Just as banks operate at the hub of the global marketplace, investment bankers play a crucial role in structuring the financial deals that facilitate business operations and help keep the economy moving forward. These skilled professionals advise companies on issuing stock and configuring stock offerings. Individuals seeking the specialized financial knowledge required for a career as an investment banker benefit by enrolling in Florida Institute of Technology’s online Master of Business Administration (MBA) in Finance program.
Investment Banker Job Outlook
The U.S. Bureau of Labor Statistics (BLS) reports that jobs in the securities, commodities and financial services category will grow by 7% from 2023 through 2033 which is faster than the average for other occupations. As global markets increase levels of investment and baby boomers move into their retirement years, demand for investment bankers’ expertise is expected to grow. Individuals with a background in accounting, finance and economics, as well as industry certifications and advanced educational qualifications, such as an MBA in Finance, should have stronger prospects for securing one of these competitive positions.
Investment Banker Job Duties
Job duties of investment bankers revolve around connecting the businesses that need financing to the investors who will provide it in the form of bonds or stock. These professionals help private corporations go public by structuring initial public offerings, or IPOs. These offerings are subject to strict financial regulations and companies that undergo IPOs must meet stringent requirements.
Mergers and acquisitions are another specialty area of investment bankers. When companies are interested in purchasing or merging with another firm, they seek the expertise of mergers and acquisitions experts. Investment bankers in this specialty advise clients on how best to structure deals, analyze financial dynamics and develop detailed agreements.
Much of an investment banker’s time is spent consulting clients. Other daily tasks include conducting research, maintaining data in spreadsheets and creating reports. Analyzing data and making recommendations are additional activities of investment bankers. These professionals may spend time outside work meeting with clients and building industry relationships.
Potential Salary for Investment Bankers
As of May 2023, the average annual salary for financial services sales agents nationwide was $76,900 with the top 10% of earners averaging $212,180, according to the BLS. Additionally, investment banking professionals are often paid commissions on the financial products they sell; success in sales can lead to higher salaries. Recent bachelor’s degree graduates typically start out toward the lower end of the pay scale and boost their salary with additional experience and training. It’s important for prospective students and jobseekers to conduct independent research as potential salaries, as well as employment opportunities, vary based on numerous factors, including a candidate’s education and experience.
Education and Training for Investment Bankers
Success in the investment banking field requires a high level of education and skill. Typically, employers will expect candidates to have — at minimum — a bachelor’s degree in finance, accounting, economics or a related field. Entry-level positions usually involve on-the-job training. Individuals with advanced degrees may begin at the associate level on the way to enhanced opportunities for promotion.
The road to becoming an investment banker begins with enrolling in an MBA with a concentration in Finance program. Coursework typically includes portfolio analysis, financial markets and institutions, managerial accounting and investment management. Employers will expect that graduates of MBA Finance degree programs are able to:
- Solve real-world, corporate-level problems in finance
- Apply the techniques, theories and concepts behind investment policy and strategy development
- Analyze interest rates and their determining factors
- Evaluate portfolio performance
Are You Ready for an Exciting and Rewarding Investment Banker Career?
The prestigious nature of an investment banker’s job makes this a desirable and competitive field. If you have an aptitude for finance, outstanding communication skills, and sharp analytical and mathematical abilities, you may want to explore opportunities in the profession. Add in the knowledge you can gain from an MBA in Finance degree program, and you are primed for a rewarding career as an investment banker.
Learn more about Florida Tech’s online MBA in Finance program.
