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How Does One Become An Investment Banker ? - Career (2) - Nairaland

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Re: How Does One Become An Investment Banker ? by mrjingles(m): 6:09am On Dec 03, 2013
I know some chaps planning to startup a IB here, if you are REALLY serious hit me up on akpoefe at yahoo dotcom. They MAY be willing to take a greenhorn or two, you are young enough I think. Getting paper qualification is good but from what i know of the industry, the paper only gets you through the door but you must produce to survive.

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Re: How Does One Become An Investment Banker ? by iguita: 6:45am On Dec 03, 2013
TD4real: hey guys, plz i really need some serious advice on investment banking, its a ashame to say that i'm 21yrs old and currently doing my service year with a dream of becoming a banker but have no idea on how to go about it. i have never even met one before. by banker, i dont mean the custormer care, tellers, account officers or any other operational office, i am referring to the real bankers who deal with financial ratios and investment of the banks money. please i would like to know what it takes and what channels or routes i have to follow.

any investment banker in the house or anybody with some good ideas...........

dude, there is nothing to be ashamed of, if at 21 you're already thinking like this then you're cool. next step is to be friends with one, you can save up like 10k, go to a stockbroking firm, open an account with them, ask questions, get close and who knows, d person attending to you might just introduce you to an investment banker
Re: How Does One Become An Investment Banker ? by OkochiZico(m): 6:51am On Dec 03, 2013
Try ARM or StanbicIBTC, that's where u'll get what u're looking for, goodluck.
Re: How Does One Become An Investment Banker ? by fowose: 7:29am On Dec 03, 2013
@ Poster
Do you want to work as an investment banker or you want to work in finance? There is a major difference between a stockbroker, asset manager, research analyst and an investment banker. Investment bankers typically do advisory work (M&A, asset restructure) and capital raising (Debt and equity). The field is wide enough! What do you want to do?

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Re: How Does One Become An Investment Banker ? by TD4real: 7:58am On Dec 03, 2013
free R1: Investment banking is really huge and a large part of investment banking is not done in Nigeria. The core to investment banking is company valuation and risk management. Basically, you do merger and acquisition, private buy-out, venture capital, underwriting etc. My advice to you is to try the CIS (Chartered institute of stockbrokers Nigeria) exam. It will give you an overview of what investment banking is. Let me warn you; 80% of what you will be taught does not happen in Nigeria at the moment. The bright side to this is that there is a huge opportunity for you to start something that will change the financial sector.
thanks
Re: How Does One Become An Investment Banker ? by TD4real: 8:04am On Dec 03, 2013
fowose: @ Poster
Do you want to work as an investment banker or you want to work in finance? There is a major difference between a stockbroker, asset manager, research analyst and an investment banker. Investment bankers typically do advisory work (M&A, asset restructure) and capital raising (Debt and equity). The field is wide enough! What do you want to do?
may be im a lil mixed up but u may just highlight a lil more on their differences
Re: How Does One Become An Investment Banker ? by TD4real: 8:10am On Dec 03, 2013
thanks but im alraedy sarted up with ican and by Gods grace if i scale throuh with the november diet, by may next year i will be writing the final exams. what do you advice i go for after getting Ican, masters or CFA??
Nashville: There are various ways to get into the industry and investment banking can be very broad as well. So you have M&A, Equity/Debt Underwriting or even Sales and Trading. Lots of people want to be investment bankers because of the perceived high bonuses so getting in can be quite competitive. My best advice is to get some other degree which can be:
1. MBA - if you can afford to get a foreign MBA the better. Lots of US schools offer scholarships and even school loans so I think this is a good entry point. UK schools are also an option. You need to go to the right school and the best way is to get a very high score in your GMAT. If going abroad is not an option, you can still get an MBA from a Nigerian University.
2. CFA - the CFA designation is more relevant for Asset Management/Wealth Management but in Nigeria it can also work. The CFA is not very easy but it is doable even if you dont have a finance degree. And then you can move from Asset Management into investment banking or go straight to investment banking
3. ICAN - if you cant go through the first two options, then just go do ACCA. At least it is the best Nigeria has to offer in terms of designation so it can only help and not hurt you as accounting knowledge is key in investment banking.
4. Work experience also matters. People who have worked in consulting especially strategy consulting also have an edge or if you have worked in management positions in a particular industry.

But at 21, you are young and not too experienced so I will suggest you go through the academic route.

Goodluck
Re: How Does One Become An Investment Banker ? by TOXTOX: 9:06am On Dec 03, 2013
[i][/i]This surely is the best advice for you. Kindly implement to the letter and you'll be better for it.
735 i:

No University in the UK or US (that's worth it's name) will give a fresh graduate admission do an MBA. Also an MBA from Nigeria (unless it's from LBS) is not going to take you anywhere near an IB firm if you don't have experience.



CFA is quite broad and really will be a good option for him...but he will need to put in tons of hours to study.



You nailed it!!

OP i'll advice you to create a profile on Linkedin. Look up proffesionals in the industry and try to add them; Network.
You should also try and read up stuff on Investment Banking and find out what it's about. Google the terms that sound strange to you. Investopedia should also be you close friend.
When you have a fair understanding of the terms and the industry as a whole; look for the reputable firms and offer your services for free.
Try as much as you can to get into the industry irrespective of the role you are offered; Let your passion drive you.
Once you're in; you'll sort yourself out.
All the best.
[b]This surely is the best advice for you. Kindly implement to the letter and you'll be better for it.
735 i:

No University in the UK or US (that's worth it's name) will give a fresh graduate admission do an MBA. Also an MBA from Nigeria (unless it's from LBS) is not going to take you anywhere near an IB firm if you don't have experience.



CFA is quite broad and really will be a good option for him...but he will need to put in tons of hours to study.



You nailed it!!

OP i'll advice you to create a profile on Linkedin. Look up proffesionals in the industry and try to add them; Network.
You should also try and read up stuff on Investment Banking and find out what it's about. Google the terms that sound strange to you. Investopedia should also be you close friend.
When you have a fair understanding of the terms and the industry as a whole; look for the reputable firms and offer your services for free.
Try as much as you can to get into the industry irrespective of the role you are offered; Let your passion drive you.
Once you're in; you'll sort yourself out.
All the best.
[/b]This surely is the best advice for you. Kindly implement to the letter and you'll be better for it.
735 i:

No University in the UK or US (that's worth it's name) will give a fresh graduate admission do an MBA. Also an MBA from Nigeria (unless it's from LBS) is not going to take you anywhere near an IB firm if you don't have experience.



CFA is quite broad and really will be a good option for him...but he will need to put in tons of hours to study.



You nailed it!!

OP i'll advice you to create a profile on Linkedin. Look up proffesionals in the industry and try to add them; Network.
You should also try and read up stuff on Investment Banking and find out what it's about. Google the terms that sound strange to you. Investopedia should also be you close friend.
When you have a fair understanding of the terms and the industry as a whole; look for the reputable firms and offer your services for free.
Try as much as you can to get into the industry irrespective of the role you are offered; Let your passion drive you.
Once you're in; you'll sort yourself out.
All the best.
Re: How Does One Become An Investment Banker ? by Nobody: 9:26am On Dec 03, 2013
i don't think the OP has a clear understanding of what investment banking is all about. what he described is actually financial management which is a function in every large corporation. the OP dude wants to be in the treasury dept of a commercial bank as opposed to being a "mere" teller, customer care officer etc. not sure wat kinda advice to give except that having an academic background in economics/finance would help.
Re: How Does One Become An Investment Banker ? by Lagbaja425(m): 10:34am On Dec 03, 2013
I haven't read the previous posts so my apologies if any of what I say below has already been said:

First of all, I think it's great that you have some ambition. That really is the first and most important step. Secondly, investment bankers do not invest the bank's money. Let's just be clear on that now so you know exactly what it is you are trying to achieve.

I'm not too informed on the i-banking scene in Nigeria but I honestly believe you can get into any of good I-banking outfits with a decent undergraduate degree and some solid preparation for interviews/tests. Luckily there isn't that much emphasis placed on networking in Nigeria (when compared to the U.S for instance) so your academic track record and performance in interviews should be sufficient.

If on the other hand you want to play with the big boys on Wall Street (a feat that is by no means unattainable for you) and make $200K while working 120 hours a week, your most viable option is to get some credible work experience and apply to a solid business school in the US. Potential for leadership opportunities at work is probably more important than your pay check if you plan to apply to business school so choose wisely when you complete your NYSC. Also try to work at a company with a brand that is globally recognizable (PwC, EY, Deloitte > Zenith, FBN, UBA). After at least 3 years, apply to a top US b-school. When I say top, I mean top, do not waste your time and money applying to any school outside the top 10 if you want to even be looked at by a reputable bank. This is a link to some rankings published a few days ago: http://money.cnn.com/gallery/leadership/2013/12/02/top-10-mba-programs.fortune/

The best finance schools are probably Chicago Booth, Wharton or Columbia and if you can make it into any of these schools you will have more access to these banks than you ever thought possible. This is of course no guarantee of a job but it's more access than you would ever have otherwise. Typical U.S b-school offers a 2 year MBA. You will have the opportunity to intern at an investment bank over the summer between your first and second year of school and provided you don't do anything silly (like refer to investment banking as dealing with financial ratios and investing the bank's money) you should get a full time offer even before you start your second year. And just like that, you may achieve your goals. It is insanely competitive though so the fact you are at any of these schools is no guarantee of anything. The school provides the access, you have to play your part and work HARD!

And yes, a lot (not all) of the top schools in the U.S offer financial aid both in terms of merit based scholarships and loans that do not require a U.S guarantor so if you can succeed in getting in, lack of personal funding is typically not a deal breaker.

If you are sufficiently motivated, I'm happy to mentor you on your chosen path dude. I was just like you 6 years ago smiley Feel free to shoot me a personal message.

Good luck!

3 Likes

Re: How Does One Become An Investment Banker ? by saintneo(m): 11:10am On Dec 03, 2013
Luckily I was a 'Banker' in Nigeria.

For you to be a 'Banker' you have to distinguish yourself from your peers. You be thinking of the bigger picture. Connecting all the dots, being able to analyse events and predict future potentials.

You just need to be different.
Re: How Does One Become An Investment Banker ? by Nobody: 11:24am On Dec 03, 2013
@op I am sure the info at the link suggested by Jaru will be of great help.


Side comment: while reading through the blog, I noticed something like this Msc (Edinburgh), ACA, ACCA, ACS, CFA after someone's name. I tire for Naija seriously. A friend of mine works as a statistician in a company here and he once told me, that he happened to know after 2 years of working in the company that all the kids in his department has a phd, some ever two. Actually he got to find out by chance! Well each time I see things like this on public forum I actually don't bother reading whatever the person has put up.
Re: How Does One Become An Investment Banker ? by fowose: 11:29am On Dec 03, 2013
TD4real:
may be im a lil mixed up but u may just highlight a lil more on their differences
1) A Stockbroker: Simply buys and sells stocks, and makes a profit from the sale. Think CSL Stockbroker.
2) Asset managers: Buy and sell stocks for Investors, they could buy from capital markets (Stock exchanges) or allocate to alternative markets (Private equity funds and commodities-Real estate). Think ARM, FBN Capital, Meristem.
3) An Investment Banker is mostly works in advisory or capital raising. Advisory is your mergers and acquisition, asset restructuring, project financing.... Capital Raising is using bonds or equity to help finance clients businesses (Post advisory). Think Chapel Hill, Rencap.

A poster said most of this isnt done in Nigeria, I think that poster is highly misinformed.

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Re: How Does One Become An Investment Banker ? by CHIMSKY(m): 11:33am On Dec 03, 2013
TD4real: hey guys, plz i really need some serious advice on investment banking, its a ahame to say that i'm 21yrs old and currently doing my service year with a dream of becoming a banker but have no idea on how to go about it. i have never even met one before. by banker, i dont mean the custormer care, tellers, account officers or any other operational office, i am referring to the real bankers who deal with financial ratios and investment of the banks money. please i would like to know what it takes and what channels or routes i have to follow.

any investment banker in the house or anybody with some good ideas...........
First of all,what did you study?You need to get closer to your target if you did not study Economics,Accountancy,Finance and Banking etc.You can do this doing the Chartered Institute of Bankers Exam or even ICAN.You cld also get employment in a bank as a teller and then do your MBA/Money and Finance then move to where you really wanna be.An alternative is working in a management consultancy (Phillips Consulting,Accenture,Ernst and Young,PWC,) in an investment analysis role.This will expose you to top management of banks and possibly a high level banking job right in your chosen field.
Everything dey your hand.
Re: How Does One Become An Investment Banker ? by Unclerukus: 11:34am On Dec 03, 2013
qualified and core investment bankers are quite rare in Nigeria because our banking system is not supporting full investment banking operation at full trottle.my best advise for you is to do your ICAN,ACCA or CIB and travel abroad to do an MBA that majors in investment banking.with that it will be easier to get to the top in the banking world...the last time i checked investment banker are the highest paid in the u.s and maybe in a large part of the world so go for it.
Re: How Does One Become An Investment Banker ? by Dhotseal(m): 11:55am On Dec 03, 2013
Ken_Jak: Follow your mind

U realise that is the dumbest thing to ever tell someone who already told u that his mind needs advice on how to be an investment banker?
My wise friend always says.." O buru na I maghi ya, si amaghim ya"

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Re: How Does One Become An Investment Banker ? by Ugbavihi: 3:01pm On Dec 03, 2013
When we hear of investment banking we deem it as a big deal! Hey do you know that a jobber is an investment banker or stock brokers entirely. They are all upholders stock investment. Dont think haphazardly.
Re: How Does One Become An Investment Banker ? by Ugbavihi: 3:01pm On Dec 03, 2013
When we hear of investment banking we deem it as a big deal! Hey do you know that a jobber is an investment banker or stock brokers entirely. They are all upholders of stock investment. Dont think haphazardly.
Re: How Does One Become An Investment Banker ? by thenairama(m): 7:40pm On Dec 03, 2013
Job Description of Investment Bankers



Investment bankers connect companies that need financing with investors.
Investment banks arrange financing for private companies. Investment bankers are responsible for matching businesses that require financing with investors who are willing to provide capital in exchange for bonds or stock. Generally all investment bankers pursue advanced education and receive specialized training in the field. There is stiff competition for investment banking jobs, but those who are successful tend to enjoy high salaries and comprehensive benefits.

Duties

Depending on the client's situation, an investment banker's duties vary. They sometimes act as sales agents for their clients. They advise companies on their financing options, such as issuing stock or bonds, and find buyers for the securities. When clients wish to arrange large financial transactions, such as a merger, acquisition or sale of a subsidy, an investment banker may negotiate the deal. Investment bankers also consult when companies are experiencing financial difficulties, and attempt to find solutions. If clients decide to offer new stock, investment bankers may arrange for their bank to underwrite the stock, so the client will not have to assume financial liability. In addition, investment bankers may oversee their clients' investments.

Training

Most investment bankers earn a master's degree in business administration (MBA). Those who enter the field without an MBA generally have a bachelor's degree in finance, business, economics or accounting, and begin as analysts with an investment bank. They receive training on the job, during which they have limited interaction with clients and instead focus their efforts on creating information books that are used to sell products to clients. Training also includes instruction in the specific products and services that the bank offers, effective sales techniques and securities analysis. Most analysts work toward an MBA while employed if they plan to stay in the field. After several years, analysts either receive a promotion to associate or are let go. Candidates who already have MBAs usually begin as associates.

Working Conditions

Most investment bankers work in comfortable offices, though the environment is often quite stressful. They usually work long hours, including nights and weekends, and face extreme pressure as they try to negotiate mergers, acquisitions and corporate financing. Many investment banks have a large number of international clients, so investment bankers are often required to travel around the world. Bankers at the junior level usually face the greatest pressure as the job tends to become more manageable with experience.

Employment Outlook

The Bureau of Labor Statistics estimates that employment for securities, commodities and financial services sales agents, including investment bankers, will increase by nine percent between 2008 and 2018, which is the same rate as the average for all occupations.Recent global financial problems coupled with industry consolidation will be the most significant factors in limiting job growth. Investment bankers may face sharp competition as jobs dwindle, so those with MBAs will enjoy the best prospects.
Re: How Does One Become An Investment Banker ? by manytinz: 12:31am On Dec 04, 2013
Hi,

I work in an investment bank, specializing in risk management. There are many facets to it, I am assuming you are referring to the deal origination and structuring, your best bet is doing the CFA charter and a masters degree to get your foot in the door.

You will probably be started off in middle office unless you do a specialist master degree in Europe or America and they university helps in getting you summer internships and after you graduate you get the graduate level jobs easier if you had built good relationships with the internship company. However you would have to get exceptional results to get into the good Investment Banks as competition is tight.

If you are interested in trading then CFA is your best bet as well and also the specific country which you will be in's exchange qualifications. I deal in market risk (involves testing, monitoring and developing models and platforms for measuring the banks exposures from both trading and banking book perspective), majority of people in that kind of field have degrees in mathematics, also CFA.

Hence CFA is an internationally recognised standard as it is quite rigorous.
Re: How Does One Become An Investment Banker ? by Mustay(m): 7:31am On Dec 08, 2013
Re: How Does One Become An Investment Banker ? by Victosin09(f): 5:24pm On Dec 08, 2013
manytinz: Hi,

I work in an investment bank, specializing in risk management. There are many facets to it, I am assuming you are referring to the deal origination and structuring, your best bet is doing the CFA charter and a masters degree to get your foot in the door.

You will probably be started off in middle office unless you do a specialist master degree in Europe or America and they university helps in getting you summer internships and after you graduate you get the graduate level jobs easier if you had built good relationships with the internship company. However you would have to get exceptional results to get into the good Investment Banks as competition is tight.

If you are interested in trading then CFA is your best bet as well and also the specific country which you will be in's exchange qualifications. I deal in market risk (involves testing, monitoring and developing models and platforms for measuring the banks exposures from both trading and banking book perspective), majority of people in that kind of field have degrees in mathematics, also CFA.

Hence CFA is an internationally recognised standard as it is quite rigorous.

I'av always had an interest in Risk Management. Please do shed more light on what Risk Mannagement is all about, professional exams and opportunities in the industry. Still an undergraduate though but your response will be of much help. Thank you.
Re: How Does One Become An Investment Banker ? by Victosin09(f): 5:25pm On Dec 08, 2013
manytinz: Hi,

I work in an investment bank, specializing in risk management. There are many facets to it, I am assuming you are referring to the deal origination and structuring, your best bet is doing the CFA charter and a masters degree to get your foot in the door.

You will probably be started off in middle office unless you do a specialist master degree in Europe or America and they university helps in getting you summer internships and after you graduate you get the graduate level jobs easier if you had built good relationships with the internship company. However you would have to get exceptional results to get into the good Investment Banks as competition is tight.

If you are interested in trading then CFA is your best bet as well and also the specific country which you will be in's exchange qualifications. I deal in market risk (involves testing, monitoring and developing models and platforms for measuring the banks exposures from both trading and banking book perspective), majority of people in that kind of field have degrees in mathematics, also CFA.

Hence CFA is an internationally recognised standard as it is quite rigorous.

Re: How Does One Become An Investment Banker ? by nitrogen(m): 1:14pm On Dec 09, 2013
Victosin09: I'av always had an interest in Risk Management. Please do shed more light on what Risk Mannagement is all about, professional exams and opportunities in the industry. Still an undergraduate though but your response will be of much help. Thank you.

Risk management?? will be right back to help out, meanwhile go through the link below for the meantime.

https://www.nairaland.com/849324/risk-management-forum
Re: How Does One Become An Investment Banker ? by manytinz: 2:19pm On Dec 10, 2013
Not sure what exactly you want to know about risk management. I've done Strategic Risk, enterprise risk, operational risk, market risk.

My advice is if you want a broader "no limits" career in risk then start with enterprise risk as that is applicable to all sectors. Operational risk is also broad however in banking you will be better off with operational & market risk. Market risk is more of what they call "quants" and has largely people with degrees in mathematics, physics and those high IQ bracket subjects.

however with banking there are the international banking regulations to be familiar with (mainly Basel II which is soon becoming Basel III ). But u will be a scarce skill...which is what you want in a career. And due to the global financial crisis and tighter regulation... risk management is one of those high demand fields. And easily transferrable to sitting on boards of companies.
Re: How Does One Become An Investment Banker ? by chandler05: 8:06pm On Jan 06, 2014
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Re: How Does One Become An Investment Banker ? by Only4God: 8:10am On Jan 08, 2014
Hope you have gotten a direction? Just keep your head straight and you will get there.[color=#006600][/color]
Re: How Does One Become An Investment Banker ? by Nobody: 10:17am On Jul 07, 2014
I guess through CFA
Re: How Does One Become An Investment Banker ? by commante: 12:57pm On Jul 15, 2014
greatings to u all for d contribution. d poster i wil say we ve d same career goal in common as me also is planning to become an invetment banker in future nd ve been tryin to work towards it. as i will be writing my final stage of ICAN dis nov diet and by God's grace i wil be resuming in my skul america for my MBA program wit concentration on Finance mgt nd investment banking to complement my Bsc. Finance 4m unilorin afta wch i wil register for my CFA exam and CIS

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