Why Choose Investment Banking

 
Generally speaking, an investment bank finances the trading and commercial activities of others. They will undertake some or all of the following services for a varied portfolio of clients:
  • Banking - for governments, institutions and companies
  • Corporate finance - normally in connection with new issues of securities for raising finance, takeovers or mergers and acquisitions
  • Securities trading - in equities, bonds or derivatives - they will also offer broking and distribution facilities
  • Treasury dealing - for corporate clients in currencies, with financial engineering services to protect them from interest and exchange rate fluctuations
  • Investment management - corporate pension funds, charities or private clients, in the larger firms the value of funds under management runs into many billions of dollars

Top players in the market

The Australian investment banking market is made up of a number of global players and is fairly fragmented, with the top five players (Citigroup, Deutsch Bank, Macquarie Bank, UBS and Goldman Sachs) accounting for approximately 50% of the market.

Roles available for newly qualifieds

The roles available to newly qualified accountants in this area are both varied and exciting. There are not just accounting roles available, other roles include: risk, corporate finance, tax, treasury analysis as well as junior funds roles.

A truly meritocratic environment

Investment banking is a truly meritocratic environment where, in general, the calibre of an individual is of greater importance than the depth of their experience. Career progression is therefore based on ability. It is not essential to have prior banking experience to join an investment bank, although if you have ever audited an investment bank during your training or come into contact with any banking products (i.e. securities, bonds or derivatives) this is considered beneficial.

Where will I work?

Accountants can find themselves starting their banking careers in a variety of areas. These range from trading floors through to systems and business analysis positions, regulatory analysis through to financial accounting and internal audit, as well as management accounting and project and strategy roles. Working in a dynamic arena with the constant challenge of real business issues make strong communication skills and a proactive approach essential.

The key benefits

  • Investment banks invest more time and resources in training their employees at all levels than any other industry sector. From technical knowledge to personal development, you can be sure you will be stretched.
  • Investment banks have a strong international flavour, often having offices in many other countries around the world (particularly in the major financial centres) and actively offer their employees transfer opportunities. This might not be a priority to you now, but the option is always there.
  • This is a hard work, high reward area. High starting salaries and good bonuses are not uncommon.
  • The career path and structure are very well defined within investment banks, although the speed in which you could potentially move is completely based on your desire to learn.