Investment banks are financial firms that help raise capital for their wealthy clients (institutional firms and high-net-worth individuals) by issuing securities via equity and debt on their behalf. They offer expert advice to companies/firms that are clients of them in regard to executing mergers and acquisitions in the financial markets. And since, the jobs in the banking sector demand this much of expertise and financial prowess, there is expected, high GPAs (Grade Point Average) from the candidates applying for the talked about job roles.
Annual Pay of Investment Bankers in the US basis Experience Levels
Especially, the top global investment banks have high expectations, and they would not accept anything less than 3.5. Here, it’s noteworthy that the standard GPA rating across varied schools & colleges is marked out of 4.0, however, in the weighted-grade education infrastructure, it’s get considered being attained out of 5. To those seeking jobs at top investment banks, it’s highly recommended for them to score above 3.5.
How is GPA Calculated?
GPA rating is the median value of all accumulated grades scored by an individual across educational courses that he studied in his academic life.
What GPA Suits What Sub-Division of Investment Banking?
Investment banks do consider GPAs important in their recruiting process, especially in case, the candidate does not possess any relevant work experience in the said field of profession. 3.5 GPA is ideal for securing a banking professional job across the varied sub-divisions of the investment banking sector. Although, even if you fall short on the said rating, the doors still do not close for you in terms of getting foot into the investment banking industry.
But then, you will need assistance of internships and industry-relevant investment banking certifications.In general, recruiters in the investment banking industry judge a candidate’s potential basis his GPA rating. That’s also the easiest way to assess an applicant’s performance potential in the advertised job role.
GPA is Not the Only Metric to Assess a Candidate’s Prospect
It’s true that to be an effective investment banker, you have to be good with numbers, and should also possess great analytical skillset. Your past academic performance, or grades, showcase your ability to grasp and learn new skills. However, GPA does not truly define the full potential of an individual, and there is every chance of an investment banking aspirant growing later in his career. But, in totality, grades do matter to build a strong career foundation in the banking domain.
Do You Lose Everything When Not in Possession of Exceptional Grades?
All is not over if you have scored a comparatively less GPA compared to your competitor while appearing for a job interview in the banking sector. Recruiters prefer candidates who has attained something extra apart from scoring good in the academics. For instance, a candidate with a GPA of 3.9 will be looked over a candidate with a GPA rating of 3.5, if he has got an internship or has attended an industry-relevant workshop in his academic days. To make your case perfect for an advertised banking job role, it would be ideal to have both under your name – a decent GPA rating, and an internship or two.
Parting Words
If you have not been able to score an impressive GPA, you still have a shot at breaking into good investment banks across the US and the world, provided that you score handsomely well in an industry-relevant investment banking certification qualifying exam. The only big issue with not having an envious GPA is that some of the top investment banks across the world only hire students with exceptional grades, and those coming from the top-tier business and finance schools.