With my 2:2, how can I break into investment banking industry?

Dear Jarus,

Thank you for bringing up this initiative. God bless you.

I am glad that such a platform as this is created to enlighten young Nigerians on career related issues. This is indeed a right step in the right direction and from beautiful minds. More power to your elbow!

I graduated from the department of Economics, Obafemi Awolowo University (OAU), with Second Class lower (3.42/5.00), 2013. I got this as a result of my multi-tasking without proper planning as I started on a good ground; holding first class at my part 1.

I am presently in a state of dilemma because I have always wanted to be an investment banker and knowing that no IB will employ a Second Class Lower. Nevertheless, I am currently an ACCA student at the qualification stage; and also intend starting Masters in Finance (UNILAG) immediately after my NYSC service year; with a plan of enrolling for CFA during my course year as a Masters student ( perhaps some of the courses will be relevant for CFA); so I can leverage on the knowledge gained in school, tutorials and the likes.

Sir, I need you to scrutinise these plans, tell me where I have made wrong assumptions and the way forward as well as advise me.

Thank you for the good gesture, may the Lord reward you. I look forward to invaluable advice for the web/conglomerate of analysts (JAC).

PS: Those profile up there did not only inspire me but also intimidated me, sir; I must say, it instigated in me the desire to work hard/smart; sir!

Dear Gbenga,

Many thanks for the kind words. Let me share with you (and readers) what my panel of analysts have to say before I conclude with my own views.

MUYIWA ADENIJI, ACA, ACS

While it may sound disappointing to graduate with anything less than a 2:1 (no excuse, friend), the world does not end there. You should execute your plans as stated but try to apply to investment banks during and immediately after your NYSC year.

Since you want to write CFA papers, nothing stops you from starting immediately as you would have ample time to prepare for the exams during your NYSC year compared to post-NYSC period. Once you have a CFA, you stand a better chance of grabbing a job in an IB.

You may want to have a look at M.Sc Finance in a top US/UK university + CFA. This may give you strong opportunities for IB job abroad – the admission requirements is the hurdle you have to cross though.

NAJEEM EWESESAN MBA, ACA, ACCA

I can still see your being multi-tasking at play again here which is not necessary at this stage of your career. I assume you have the resources to pursue these programmes because you never mentioned work after NYSC. My advice: direct all the resources (time, energy, money) you have now at CFA since your preference is to be an investment banker. So I consider that as what turns you on. According to Warren Buffer and his friend, focus on what turns you on and you are there. Leave Masters for now and focus on CFA. Get a good tuition centre and start the exam.

However, if you don’t have what it takes to write CFA now, you can go ahead with the ACCA and also take your time to review the investment banks around and the requirements for joining them. Work on achieving them. It’s easier to be working in an investment bank and also write CFA (with discipline) than leveraging on MSc courses for this purpose. To crown it all, you have to be focused and take it one after the other. How many years do you have to do all these, start work and settle down? These are questions that should drive you.

OBAFEMI BAMIDELE, Msc (Edinburgh), CFA, ACA, ACCA, ACS

I think the guy should be commended for not deceiving himself, recognising where he stands and that he needs to do a lot more. He sure does have the right plans and he needs to follow through because I can assure him, the road is not always very smooth

In the interim, getting a good IB job might be difficult because of his 2.2. It’s almost like the pre-requisite is first class.

So he should use those qualifications to mask the ‘deficit’ and look towards equity research, IB in much smaller (stockbroking) firms. He should try garnering experience from those firms before he starts looking at big IB firms

I advise he gives CIS (Chartered Institute of Stockbrokers exams) a serious thought, because I think it gives him an inroad better in our local environment. CIS graduates get jobs much easily

He should recognise that IB includes corporate finance (the one I think he is eyeing), research, sales, sales-trading and trading.

On whether his 2.2 is a red flag that he cannot cope, nothing is impossible with determination and focus, for him to achieve First Class during his Bsc programme at some point, suggests he can do it.

But very importantly he should get himself into a small stockbroking firm that does all aspect of IB, get quality experience, build his qualification profile like he is planning and all will be well.

I recommend CIS first (at the risk of being called biased).

OLANIYI OGUNBAYO, CFA, ACA, ACCA, ACS

I hope the candidate is not under the impression that those qualifications he intends to pursue are more important than gaining work experience.

First, I doubt if MSc Finance from UNILAG will strengthen his position in job market; he will still be considered for entry level position only.

According to his story, he suffered from multi-tasking while in the university, and he is about making the same mistake pursuing multiple qualifications simultaneously.

With ACCA qualification, he can get finance related roles. He is already pursuing ACCA, so he should use the NYSC year to complete it. He can thereafter pursue CFA qualification he still insists on getting into investment banking industry

I don’t think he needs MSc Finance from UNILAG for now.

Fresh graduates need to spend more time developing competence and capability required on the job versus pursuing multiple qualifications.

THE JARUS VERDICT

When I read your case, the first thing that came to my mind was, how can someone sink from First Class CGPA in year 1, and, by final year, dropping, not in the 2.1 bracket(wide as it is, 3.50 to 4.49), but in 2.2. That’s not good enough and it prompted one question for me, will you be able to cope when the going gets tough? But Obafemi made a soothing point: if you could make a first at one point in your Bsc programme, it shows you are not a push-over.

Niyi, Muyiwa and myself finished from that department too and I doubt you can be more multi-tasking that we were during our programmes. Niyi was the department’s master tutorial taker, always sought after to explain one or two things to his classmates and juniors. He was also an executive member of NESA. He was also writing ICAN, and later ACCA. All these in addition to his primary academic works. Same for Muyiwa, who shuttled between Ibadan and Ife every week to attend ICAN and CIS classes. Yet, we were able to scale through with strong CGPAs. My point is, with proper planning and knowing oneself, being multi-tasking is not exactly a minus. But that is past tense.

I personally advise people (in our line) to start with ICAN. ICAN, to me, is the best foundation for professional certifications. But ACCA can also serve that purpose, so you are on right track with ACCA. I advise you continue.

Msc Finance in Unilag? I go with Niyi that it is not necessary for now. If you have not started it, you may consider shelving it for now. I doubt anything there is related to CFA at the depth CFA will require. Plus you will still be considered for entry level position like someone with Bsc only. Furthermore, like Niyi and Najeem pointed out, you are needlessly being multi-tasking again, when it doesn’t appear you can handle multiple tasks. So focus on ACCA while still serving and try to maximize the opportunity. I also started my ICAN during my NYSC year.

Although grade made in first degree is very critical (I always advise people to take first degree very seriously and come out with First or 2.1), having ACCA will boost your chance (although still not comparable with 2.1 + ACCA). I have a friend in similar position. She made 2.2 in economics from Unilorin and struggled to get job. She used the period of joblesssness to write ICAN and qualified as a CA. She got job in Merristem shortly after. That is what ICAN/ACCA certificates can do.

Obafemi made an important case for CIS as route for penetrating local IBs. I agree. If you can be multi-tasking, I will advise you combine CIS with ACCA, instead of ACCA with Msc Finance. But if not, then focus on ACCA only. With 2.2 and ACCA, you will get job, even if not in IB, but in accounting firms or finance departments of companies. You can then begin CIS or CFA while working, and cross over to local IBs like Vetiva, Meristem, FBN Capital, StanbicIBTC, Greenwich etc. Without experience in those firms or CFA, breaking into big IBs like RenCap is practically impossible.

All the best.

Jarus

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