Breaking into investment banking can be challenging, but it isn’t impossible with the right steps. Known for offering lucrative careers and high-profile deals, this field attracts ambitious individuals. Here's what you need to know to launch a successful career in investment banking.
What Does an Investment Banker Do?
Investment bankers help companies, governments, and institutions raise capital or explore strategic opportunities, like mergers and acquisitions. They bridge the gap between investors and businesses, requiring a mix of analytical skills, financial knowledge, and strategic thinking.
Photo by Tima Miroshnichenko.
1. Start With the Right Education
Earn a Bachelor’s Degree
Most investment bankers major in finance, economics, accounting, or business. These courses provide the technical knowledge needed in the industry. However, non-traditional backgrounds, such as engineering or law, can also work if paired with the right internships or expertise.
Advanced Degrees Are Often Helpful
While a bachelor’s degree may be enough for entry-level roles, an MBA or master’s in finance can significantly boost prospects, especially if you’re looking to advance quickly.
2. Gain Relevant Experience
Get Internships Early
Internships at investment banks provide an inside look into the field and help you build connections. Look for opportunities, even unpaid ones, to step into the world of investment banking.
Build Transferable Skills
If you’re unable to secure a banking internship, roles in consulting or corporate finance can build similar skills that are valued by banks.
3. Develop Critical Skills
Technical Skills
Master the basics of financial modeling, valuations, and Excel. These technical skills are non-negotiable for success in investment banking.
Soft Skills
This field isn’t just about numbers. Communication, teamwork, and the ability to handle high-pressure situations are essential.
4. Build a Solid Network
Networking is crucial in investment banking. Attend industry events, join relevant clubs during school, and connect with professionals on LinkedIn. Relationships can often open doors that qualifications alone cannot.
5. Craft a Standout Resume and Cover Letter
Your resume should focus on key achievements, relevant skills, and educational qualifications. Include examples of leadership, teamwork, and analytical abilities. A well-tailored cover letter should highlight why you’re a great fit for the role and firm.
6. Prepare for Rigorous Interviews
Investment banking interviews are notoriously challenging. You’re expected to answer both technical and behavioral questions. Be ready for financial analysis exercises, such as calculating valuations or creating financial models.
Use Mock Interviews
Practice mock interviews with peers or professionals familiar with the industry to iron out any rough spots.
7. Know the Entry Points
There are generally three routes into investment banking:
- Undergraduate: Most analysts are hired straight out of college through internship conversion or recruiting.
- Graduate/MBA Programs: MBA graduates often join as associates.
- Lateral Entry: This is uncommon but possible by transitioning from roles in consulting or corporate finance.
8. Certifications Can Help You Stand Out
Although not mandatory, certifications like the CFA (Chartered Financial Analyst) can signal your commitment and knowledge, giving you a competitive edge.
9. Learn the Industry Culture
Investment banking often involves long hours, tight deadlines, and high stakes. Make sure this aligns with your career aspirations before diving in headfirst.
Why Investment Banking?
For many, the draw lies in the combination of high compensation, global opportunities, and challenging work. The skills you build in banking can open doors to other industries, such as private equity, hedge funds, or corporate leadership roles.
Conclusion
Getting into investment banking takes determination, planning, and effort. Start with the right education, gain experience, and build your network—every step brings you closer to your goal. Remember, persistence and preparation are key to breaking into this competitive world. If you invest wisely in yourself, the rewards can be exponential.