Research on Investment Banking Career, Research Paper Example

Introducing Investment Banking

No doubt banking is the back bone of world economy. After industrial revolution in 1860s, pace of development and progress could not be maintained without the support and active participation of banking sector. Banking sector supplements the entire financial market and global trade. Banks emerge in different main and niche categories during last one century and all facets of banking business are evolved through decades with practical experience (Fortune (2009). The term investment bank became popular in the middle of 1960 about two decades after World War II. Investment banking spread its wings in big local and distant global markets in a very small span of time. Reason of success was simple i.e., need of partnership in business development and growth among industries and trade sectors. Investment banking offered a great share of contributing by facilitating the process of investment globally that generated greater revenue streams, bigger profits and expanded markets for both global producers and consumers and financial markets (L.Knight, 2010).

Investment is the main activity of all commercial banks but investment banking focuses on opportunity development more specifically and assertively by keeping investment as its main goal. Shareholders’ and account holders’ money is invested in different viable business projects, industries, and infrastructure for higher returns. Unlike consumer banking, investment banking makes big financial moves and starts with macroeconomic perspective in mind (Fortune (2009).

Potential Careers in Investment Banking

Like general banking, investment banking is also dealing in different departments like front office, credit management, share management, portfolio management, IT, risk management, HR and marketing etc. As in investment banking career growth is more vertical and rapid that is why aggressive and career oriented graduates prefer to join an investment bank instead of joining conventional banking sectors (Fortune (2009). This high pace job environment, certainly, has more advanced and with more stressful work environment, but no doubt highly paying too. Fresh graduates interested in joining investment bank can enter into investment banking from entry level positions in any department of their own choice. Breaking the barrier is their first task of course. A business graduate with major in finance or banking can join portfolio management, risk management, share management, credit management or investment analyses department. Whereas graduates with major in HR can make their entry through HR department, IT graduates can join in IT department and economists or statisticians can join analyses, management or credit rating jobs. For non experienced persons internship can be a good way to open gates for entry level jobs in investment banking.

Why Investment Banking Jobs are better?

Investment banking offers an array of tangible and intangible benefits. The most important merit of job in investment banking sector is a reasonably higher salary in contrast with conventional banking. Other benefits include rapid upward movement on career path that further takes you to high ride of monetary benefits (Great Empires, 2010). Professional banking exposure in investment banking is also higher as you are dealing with big business projects and notable business personalities, and both help you getting easy recognition inside and outside your industry. Higher salaries, rapid promotions, better career standing and few dominating career benefits that are specifically associated with investment banking (L.Knight, 2010).

Who can work in Investment Banking?

All types of banks need highly qualified and reasonably experienced staff in their different departments and investment banking is also not an exception in this regard. One must be reasonably qualified and have minimum one year experience or at least an internship in investment banking to prove his/her relevance to the bank’s needs at the time of recruitment. Once you are recruited, it becomes your own responsibility to prove yourself in given time to cross the red line of probation successfully (Great Empires, 2010). Most of the jobs with very exemptions at higher levels, start with few month probation in investment banking. Once you get a reasonable experience you can make better career moves in banking sector if you want to (L.Knight, 2010). Like other big companies, investments banks also have their own recruitment and internship plans through which they induct employees according to their need and business targets.

References

Journals:

Fortune (2009). Demand and Supply Comparisons in Capital Investment Market: Global Scenario Expanding Opportunities Jan Vol. I, Page 78.

Books:

Great Empires (2010). Modern Employment Trends in Financial Markets, Paramount Publishing United Kingdom –Second Edition– Page 298  

Internet:

Knight, L. (2010). What do investment banks do?. Available: http://www.bbc.co.uk/news/business-11211776. Last accessed 23nd Nov 2011.