep understanding of financial marketing.

One of the best institutions is IIM SKILLS. It provides an assorted range of academic courses. They are very professional and will provide you with the best training in this sector. Additional aspects of the institution are they provide internship opportunities and they also provide 100% assistance to get investment baking jobs. You can go to their website www.iimskills.com take their demo classes and enrol yourself for a better learning and good job.

Get in Internships

Is investment banking possible without a finance background, this was a topic of concern for many aspirants. If you are interested in working in the sector, you need to work hard to gain knowledge.

Internships are the top tools to get into investment banking. It helps in achieving practical training. It is like on-the-job training. It helps in learning fast about the work that is to be done in the investment banks. Sometimes the candidates doing internships are offered permanent jobs based on their performance.

IIM SKILLS is one of the many institutes that provide internships for two months. This boosts the performance and confidence of the students.

Inflate Your Knowledge of Finance

Non-finance candidates need to gain more knowledge and understanding of finance. They need to be clear on the concepts of finance. They should be well aware of the terms and terminologies used in finance.

Since the non-finance candidates do not have much knowledge in finance, they should gain it from outside. You subscribe to the finance newsletters or can take coaching related to finance courses. In this way, you can become a finance expert.

Hook Up With Finance Communities

Get yourself signed in with finance communities. These online communities offer plenty of help to young aspirants who are eager to get into the industry. They discuss many potential topics related to finance and the banking sector. You can grab the knowledge and prepare yourself for the job roles.

Many of the members provide references to jobs in the investment banking sector. In this way, you can build a network and can also get a job. Networking is a good option for getting jobs.

Build a Resume and Prove Yourself

Non-financer needs to prove themselves. They need to convince the interviewer because they deserve the position despite being a no finance degree candidate. You should be confident in answering the question, is investment banking possible without a finance background?

For this, they need to build a professional resume that will help them to catch the attention of the interviewer. They need to create the resume by using financial keywords, that will put weight on their resume.

Professional Courses from IIM SKILLS

These are the top 5 secrets that help you in getting a job in investment banking. The topic discussed here, is investment banking possible without a finance background helped you get a clear visual of what to do and what not.

 

FAQs

1.      Is investment banking a growth sector for non-financers?

Investment banking jobs are the most sought-after jobs for finance aspirants and people interested in finance.

2.      What are the online institutions for investment banking courses?

IIM Skills is one of the most desirable options for the course. Others are Imarticus Learning, Udemy, Coursera and IIM Indore.

3.      What are the job hours of investment bankers?

The investment bankers work for nearly 80-100 hours per week. It is a stressful job.

4.      What is the period of this course?

IIM SKILLS provides 5 months course, with 2 months internship.

Conclusion

The landscape of investment banking is changing. The industry is demanding some new upgrades. Is investment banking possible without a finance background, this is what millions want to know. Investment banking is for finance, but non-financers are also welcome with deep passion and knowledge in the investment banking sector.

 

Author:
Passion for writing contents, blogs and novels, has motivated Aritra Bose to pursue her career in content writing from IIM Skills. She is eager to explore her journey as content writer and work with an organization where her communication, creativity, adaptability, research work, SEO knowledge and organization skills are utilized and enhanced. Prior to this, Aritra gained 5+ years of experience in HR and Marketing profile, with KONE Elevators, HPE, GAVA Ecocrete and ICICI Bank. She has completed her MBA in HR and Marketing from KIIT University. Her hobbies are reading, content creating in YouTube, cooking and travelling.

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