MASTERPLAN for Investment Banking Job - Don't Miss Point #4

Summary

This video offers a comprehensive guide for those aiming to enter investment banking, particularly post-MBA, through 'back office' roles. It clarifies the nature of these roles, detailing their supportive function to the 'front-end' team, focusing on data analysis and research. The video outlines the skills required, such as financial knowledge and proficiency in Excel and PowerPoint, and emphasizes the value of the CFA Level 1 certification for job seekers, especially from tier 2/3 colleges. It also provides practical advice on company selection, interview preparation, and leveraging LinkedIn for job applications, aiming to equip viewers with the knowledge to make informed career decisions in investment banking.

Takeaways

• 🏦 The 'back office' in investment banking refers to roles that support the front-end team with data analysis, research, and presentations.
• 🎓 Roles in the back office are often designated with the title 'analyst', such as research analyst, private equity analyst, or investment banking analyst.
• 📊 Back office roles typically involve tasks like creating company profiles, financial analysis, and using databases for research purposes.
• 💼 Essential skills for back office roles include financial knowledge, proficiency in Excel for data analysis, PowerPoint for presentations, and effective use of LinkedIn.
• 💼 The average package for back office roles in investment banking is 6-8 LPA, with a significant portion being a fixed salary.
• 🎯 Targeting boutique firms can be more fruitful for students from tier 2/3 colleges or those from non-traditional backgrounds like arts or fashion designing.
• 📚 The CFA Level 1 certification is highly recommended for those aiming for back office roles in investment banking, as it can significantly improve the chances of being shortlisted.
• 💼 Participation in finance-related clubs, societies, and internships can bolster a candidate's profile for investment banking roles.
• 📘 CFA books and resources from websites like CFI are recommended for preparing for the role, while online courses on platforms like Udemy can supplement understanding of financial concepts.
• 🔍 LinkedIn is a crucial tool for job search in investment banking, and reaching out to decision-makers like associate directors, directors, AVPs, or VPs can increase the likelihood of getting hired.
• 📝 The interview process for back office roles typically includes technical and HR rounds, with a focus on financial knowledge and understanding of the candidate's motivations and values.

Q & A

What is the role of the 'back office' in investment banking?

The 'back office' in investment banking, also known as the 'backend' team, plays a supporting role to the front-end team. They assist with data, analysis, and research to help the front-end team present data to clients.

How can someone from a non-traditional background like arts or fashion design enter investment banking?

Even if you're from a non-traditional background, you can enter investment banking if you're CFA Level 1 certified. This certification, along with relevant financial knowledge and skills, can help you secure a position.

What are the typical designations for backend roles in investment banking?

Typical designations for backend roles include 'analyst', which can be preceded by titles like 'research analyst', 'private equity analyst', or 'investment banking analyst'.

What are the main responsibilities of a backend team in investment banking?

The backend team's main responsibilities include researching and analyzing data, creating company profiles, and performing financial analysis to support the front-end team's presentations to clients.

What are the skills required for a backend role in investment banking?

The skills required for a backend role include financial knowledge, proficiency in Excel for data analysis, knowledge of PowerPoint for presentations, and the ability to use LinkedIn effectively for job searches.

Which professional certification is recommended for someone aiming for a backend role in investment banking?

The CFA (Chartered Financial Analyst) certification, specifically Level 1, is highly recommended for those seeking backend roles in investment banking.

What is the average package for a backend role in investment banking?

The average package for a backend role in investment banking is 6-8 LPA, with a significant portion being a fixed salary and the rest being variable based on performance.

How can tier 2/3 college students increase their chances of getting a backend role in investment banking?

Tier 2/3 college students should target boutique firms, as their chances of getting through are higher there. Additionally, obtaining a CFA Level 1 certification can significantly improve their prospects.

What resources are suggested for preparing for a backend role in investment banking?

Recommended resources include CFA books, courses on the CFI website, financial modeling, derivatives, statistics, valuation, and ratios courses on platforms like Udemy, and joining financial consulting clubs on LinkedIn.

How important is LinkedIn in the job search process for investment banking roles?

LinkedIn is crucial for the job search process in investment banking. It's used to approach decision-makers, get referrals, and express interest in job opportunities.

What should one include in a message to a potential employer on LinkedIn when applying for a backend role?

When reaching out on LinkedIn, one should include a personalized message expressing interest in the role, a brief introduction, and attach a cover letter to improve chances of getting a positive response.