Top 3 Skills Needed for Investment Banking
Investopedia lists discipline, entrepreneurial, and relationship-builder as among top five skills for investment banking. In my opinion these along with persistence and excellent communication are essential for bankers. What say you?
investment banking skills needed for analysts
When talking about investment banking, many prospective bankers are highly focused on the needed technical skills such as accounting, valuation, and financial modeling. While these skills are important - in reality soft skills are what make most bankers successful. Investment banking is a very time intensive and stressful job that wears out most people. Those are that able to succeed must have endurance in addition to a commitment to producing perfect deliverables for clients.
Some of the key necessary skills include:
- Enthusiasm
- Grit
- Attention to Detail
- Endurance
- Positive Attitude
- Ability to Learn Quickly
- Tenacity
Investment Banker Skills Required for Success
Of these, the ability to learn quickly is extremely important. as analysts are often thrown into the fire after a short training period. The most successful analysts will be the ones that are able to figure out the tasks needed and complete them very well without having to ask an endless stream of questions. Additionally, this is important as analysts shouldn't make the same mistake twice.
Along these same lines - attention to detail is critical as the work submitted by analysts (both models and ppts) will go to boards of directors and can affect billion dollar deals.
The necessity of endurance, grit, tenacity, and a positive attitude all exist around the knowledge that investment banking has brutal hours and often mindless work. The most respected analysts are the ones that can keep their head down, put on a smile, and put in the work without any attitude.
User @AndyLouis", an industry COO, shared a good alternative list of the skills needed:
- Prioritization & efficiency
- Attention to detail & consistency
- Discipline & work ethic
- Dependable
- Easy to get along with / friendly
You can learn more about the skills needed to be an investment banker with the below video.
Outside of these soft skills, our users emphasized that proficiency with Word, Excel, and Powerpoint is critical as you will spend almost all of your time working with these programs.
You can learn more about excel and modeling with the Wall Street Prep Financial Modeling Course.
Read More About Investment Banking on WSO
- Investment Banking Analyst: 15 Things I Wish I Knew
- Best Skills To Learn At Internship
- Technical/Computer Skills For Banking
Preparing for Investment Banking Interviews?
The WSO investment banking interview course is designed by countless professionals with real world experience, tailored to people aspiring to break into the industry. This guide will help you learn how to answer these questions and many, many more.
Enthusiasm
Grit
Attention to Detail
Commercialism
"What are the 3 most important skills needed to be an investment banker?"
"1. Enthusiasm
Grit
Attention to Detail
Commercialism"
"Investment Banking - Industry/Coverage - Intern"
I LOLed
double post
Networking, networking, and networking
But yeah what you said is important too.
The wherewithal not to ask stupid questions.
but all my professors told me there was no such thing as a stupid question. Are you telling me school doesn't prepare me for the real world?
tenacity, attention to detail, endurance
(In no specific order)
At the junior level:
-Taking ownership over assignments / projects -Attention to detail -Critical thinking
Depends on your role (analyst, associate, MD, etc)
At the junior level I would say 1) stamina 2) ability to learn quickly and 3) independent (don't need to hold your hand, great to have analysts that are proactive and don't have to be told what to do all the time)
One important thing that I find differentiates most professionals that I truly have respect for - that I have come across in my time is the ability to execute - ''get shit done'' mentality.
you must be dead inside
"Entrepreneurial" lol
Haha that is such fluffy BS
Totally. Just googled "Entrepreneurial Culture" and "Investment Banking" and like 10 company sites show up. Means nothing. Can't recall how many times I've been told to align a CAGR arrow or whatever and thought "wow, so entrepreneurial"
Yeah I'm doing IB specifically BECAUSE there isn't an entrepreneurial bone in my body
I feel the same way. Everyone encourage you to be entrepreneurial but I feel I am not an entrepreneurial
Quant skills in IB (Originally Posted: 07/09/2017)
I recently passed the GMAT with a pretty good score (710) quant scores were good, but I'm honestly that keen on quantitative work, is there a lot of quant work in IB? I know the question can be tricky, but any other fields in the industry where the quants are not that heavy?
B.r.
IB is not very quant heavy comparatively, more about knowing finance and accounting principals and having an analytical thought process
Thanks a lot
Flexibility is one I haven't seen listed so far. Ability to work on a bad hang over.
the IB "skill set" ?? (Originally Posted: 01/17/2008)
Ive read alot about the specific skill-set one learns doing IB. but what exactly does this mean? from what ive understood, this has included: extensive modelling/valuation skills, ability to work hard and long, do bitch work, learning how to BS
Can someone else (preferably a banker) talk about exactly what they mean when they say skill-set?
Come on dude...are you serious? You answered your own questions...its just a set of skills bankers develop and perfect while on the job.. These skill are ussually transferable to other jobs in finance yet are used extensively in bankig...they include all the ones you listed above (extensive modelling/bieng able to value a business, writing memos, perform due dilligence, interact with senior level/c-level executives, etc..
Its no different than a kid going to basketball camp for 3 months and developing new jumper or defense techniques...that he wouldnt have been able to learn elsewhere
I was referring to the "softer" skills (client interaction, etc...). I just wanted to know if I had missed somthing.
(i dont work in finance), my guess from all that i've read on WSO and learned from Patrick, and I think these apply to many jobs
in no order:
-prioritization & efficiency -attention to detail & consistency -discipline & work ethic -dependable -easy to get along with / friendly
Develop more knowledge and skills (Originally Posted: 10/24/2017)
What can a person do to further his knowledge about the things he would need in the future as an investment banker or asset manager but probably would not have the time to do, what books, movies do you think are valuable? what skills should he start to develop so that it is easier later? Certifications or anything else? What is one thing that you wish you should have started to do earlier that could have changed your position now or just made you feel more comfortable?
Check out the IB hall of fame. Full of information on networking, skills, and books.
https://www.wallstreetoasis.com/forums/wso-hall-of-fame-investment-bank…
Lol at entrepreneurial.
Anybody who thinks you need to be entrepreneurial to be in banking is a dumbass.
You need to be entrepreneurial to sell lumber at Home Depot.. so take that as you will
Has to be said....
The ability to kiss ass really well.
You only need attention to detail lol
Truly, banking is a waste of time. You pigeon whole yourself into a "prestigious" career path with loads of money, but the opportunity cost is extremely high. Sure you are great at modeling and what not, but the world passes you by.
I mean if you're the type of person who is just interested in looking at numbers all day, sure IB is great, but if you want to be a well-rounded person who makes loads of $$$, I think IB will seriously damped your career outlook.
A "waste of time"? Doesn't every path eventually pigeon hole you? And every path is a job at the day, so if it does lead to a lot of money then I wouldn't call it a waste of time, but a way to monetize your time/effort.
You should be able to think independently and dynamically enough that you wouldn't even begin to think about the top three skills, at least at the MM level. It's not about checking off boxes on a list. BI and standardized testing are ruining our youth.
Also, NEVER take career advice from Investopedia.
Shit I've been using that the entire time. No wonder why I dont have a job guess ill switch to wikipedia
LOL just read GS Elevator. As long as you can talk the talk you'll be fine.
Grit Attention to details People's skills
Entrepreneurial? Relationship-builder?
Lol what kind of crap is that? As a banker you need to be able to just shut the fck up and do what your MD says. And until you are at least 10 year into the job you will never be allowed to even really speak to clients so the whole relationshi-building is also a joke.
What you need is discipline to not just quit when you get another shitty task at 01.00am and an ability to take a lot of crap. You also need to not value your own time too much cause I can assure you your bosses won't either.
Depends on the firm and possibly sector - I am 3 years in and have a speaking role during meetings/pitches
Then you are the exception to the rule. I don't know a single junior banker that ever gets to speak to clients. Most don't even get to ever join a meeting with a client. Plus even if you have a speaking role that's still very different from actually managing the client relationship.
grindability
Attention to detail is the only thing that counts as an analyst
lacking gag reflex
Making sure your decimal points line up and smiling and nodding when you realize that your time means absolutely nothing to your associate/VP/MD
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