How To Get Into Investment Banking In Canada: A Guide
Investment banking is one of many areas of specialization in the finance industry. It offers ample career opportunities for professionals with varying levels of education and skills. By researching different ways to get into investment banking, you can start making a plan that aligns with your qualifications and career goals. In this article, we discuss how to get into investment banking in Canada and what the field is about, and explore different types of investment banking jobs.
How to get into investment banking in Canada
Follow these steps to get into investment banking in Canada:
1. Complete formal education
Formal education can be a great way to explore the field of investment banking. By earning a diploma or bachelor's degree in business, finance, accounting, economics, or a related field, you can study investment techniques and learn from experts on the topic. You can also list your educational background on your resume, which may make you a more competitive candidate for job openings. Earning a graduate degree in business gives you even more knowledge and may increase your earning potential and enable you to gain leadership positions.
2. Apply for an internship
As internships are learning experiences, taking part in one can help you discover important investment banking skills. You can gain an understanding of how an investment bank works and what those who work for them do daily. Internships provide opportunities to gain practical experience in the industry, even if you are still in a degree program. You can also meet potential employers and impress them with your work ethic and determination to increase your chances of getting a job in the future.
3. Earn certifications
Consider earning industry certifications, such as one in wealth management, financial modelling, or financial analysis. As most certifications require you to take a course and pass an exam, they enable you to learn special abilities and methods in the field. They can also increase your qualifications for investment-related roles, especially if you are new to the industry. Listing your certifications on your resume can make you stand out from other job candidates.
4. Perfect your resume
Perfect your resume by ensuring that all of its content relates to the duties of an investment banker. This could be any background in business, finance, or related areas, including education, work experiences, and even extra-curricular activities. Consider having a career professional or a trusted friend look over your resume to ensure it is clear and readable. Having a professional, simple format can help hiring managers review your application easily. By including the right skills and history on your resume, you can impress potential employers and increase the likelihood of getting an interview.
5. Build and maintain your professional network
Build your professional network by joining professional societies and attending networking events, such as conferences and expositions. Starting the networking process while you are a student can help you gain an entry-level investment banking job later on. Maintaining your network over time can help you earn promotions and advance in your career. To encourage your professional relationships, check in with your contacts every few months. This could be a message asking them how they are doing, mentioning interesting industry news, or updating them on your career progress.
Related: Guidelines on How To Network
6. Consider gaining experience in related jobs
If you are having difficulties finding investment analyst jobs or achieving company interviews, there are a few other jobs that can prepare you for a career in investment banking and enhance your qualifications. These jobs include corporate finance positions like financial advisors or financial analysts. By pursuing these positions, you can learn invaluable financial and customer service skills that can serve you throughout your career.
What is investment banking?
Investment banking is a service in which a financial institution helps an organization get capital. Investment banks primarily underwrite debt and equity securities for companies in the form of stocks, bonds, or options. They manage the relationship between a company and its investors and advise clients on how to navigate business negotiations, mergers and acquisitions, and other large, complex financial transactions. They are also responsible for identifying risks based on the economic climate, meeting legal requirements, and saving the company money. Overall, investment bankers aid businesses in managing their finances, obtaining funds for large projects, and earning profits.
Related: Guide: How To Become a Stockbroker
Types of investment banking jobs
There are a variety of job specialties within investment banking with different responsibilities and qualification requirements, including:
National average salary: $48,010 per year
Primary duties: An investment banking associate works for an investment bank to support clients and ensure client satisfaction. They help companies and organizations find investment opportunities and make financial decisions to grow their business. A significant responsibility for those in this role is to complete clerical tasks like preparing and filing documents, developing progress reports, and making calls.
Related: How Much Do Investment Bankers Make?
National average salary: $55,871 per year
Primary duties: An investment underwriter is responsible for acting on behalf of their clients to coordinate initial public offerings (IPO) and determine ways to raise capital for a corporation. They also have the duty to determine investor needs and structure negotiations to get the highest return out of an investment.
National average salary: $61,014 per year
Primary duties: An investment banking analyst researches investment opportunities and oversees transactions between their clients and other entities to ensure they make smart investment decisions. They collect and review financial data for different companies and analyze risks to determine whether and how much to advise their clients to invest in a company.
National average salary: $81,393 per year
Primary duties: Merger and acquisitions managers work closely with company executives to give financial advice regarding buying other companies or combining company branches or departments. They create and review financial models to determine the projected cost of hiring new employees and absorbing other products or services.
National average salary: $86,804 per year
Primary duties: An investment banking managing director is responsible for overseeing all operations with an investment firm or bank. They often travel on behalf of their employer to meet prospective clients, assist in negotiations, coordinate merger or acquisition transactions, and determine the value of a particular small business before proposing potential buy-out options. They also remain in close communication with the director and vice president of their firm to relay their expectations about how to proceed with potential investment deals.
National average salary: $116,195 per year
Primary duties: An investment banking director of strategy is responsible for researching potential clients in their area, conducting market research and financial analysis, and coming up with presentations to achieve or renew client contracts. They also work closely with the vice president and managing director to determine their firm's needs and develop specific projects for analysts and associates.
National average salary: $136,921 per year
Primary duties: An investment banking vice president oversees lower-level investment staff, including associates and analysts. They also communicate regularly with their firm's director and managing director. Their main responsibilities are to relay information between the director or managing director and lower-level employees. Because they have a leadership role, the vice president rarely works directly on investment research or finance models. Instead, they have the authority to coordinate potential buy-outs between clients and larger businesses.
Related: Top 15 Highest-Paying Jobs in Canada
Investment banker skills
Investment bankers work in a fast-paced, complex field, so there are many abilities that help them succeed in their roles, including:
Problem-solving skills: investment bankers help companies gain capital to fund projects, operate, and earn profits. It is important they can think critically about how to improve a business and fulfil its needs.
Financial knowledge: investment bankers have extensive knowledge of financial matters, such as business accounting and stocks. They identify financial risks and make smart decisions based on budgets and economic conditions.
Interpersonal skills: investment bankers facilitate relationships between companies and investors, so it is important they have good people skills. This includes being able to listen to others, answer questions, and consider different perspectives.
Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries may vary depending on the hiring organization and a candidate's experience, academic background, and location.