Investment Banking in Australia (2022)

Investment banking entails handling various investments and handling finances in numerous forms. Financial services are offered by investment bankers to corporate customers, authorities, companies, and other financial firms in their capacities as brokers and consultants. You must have a bachelor’s degree in either business, accountancy, economics, or finance with a focus on banking or finance if you want to work as an investment banker in Australia. To increase your chances of landing a job, take up internships at reputable investment banks.

This blog explores the job of an investment banker, the competencies required, the hiring procedure, salary, exit prospects, the steps to securing a future, and understanding if it is major banks a good career path in investment banking.

What is an Investment Bank

Investment banks are experts in handling complicated financial transactions in a variety of business areas, including underwriting, asset management, acquisitions and mergers, selling and trading, equities research, and serving as financial consultants to institutional customers.

As institutional investors, they supply cash as a substitute for securities or serve as a financial middleman for businesses to raise capital through the issuance of securities.

Investment Bank Categories

Generally speaking, there are two groups of investment banking in Australia:

  • Full-service Investment Banks: Investment banks that offer a complete spectrum of services, such as financing, acquisitions and mergers, security officers, trades, and commercial banking, are known as full-service investment banks.
  • Boutique investment banks: Such banks have a narrow focus on one or more services offered locally, including consulting services.

Roles in Investment Bank

Knowing what an investment bank does can help you decide which industry to concentrate on.

  • Business Finance
  • Securities (this includes the biggest share markets and indices around the globe)
  • Regular income
  • Foreign currency
  • Commodities (intangible, abstract financial items like Coffee, oil, gold, and maize) (intangible, abstract financial goods, such as Coffee, silver, gold, oil and corn)
  • Acquisitions and mergers
  • Securities analysis
  • Private trading operations
  • Management of investments

Investment Bankers

Investment bankers are agents of investment banks or other financial organisations dealing with privately held businesses. Invest banking is undoubtedly one of the best paying jobs in major banks. These knowledgeable experts research the goals, capital needs, and financial stability of a financial organisation.

Investment bankers coordinate and negotiate significant financial transactions, work on acquisitions and mergers, and manage the investment portfolios of businesses. Many of them look at comparable businesses and conduct market research.

Investment bankers might be found working on the purchasing or selling side. In their sales roles, they assist customers in the selling of marketable capital instruments such as securities, stocks, bonds, and money. It facilitates the capital raising process for banks.

Investment bankers that specialise in the purchasing side identify the needs of their clients, help them choose safe, effective investments that fulfil those objectives, and enable such investments through negotiating mergers and agreements. By charging clients for their advice or collecting commissions from the sale of securities, they make money.

Duties of Investment Bankers

Depending on their area of expertise, investment bankers do a range of activities. They often assist customers with raising investment funds or locating the finest assets to suit their objectives.

  • Find investors for your business clients, organisations, governments, and other entities that need money.
  • In order to help corporate customers, offer and sell shares or conduct IPOs.
  • Advising business customers on safe and effective investment strategies
  • Help business clients safeguard their assets, such as bonds, stock trades, and foreign currency transactions
  • Provide specialised guidance in the areas of capital structure, risk management, and valuation.
  • Help corporate customers in the sale of their enterprises to other corporate clients or in acquisitions and mergers of other firms.
  • Investigate and gauge investment prospects and financial trends.
  • Set up agreements and bargain advantageous terms
  • Work with experts in the capital markets, corporate finance teams, and professionals involved in currency trading, convertibles, financial strategy, and derivatives of equity

Australian Investment Banker (IB) Requirements

Would you like to work in Australian investment banking? To work in this field, you must possess the necessary education and training.

  • Finish your secondary education diploma in business studies, economics, and maths.
  • Obtain a business, accountancy, commerce, and finance bachelor’s degree with a focus on banking or finance.
  • Experience in leadership is advantageous.
  • You may also distinguish yourself as a candidate by having knowledge of other languages, world politics, international markets, traditions, and various cultures.

Procedures For Becoming An Investment Banker In Australia

In the field of investment banking, you assist customers in obtaining finance to support their operations and grow their businesses. If you’re interested in this field of work, do the following actions to acquire the training and experience needed:

  1. Obtain a secondary school diploma

The very first step is to complete your secondary schooling. Study topics that will enable you to build a strong foundation in banking knowledge. Advanced maths, business and economics, and finance are a few suggested high school subjects. Make an effort to acquire a strong ATAR, so you may enrol in top-notch university courses.

  1. Completion Of A Relevant Bachelor’s Degree

An undergraduate degree is required to work in investment banking because the field is famously competitive. The degree should have a significant emphasis on mathematics, even though it isn’t required that it be in finance. It is advantageous to have a bachelor’s business degree in finance, economics, administration, and commerce with a banking or finance concentration. Even better, think about earning a double degree, such as a Bachelor of both law and or a Bachelor of both business and commerce.

Candidates with a 2:1 or above are searched after by prestigious investment banks. A master’s degree in economics or business management can be obtained, or interested individuals can continue their studies with an honours year.

  1. Intern for a Company

Without an internship, you can start working in the field. However, because job experience is valued by investment banks, having an internship increases your chances of success. The majority of larger banks and smaller boutique banks hire entry-level staff through their main crop of trainees. Therefore, obtaining an internship can aid in your search for employment as an investment banker in Australia.

  1. Engage in Events And Networking

For those looking for jobs in this industry, networking maybe even more important. You need to network with individuals and leave a positive impact on those who can suggest you to recruiters or hire you. On networks like LinkedIn, making professional connections and maintaining contact with colleagues and employers might help your job hunt. It can aid in your job advancement in addition to providing career assistance.

  1. Banking Your CV

Most bankers give a candidate’s résumé a quick scan to check for:

  • Your business school’s or university’s name and reputation
  • Academic success as measured by the GPA
  • Internships or volunteer work as work experience
  • Past Corporate Experience: The businesses where you previously worked, as well as the positions and duties you had there.

Create a CV that emphasises the information above. Make it job-specific by including abilities, traits, and pursuits that provide you with an edge.

Australian Investment Banking Entry Routes

The investment banking sector may be entered in three primary ways. Whatever route you take, your leadership skills and work demonstrating commitment and passion can help you flourish in this field.

Freshman at a Top University

The simplest approach to entering the investment banking field is through this. Before you receive calls for interviews, you must gain job experience through suitable internships and begin building your banking network.

Your first or second year of college is when you should begin preparing for a career in investment banking. Given that you have to start getting ready for third-year internships in your second year, you need to be recruited for them. Look for internship opportunities with smaller venture capital companies, hedge funds, start-ups, and private equity firms.

After graduation, the third-year internships typically result in full-time positions. The fact that you started later does not exclude you from becoming an investment banker. However, you have a greater possibility of working in a smaller bank or in a non-IB position.

The ideal way to land a job as an investment banker in Australia is to acquire a bachelor’s degree from an esteemed university and begin preparing in your first year by taking accounting classes, making connections with bankers, engaging in financial modelling, and learning about valuation.

To be hired for IB posts at big banks, do a pertinent internship during the academic year and keep networking throughout Year 2.

Recently graduated

Graduates are frequently hired by businesses to work in corporate finance or banking before advancing in their professions. Receiving an IB position soon after graduation relies on the state of the market and the nature of your current full-time work.

If it’s a non-IB position, you might need to get an MBA or Master’s in Finance to reposition yourself in the eyes of potential employers. After graduating, you should move rapidly to secure an accounting position and advance to a valuation position.

Your chances of finding employment decrease the more time you wait after graduation. After three or more years have passed after your graduation, earning a top MBA degree is necessary to advance in the investment financial system.

The best way to land a job in investment banking is to:

  • Perform internships when you are a student.
  • Get a position that is relevant as soon as you graduate.
  • Widespread networking
  • 6–12 months before the interview, begin your preparation.

Leverage MBA Degree

If you are a graduate with no experience in investment banking or finance, earning your MBA at a reputable university will increase your chances of receiving an offer from an IB. Make an effort and begin establishing business networks well in advance. You gain full-time experiences in a specific area, such as retail, medical, computing, or energy, via the 3-5 year MBA degree

How Does Someone Without a Degree Become An Investment Banker?

To succeed in the hiring process and be chosen for these best paying jobs in major banks, it is essential to be fluent in the language of finance. You must begin taking classes in economics or finance to increase your financial literacy.

To get useful job experience, participate in relevant internships with respected businesses or volunteer on initiatives related to your field. You can finish a Chartered Financial Accountant programme to broaden your knowledge and strengthen your CV. Candidates must pass difficult tests that evaluate their theoretical and practical financial skills in order to receive a CFA designation.

Top Australian Investment Banks

Australia has a sizable international clientele that frequents its investment banking sector.

The full list of the best investment firms in the nation is shown below:

  1. Macquarie Group Limited
  2. UBS
  3. Credit Suisse
  4. Citibank Australia
  5. J.P. Morgan Australia Limited
  6. The Goldman Sachs Group, Inc
  7. National Australia Bank Limited
  8. Bank of America Merrill Lynch
  9. CBA
  10. Morgan Stanley

Australian Investment Banker Hiring Procedures

Australia’s investment banking sector is expanding positively. The potential of the nation has led several prestigious investment banks to start investigating the developing Australian market. The Australian investment banking industry is currently being led by Macquarie Group, which has six offices.

Australian youth have a highly favourable outlook on a future in investment banking. It is worthwhile to pursue since there is a bright future for employment and plenty of room for professional advancement. Every year, applicants for this expanding business, including students and other professionals, prepare and conduct interviews.

You must successfully complete the following phases of the hiring procedure in order to be hired as an investment banker in Australia:

  • Online test: Students must pass a demanding verbal and quantitative online screening test as the initial level of the hiring procedure.
  • Case study presentation: Finding qualified applicants will be challenging during this screening phase. Students who have been shortlisted will have a set amount of time to create a test case on a current event or hypothetical scenario. The same must subsequently be presented to the panel of examiners.
  • Interviews: The selected candidates will now need to participate in an interview series, as this is the final phase of selection.

From the enormous pool of job applications, all of these stages assist companies in selecting the most qualified individuals.

What Are Australia’s Top Locations For IB Jobs?

You must locate the areas that provide the finest employment prospects if you want to enter the Australian investment banking market. The three primary locations where financial firms are based are Sydney, Melbourne, and Perth. Employees from such cities frequently manage large agreements.

When comparing the work environments of the other cities, we discovered that Perth offers a more relaxed work culture and better work hours than the other cities.

Workplace Culture for Investment Bankers

Investment bankers frequently function in circumstances where quick task execution is expected since their judgments have a significant influence on their customers. They work under high pressure, have strict deadlines, put in long hours, and the risks are tremendous. Typically, these bankers put in at least 50 hours every week.

Investment bankers concentrate on the following projects since the market for investment banking is very narrow. They could be in charge of leading teams, departments, or full investment bank companies. Commodities and foreign currency industries may need to work erratic hours.

Investment bankers might fly to various locations to participate in conferences and meetings with management, board members, and customers. In Australia, where just 10% of professionals are women, male applicants have relatively strong employment chances in investment banking.

How Much Money Will You Earn As An Investment Banker In Australia?

The yearly investment banker compensation can be greatly influenced by a number of factors, including experience, education, location, company, performance-based bonuses, and profit-sharing. The amount of the incentive you receive is usually determined by the investment banker’s trading revenue, commission earnings, wealth management premiums, and consulting fees that are brought into the bank.

The annual investment banker income in an Australian firm is AU$92,081 per year, or the equivalent of AU$30.50 per hour, according to Payscale.

Your wage as an entry-level worker is determined by industry standards and will rise as you gain experience. Your chances of making more money increase as you get more experience.

Investment bankers with less than one year of experience make an average of AU$77,769 per year. Investment bankers in their first four years of employment make AU$90,000.

Investment bankers in the middle of their careers (5 to 9 years of professional experience) make AU$115,000. Investment bankers with ten to nineteen years of experience get AU$120,000 annually. For those asking –  is major banks a good career path, this significantly reflects how much investment bankers are in demand and it will grow more in the future. So, we can conclude it as a great career.

Final Thoughts

Entry-level employees in the lucrative field of investment banking earn six-figure incomes. A multi-step process combining ambition, grit, effort, knowledge, skills, expertise, and communication is required to reach the pinnacle of your profession.

In order to acquire the ideal opportunity, follow the aforementioned steps and develop your expertise and professional connections if you're enthusiastic about working as an investment banker in Australia.