Investment Banking Q&A- Salary, Hours, Exit Opportunities and more (The HONEST TRUTH)

Are you interested in investment banking? Do you want to know what it’s like to work in this field? In this video, I’ll share everything you need to know about investment banking, from hours and salary to my experience working in this field. After watching this video, you’ll have everything you need to make the decision whether or not investment banking is the right career for you.

Hey guys if you’re new here i’m nisha i’m an investment banker and in this video i thought it’d be interesting to put together some of the answers to the most common questions that i get asked about investment banking at networking events at career sites and also on my last day in the life youtube video so in this video we’re going to go over the following salary

And hours as opportunities and what you can do after investment banking how investment banking compares to the likes of something like private equity or management consulting my background my experience and my perspective on investment banking and finally the ins and outs of the job itself first for some context to quickly give you a high level overview on what

I do so i am an investment banker and by definition that means i help companies and governments raise money either through the debt market which means issuing loans or bonds or through the equity market i.e through an initial public operating investment banking also includes informing clients about other investment opportunities or the buying and selling of other

Companies so i’ll leave that there but if you want more of a detailed view on exactly what my day in the life looks like then i’ve got a video on that more specifically right so now on to the more juicier stuff pay a salary and money the pay fluctuates massively between the different divisions within a bank especially the further up the hierarchy you go okay so if

You look at the way a bank is set up the front office divisions are the divisions that generate the bank money and so it’s those working in these front office divisions that get paid the most which kind of makes sense if you think about it so with that in mind a starting salary for a first year analyst in a top tier investment bank in london can range between 50

000 to 75 000 pounds depending on whether you’re in back office to front office this is just the base salary so this doesn’t include things like pension contribution matching or bonuses which is a large portion on top of the base and sometimes it’s more than the base salary itself the same way that the base salary fluctuates a lot between the different divisions

So does the bonus with the front office divisions generally getting a far bigger bonus as well now the pay continues rising from there as you progress in your career and when it comes to salary progression the pay increases can be pretty steep so i’ve been working in investment banking for over six years and in that time my all-in compensation which is basically


The total of my base and my bonus has more than tripled that said the biggest pay jumps i thought have been from me moving between organization which i think is kind of across the board when it whichever corporate career you’re in you’re going to get the biggest pay rises when you move between companies if you want a further breakdown on my income progression and

Also the other income streams i have coming in then let me know i also have a few other videos on that in terms of hours banking is notoriously known for its long hours and as a minimum if you’re working in the front office as an analyst then you’re going to be doing 10 11 12 plus hours these hours are even longer for analysts working specifically in something like

M a which is mergers and acquisitions working on weekends is definitely a regular occurrence for investment banking i on average work at least one or two weekends in a month so how does working in investment banking compared to other corporate jobs like management consulting and private equity when looking at purely salary private equity generally pays the most

And on top of that salary they also get a share in the returns generated in any given deal so if you’re looking at transactions that are in the hundred thousand million dollar mark this can be a pretty hefty package equally the high pay comes with the longest hours and out of the three investment banking private equity and management consulting private equity has

The longest hours which is then followed by investment banking and then i’d say it’s followed by management consulting where the hours from what i know with friends working in the sector are pretty flexible some days they can be doing three four hours worth of work when they don’t have that much going on and on other days they’re fully sort of doing 12 plus hours

A day what are the exit opportunities and what can you do after investment banking well i can say straight away is you won’t be sort of opportunities a lot of divisions within a bank so you’ve got the finance division the operations legal risks they’re all the same in different companies as well so even for example looking at a company in a completely different

Industry like bmw they would have the in the headquarters the same divisions they would also have a rest team a finance team a legal team so you can move around between these different companies doing a similar thing but with a different underlying product other opportunities include private equity working for a hedge fund working for a previous client which is

What a lot of ex-bankers do for moving to a tech company there are a lot of transferable skills in banking that you can apply elsewhere and i think this is because a lot of the skills that you use in banking are the kind of common skills that you use in so many different fields like basic math skills communication skills sales skills so you generally speaking you

Won’t be short of opportunities so talk about my background my experience and my university i studied in a russell group university in the uk and did a undergraduate in finance so naturally the standard career move for me was to go in something finance related or banking during my second year of university i had a three-year program i applied for a number of summer

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Internships specifically for divisions which i knew would sponsor a chartered accountancy qualification because i wanted to to get this under my belt and i knew it would open a lot more opportunities for me in the future i did that for three years but i completed my ata qualification and then i moved into the front office and another common question i get asked is

How hard was it to move from back office i would say that it’s easier to get your foot in the door of an investment bank via a back office function which generally speaking has a less competitive application process and then once you’ve done that navigate your way into the front office rather than applying to a front office division to start with again this really

Depends on the size of the bank where you’re located is a financial hub and a number of other factors but this was my experience working for a top tier investment bank in london i also talk about something called an invisible pr in one of my other videos and an invisible pr is basically your reputation it’s what other people say about you at any given time when

You’re not in the room and it’s either working for you or it’s working against you and this invisible pr carries so much weight in banking especially when a large part of your career depends on who you know and that’s really the way i moved into to the front office i did some work that was recognized by a very senior managing director who ended up mentoring me and

Then put my name forward for a role when it came available in a front office function what i would say is don’t just think that these opportunities are going to come knocking at your door you’ve really got to be the one who’s vocal about it and be in charge of navigating your career you just have to put your hand up and be vocal about what you want to do since

I moved into the front office i’ve been working on the debt side ever since and if you want to know what that means just just queue it up because i’m going to keep referring to it okay so the next question is will getting a degree or go into a top russell group university help you the short answer is yes investment banks are literally line up at the campus site

Of top top universities to try and attract top talent and now to get into these top universities in the first place you have to have good grades and academic achievements so it makes recruiters a lot easier to start with these kind of universities as it’s kind of like a first filter to hone in on this point even more if i type into google top universities uk for

Investment banking you get oxford cambridge lsc imperial and warwick and if i do the same for the us you get harvard stern michigan and water that said and from experience i can tell you that by no means do you have to go to one of these top universities to get a job in investment banking yes i do think it helps you get your input in the door but if you don’t go

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To one of these top universities based on ranking and you still have the relevant experience or you can demonstrate that you’re serious about getting a job in investment banking and you have a good enough reason why you have as good of a chance as someone else who has gone to one of these top universities when it comes to relevant experience this doesn’t necessarily

Need to be already in banking or in finance it also includes other experiences that will help demonstrate that you’ve had the skills that the job is looking for i’ve made an example resume which is basically what i use to land jobs in banking and i never had any banking specific experience before that so it includes a lot of life examples which i basically just spun

In a way to make it applicable for any corporate job what is the hierarchy team structure like most investment banks there are five main levels and the titles of these may change between companies where the typical hierarchy in terms of title is in an investment bank and list and then associate then vp then director and then managing director and at their managing

Director title that’s a pretty big umbrella and includes anything from the head of a team to the ceo at the management board they’re kind of all under the management director title there is a pretty strong sense of hierarchy within a project and the tasks are very clearly divided within the members which i think is a very good thing actually how important is maths

For a job in investment banking basic math skill is kind of a must you are working in the finance sector you’re looking after other people’s money but that said there are so many divisions that don’t actually use any maths at all and so many that are solely relying on numbers and are completely quantitative so you can really find an area within a bank that works

For what your preference is in the debt market side i would say that my role is like 30 to 40 numbers but to be honest excel does a lot of work for me so just make sure you know how to use excel but the most i use heavy mental math was probably during my numerical tests for my application process hey guys so the next investment banking video i’ll go through the

Interview process and how i got the job preparing for the job and advice for someone who is just about to start and if you want any other topic or any other question that you want to ask as well just submit it through my instagram so stay tuned for that

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Investment Banking Q&A- Salary, Hours, Exit Opportunities and more (The HONEST TRUTH) By Nischa