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

Investment banking is not the same as retail banking, where you open a checking account or get a mortgage. Investment bankers help large companies, governments, and wealthy individuals buy and sell other companies, raise money by issuing stocks or bonds, or restructure their finances. The work involves financial analysis, deal negotiation, and client relationship management.

The typical path to investment banking starts with a bachelor's degree, usually in finance, economics, accounting, or business. After graduation, most people enter as an analyst — the entry-level position where you build financial models, prepare presentations, and support senior bankers on deals. From there, the progression moves to associate, then vice president, then managing director, though each step takes several years and involves both technical skill and client management.

The timeline from high school to your first banking job is usually four years (college) plus six months to a year of job searching and interviewing. Moving from analyst to associate typically takes three to four years. This is not a fast career to enter, but the structure is predictable.

Key Takeaways

  • A bachelor's degree in finance, economics, or accounting is the standard entry point, and most investment banks recruit directly from college campuses.
  • Investment banking analyst is the entry-level role where you start after graduation, and you will spend your first two to three years building financial models and supporting deal teams.
  • Internships during college — especially summer internships between junior and senior year — are how banks identify and hire future analysts, so starting to look in your sophomore or junior year matters.
  • You will need to pass the Series 7 and Series 63 exams (securities licenses) after you are hired, which your employer will pay for and help you study for.
  • The job requires strong Excel skills, comfort with financial analysis, and the ability to work long hours during deal periods, not just a degree.

The degree and major that opens the door

Investment banks hire almost exclusively from four-year universities, and they focus on specific majors. Finance, economics, accounting, and business administration are the standard paths. Some banks also hire from mathematics, physics, or engineering programs if you have taken finance coursework, but these are less common routes.

The degree itself matters less than where you get it and what you do during college. Banks recruit heavily from universities they consider "target schools" — typically large state universities with strong business programs and Ivy League schools. If you attend a target school, the bank sends recruiters to campus, holds information sessions, and reviews resumes from your career office. If you attend a non-target school, you will need to network more actively, attend finance conferences, or reach out to alumni who work in banking.

Your GPA matters in your first two years of college because banks use it as a screening tool. Most require a 3.5 or higher to be considered for internships, though this varies by bank and by how strong the rest of your profile is. After you land an internship, GPA becomes less important — your actual work experience takes over.

Internships are how banks hire analysts

Investment banks do not post open analyst positions and wait for applications the way other employers do. Instead, they identify future analysts through internship programs. A summer internship between your junior and senior year of college is the most direct path to an analyst offer.

These internships typically run 10 to 12 weeks during the summer, pay between $15,000 and $25,000 for the summer (this varies by bank and location), and involve real work on real deals. You will build financial models, create pitch books (presentations used to win clients), and attend client meetings. At the end of the internship, the bank decides whether to extend a full-time offer for after graduation.

To land an internship, you need to start looking in the fall of your junior year. Most banks open applications in September or October for the following summer. You will submit a resume, cover letter, and sometimes a short process form. Some banks also require you to complete a short online assessment testing your math and financial reasoning. If you pass the initial screen, you will interview — usually two rounds, one with an analyst or associate and one with a managing director or senior banker.

If you do not land an internship at a major bank, smaller regional banks, boutique investment banks, or corporate finance roles at large companies can also lead to analyst positions. The path is longer and less direct, but it is possible.

What you need to know before you interview

Investment banking interviews test three things: your understanding of finance, your ability to think through a business problem, and whether you fit the culture of the team. You will be asked about current events in business and finance, why you want to work in banking, and technical questions about how financial statements work.

The technical questions are often called "fit" questions in banking. You might be asked: "Walk me through a three-statement model" (connecting a company's income statement, balance sheet, and cash flow statement). Or: "If a company's revenue grows 10 percent but net income falls, what could explain that?" These are not trick questions — they test whether you understand how businesses make money and how to read financial documents.

You should also prepare to discuss a company or deal you find interesting. This shows you have thought about why banking appeals to you beyond the salary. Read the business section of major newspapers, follow financial news, and be ready to talk about a recent merger, IPO, or restructuring that caught your attention.

Practice your answers out loud before the interview. Banking interviews are conversational, not scripted, and interviewers can tell the difference between someone who has thought through an answer and someone who is reciting something memorized.

The skills you will actually use on the job

Excel is the primary tool of investment banking. You will spend hours building financial models — spreadsheets that project a company's future financial performance or calculate the value of a deal. You need to be comfortable with formulas, pivot tables, and the ability to build a model from scratch quickly. If you do not know Excel well before you start, your first months will be steep.

Financial analysis is the second core skill. You need to understand how to read an income statement, balance sheet, and cash flow statement; calculate financial ratios like debt-to-equity or return on equity; and explain what those numbers mean about a company's health. This is taught in college accounting and finance courses, but you will deepen it significantly on the job.

Communication is the third skill, and it is often overlooked by people focused on the technical side. You will write executive summaries, create presentations, and explain complex financial concepts to clients who may not be finance experts. Clear writing and the ability to distill a complicated analysis into a one-page summary matter as much as the analysis itself.

Finally, you need stamina. Investment banking involves long hours during deal periods — 60 to 80 hour weeks are common for analysts during active transactions. This is not sustainable forever, which is why most people do not stay in banking for their entire career, but you need to be honest with yourself about whether you can handle it for three to five years.

Licenses and certifications you will need

After you are hired as an analyst, your employer will require you to pass the Series 7 and Series 63 exams. These are securities licenses administered by FINRA (the Financial Industry Regulatory Authority). They test your knowledge of securities regulations, investment products, and ethical standards for people who sell or advise on investments.

Your bank will pay for the exam fees and provide study materials. You typically have three to six months to pass both exams after you start. Most people pass on the first attempt if they study consistently. The exams are not trivial — they require real preparation — but they are not barriers to entry if you put in the work.

Some banks also encourage or require the CFA (Chartered Financial Analyst) designation, though this is more common for people moving into research or portfolio management roles. As an analyst, you will not be expected to have it, but some people start studying for it while working because it strengthens your resume if you move to a different finance role later.

Alternative paths if the traditional route does not work

Not everyone gets a summer internship at a major bank, and that is okay. There are other ways to become an investment banker, though they take longer.

Corporate finance roles at large companies teach you many of the same skills — financial modeling, deal analysis, and how companies raise money. If you can move from corporate finance into banking, you will have relevant experience and will be hired at a higher level than an analyst (often as an associate).

Roles at smaller regional banks or boutique investment banks also lead to analyst positions. These banks may not have the same prestige as Goldman Sachs or Morgan Stanley, but they do real investment banking work and hire analysts. The path to partnership or senior roles may be different, but you are still in the industry.

Some people also move into banking from accounting firms or consulting firms. If you work at a Big Four accounting firm (Deloitte, PwC, EY, KPMG) or a management consulting firm, you build financial and analytical skills that banks value. You can then move into banking, often at the associate level rather than analyst level.

Frequently Asked Questions

Do I need an MBA to become an investment banker?

No. Most people enter banking with a bachelor's degree and start as analysts. An MBA is useful later if you want to move into senior management or a different finance role, but it is not required to start. Many analysts work for three to four years, then pursue an MBA if they want to move up or switch careers.

What if I did not major in finance or economics?

You can still enter banking if you have taken finance and accounting coursework and can demonstrate financial knowledge in interviews. Engineering, mathematics, and physics majors sometimes move into banking, especially if they have strong analytical skills. It is harder than coming from a target school with a finance degree, but not impossible.

How much do investment banking analysts make?

Analyst salaries vary by bank and location. At major banks in New York, the base salary is typically $80,000 to $100,000, with a bonus that can equal or exceed the base salary in strong years. Regional banks and smaller firms pay less. Compensation is higher in New York and London than in other cities.

Do I have to work 80-hour weeks forever?

No. The long hours are heaviest during deal periods, which are not constant. Some weeks are slower. Also, the hours are most intense in the analyst role — as you move up to associate and vice president, you manage people and deals rather than building models yourself, so the day-to-day schedule changes. Many people leave banking after three to five years because the hours are not sustainable long-term.

What is the difference between investment banking and wealth management?

Investment banking helps companies and governments raise money and do deals. Wealth management advises wealthy individuals on how to invest their money. They are different businesses within the same bank, require different skills, and have different career paths. Make sure you understand which one interests you before you interview.