Starting my career in banking and now helping clients land their dream jobs, I can confirm that many are initially attracted to investment banking for the high salaries and hefty bonuses (sometimes even bigger than your paycheck!). But loving the finer things in life isn’t enough to secure a job—or build a career—in this field.
Sure, you need to be comfortable with numbers, hard work, long hours, and total dedication. But what exactly does an investment banker do? What does the typical career path look like? And how do you land one of these ultra-competitive, sought-after roles? Keep reading for answers.
What Does an Investment Banker Do?
In simple terms, investment bankers handle money. They connect organizations needing capital with investors who have it and are ready to invest. They manage investments, buy and sell securities for clients, and assist companies in raising capital through IPOs, stock buybacks, mergers, and acquisitions.
A typical day starts with emails, calls, and financial analyses. Afternoons get busier, focusing on one or two major deals—maybe an IPO, merger, or restructuring. Dinner happens at the office, followed by more work late into the night, often until midnight or even 2 AM (standard for the industry).
The job demands strong number skills, banking and financial instrument knowledge (loans, bonds, stocks, etc.), sharp attention to detail, and the ability to juggle tasks under pressure. While six-figure starting salaries are possible, you’ll earn them—90-100 hour weeks and 14-hour days are normal.
“Much of an investment banker’s work involves financial modeling, especially valuation. Expertise in financial statement analysis is essential,” says Robert R. Johnson, PhD, CFA, CAIA, and co-author of Investment Banking for Dummies. But that’s not all. “Since bankers work with clients and teams, strong communication skills—especially persuasion—are crucial.”
What’s the Career Path of an Investment Banker?
Unlike many fields where mid-career shifts are common, investment banking follows a strict, predictable path. Straying makes landing a role much harder—if not impossible.
The journey starts with a relevant undergrad degree (finance, economics, etc.)—or a graduate degree for career changers (MBA, finance master’s)—plus at least one internship.
Your first role will likely be a financial analyst, followed by an associate position (what most mean by “investment banker”) after about two years. Next steps: vice president, then managing director—if you stay in banking.
If you want a change post-associate, options abound. I transitioned into financial consulting, then became a career coach and talent consultant. Some clients move to corporate finance, business development, or nonprofits—even working for former clients. Others join private equity, hedge funds, or fintech. Some use their savings to start businesses or pursue creative ventures.
Pro tip: For a career this demanding, go beyond online research. Talk to current or former bankers to understand the evolving industry, firm differences, and more.
Once you’re sure about investment banking, here’s how to make it happen.
5 Steps to Become an Investment Banker
These steps work best when done together, from school through internships and your first full-time job (and beyond!).
1. Get the Right Education
In most fields, unrelated degrees are fine—not in investment banking. A finance, accounting, economics, or quantitative/business degree is essential.
To stand out in this competitive market:
- Graduate from a top-10 university.
- Rank at the top of your class.
- Pursue a related minor.
- Take extra classes (e.g., financial modeling).
- Get recommendation letters from industry experts.
- Earn an advanced degree (finance master’s, MBA) or CFA designation (especially for career changers without a relevant undergrad degree).
Stay updated on industry news via DealBook, The Financial Times, The Wall Street Journal, and MarketWatch.
2. Secure an Internship (or Two or Three)
Hands-on experience is key. Internships train you, build your resume, and let you test the waters before fully committing.
Excel, and your internship could lead to a full-time role. Meet deadlines, handle criticism, avoid errors, and be a team player. The relationships you build matter just as much as the experience.
Internships range from 3 months to 2 years. Banks often recruit over a year in advance (e.g., February for next summer’s internship). Secure a general finance internship after your first year, then lock in a banking internship for after your second year. Networking from day one is critical.
3. Always Be Networking
Smart aspiring bankers network early and often. Use campus recruiting, alumni, internship connections, industry groups, and LinkedIn.
Networking doesn’t have to be awkward. Focus on learning and building relationships—not asking for a job upfront. Start with a brief note explaining why you’d like to connect.
Follow up with an informational interview. Stay in touch and add value—share industry events, resources, or personal insights.
Even top-school grads aren’t guaranteed roles anymore. COVID-19 and diversity efforts have broadened recruitment. “Firms now consider candidates from more schools,” says Matthew Spencer, ex-banker and cofounder of Suited, Inc. Networking is more important than ever.
4. Build a Banking-Focused Online Presence
People Google you before meeting you. Ensure your online presence aligns with banking roles.
Start with LinkedIn—treat your profile like a job-landing billboard. List education, internships, projects, and volunteer work. Craft a clear career story that highlights your unique value.
Engage with industry content—share articles, comment on posts—to establish expertise and stay top of mind.
5. Repeat and Refine
As you network, you’ll refine your target firms, preferred work, and personal pitch. Adjust your strategy based on recruiter feedback and any skill gaps.
Consider alternative paths if needed. “Roles like transaction advisory services can prepare you for banking,” says Spencer.
Keep at it until you land your dream internship or job. Then celebrate—and rest up—before diving into the thrilling world of investment banking.