The investment Banking (IB) industry is a unique segment of banking assist in large and complicated financial transactions. For this purpose, the industry mainly hires financial graduates and MBAs from reputed B-schools. Several IB professionals are expected to possess excellent knowledge of the investment climate and investment vehicles as they form the essential contributors to the investment processes.

Investment banking professionals are among the highest-paid professionals in the finance industry, and the starting paycheck exceeds the paycheck from other financial positions. However, doing the job in any firm comes with certain challenges and expectations. To give a kick start for their career in this field, there are many financial institutions that offer certifications that enable them to become competent for their job positions.

Investment banks also serve as underwriters when it is about to IPOs (Initial Public Offerings), wherein they help the clients raise funds from the general public by issuing stocks in the financial markets. Banks need to conduct thorough market research and determine a firm’s financial worth. Investment banking typically performs several other finance operations such as providing expert guidance to clients on a particular financial product or tool. The other typical financial service an investment bank gives by helping businesses with mergers and acquisition deals.

Job Role & Duties of an Investment Banking Professional

According to the U.S. Bureau of Labor Statistics (BLS), we find an 11 percent growth in the financial industry. Being an investment banking professional is not tough, but surviving in this industry is:

◾ Issuance of debts (selling bonds to wealthy investors) and sale of equity in businesses.

◾ Helping corporations raise funds by making them go public with the sale of the organization’s shares in the stock markets in the form of IPOs (Initial Public Offerings).

◾ A career in investment banking offers to perform financial modeling to find out a firm’s market valuation before it goes public. Bankers help determine the optimum stock price for the organization entering IPO to avoid under subscription.

◾ Offer expert assistance to businesses across several firms with M&A (Mergers and Acquisitions) deals.

The best investment banking certifications

Investment banking certifications will more or less train you in what’s missing in terms of requisite skills. But, apart from the core financial skills that you can learn by enrolling in industry-relevant banking certifications, there are other vital skills that you need to work upon to join a reputed investment bank. These comprise:

✔ Certified Management Account (CMA)

The Certified Management Accountant (CMA) is the best investment banking certification, which is provided by the Institute of Management Accountants. The CMA looks forward into financial accounting and combines elements of strategic management. This credential is concerned with teaching the underlying concepts behind a firm’s financials and the way strategic business decisions can be reaped from them.

There are no levels in the CMA certification but there is a final exam with two parts that are tested separately. The CMA can cost anywhere between $850 to $2,500 depending on the student or professional and if is planning to pursue further studies. The pass rate for the CMA exams lies between 40–50 percent.

✔ Chartered Investment Banking Professional (CIBP™)

Investment Banking Council of America (IBCA) is one of the leading providers of the best investment banking certification programs. IBCA credentials and standards impact the investment bankers and several young professionals connected with the IB industry. It leads to innovative models, standards, and practices of credentialing excellence for several designations.

Any aspiring investment banking professional can choose the Chartered Investment Banking Professional certification (CIBP™). This credential offers them with the much-required knowledge in financial modeling & analysis, which further enables to

◾ Create several types of financial models, valuing debt and equity for M&As and also capital raising transactions

◾ Do several methods of valuation along with helping clients to decide

◾ Prepare and review several materials in finance which include pitch books, investment memoranda, along with finances of clients

◾ Develop and strengthen business relationships with both existing and new clients so as to expand the business

◾ Execute due diligence, transactions documentation along with research and analysis

◾ Advance her knowledge beyond mathematical models & analytics

◾ Not only design but also execute decisions related to fundraising from debt and equity markets

◾ Help others at the time of M&As

◾ Create financing options for clients that are creative and innovative

✔ Certified Public Accountant (CPA)

The Certified Public Accountant (CPA) credential is considered one of the most essential certifications for accountants and is also relevant for a finance career path. For a career in accounting, the CPA is virtually a “must-have” credential. Several employers list it as an option prerequisite for accounting positions. The CPA certification covers topics like auditing, attestation, financial accounting and reporting, business environment and concepts, and regulation.

The CPA does not have any range and has a single exam that consists of multiple sections. Each of these four sections is tested separately, acting as its own exam. Completing the entire program can cost anywhere from $1,000 to $3,000, based on the jurisdiction and study program (self-study or live classes). However, accounting firms, often pay for their employee’s CPA fees. The pass rate for the CPA exam is around 50 percent.