What investment bankers actually do, and what the job path looks like

Investment banking is not the same as working at a bank branch. Investment bankers help companies and governments raise money by selling stocks or bonds, advise on mergers and acquisitions, and structure complex financial deals. The work is analytical, client-facing, and important date-driven. Most people enter through a specific pipeline: a four-year degree, then an internship during college or right after graduation, then a full-time analyst role, then promotion to associate after two to three years.

The entry point matters because investment banks hire almost exclusively from this pipeline. You cannot typically walk in with a business degree and no internship experience and land an analyst job. The internship is how banks evaluate whether you can do the work and whether you fit the culture. Without it, your resume goes to the bottom of the pile.

The timeline is long. From high school to your first real paycheck as an analyst is usually six to eight years. But the salary at the analyst level is high enough that many people find it worth the wait.

Key Takeaways

  • Investment banks hire analysts almost exclusively from their summer internship programs, so getting an internship during your second or third year of college is the critical step.
  • You need a four-year degree in any major, though economics, finance, accounting, or mathematics makes recruiting easier.
  • Investment banking requires strong math skills, comfort with financial modeling (building spreadsheets that forecast company value), and the ability to work 60+ hour weeks.
  • The analyst role typically lasts two to three years before you move up to associate, and most people use it as a stepping stone to private equity, hedge funds, or corporate finance roles.
  • Networking and informational interviews with current bankers matter as much as your GPA, because banks want to hire people they have already met.

Getting the degree and choosing your major

You need a four-year bachelor's degree from an accredited university. Investment banks do not have a strict major requirement, but some majors make recruiting easier. Economics, finance, accounting, and mathematics are the most common paths. Physics and engineering also work well because they signal strong quantitative skills. Business administration is common but slightly less preferred because it is less specialized.

Your GPA matters, but not as much as you might think. Most banks have a minimum GPA cutoff around 3.5, but once you are above that, other factors matter more: whether you have done an internship, whether you have worked on real financial models, and whether you know someone at the bank. A 3.7 GPA with no internship will lose to a 3.5 GPA with a strong summer at a smaller bank.

The school you attend does matter. Investment banks recruit heavily from a small list of universities: the Ivies, Stanford, MIT, University of Chicago, Northwestern, Michigan, and a handful of others. If you go to a school not on that list, you can still get in, but you will need to work harder on networking and internships. Many successful bankers went to state schools, but they usually had an internship at a smaller firm first.

Landing a summer internship during college

The summer internship is the real gatekeeping step. Banks run formal recruiting programs, usually called Summer Analyst or Summer Associate programs, that hire college students for 10-week internships between sophomore and junior year, or between junior and senior year. These internships pay well (often $20,000 to $30,000 for the summer) and are the main pipeline into full-time analyst roles.

Recruiting for these internships happens in the fall of the year before you want to intern. So if you want to intern the summer after sophomore year, recruiting happens in the fall of sophomore year. You will explore through the bank's careers website, submit a resume and cover letter, and if you pass the initial screen, you will interview. The interviews are usually two rounds: a phone or video screen with a recruiter, then a final round with two or three bankers.

The interviews test three things: whether you understand basic finance and accounting, whether you can do math quickly, and whether you can talk about why you want the job. You should be able to explain what a balance sheet is, what EBITDA means, and how to build a straightforward three-statement model (an income statement, balance sheet, and cash flow statement linked together). You do not need to be an informed, but you need to show you have studied.

If you do not get into a bank's formal program, you can still get experience. Smaller regional banks, boutique investment banks, and corporate finance teams at large companies all do similar work and hire interns. One summer at a smaller firm makes you much more competitive for the next cycle at a larger bank.

Building financial modeling skills before and during your internship

Investment bankers spend a huge amount of time building financial models in Excel. A model takes a company's historical financial statements and projects them forward, then calculates what the company might be worth under different scenarios. You need to be comfortable with this before you interview, and you will get much better at it during your internship.

Before you explore for internships, spend time learning Excel and financial modeling. There are free resources online: YouTube channels dedicated to modeling, free courses on platforms like Coursera, and practice problems. The goal is not to be perfect, but to show in your interview that you have tried. If you can build a straightforward model from scratch in an interview setting, you will stand out.

During your internship, you will build models constantly. You will learn how to value a company using different methods (discounted cash flow, comparable companies, precedent transactions), how to build a merger model that shows what happens when two companies combine, and how to present your work to senior bankers and clients. This is where you actually learn the job.

Moving from internship to full-time analyst role

If you perform well during your summer internship, the bank will usually offer you a full-time analyst position starting after you graduate. This offer typically comes in the middle of your internship, so you will know before the summer ends. If you do not get an offer from your internship bank, you can still recruit for analyst roles at other banks, but it is harder because you are competing against people who already have a bank's endorsement.

The analyst role is the entry-level position for college graduates. You will work on the same kinds of models and deals you worked on as an intern, but with more responsibility. You will have your own projects, manage junior interns, and present to clients. The hours are long: 60 to 80 hours per week is normal, with occasional weeks that stretch to 100 hours during deal closing.

Most analysts stay for two to three years, then move on. Some get promoted to senior analyst, but most leave for other roles: private equity, hedge funds, corporate finance at a large company, or business school. Investment banking is often used as a credential and training ground rather than a lifetime career.

Understanding the different types of investment banks

Not all investment banks are the same size or pay the same. The largest banks are called "bulge bracket" firms: Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America, Citigroup, and a few others. These banks have the most prestige, the highest pay, and the most competitive recruiting. They also have the longest hours and the most intense culture.

Below that are "middle market" banks like Lazard, Evercore, and Centerview Partners. They do similar work but on smaller deals, pay slightly less, and have slightly better hours. They are still very competitive to get into, but they are a realistic option if you do not get into a bulge bracket bank.

Below that are "boutique" banks that specialize in specific industries or deal types. These banks are easier to get into, pay less, but still give you real experience. Many successful bankers started at a boutique bank, did well, and moved to a larger bank after a year or two.

The bank you start at matters for your first job, but it matters less for your second job. If you do good work at a boutique bank, you can move to a middle market bank. If you do good work there, you can move to a bulge bracket bank. The path is longer, but it is possible.

Networking and informational interviews

Investment banks are relationship-driven businesses, and recruiting reflects that. Your resume and interview performance matter, but so does whether you know someone at the bank. An informational interview with a current banker can lead to a referral, which moves your resume to the top of the pile.

Start networking early. Reach out to alumni from your school who work in investment banking, ask them for 20 minutes on the phone, and ask them about their job and how they got there. Most people will say yes. During the call, ask what skills matter most, what they wish they had known before starting, and whether they know anyone in recruiting you should talk to. At the end, ask if they would be willing to refer you when recruiting opens.

You can also network at conferences, case competitions, and finance clubs at your school. The goal is not to pitch yourself, but to have genuine conversations with people who do the work. If you seem interested and thoughtful, they will remember you when recruiting season comes around.

Frequently Asked Questions

Do I need to go to an Ivy League school to become an investment banker?

No, but it makes it easier. Banks recruit heavily from a small list of schools, and if you go to one of those schools, you will have more recruiting events and more access to bankers. If you go to a school not on that list, you can still get in, but you will need a strong internship at a smaller bank first, and you will need to network harder. Many successful bankers went to state schools.

What if I did not get an internship during college?

It is much harder to get hired as an analyst without an internship, but not impossible. You can try to get a job at a smaller bank or in corporate finance first, do well for a year or two, then move to investment banking. You can also try to get a post-college internship at a smaller bank, then recruit for analyst roles. The path is longer, but it exists.

How much do investment banking analysts actually make?

Base salary for an analyst at a bulge bracket bank is typically $85,000 to $100,000 per year. Bonus varies widely depending on the bank, the year, and the deal flow, but can range from $50,000 to $150,000 or more. Total compensation for a first-year analyst at a top bank is often $150,000 to $200,000. Smaller banks pay less, usually $60,000 to $80,000 base with smaller bonuses.

Is investment banking worth the long hours?

That depends on your priorities. The pay is high, the experience is intense, and it opens doors to other lucrative careers. But the hours are genuinely long, the work can be repetitive, and the culture at some banks is demanding. Many people do it for two to three years to build their resume and network, then move to a job with better hours. Some people love it and stay longer.

Can I get into investment banking if I am not a math person?

Investment banking requires comfort with numbers and spreadsheets, but not advanced mathematics. You need to understand basic accounting, be able to build a financial model, and be comfortable with financial concepts. If you are willing to study and practice, you can develop these skills even if math was not your strongest subject in high school.