Welcome to this publication about the South African Investment Banking industry and the best investment banks in South Africa, via Afrokonnect.
The field of investment banking is not very well known in South Africa. However, what really is the state of the market?
Are there any chances available in the country for those who are not citizens? What is the breakdown of the pay and the savings account interest rates in South Africa?
In this post, we will respond in depth to each of the issues that were raised above. But before we get into it, let’s take a look at the sequence down below.
Overview and a Brief Introduction
The Banking system in Canada, Banks in United Kingdom, and other Asian economies all have quite different investment banking systems compared to South Africa’s.
Vast majority of the time, when investment bankers discuss investment banking,
They exclusively discuss the investment banking practices of Asia, Europe, and the United States. But what exactly does the investment banking sector look like in South Africa?
Investment Banking in South Africa
There are two primary distinctions that stand out when looking at the market in South Africa:
- The South African market does not have an investment grade that is particularly strong;
As a direct consequence of this, investment bankers have little interest in establishing themselves in South Africa as a base for their careers.
- Local investment banks are unable to access substantial investment funds,
Since these money are handled by global corporations and governments operating in South Africa.
The local investment banks that the fund uses in South Africa are all considered to be local funds.
As a result, the whole of the money originate from South Africa, while the remainder come from other countries in Africa.
Because of these disparities, we may deduce that the South African investment sector is now undergoing two primary trends:
To begin, the market for investment banking in South Africa is still in it’s infancy, and, there are numerous areas that are currently unexplored and underdeveloped.
Therefore, investment bankers will be presented with a significant business opportunity,
If global corporations establish a presence in South Africa and construct their offices there (which some international companies already did). More so, we have published an article with over 18 Profitable Small business ideas to start in South Africa.
There is a big possibility of integrating all of the demands together and dealing with larger funds since the market only works with smaller funds, and, local investment banks do not conduct business on other continents.
Career in Investments Banks in South Africa
Imagine that you are located in South Africa or that you are interested in a career in investment banking.
If this is the case, you will have a tremendous opportunity because, first and foremost, you will be joining a market that is just beginning to develop, and second, there is a significant potential for expansion in the market for investment banking.
South African investment banks provide a variety of services to its clients. However, only the most prominent clients may take use of the services offered by local investment banks.
Hiring Process and Criteria into Investment Banks in South Africa
South African investment banks are now in the process of hiring new employees as the industry grows faster daily,
The application procedure is very much like the investment banking sector in the United States.
Investment banking industry in South Africa uses fit questions extensively throughout the recruiting process.
Take for instance the scenario when you make the decision to work for a South African investment bank,
In such scenario, you need to place the majority of your attention on the compatibility as all the investment banks in South Africa look for the fit candidate and rarely concentrate on the technical aspect of the interview.
Tips to help you stand-out
Context: South African investment banks employ graduate schools that have previous expertise in the financial industry.
People who have previous experience in accounting are their major target audience.
Therefore, if you ever think of working for an investment bank in South Africa, you should make every effort to get a bachelor’s degree in accounting or related fields like Business Administration.
As an African you should consider any of these top 10 Best Universities in Africa, if you have a degree in accounting, you will have an easier time getting an interview with a South African investment bank.
In addition, you will be granted priority over everyone else especially if you have previous work experience in any of the four largest American corporations.
Maintaining employment equality is a priority in South Africa, which places a strong emphasis on the concept.
If investment banks recruit fifty percent of its candidates from the white population, then they must also hire fifty percent from the black population.
As a direct consequence of this, the investment banks spend a significant amount of time in the process of presenting candidates. It takes from four to six months, on average, to close out a position.
It is not because the interviews are more difficult; rather, the most essential factor in the recruiting process is to ensure that employment fairness is maintained.
How much does an Investment banker make in South Africa?
The typical annual income for an investment banker in South Africa is R 294,000, which is equivalent to R 151 per hour and R 24,500 per month.
The starting salary for an entry-level employment is R 294 000 per year, while the average salary for an experienced worker is up to R 300, 000 per year.
The Role of an Investment Banker
One of the most effective methods for businesses, nonprofits, or even governments to generate money is by enlisting the help of an investment banker.
Professionals in banks and other financial organisations known as “investment bankers” analyse a company’s financial standing, capital requirements, and strategic objectives.
And then they give you some advice on how to make those things happen. If a company needs to obtain capital, its investment banker may serve as a go-between for the two parties.
Opportunities for Exiting the Investment Banking Industry in South Africa
People in South Africa seldom move on from their professions in investment banking to pursue other lines of work.
Since there are so many resources available, the best talents often switch banks and endeavor to climb the ladder as quickly as they can.
However, there are several notable outliers. Changing occupations is not common for professionals, who mostly have two alternatives available to them.
Very few experts move on from their positions at investment banks to take executive financial jobs at other companies.
A few other investment bankers may find success leaving the industry via the establishment of a hedge fund.
Take a look at our comprehensive guide to the many possibilities for leaving investment banks as well.
RECOMMENDED:
- Investment Visa and Best Investment Apps for Beginners
- Best Investments To Start in and reliable Online Investment Platforms
Best Investment Banks in South Africa and Corporate banking;
The market for investment banking in South Africa is considered to be one of the world’s emerging markets.
Morgan Stanley, a major financial institution with operations all over the world, established its first office in 1994, they have been creating opportunities for fresh college graduate who are interested in working for an investment bank worldwide.
Top 34 Best Investment Banks in South Africa to work with
Now, let’s take a look at the leading investment banks in South Africa so that you can get an idea of where you want to work in the near future:
- Absa Bank Limited
- African Bank Limited
- Baraka Bank Limited (Al)
- Bank of Baroda
- The Bank of China
- Taiwan Bank
- Bidvest Bank Limited
- BNP Paribas South Africa
- Calyon Corporate and Investment Bank
- Capitec Bank Limited
- The China Construction Bank Corporation
- Citibank, N.A.
- Deutsche Bank AG
- FirstRand Bank
- Grindrod Limited
- Habib Overseas Bank Ltd
- Hongkong and Shanghai Banking Corporation
- Imperial Bank South Africa
- Investec Bank Limited
- P. Morgan Chase Bank
- Mercantile Bank Limited
- The Merrill Lynch South Africa (Pty) Ltd
- Morgan Stanley South Africa (Pty) Limited
- Nedbank
- Old Mutual
- The Royal Bank of Scotland
- Sasfin Bank Ltd
- Societe Generale Group
- The South African Bank of Athens Limited
- The Standard Bank of South Africa
- Standard Chartered South Africa
- State Bank of India
- Teba Bank Ltd
- UBS South Africa (Pty) Ltd
Conclusion
The South African market for investment banking will soon be very lucrative, even the top commercial banks in South Africa are beginning to diversify into investment banking.
Though it is still in it’a infancy, and the majority of the available finances are inadequate. Despite this, a large number of international financial institutions use the possibility to establish branch offices,
As a means to grow their operations and recruit a greater number of investment bankers.
You will look back on your decision to work for an investment bank in South Africa with satisfaction after a period of five years has passed.
In such case, the investment banking industry is a fantastic area to find job in the not too distant future.
On that note, this brings us to the end of this article. We hope you found the information useful in one way or the other, whatever the case may be, let us know what you think via the comments section below.
