Job Description for a Merchant Banker
Merchant bankers, or investment bankers as they are commonly known, work for investment banks and provide a range of financial services for their clients. They oversee financial opportunities for their clients, advising on such things as mergers and acquisitions, lending, privatizations, the identification and securing of new deals and helping with initial public offerings.
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Job Description
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Merchant, or investment, bankers work to advise companies on how to increase their financial profits through a range of processes such as mergers and acquisitions, restructuring and refinancing debt, and advising clients on where to raise capital and how much. Investment bankers specialize in different business areas known as mergers and acquisitions (M&A), debt capital markets and equity capital markets. Typical day-to-day activities of an investment banker include researching the conditions and developments of the market and then developing appropriate financial solutions for clients. An investment banker also liaises with her client companies, communicating financial solutions with the chief executives.
Qualifications
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A merchant or investment banker needs a bachelor's degree in a related subject such as business, finance, accounting or economics. Many banks now require their employees to have a master's in business administration (MBA) if they want to reach the higher levels of the company hierarchy. An MBA also leads to better compensation and larger signing on bonuses. University undergraduates should try to get into an summer internship as those who are successful are often offered jobs at the end of it.
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Conditions
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Merchant bankers work notoriously long hours and 15-hour days are not uncommon. Weekend work is also common, especially when deadlines are approaching or a deal needs to be completed. This means that working conditions can often be extremely stressful. Travel is also part of the job for higher level bankers who have more face-to-face contact with clients. Jobs are centered around financial hubs such as New York, London, Frankfurt, Hong Kong and Shanghai.
Prospects
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According to the U.S. Bureau of Labor Statistics, the financial services sector is set to grow by 9 percent up to 2018. This is about as fast as the national average for all jobs. A tide of consolidation within the financial industry, as a result of the financial crisis of 2008, has led to a number of layoffs within the sector meaning it will take longer for the industry to recover.
Earnings
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Investment bankers work long hours, but they are rewarded with big wages. In 2008 the average salary for an investment banker in the United States was $94,960, according to the U.S. Bureau of Labor Statistics. However, investment bankers also get large bonuses, which at higher levels often considerably exceed the employee's base salary. In addition they get benefits such as paid vacation and private health and dental insurance
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References
- Photo Credit jar banking image by Yury Shirokov from Fotolia.com
