Investment banking is one of the most important sectors within the financial services industry. For instance, if you have ever wondered how companies, from small startups to large corporations, manage their finances and grow, it is investment bankers who make those crucial decisions.
These bankers help businesses go public, handle mergers and acquisitions, and connect companies with investors. To be precise, investment banking is the essential link between businesses, investors, and financial markets.
In this article, we will discuss how to become an investment banker. We will also explore the necessary education, certifications, and skills you will need for a career in investment banking.
Table of Contents
What is Investment Banking?
Investment banking is a specialised area of banking that deals with large and complex financial transactions. This includes organising major events such as mergers, acquisitions, and initial public offerings (IPOs).
It also helps companies raise capital by underwriting new securities and providing financial consultancy services. Moreover, investment bankers are financial experts who keep a close eye on market trends and investment opportunities. As a result, they help their clients handle the complexities of finance.
In short, if you are trying to understand how to become an investment banker, you must know what investment banking is. Investment banking includes the following services:
- Capital raising and financing
- Advising on mergers and acquisitions
- Valuation and financial modeling
- Sales and trading
- Asset management
What Does an Investment Banker Do?
An investment banker plays a strategic role in the financial system by advising organisations on how to manage and grow their capital. They work with complex financial data and guide corporations on long-term business strategy.
They work closely with financial institutions and government departments while analysing data for risks and opportunities. This helps them guide clients while ensuring that the transactions are within regulatory norms.
Some tasks and responsibilities in an investment banking career in SA include:
Managing negotiations and overseeing deals from initiation to completion
Advising companies and public institutions on raising capital through equity or debt instruments
Assisting with the issuance of shares or bonds in local and global markets
Providing guidance on financial strategy based on market conditions
Steps to Becoming an Investment Banker
Becoming an investment banker requires careful planning and commitment. Hence, whether you are just beginning your education or seeking to grow in the financial industry, there are specific steps to follow.
1. Earn a Bachelorā€™s Degree
Start by earning a bachelorā€™s degree in Bachelor of Business Administration, finance or economics. These programmes take three years to complete and provide a strong foundation in finance.
2. Develop Core Financial and Analytical Skills
Alongside formal education, students should build practical skills in financial modelling, valuation techniques, and data interpretation. They should also gain proficiency in tools such as Excel and Tableau.
3. Seek Internships
During your undergraduate studies, it is advisable to apply for internships in the banking and financial services sector. They help students build professional networks and gain early insight into the skills and expectations.
4. Gain Full-Time Experience
After completing an undergraduate degree, gain experience in entry-level banking and financial services roles. This experience strengthens practical understanding and improves long-term employability. It also helps to strengthen postgraduate applications.
5. Consider Advanced Education
Pursuing a Master of Business Administration can greatly improve your career opportunities in investment banking. An MBA offers deeper subject knowledge and supports career progression.
6. Apply For Entry-Level Roles in Investment Banking
Once you are ready, apply for entry-level positions, such as analyst or associate roles, at investment banks. Draft a professional resume that highlights your academic background, technical skills, and relevant experience.
It is also important to research and target firms that align with your long-term career objectives and professional interests.
Skills Required to Become an Investment Banker
When exploring the role of an Investment Banker, it is important to remember that success depends on a combination of academics and skills.
Professionals must develop a specialised skill set that supports analytical work, client interaction, and high-pressure decision-making.
Technical Skills
These are skills that are directly related to the tasks and responsibilities that bankers need to accomplish. These skills help Investment Bankers to interpret financial information and offer strategic guidance.
Some technical skills that are typically listed under Investment Banker job requirements include:
- Financial modelling to project financial performance and assess investment outcomes
- Financial statement analysis to evaluate company health, profitability, and risk
- Market and industry analysis to understand economic trends and competitive landscapes
- Proficiency in financial and analytical software, particularly spreadsheet and reporting tools
- Valuation techniques to determine the worth of companies, assets, or projects
Soft Skills
These refer to non-technical skills that are difficult to quantify. Yet, they play an important role in professional settings and can determine progression. Some important soft skills that can be listed under Investment Banker job requirements include:
- Communication skills to present complex financial information
- Analytical thinking to interpret data and identify patterns
- Negotiation skills to secure favourable outcomes in deals
- Research skills to effectively gather and analyse market and industry information
- Time management to ensure that you can work on multiple projects and tasks
Alternative Career Paths in Investment Banking
While investment banking is one of the most prestigious career paths in finance, it is not the only option. That means with the skills and experience you gain in this field, you can also explore alternative paths.
Understanding these career paths opens up new opportunities and helps you apply your expertise in different ways. Given below are some alternative career pathways you can choose:
- Financial Analysis
- Financial Consultancy
- Accountancy
- Entrepreneurship
- Corporate finance
- Asset management
- Hedge funds
Investment Banker Salary and Job Opportunities
Investment banking provides many opportunities for career growth where you can rapidly advance, develop expertise, and expand your professional network. As you have learnt how to become an investment banker, you have realised that you can move into higher positions and specialise in different areas, which can improve your job prospects and increase your earning potential.
The Investment Banker salary in South Africa is approximately R691,295 per year, which equates to R48,945 per month. These figures are sourced from Indeed and are accurate as of January 2026.
Entry-level positions will begin at lower annual salaries. However, as you gain experience and advance in your career, this salary can potentially increase.
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Conclusion
A career in investment banking requires a strategic blend of education, skill development, and practical experience. As you earn the right education qualification and gain practical experience, you can set yourself up for success in this field.
A successful career in investment banking requires a combination of formal education, practical experience, and a specialised skill set. Prospective professionals should focus on completing relevant undergraduate degrees, gaining internships and full-time experience, and developing both technical and soft skills.
Begin your journey towards becoming an Investment Banker with Regenesys Education. Visit our website to explore accredited BBA and MBA programmes.
FAQs
What is investment banking?
Investment banking is a specialised sector of finance that deals with large and complex transactions. It also involves advising clients on strategic financial decisions and market opportunities.
What does an Investment Banker do?
Investment bankers help businesses and governments with major financial decisions. They facilitate mergers and acquisitions, assist in raising capital through securities, offer strategic financial advice, and conduct market research to guide investment opportunities.
What degree do you need to become an investment banker?
Investment Bankers typically hold a BBA, finance, or economics degree. They also hold postgraduate qualifications such as an MBA.
What skills are essential for an Investment Banker?
Investment bankers need technical skills such as financial modelling, market analysis, and proficiency in financial software. They also require strong communication, analytical, problem-solving, negotiation, and research skills.
What is the earning potential for Investment Bankers in South Africa?
The average annual investment banker salary in South Africa is around R691,295. Entry-level roles begin at lower salaries, but improve with experience.
