You're not getting the results you want in Investment Banking. What's holding you back?

You're not getting the results you want in Investment Banking. What's holding you back? Investment banking is a highly competitive and demanding field, where you need to excel at various skills, such as financial modeling, valuation, pitching, deal execution, and client management. However, many aspiring or junior bankers struggle to achieve their career goals, whether it's landing a coveted job, getting promoted, or switching to a different industry. In this article, we'll explore some of the common challenges and pitfalls that might be holding you back in investment banking, and how you can overcome them.

1 Lack of networking

One of the most crucial skills in investment banking is networking. Networking can help you get referrals, interviews, feedback, mentors, sponsors, and opportunities. However, many bankers neglect or avoid networking, either because they are too busy, shy, or unaware of its importance. Networking is not just about exchanging business cards or sending cold emails. It's about building genuine and lasting relationships with people who can support your career development and advocate for you. To improve your networking skills, you need to be proactive, strategic, and consistent. You need to identify your target contacts, reach out to them with a clear and relevant value proposition, follow up with them regularly, and provide value to them in return.

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CA Deepak Garg

CA | CPA | EY | Ex-KPMG | Ex-Ministry of Commerce | Management Consultant
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I agree but The primary obstacle hindering success in Investment Banking appears to be a deficiency in networking efforts. Building strong connections within the industry is crucial for accessing opportunities, gaining insights, and securing valuable mentorship. Without an extensive professional network, one may miss out on key information, job openings, and the support needed to navigate the competitive landscape of Investment Banking. Effective networking remains a cornerstone for career advancement in this field.

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Ammar S.
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Networking and building relationships: Success in investment banking often relies on strong relationships with clients, colleagues, and other industry professionals. Maybe you need to expand your network or work on building stronger connections.

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2 Lack of feedback

Another key skill in investment banking is feedback. Feedback can help you improve your performance, learn from your mistakes, and demonstrate your potential. However, many bankers don't receive enough or quality feedback, either because they don't ask for it, or because their managers or peers are too busy, vague, or harsh. Feedback is not just about hearing praise or criticism. It's about understanding your strengths and weaknesses, your expectations and goals, and your action plans and progress. To improve your feedback skills, you need to be open, curious, and humble. You need to ask for feedback regularly, listen to it attentively, thank the giver, and act on it accordingly.

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3 Lack of skills

Another essential skill in investment banking is skills. Skills can help you deliver high-quality work, impress your clients and managers, and differentiate yourself from the competition. However, many bankers don't have enough or relevant skills, either because they don't learn them, or because they don't update them. Skills are not just about knowing how to use Excel or PowerPoint. They are about mastering the technical, analytical, and soft skills that are required for your role and level, and for the changing market and industry trends. To improve your skills, you need to be motivated, curious, and adaptable. You need to learn new skills constantly, practice them frequently, and apply them effectively.

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Ammar S.
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Skills and knowledge: The investment banking industry is complex and constantly evolving. Perhaps you need to refine your technical skills, financial analysis abilities, or understanding of specific products or markets.

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4 Lack of strategy

Another vital skill in investment banking is strategy. Strategy can help you plan your career path, identify your opportunities and challenges, and make smart decisions. However, many bankers don't have a clear or realistic strategy, either because they don't think about it, or because they follow the crowd. Strategy is not just about choosing a bank or a group. It's about defining your vision, values, and goals, assessing your strengths, weaknesses, and gaps, and designing your action steps and milestones. To improve your strategy skills, you need to be proactive, ambitious, and flexible. You need to think about your short-term and long-term career objectives, research your options and alternatives, and adjust your plan as needed.

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Ammar S.
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External factors: Market conditions: The overall performance of the financial markets can significantly impact deal flow and compensation opportunities. Perhaps external factors like economic downturns or changes in regulations are hindering your results. Company culture: Not all investment banking firms have the same culture or opportunities for advancement. It's possible that the culture at your current firm isn't aligned with your needs or aspirations.

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5 Lack of resilience

Another crucial skill in investment banking is resilience. Resilience can help you cope with stress, uncertainty, and failure, and bounce back from adversity. However, many bankers don't have enough or healthy resilience, either because they don't develop it, or because they burn out. Resilience is not just about working hard or long hours. It's about managing your energy, emotions, and mindset, and maintaining your well-being and balance. To improve your resilience skills, you need to be aware, positive, and supportive. You need to monitor your stress levels and triggers, cultivate a growth mindset and optimism, and seek help and support when needed.

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Ammar S.
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Work-life balance: The investment banking industry can be demanding, and maintaining a healthy work-life balance is crucial for sustained performance. Perhaps you need to find ways to manage stress and ensure you're getting enough rest and personal time.

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Karanjeet Singh, ACA, CFA, MBA

Partner - Investment Banking | Instagram: _karrancy
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Emotional maturity and able to wait out in a transaction is an extremely useful skill. People who can manage time in between transactions tend to stick it out in the investment banking business in the long run and make a killing.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Jorge Vinuesa

Graduado en Administración y dirección de empresas. MiFID II.
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Hay que tener en cuenta los sesgos humanos, y sí, también están muy presentes cuando se opera en banca de inversión: Sesgo de confirmación: Buscar información que confirme nuestras creencias. Sesgo de aversión a la pérdida: Preferir evitar pérdidas en lugar de buscar ganancias. Sesgo de exceso de confianza: Sobreestimar nuestras habilidades y subestimar los riesgos. Sesgo de anclaje: Depender demasiado de una información inicial. Sesgo de disponibilidad: Basar decisiones en información fácilmente disponible. Sesgo de atribución: Atribuir el éxito a nuestras habilidades y el fracaso a factores externos. Sesgo de retrospectiva: Creer que los resultados eran predecibles a posteriori. Sesgo de recencia: Dar más peso a información reciente.

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Ammar S.
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It's important to remember that success in any competitive field takes time, dedication, and continuous learning. Be honest with yourself about your strengths and weaknesses, and actively seek opportunities to improve. Don't be afraid to seek feedback from mentors, colleagues, or managers. Consider attending industry events and networking opportunities to expand your professional circle. If you feel like your current environment isn't helping you reach your full potential, exploring other opportunities within the industry or even outside of it might be worth considering. Ultimately, the best way to identify what's holding you back and achieve your desired results is to reflect on your personal situation, actively seek feedback.

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You're not getting the results you want in Investment Banking. What's holding you back?

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1 Lack of networking

2 Lack of feedback

3 Lack of skills

4 Lack of strategy

5 Lack of resilience

6 Here’s what else to consider

Investment Banking

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