Member Article

The Present and Future of Investment Banking in the UK

Investment banking has conventionally been a cyclical business. However, with the overall business landscape changing at a fast pace, banks in the UK are working hard towards transforming themselves in a way that they can effectively compete.

The Shifting Role of an Investment Banker

While the business undergoes dramatic changes, executives of investment banks will be expected to take quick decisions on a routine basis. They will be responsible to take a look into their existing operating models and find ways to evaluate profit opportunities within existing business units. Investment bankers will be expected to contribute to the creation of industrialised processes that help optimise information across business verticals and also redesign processes and operations to meet the evolving needs of clients.

Next Generation Portals

Some of the leading investment banking firms are already in the process of creating next generation corporate portals that allow them to extend functionality and high quality services to their clients. Investment bankers today are expected to inculcate strong IT skills in addition to having a robust foundation in global markets and finance. With flexible IT architectures, candidates that are open to technology will be able to differentiate themselves from the rest. Statistics show that among the top investment banks in the world, 55% impetus is laid on IT as the top 3 priorities of the business.

Becoming an Investment Banker in the UK

If you are considering taking up investment banking as a choice of career, consider the following –

· Your average starting salary will be about £35,000 to £40,000 per year.

· After the first 3-4 years of your career, you will be making about £50,000 a year.

· With significant experience, your base salary can grow to about £150,000 a year.

· The salary of an investment banker is often related to his or her performance. Bonuses can be often as much as 4 times of the base salary.

· You should be prepared to work for long hours and have a less social life. It is common to be busy at work over the weekends especially as deals enter into critical stages.

· The average work day of an investment banker can be about 15 hours. It is not uncommon for these professionals to clock in 100 hours a week.

· A large number of investment banks are enthusiastic about attracting a diverse workforce. Many of these companies form internal support networks for groups that may be under represented.

· The job of an investment banker can be extremely stressful and demanding. The target oriented environment involves setting high standards in output.

· Furthermore, the industry is extremely connected to the economy, and the availability and loss of jobs depends on the health of the market.

· London is one of the main financial centres of the world. If you are looking for UK based positions in investment banking, chances are you will almost exclusively be posted in London.

Finally, many banks also have global offices that offer trainees the opportunity to work in other markets for the first two years. After gaining the right qualifications, you can also spend a lot of your time overseas.

This was posted in Bdaily's Members' News section by Ellie Williams .