Education for Investment Bankers
Investment banking is one of the most financially rewarding business careers. Executives at the nation's leading investment firms work long hours but also earn high salaries. Even entry-level analysts can earn starting salaries of $100,000, according to estimates by Careers in Finance. However, a career in investment banking requires a serious investment in education. Most people working in this field hold college degrees, and many hold master's degrees.
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Significance
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The U.S. Bureau of Labor Statistics identified the securities and investment industry as having one of the most educated work forces of any sector in the U.S. economy. The bureau reported that two out of three workers in this profession have a bachelor's degree or higher.
Requirements
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A career in investment banking requires at least a bachelor's degree, usually in business, finance, economics or a related field. The Bureau of Labor Statistics reported that many investment banking firms use a system of career advancement under which recent college graduates start their careers as analysts, after which they can be promoted to associate. The bureau added that some business school graduates start out at the associate level. Careers in Finance reported that starting as an associate generally requires a Master of Business Administration (MBA) degree.
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Advanced Requirements
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Advancing to a higher-level position in investment banking, such as vice president, director, managing director or department head, generally requires an MBA. Careers in Finance reported that these positions require the degree, as well as prior investment banking experience as an analyst or associate.
Skills
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Careers in Finance summarized the skills needed by investment banking professionals. Being an investment banker requires excellent mathematical and analytical skills. You also should be adept in working with spreadsheets. Investment banking requires extensive analysis of corporate financial information and economic data. Therefore, college coursework for aspiring investment bankers should include courses in advanced mathematics, such as calculus, statistical methods, finance and economics.
Identification
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In addition to a college degree in business, finance or economics, Careers in Finance advises working toward a Chartered Financial Analyst (CFA) certification if you are interested in working as a securities analyst. The CFA Institute's graduate-level study program includes studies in quantitative methods, economics, corporate finance, financial reporting, derivatives and more. Following coursework, students take a sequence of three exams to earn the CFA certification.
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References
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- Photo Credit pen showing diagram on financial report/magazine image by Anton Gvozdikov from Fotolia.com
