This is a detailed guide on how to become an investment banker in Nigeria.
It is true that when you are surrounded by smart, enthusiastic, goal-driven, and tenacious people, you can never be stunted.
Going into Investment banking is a good career path that will help you build a sustainable career and a strong network in the financial sector. It will also help you establish yourself and widen your horizon.
Investment Banking is an extremely lucrative sector many people strive to be part of, and entry into this banking sector is one of the most difficult tasks to achieve.
Although it is highly competitive, and a sector for highly smart and goal-oriented individuals, you can also be part of this sector if you are determined and ready to read this article to the end.
If you wish to become an investment banker in Nigeria, this guide will help.
What Is An Investment Banking
Investment banking is a segment in the financial sector that helps individuals or organizations to raise capital for their businesses and also act as advisors to them.
Investment banking is also associated with the purchase and sales of shares and bonds of private and governmental organizations.
They play a crucial capital issuance role by acting as intermediaries between security issuers( private or public corporations, foreign governments, etc.) and investors.
Moreover, working in Investment banking has its challenges, but beyond the challenges, the opportunities there can never be underrated.
You would be able to build a solid and long-lasting professional network, a priceless achievement that will be valuable throughout your career.
Additionally, investment banking is suffused with rewarding opportunities for staunch individuals who are interested in market trends and helping individuals and organizations meet their financial goals.
Functions Of Investment Banking
- Merger and Acquisitions
- Risk Management
- Structuring and derivatives
- Merchant Banking
- Investment Management
The Duties Of Investment Bankers
The duties of investment bankers can never be underrated as they provide a wide range of financial services to companies, institutions, and governments.
They have many roles to play in the financial industry, and they can work in three major areas are Sales and Trading, Research Analysis, and Corporate Finance.
They are involved in several financial activities which are, raising funds for individuals and organizations and act as advisors to individuals and organizations.
They are also involved in brokerage services, asset management, and financial portfolio development.
Moreover, successful investment bankers are knowledgeable in mathematics, have excellent negotiation skills, and ability to work under pressure.
Additionally, by working as an investment banker, you have high earning potentials, you experience growth and development, you work In a competitive work environment, and handle high profile transactions.
List of Investment Banks In Nigeria
Below is the list of some investment banks in Nigeria
- Renaissance Capital Bank
- Vetiva Capital Management
- Stanbic IBTC Capital Limited
- Meristem Capital
- First Bank of Nigeria Quest Asset Management
- Coronation Merchant Bank
- Chapel Hill Denham
- Standard Chartered Bank
- The Infrastructure Bank
- Bank of Industry
- Bank PHB
- Fidelity Bank
- Guaranty Trust Bank
- Nova Merchant Bank Limited
- Eco bank Nigeria Limited Bank
- FCMB Capital Market Limited, etc.
Skills And Traits Needed In The Investment Banking Sector
The skills you must possess if you want to become an investment banker are:
- Strong numerical and analytical skills
- Project and time management ability
- Excellent teamwork and team leadership skills
- Self-confidence and the ability to make clear decisions
- The ability to work under pressure and cope well in stressful situations.
- Communication and interpersonal skills
- Emotional Intelligence skills
- Willingness to work extremely long hours.
- Apt attention to detail.
- Ability to take direction well.
- Team player.
- Good at Excel, Word, and PowerPoint.
- Possess accounting and finance knowledge.
Advantages Of Becoming An Investment Banker
The following are the advantages of working in an investment bank
- Investment banking is one of the highest-paying business sectors in the world. Successful investment bankers and their families live extravagant lifestyles.
- Investment banking connects you to high profiled individuals and raises your status quo.
- Investment banking is an evolving sector with great opportunities emerging on every side.
- Investment banking allows employees to apply and sharpen their professional skills and provides a first-hand understanding of the investment market.
- Investment banking assures unlimited growth for those with sound communication, analytical and numerical skills.
Disadvantages Of Becoming An Investment Banker
The following are the disadvantages of working in an investment bank.
- The investment banking sector is very demanding and stressful.
- You seldom have a life since it requires you to be conscious of everything at all times.
- Investment bankers are always diagnosed with health issues related to stress, over-working, and limited rest.
- Investment banking is a high-risk sector since the growth of investment bankers depends on meeting the required target which mostly is not always possible.
- Investment banking jobs grant you limited time to relate with your loved ones
Also See: Top 10 Highest Paying Jobs In Nigeria
Steps To Become An Investment Banker In Nigeria
Becoming an investment banker is the dream of most young people leaving the university. However, you can only achieve this dream if you set your goals right and tenaciously work hard and smart to achieve them.
Moreover, these are the crucial steps on how to become an Investment Banker in Nigeria.
1. Attend A Prestigious School
Recruiters from investment banking always source for applicants who graduated from prestigious secondary schools and universities.
To be qualified to venture into the investment banking sector in Nigeria, you must attend a good secondary school and accredited university and polytechnics. This is the initial preparation for becoming an investment banker.
2. Earn A Degree
Investment banking is a very popular specialization in the field of finance. Several graduates and experienced professionals aspire to become investment bankers.
Although there is no specific course for investment banking, having a degree is the initial stage for an entry-level job at an investment bank.
Initially, investment banking was a sector for those who studied Accounting, finance, business, economics, or any course in social sciences.
However, in this modern age, graduates with degrees in any discipline can become investment bankers as long as they are knowledgeable in mathematics, Intelligent, smart, and willing to learn and work.
In addition, you must make sure you graduate with a good result– first class or second class upper– to be able to compete with those applying for jobs in the investment banking sector.
3. Apply For Internship
It is advisable to apply for an internship to have a wider experience of the investment banking job. This internship will also help boost your possibility of getting a graduate entry job when there is a vacancy.
It is advisable to do more than one internship in the field before you graduate from the University.
After graduation, instead of staying idle at home, you can apply for a graduate internship position to widen your knowledge of the investment banking sector.
Moreover, most entry-level investment bankers start as financial analysts, so beginning as an intern will give you an edge over those with zero experience and catapult you to becoming a full-time financial analyst.
As a financial analyst, you will be responsible for financial planning, analysis, and prediction for companies and corporations.
4. Sharpen Your Intellect By Reading
It is not enough to just keep applying for an investment banking job, also prepare yourself for the work.
Opportunity should meet preparation so you wouldn’t be entirely lost when you are called for an interview.
Read books on investment banking, be familiar with the new market trends and how investors behave.
Be conversant with everything about investment banking like you’ve worked there before, so you wouldn’t be stranded when you are asked financial banking-related questions.
Moreover, knowledge is power, and knowledge is gotten when we read. It is advisable to read trendy news about financial information, analysis, the latest stock market, and business.
Further, follow Marketwatch, and Dealbook, these websites will keep you updated on the emerging trends in the investment market.
Additionally, being prepared at all times will make you climb the ladder of success in your investment banking career rapidly.
5. Take Relevant courses
It is necessary to take finance, and business-related courses while waiting to become an investment banker.
These courses will expose you to the intricacies of business and finance and make you have a better knowledge of what you want to venture into.
Adequate preparation quickens success, people don’t become investment bankers overnight, they prepared for it even before applying for the job.
Moreover, most of the finance courses are free while some are paid online courses.
There are also physical business academies where you are taught and guided on how to make the right career choice, so choose the ones you prefer and start learning immediately.
Moreover, as a non-traditional major like English, or any art-related subject who wants to become an investment banker, it is necessary to enroll in mathematics class, to pass your entrance test and training school examination.
6. Make A List Of Investment Banks And Company You Want To Work With
It is good when you know what you want. Knowing what you want will help you pursue it tenaciously.
If you truly want to become an investment banker, know where you want to work, from there you will be able to visit their websites to see their updates and other information that may be helpful to you.
Not having any investment firm in mind might lower your chance of becoming an investment banker.
7. Formulate A Strategy To Get To Them
It is not just enough to make a list of the investment firms you want to work with, you need to make them know you are interested in working with them.
Endeavor to send them cold emails. Although you might not get any response the first time, you must be persistent.
Moreover, you must make use of LinkedIn because that’s where most CEOs and human resources managers are.
Connect with them, make your profile captivating. Be persistent, proactive, and replace strategies that are not working with new ones.
8. Relocate To A Place Of Opportunities
Your location matters if you want to become an investment banker. You need to relocate to a place of many opportunities such as Lagos, Abuja, etc.
Lagos is a home of many investment banks, relocating there will help you connect and network with people in the firms.
Networking with people who are already in the finance sector will make you feel you are already there and boost your chances of being employed.
Your mindset and reasoning will change, everything about you will be screaming positive.
9. Practice For GMAT And SHL Examination
GMAT (Graduate Management Admission Test) and SHL Numerical Reasoning Test are the most widely used exams for business school entries.
It is necessary to practice for these examinations right from school as it seems to be the initial stage to you becoming an investment banker.
10. Be Current
Always know the latest news and events, it will build you up and also help you during your interviews because you will be tested on how current you are.
To become an investment banker, you must be open-minded and be optimistic. Do not get discouraged because of rejections. Keep on building yourself, acquire more knowledge, and keep on applying.
That is all on how to become an investment banker in Nigeria.