CGC Oakgrove 4.0

Investment Banking

Sector Outlook These banks raise capital from financial markets so organisations can get investment for their business. They work on mergers and acquisitions advising companies on sale, valuation of assets, negotiation and pricing. The banks raise money through a public share issue and typically underwrite the deal. They can also raise debt capital through issuing bonds or via other means. Staff actively trade the markets with the bank’s capital and provide brokerage services to many of their customers such as high net individuals, pension funds, hedge funds or mutual funds. Investment banking is much more than the trading floor. The industry is generally divided into front office, middle and back office roles. The front office team work with clients in M&A, corporate finance and professional investment management. The middle office roles include compliance, regulation, monitoring risk and corporate treasury. The back office jobs cover operational activities of the bank such as IT, HR and accounting. So you will need to be clear about the area you are interested in and matching your skills to these professions. Insider dealings, currency fixing, fat cat bonus, long hours and high levels of stress are media portrayals of city bankers. But in their defence, banks have done much in recent year to build integrity, monitor their risks and tackle excessive staff hours. Many roles do require entrants with strong numeric skills with degree or masters qualifications but the sector also needs people with analytical skills, multi-tasking ability, drive and initiative. Technology is increasingly important for the banks. JP Morgan employs 30,000 technology staff but beyond the banks you could look at other opportunities in the growing fintech sector. Entrance into the industry is highly competitive. Many banks offer early insight programmes, internships and graduate opportunities and actively recruit at campus events. To get in you will need to demonstrate a strong interest in the markets, be confident in your abilities, excel during your internship and be willing to work very hard.