Banking

The rise of investment banking

Read more at www.deccanherald.com

Covid-19 has thrown industries around the world into tumult: Sectors like tourism, hospitality and retail, once popular career choices for students, have now become quite unstable.

As students wonder which field of study to take up, investment banking is one career path that they can consider.

An investment banker is someone who helps their client — whether it is an individual, a financial firm or a bank — invest their money in a manner that helps them make the most of it in the future.

An investment banker must be able to deal with debt, stocks and bonds, mergers and acquisitions, securities and derivatives. The pandemic has made people realise the importance of having a proper financial plan and this is one reason this career choice is picking up pace and will continue to do so in the post-Covid era. 

Despite the challenges of the job, young people across the country are moving to investment banking in droves. The main reason is that it is a rewarding job, which offers monetary benefits and immense scope for personal growth.

Why become an investment banker?

Working as an investment banker allows you to pick up plenty of transferable skills on the job, which is great for career advancement. Investment banking can also serve as a stepping stone towards bigger careers like entrepreneurship, wealth management and venture capital.

As the economy picks up in the near future, many people with disposable income are beginning to show interest in homegrown companies, as they offer a great investment opportunity. This is where they’ll need investment bankers — to scout the best investment opportunities.

The other good part of this job is that it doesn’t require a degree from any specific stream. Regardless of whether you have graduated in arts, science or commerce, you can pursue a career in investment banking, as long as you have related subjects — like Mathematics and Economics.

If you do want to pursue higher education for the job, you can go for an MBA degree.

There are plenty of institutions in the country that provide MBA in finance as well as certification courses, diplomas and workshops for investment banking.

Interning at a renowned firm is also one way to increase your chances of getting hired. However, such internships are hard to come by, in which case you can start with smaller, boutique firms and work your way up the ladder — amassing invaluable knowledge and experience along the way.

The compensation offered to the investment bankers is pretty inviting and largely depends on your skillset and experience.

Investment bankers in India often do not make as much as their counterparts in western countries like USA and UK, but it is still a pretty lucrative career.

Covid-19 hasn’t been as disastrous for investment banking as it has been to some other careers. The challenges of workplace disruptions have been dealt with by banking becoming more reliant on digital technologies to execute operations — which seems to be a good sign for the future.

(The author is the founder of a FinTech company)

Read more at www.deccanherald.com

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