What investment bankers actually do

Investment bankers help companies and governments raise money and handle large financial deals. They don't manage your personal savings account — that's a different kind of banker. Instead, they work on things like helping a company sell shares to the public for the first time, arranging loans for a merger, or advising on whether one company should buy another.

The work is project-based and intense. You might spend weeks analyzing a single deal, writing pitch documents, and presenting to clients. When a deal closes, you move to the next one. The hours are long — 60 to 80 hour weeks are common, especially early in your career. The pay is high, but you earn it through time and stress.

Most investment bankers work at large banks like JPMorgan Chase, Goldman Sachs, Morgan Stanley, or Bank of America. Smaller regional banks and independent firms also hire investment bankers, though the work and pay differ from the big names.

Key Takeaways

  • Investment banking requires a bachelor's degree in any field, though finance, economics, or accounting makes the path clearer.
  • Most people start as an analyst right after college, work for two to three years, then move to associate roles or business school.
  • You need to understand financial modeling, valuation methods, and how to read financial statements before you interview.
  • Networking with people already in the industry is often more important than your resume alone in landing an interview.
  • The job demands long hours and high stress, so understand what you're signing up for before you pursue it.

Education and degree requirements

You need a bachelor's degree, but the field doesn't have to be finance. Banks hire people with degrees in economics, accounting, mathematics, engineering, and even history. What matters is that you can learn financial concepts and think analytically. That said, a finance or accounting degree gives you a head start because you'll already know accounting basics and financial statement analysis.

During your degree, take courses in corporate finance, financial accounting, and if available, investment banking or valuation. These aren't required, but they let you speak the language when you interview. More important than any single class is building the ability to work with numbers and understand how businesses make money.

Your GPA matters, especially for your first job. Most large banks won't interview you if your GPA is below 3.5, though smaller firms are more flexible. This is partly about filtering volume — they get thousands of resumes — and partly because they assume GPA reflects your work ethic.

Building financial modeling and valuation skills

Before you interview, you need to know how to build a financial model in Excel and how to value a company. These are the core technical skills investment bankers use every day. You don't need to be an informed, but you need to show you understand the basics.

A financial model is a spreadsheet that projects a company's future revenue, expenses, and cash flow. You build it from historical financial statements and assumptions about growth. Banks use these models to figure out what a company is worth or what price makes sense for a deal. You can learn this from YouTube tutorials, online courses, or books — search for "financial modeling for investment banking" and you'll find free resources.

Valuation methods are the formulas used to turn a model into a price. The main ones are discounted cash flow (DCF), comparable company analysis, and precedent transactions. Each one answers the question "what is this company worth?" from a different angle. You should understand how each works and when to use it. Again, free tutorials exist online, and many are made by people who worked in investment banking.

Practice building models with real company data. read financial statements from the SEC website (sec.gov) and build a model for a company you know. This is what you'll be asked to do in interviews, so the practice is direct.

Landing your first role as an analyst

Most people enter investment banking as an analyst right after college. This is a two to three year role where you build models, write pitch books, and support senior bankers on deals. It's the entry point, and almost everyone starts here.

To land an analyst role, you need to network. Send emails to people who work at banks you're interested in — find them on LinkedIn or through your college alumni network. Tell them you're interested in investment banking and ask if they have 15 minutes to talk. Most won't respond, but some will. When they do, ask what they look for in candidates and what the work is actually like. This conversation is more valuable than a resume because it gets you in front of a real person.

explore through the bank's careers website, but know that your process will likely be screened by a computer first. Use the exact job title from the posting and include keywords like "financial modeling" and "valuation" so the system flags your resume as relevant.

Attend recruiting events at your college or at finance conferences. Banks send recruiters to these events specifically to find candidates. A five-minute conversation with a recruiter at an event can lead to an interview, whereas a cold email might not.

What happens in investment banking interviews

Investment banking interviews have two main parts: behavioral questions and technical questions. Behavioral questions ask about times you solved a problem, handled conflict, or showed leadership. Technical questions ask you to value a company, explain a financial statement, or walk through a deal you've read about.

For behavioral questions, prepare stories from your work experience, internships, or school projects. Use the STAR method: describe the Situation, the Task you faced, the Action you took, and the Result. Practice telling these stories in two minutes or less.

For technical questions, you might be asked to build a straightforward model on a whiteboard or explain how you'd value a company if you had 10 minutes. You won't be expected to get the exact right answer — they want to see your thinking. Walk them through your assumptions and ask clarifying questions if the scenario is unclear.

Read recent deals in the news and understand how they work. If a company acquired another company, understand what price was paid and why. If a company went public, understand how much money it raised and what that means for the business. This shows you follow the industry and think like an investment banker.

Moving up from analyst to associate

After two to three years as an analyst, most people move to an associate role or leave to business school. An associate is a more senior position where you manage analysts, work more directly with clients, and take on bigger pieces of deals. The hours are still long, but you have more control over your time.

Some people go to business school between analyst and associate — this is common and often paid for by the bank. Others move directly to associate roles at the same bank or move to a different bank as an associate. The path depends on your performance, the bank's needs, and what you want to do next.

If you go to business school, target a top program — MBA recruiting for investment banking is heavily concentrated at schools like Harvard, Wharton, Stanford, and Chicago Booth. A degree from a less-known program makes it harder to land a top banking role, though it's still possible.

Understanding the lifestyle and deciding if it's for you

Investment banking is not a job you do from 9 to 5. Analysts regularly work until midnight or later, especially when deals are closing. You might be called on weekends. Vacation time exists on paper but is often interrupted by work emergencies. The stress is real — you're responsible for numbers that affect major business decisions, and mistakes are expensive.

The pay is good enough to offset some of this. First-year analysts at large banks earn a base salary around $100,000 to $120,000 plus a bonus that can equal or exceed the base. As you move up, the pay increases significantly. But money isn't the only reason people do this job — many stay because they enjoy the problem-solving, the client relationships, or the prestige.

Before you commit to this path, talk to people actually doing the work. Ask them what they like and what they regret. Understand that the first two years are the hardest and that the work changes if you move to associate or move to a different role. Some people thrive in this environment; others burn out. Knowing which you are before you start saves you time and stress.

Frequently Asked Questions

Do I need an MBA to become an investment banker?

No. You can start as an analyst with just a bachelor's degree. Many people go to business school after working as an analyst for two to three years, but it's not required to enter the field. Some analysts stay in banking without an MBA and move into senior roles.

What if I didn't major in finance or economics?

You can still become an investment banker. Banks hire people from all majors. What matters is that you learn financial modeling and valuation before you interview, and that you can show you think analytically. Your major is less important than your skills and your ability to learn.

How long does it take to move from analyst to associate?

Typically two to three years. Some people move faster if they perform exceptionally well or if the bank needs senior staff. Others take longer or leave for business school or a different career. The timeline varies by bank and by individual performance.

Can I work in investment banking if I'm not good at math?

You don't need to be a mathematician, but you do need to be comfortable with numbers and spreadsheets. Most of the math is basic — addition, multiplication, percentages. The hard part is understanding what the numbers mean, not calculating them. If you can learn Excel and understand financial statements, you can do this work.

What's the difference between investment banking and wealth management?

Investment bankers help companies and governments raise money and do deals. Wealth managers help rich individuals invest their money. The skills overlap, but the work is different. Investment banking is more deal-focused and project-based; wealth management is more relationship-focused and ongoing.