October 25, 2024
Investment banking positions are suitable for career starters who are enthusiastic about the financial business and a dynamic field of activity. This industry is a mainstay of the financial world. Professionals in this sector work for companies, consultancies, banks, governments, universities and institutions.
The overarching aim of investment banking is to manage and increase existing assets using financial expertise. The experts therefore advise their clients on financial products, financing strategies and investment opportunities. Typical investment banking employers are fund companies, banks, investment or real estate companies. Investment bankers research profit-generating company investments, equity investments or investments in tangible assets and examine investment projects with regard to opportunities and risks.
There are also areas such as private equity and mergers & acquisitions (M&A). In private equity, companies or funds invest directly in companies, often with the aim of increasing their value and later selling them at a profit. In mergers & acquisitions, investment bankers advise companies on mergers and acquisitions in order to achieve the best strategic or financial advantage.
Which subjects lead to investment banking jobs?
Studying with investment banking in mind means undergoing a highly demanding education. This is the only way for aspiring professionals to secure a position in the hallowed halls of high finance. However, there is not just one perfect path here, but several routes. Many prospective professionals study business administration, economics, business studies, investment banking or other subjects in the field of finance. It is also possible to enter investment banking with a degree in mathematics or engineering.
Those with an excellent Bachelor's degree can hope for prospects in this sector. On the other hand, a Master's degree or doctorate in business administration or economics will give you a better chance of finding a job in investment banking.
Renowned universities or dual studies
If you can, consider studying at a prestigious investment university in Germany, Switzerland, Portugal, the UK or the USA. Studying at one of these universities will increase your chances of joining a bank or other financial company.
Some industry experts recommend young people who dream of investment banking jobs to study for an MBA. Many banks continue to hire MBA graduates. An MBA provides the advantage of an easier entry into a career in investment banking. In addition, an MBA allows you to build valuable networks that can later be crucial for career moves in this highly competitive industry.
As far as universities are concerned, the Frankfurt School of Finance and Management, WHU, Mannheim University, EBS or HHL, for example, are recommended for German-speaking countries. Over 30 percent of their former students get investment banker jobs in the front office. At these universities, you can study in English, which will spice up your CV. It is well known that English is the language of international finance.
Further study tips are: "Controlling, Finance and Risk Management" at the FHDW Hannover, "Corporate Finance & Controlling" at the Fresenius University of Applied Sciences and Arts or "Mathematics for Finance, Insurance and Management" at the Darmstadt University of Applied Sciences. All three are Master's degree courses.
Another option is to take a dual course of study in banking and finance through Deutsche Bank - with the prospect of continuing to work there after graduation.
Which courses are particularly important?
In an investment banker job, you work with calculations, math and analysis on a daily basis. It is therefore obvious that you should be confident in these areas. It is also essential to be able to give presentations and be familiar with analysis and calculation software.
The following contents and therefore the corresponding courses belong to degree programs that potentially lead to investment banking, such as business administration or economics:
An investment banking master's degree also includes content such as mergers & acquisitions (M&A), capital market transactions, equity research, capital market law, financial communication and corporate finance.
Internships are essential for investment banker jobs
Industry experts strongly advise newcomers to do internships as part of their university education. They also emphasize that applicants who have spent time abroad score highly with financial companies.
A hot tip for the Bachelor's program is to look for an internship before the second year of your studies. You should also take advantage of a "Spring Week". These are one-week mini-internships in banks during the first year of study.
When it comes to Master's programs, professionals advise students to apply for the same internships as for Bachelor's programs, but one year later.
Industry experts also recommend completing an internship after graduation. These are known as "off-cycle internships", which last longer. They last between six and twelve months.
When it comes to additional certificates, the Certified International Investment Analyst (CIIA), for example, can open the door to investment banking jobs. In addition to additional certificates, language skills and intercultural communication also play an important role. As investment bankers often operate in global markets, foreign language skills are a valuable asset.
