Getting to the top of the investment banking field is a multi-step process that requires a combination of education, ambition, hard work, skill, experience, and connections. It can be worth it, however, because investment banking is considered to be a very lucrative field.
Entry-level jobs quickly provide six-figure salaries. Senior investment bankers can earn tens of millions of dollars every year.
Key Takeaways
- A degree from an Ivy League college or other prestigious school can help you land a job in investment banking.
- Earning an MBA is part of the traditional path to an investment banking career.
- An advanced degree in mathematics is also highly prized by investment banking companies.
- You'll likely face licensing requirements when you're hired by a firm.
College Degrees
A college degree in finance or economics is typically the starting point for entry-level jobs at an investment bank. Accounting and business are also common educational backgrounds. Liberal arts majors might get jobs on Wall Street but you'll have a much better chance of getting the right job with math or business degrees.
Major investment banks recruit from the best colleges and universities in the world. New investment bankers are often chosen from Ivy League schools in the U.S., such as Harvard or Yale, They can choose from the London School of Economics, the University College London, or the University of Oxford in Great Britain.
But there are always exceptions. You can potentially go to a less prestigious institution and still achieve your goals of becoming an investment banker but choosing the right school and the right field of study will help improve your chances of landing a job at a major investment bank.
Your grades are also important. Graduating at the top of your class will put you in a good position to draw the attention of campus recruiters and hiring managers.
There were more than 16,000 investment companies in the United States in 2022, according to a 2023 report by Statista. The high over the 25-year study was about 19,000 firms in 2000.
Advanced Degrees
You can get a job with a bachelor’s degree but having an advanced degree is another way to improve your prospects. A Master of Business Administration (MBA) or an advanced degree in math can add to your appeal. A chartered financial analyst (CFA) certification can help, too.
Internships in Investment Banking
Internships provide a path for students and recent graduates to land full-time employment in many professions, including investment banking. An internship allows you to try out your desired field and gain exposure to the culture. You can get work experience and impress potential employers. It’s an excellent way to start your career. Of course, internships at investment banks can be very competitive, just like entry-level positions.
Value of Networking
Investment bankers spend much of their time selling. They're the movers and shakers behind mergers and acquisitions of Fortune 500 companies, initial public offerings (IPOs) of private companies, and other high-finance deals. Networking is a critical part of the job and perhaps even more so for those seeking to enter the field.
Of course, you have to land a job before you land your first megadeal so selling yourself will be your first task. Mix and mingle with people who have the power to hire you or who can recommend you to people who do the hiring. And be sure to make a good impression.
Having connections like a parent, uncle, cousin, or family friend who works in the business or who has good contacts can also help you land a job. You can leverage them toward your goal of becoming an investment banker if you're lucky enough to have these connections.
Making a Good Impression
You should also think about the impression you're making in terms of self-presentation and other social cues.
Investment bankers work with and for some of the world’s wealthiest and most successful people. There's an expectation of both discretion and class in how bankers present themselves. Dressing well and carrying yourself in a professional and congenial manner is very important if you want to break into the industry.
A study by the U.K. government’s Social Mobility Commission provides insight into how important it is for professionals to behave appropriately, dress professionally, and adhere to a dress code. You can learn quickly to blend in during your early years in this field if dressing fashionably for an investment banker profession wasn't part of your background, according to some participants included in the study.
Licensing
You must be licensed by the Financial Industry Regulatory Authority (FINRA) to practice investment banking. You'll typically first be hired by a firm in the U.S. then the firm will sponsor you in the licensing process. You may have to get Series 63 and Series 79 licenses which are required by many firms but firms' requirements regarding licensing can vary.
What Exactly Do Investment Bankers Do?
An investment bank is essentially a financial institution that serves as an advisor to companies, governments, or individuals. Investment bankers work at these banks and often oversee projects such as initial public offerings (IPOs) that help their clients raise money.
Are Investment Bankers Paid Well?
Investment banking is considered to be a lucrative career. You can easily earn six figures or more in this field, including in starting positions. Investment bankers earned a median pay of $390,000 in 2024, according to Glassdoor estimates.
What Are Some Examples of Investment Banks?
Examples of major investment banks include JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Bank of America Merrill Lynch.
The Bottom Line
Landing a job is an important step in the right direction after you've got the best education and networking. Keeping the job and advancing through the ranks are your next challenges in becoming an investment banker from there. You’re most likely going to have to put in many years of hard work if you want the financial benefits of becoming an investment banker, such as a lifestyle of driving Ferraris or vacationing on the French Riviera.
