An investment banking trainee works at an investment banking firm, receiving training and mentoring in preparation for a future career as an investment banker. Individuals are frequently required to commit to staying with a company for a set period of time while being groomed for future investment banking positions in trainee positions. Individuals who work as investment banking trainees learn how to analyze investments and manage client assets effectively. Trainees may also be taught how to build new customer relationships and coached on different sales techniques.
It is not uncommon for a trainee in investment banking to be mentored someone who is already employed in the industry. A trainee can gain insight into the skills needed to obtain investment banking positions as well as feedback on their job performance as a trainee through this relationship. A single mentor may be assigned to an individual trainee for one-on-one interaction, or a group of trainees may be mentored.
Investment banking trainee positions typically require trainees to work every day in the office. While learning how to perform investment banking duties, many trainees also work as stock brokers. While in training, one of the most common tasks is to shadow or assist others who are currently working in investment banking in order to observe customer interactions and other important investment banking tasks. Trainees may be required to attend workshops, meetings, and other training sessions to learn how to attract new customers, retain existing customers, research new investments, analyze investments on behalf of clients, sell new investments to clients, and manage a client’s assets when they are not directly interacting with investment bankers.
A trainee in investment banking may be required to sign a written commitment to stay with a firm for the duration of her or his training, as well as to work for that firm after becoming an actual investment banker. As a result, the firm’s investment in a trainee is maximized and protected, and the likelihood that a trainee’s work efforts will contribute to the firm’s profits is increased. However, it is not uncommon for an investment banking trainee to have previously worked for a firm in another capacity before deciding to pursue a career as an investment banker. Many trainees stay with the same firm for several years as part of their career planning strategy before moving on or starting their own business.