How to Become an Investment Banker

Do you think investment banking could be your future career? Discover how you can start your career in investment banking!

Have you thought about becoming an investment banker? Do you know what an investment banker is? Find out if this is your dream career by learning what they do and how you can start your career in investment banking.

What is an investment banker?

An investment banker helps businesses manage their finances, obtain funds, and earn profits. Specifically, they help organizations gain capital, which is financial resources that businesses can use to fund their operations and generate value. They manage the relationships between companies and their investors, advising clients on how to navigate business negotiations, mergers and acquisitions, and other financial transactions. Investment bankers need to have a good understanding of global markets as they must identify risks based on the economic climate to save the company money.

Types of investment bankers

Did you know there are three different types of investment bankers? Learn more about the differences between the various types to find what fits you best.

Equity capital market bankers

Equity capital market (ECM) bankers guide clients on how to raise their capital. They provide market and product research to direct clients on where to find the best places to receive capital.

As an ECM banker, you must have strong communication and persuasion skills. Your goal is to promote the company’s growth potential so that they can raise capital from investors. This role will have you doing research, presentations, and modeling potential opportunities.

Corporate finance bankers

Corporate finance bankers manage mergers and acquisitions for clients. Mergers and acquisitions are when the ownership of companies and their assets are bought by another company. These investment bankers advise their clients in these situations to improve their profitability and financial standing in the market.

If you’re someone who is organized, enjoys research, and has good negotiation skills, then you’ll succeed in managing mergers and acquisitions.

Debt capital market bankers

A debt capital market (DCM) banker helps clients raise funds through the trade of debt securities, such as loans and bonds that have interest payments attached. These investment bankers will collaborate with financial institutions, agencies, and private companies.

As a DCM banker, you’ll need to have excellent communication, research, organization, and presentation skills to succeed.

4 simple steps to become an investment banker

Learn how to become an investment banker in Canada with these four steps:

Step 1: Education

There are no undergraduate degrees or diplomas that directly specialize in investment banking, so you need to major in something similar such as business, accounting, economics, or finance. These programs will provide you with an educational background in investment techniques, understanding markets, how economics influences corporate finance, and strong mathematical and analytical skills.

While a graduate degree in a related field of study is not necessary to become an investment banker, it can give you a competitive edge over other applicants and advance your career.

Schools such as Western’s Richard Ivey School of Business, Queen’s University, and McGill University are highly regarded in the financial job market.

Step 2: Internships

Internships are the best opportunity to gain relevant work experience and earn valuable skills that will help you find a career down the line. You can be an intern while you are in school to help connect your studies to real-life cases. Internships will also provide you with a better understanding of what investment banking is and how you’ll fit into this career.

Step 3: Networking

Investment bankers work with many companies, investors, and financial institutions, so the more you connect with people in this field, the better you’ll be able to stay current on developments in investment banking. Building up your professional relationships will help you learn about employment opportunities, stay up to date on financial markets, and boost your teamwork and collaboration skills.

You can also network while still in school. You could join an investment or economics club on campus. There, you’ll be able to connect with students in similar situations as yourself, bring together your knowledge, and create positive connections that you can use later in your career.

Step 4: Earn certifications

The Investment Industry Regulatory Organization of Canada (IIROC) oversees investment dealers and trading activities on debt and equity. If you plan on working for a company that is regulated by IIROC, which includes many of the top Canadian banks, such as CIBC and RBC, you need to register or get approval from the IIROC. When registering, the organization evaluates your personal, professional, and financial background to determine whether you meet their requirements. This is when your internship experience will be beneficial in proving your skills and knowledge.

You can also boost your resumé by earning additional certifications, such as ones in wealth management, financial analysis, and more. These are not necessary to become an investment banker, but they help you stand out from other applicants.

What skills do investment bankers need?

As an investment banker, you must have these skills to succeed:

• Mathematical and analytical skills
• Strong communication
• Time management
• Collaboration
• Attention to detail
• Problem-solving

If you’ve got these skills and you’re interested in managing money, watching market trends, and collaborating with companies and banks, then investment banking may be the field for you!