Investment Banking: All the Stats, Facts, and Data You’ll Ever Need to KnowOctober 31, 2018
So, you are looking to enter into the world of investment banking. Sitting on the fence would make no difference in your life. Making a career in investment banking is lucrative, but it comes with a cost. You have to work hard to understand what role the investment banking experts who deal with carrying out many financial analyses for their companies and work hard on financial models to help groups to make capital. Pursuing investment banking courses and developing expertise in this field can give a whopping salary of 80,000 USD per month or more. If you are interested in making a career in investment banking, check the following investment banking career facts and stats that are worthy of knowing about this domain.
Investment banking is not for people with finance majors
Of late, a number of investment banks and institutions are hiring people with engineering and computer science background as they have the experience and knowledge of coding. So, if you feel discouraged, then keep in mind that there are companies who hire people from another background as well including the ones with investment banking certification and having backgrounds of literature, science, finance, blockchain, etc. In other words, one of the investment banking career facts is that you can have any educational background to enter into this field.
Crack the quant interview to find a job
You must have heard about the interviews being conducted for the consulting jobs, these remain specialized. Similar is the case with the people opting for the Investment banking career. Once you complete your investment banking certification, your employer would ask to crack the quant interview.
These are the tests to judge your quantitative aptitude along with checking your knowledge regarding the technical subjects along with valuation or accounting. You may be asked to define certain financial statements along with putting the analysis of the same, while other interviewers would ask you to crack some brain teasers and ask them to solve it under pressure. Remember the investment banking career facts before you go for the interview.
Career in Investment Banking- Losing grounds
Though pursuing the Investment banking career is rewarding one interesting fact is that people are losing their interest in this field. The fact is people these days do not want to take up investment banking training. As per the reports of Harvard Business School in 2015, only 4 percent of students said they are looking for a career in investment banking. In fact a number of people working in investment banking are shifting to the Fintech world considering the bright future of Fintech. This has also reduced the admission in various investment banking courses.
The Revenues are also going down
If you check the latest figures in the domain of investment banking, the picture isn’t that rosy. The biggest investment banks in the world have witnessed a constant decline in revenue, which has started falling since 2016. As per reports, it has gone down from 79 billion USD in the first quarter of 2016 from 94 billion USD. This constitutes to around 15 percent, which is enormous in two years. As per the industry experts, this is regarded as the steepest decline in this sector ever witnessed before after 2009 when the revenue has gone down by 25 percent. So as compared to the other sectors, more and more people are looking out.
Long working hours under constant pressure
One of the vital investment banking career facts is that you have long working hours in this sector, which is not the case with other finance jobs. The work here is more challenging and complex and can give you a tough time working in this domain. As per reports of TransparentCareer, the average working hours of professionals in Investment Banking is around 77 hours, which is 11 hours a day in week.
There are many more investment banking career facts, which are required to check before you decide upon entering into this career. However, don’t be discouraged if you find any negative thing about this career as there are many more lucrative things to enjoy in this field.