Corporate investment bankers offer strategic advice on financial services to companies and other institutions. They ensure that legal regulations are being followed by their clients in their efforts of raising any capital. They provide technical expertise and information on mergers and acquisitions, bonds and shares, privatisations and reorganisation, raising capital and security underwriting, including equity and debt markets.
Includes people performing activities to monitor the compliance of legal regulations and to advise on financial transactions and deals.
Includes people performing research and analysis.
Excludes people performing investor relations management.
The following job titles also refer to corporate investment banker:
investment banking associates
corporate investment strategist
investment banking associate
corporate investment adviser
operational investment banker
operational investment bankers
Bachelor’s degree is generally required to work as corporate investment banker. However, this requirement may differ in some countries.
ISCO skill level
ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:
- the nature of the work performed in an occupation in relation to the characteristic tasks and duties
- the level of formal education required for competent performance of the tasks and duties involved and
- the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.
Corporate investment banker is a Skill level 4 occupation.
Corporate investment banker career path
These occupations, although different, require a lot of knowledge and skills similar to corporate investment banker.
Long term prospects
These occupations require some skills and knowledge of corporate investment banker. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of corporate investment banker with a significant experience and/or extensive training.
Essential knowledge and skills
This knowledge should be acquired through learning to fulfill the role of corporate investment banker.
Mergers and acquisitions: The process of joining together separate companies and relatively equal in size, and the purchase of a smaller company by a bigger one. The financial deals, the legal implications, and the consolidation of financial records and statements at the end of the fiscal year.
Funding methods: The financial possibilities for funding projects such as the traditional ones, namely loans, venture capital, public or private grants up to alternative methods such as crowdfunding.
Banking activities: The broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, foreign exchange trading, commodity trading, trading in equities, futures and options trading.
Business valuation techniques: The processes to valuate the worth of the assets of the company and the value of the business following techniques such as asset-based approach, business comparison, and past earnings.
Securities: The financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities which is raising capital and hedging risk in financial markets.
Economics: Economic principles and practices, financial and commodity markets, banking and the analysis of financial data.
Stock market: The market in which shares of publicly held companies are issued and traded.
Modern portfolio theory: The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.
Credit control processes: The various techniques and procedures applied to ensure that credit is given to the suitable customers and that they pay on time.
Essential skills and competences
These skills are necessary for the role of corporate investment banker.
Provide legal advice on investments: Study corporate investments and their legal repercussions in order to advise organisations on the legal procedures, the drafting of the contracts, and tax efficiency operations.
Develop investment portfolio: Create an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natural and technical disasters.
Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
Examine credit ratings: Investigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.
Analyse financial performance of a company: Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.
Monitor stock market: Observe and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.
Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.
Advise on legal compliance for participation in financial markets: Consult and provide guidance on the legal changes the company has to undergo in order to participate in the financial market such as writing dividend policies, defining the ownership and structure of the company, and the compliance with the standards set by organisms regulating the market the company is entering to.
Optional knowledge and skills
This knowledge is sometimes, but not always, required for the role of corporate investment banker. However, mastering this knowledge allows you to have more opportunities for career development.
Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Debt systems: The processes needed to obtain goods or services before payment and when a sum of money is owed or overdue.
Business loans: Loans which are intended for business purposes and which can either be secured or unsecured depending on whether a collatoral is involved. The different types of business loans such as bank loans, mezzanine finance, asset-based finance, and invoice finance.
Holding company activities: The principles, legal actions and strategies of a holding company such as influencing the management of a firm through the acquirement of outstanding stock and other means, more specifically by influencing or electing the board of directors of a company.
Corporate law: The legal rules that govern how corporate stakeholders (such as shareholders, employees, directors, consumers, etc) interact with one another, and the responsibilities corporations have to their stakeholders.
Optional skills and competences
These skills and competences are sometimes, but not always, required for the role of corporate investment banker. However, mastering these skills and competences allows you to have more opportunities for career development.
Perform stock valuation: Analyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.
Maintain client debt records: preserve a list with the debt records of clients and update it regularly
Analyse business plans: Analyse the formal statements from businesses which outline their business goals and the strategies they set in place to meet them, in order to assess the feasibility of the plan and verify the business’ ability to meet external requirements such as the repayment of a loan or return of investments.
Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
Manage corporate bank accounts: Have an overview of the bank accounts of the company, their different purposes, and manage them accordingly while keeping an eye on their balance, interest rates, and charges.
Manage contracts: Negotiate the terms, conditions, costs and other specifications of a contract while making sure they comply with legal requirements and are legally enforceable. Oversee the execution of the contract, agree on and document any changes.
Perform debt investigation: Use research techniques and tracing strategies to identify overdue payment arrangements and address them
Make strategic business decisions: Analyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the options and alternatives to a challenge and make sound rational decisions based on analysis and experience.
ISCO group and title
2412 – Financial and investment advisers
- Corporate investment banker – ESCO