The financial world of investment banking seems glamorous to the general public, most of whom know only of personal checking accounts at commercial banks. Like any other line of work, it has its moments of awe-inspiring events like mergers and acquisitions.
The decision to go into investment banking is usually motivated by a generous compensation package. The monetary compensation in this industry is significantly higher than the average salary packages of most professions.
Like any other sector, investment banking can teach a valuable lesson and develop traits that can prove invaluable in other areas of business and life. Such critical lessons include:
Few professions are as stressful as investment banking. Meeting outrageous deadlines while simultaneously dealing with irate high-net-worth individuals, and solving challenging problems can take a toll on anyone. The upside is that you develop a ruthless pragmatism that enables you to prioritize tasks and adopt the most efficient methods of getting the job done.
A last-minute assignment may require completion in a few hours instead of days, for example. Such an urgent task may take lesser-trained professionals several days just to complete. Even then, the accomplished work will most likely be strewn with errors. Honing the skills necessary for such a focus pays dividends in the long run. Even after leaving the investment banking sector, such efficient individuals will have an edge over their peers in other work environments.
Breaking down complicated concepts into smaller and coherent ideas is a valuable skill. Relating such concepts in a way that demonstrates a good grasp of quantitative analysis is even rare and valuable. Investment banking will teach how to do this in a professional environment and manner.
Even those without a solid grounding in finance and accounting can master the finer points of investment banking a few years in, given the right work ethic. This quantitative experience can be transferred to other areas of life and professional endeavors.
Being an analyst at an investment bank sharpens your decision-making skills. The avalanche of work projects and daily assignments mean that you have to consider large amounts of data and factors before making a decision. Knowing that such a decision could be financially ruinous for clients means that you weigh all relevant options and come to a decision based on careful consideration.
Such decision-making capabilities can serve. You become more deliberate and more productive with your other professional and personal decisions. This skill will remain relevant long after your career in investment banking.
The nature of the modern-day workplace is that corporate meetings and staff presentations are the norm. This is more relevant in the investment banking industry where crunching numbers alongside other complicated analytical tasks is a regular occurrence.
Sometimes, you may find yourself in a situation where you have to make a presentation on the spot, without prior preparation. When the stakes are high, as they usually are in investment banking, anything less than effective communication and presentation can seriously hamper your upward mobility within the company structure.
Literally being put on the spot from time to time trains you to be economical in your presentation style. This is relevant in today’s world of information overload where most professionals lack the time for endless presentations of little value.
Perseverance And Persuasion
Perseverance is rarely emphasized enough, even in formal education settings. This is surprisingly negligent, given its importance in many professional and personal undertakings. Investment banking professionals develop perseverance by virtue of the enormity of their duties. Right from the recruitment process, this industry is challenging to get into. Given that many professionals that seek employment in this sector possess advanced credentials and experience, you won’t make it through without developing some grit.
Every profession has its own unwritten rules regarding general conduct and expectations. Sometimes, this may mean handling your supervisor with discernment. Such skills can help you navigate many challenges in everyday situations outside a professional setting.
At its core, being an analyst at an investment bank is a sales job. Admittedly, the scope and context differ but the general principles still hold true. Such analysts deal with the purchase and sale of large commercial entities, unlike a regular salesperson.Most of the positive attributes that investment analysts develop over time are similar to those of salespeople, except on a larger scale.