Investment banking requires a bachelor's degree, financial certifications, and entry through analyst or associate programs at banks
Most investment banks hire college graduates into analyst roles, where you work two to three years before moving to associate. You'll need a degree in finance, economics, business, or mathematics—though banks also hire from engineering and physics. During college, you build a resume through internships at banks or financial firms, which is often how you get hired full-time. After your analyst years, you can pursue an MBA if you want to move into senior roles, though some people advance without one.
The path is competitive because the pay is high and the roles are visible. Banks screen heavily on GPA (usually 3.5 or higher), test scores, and internship history. You'll also need to pass the Series 7 and Series 63 exams—securities licenses that your employer will pay for and require you to complete. The whole process from college entry to senior banker typically takes ten to fifteen years.
Key Takeaways
- Investment banks hire college graduates into two-year or three-year analyst programs, which is the standard entry point for most people.
- Internships during college are critical—most full-time hires come from the intern pool, so you need at least one finance internship before graduation.
- You must pass the Series 7 and Series 63 securities exams, which your employer pays for and administers after you are hired.
- An MBA is useful for moving into managing director or partner roles, but many investment bankers advance to senior positions without one.
- Your GPA, test scores, and the prestige of your college matter more in investment banking than in most other finance careers.
The analyst program: where most people start
Investment banks run formal analyst programs that hire college graduates each year. These programs last two to three years, and analysts work on deal teams, building financial models, writing pitch books, and supporting senior bankers. The work is intense—you'll often work sixty to eighty hours a week during deal cycles. Pay starts around $80,000 to $100,000 base salary plus a bonus, which can double your income in a good year.
To get into an analyst program, you apply during your senior year of college through the bank's careers website or through campus recruiting. Large banks like Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Bank of America run the biggest programs and hire the most people. Smaller regional banks and boutique firms also hire analysts, though in smaller numbers. The application includes a resume, cover letter, and online assessment, followed by phone and in-person interviews.
Banks care most about your internship experience. If you interned at another bank or in a finance role, you have a much stronger application. If you didn't intern, you need strong grades, involvement in finance clubs, and sometimes a connection through an alumnus. Many people apply to ten to twenty banks to land one offer.
Internships during college: the real screening
Investment banks use summer internships to identify future full-time hires. Most interns who perform well receive return offers—a may provide of a job after graduation. If you don't intern at a bank, you'll be competing against people who did, which makes your application much harder.
You should start looking for internships after your freshman year. Freshman internships are often at smaller firms or in operations roles rather than in deal teams, but they still count. After sophomore year, you can target larger banks and trading floors. The goal is to have at least one finance internship on your resume before you apply for full-time roles.
Internship pay varies widely—some banks pay $20 to $30 per hour, others pay $25,000 to $35,000 for a ten-week summer. The pay matters less than the experience and the return offer. If you get a return offer from a major bank, you're essentially may provide a job after graduation.
Degrees and majors that banks hire
Finance and economics majors are the most common, but investment banks also hire heavily from mathematics, physics, engineering, and computer science. They want people who can model complex problems and write code. Some banks have specific programs for computer science graduates who will work on trading systems or data infrastructure.
Your college matters more in investment banking than in most careers. Graduates from Ivy League schools, Stanford, MIT, and other top-tier universities make up a large share of analyst classes at major banks. This doesn't mean you can't get hired from a state school—you can—but you'll need higher grades, better internships, and often a personal connection to compete.
GPA is a hard filter at many banks. Goldman Sachs and Morgan Stanley often require a 3.5 or higher. Other banks are more flexible, but anything below 3.3 makes the application harder. If your GPA is lower, strong internship experience or a connection to someone at the bank can sometimes override it.
Securities licenses: Series 7 and Series 63
Before you can work on deals that involve buying or selling securities, you must pass the Series 7 and Series 63 exams. These are administered by FINRA (the Financial Industry Regulatory Authority). Your employer pays for the exam fees and study materials, and you take them after you're hired, usually within your first few months.
The Series 7 covers securities products, trading rules, and compliance. The Series 63 covers state securities laws. Each exam takes about three hours and requires a passing score of around 72 percent. Most people study for four to six weeks using practice tests and study guides provided by their bank. You can retake either exam if you fail, though most people pass on the first attempt.
Some roles, like equity research or operations, don't require the Series 7 immediately. But if you want to move into investment banking or sales and trading, you need it. Your bank will tell you which licenses you need for your specific role.
Moving from analyst to associate and beyond
After two to three years as an analyst, you can move to an associate role at the same bank or move to a different bank. Associates earn more—typically $150,000 to $200,000 base plus bonus—and have more responsibility. Some people go to business school between analyst and associate roles; others move directly up.
If you want to pursue an MBA, the time to do it is after your analyst years. Banks often sponsor employees for MBA programs, and many analysts go to top programs like Harvard, Stanford, or Wharton. An MBA is not required to become a managing director, but it's common among senior bankers. Some people skip the MBA and advance on deal experience and client relationships alone.
From associate, the path continues to vice president, senior vice president, and eventually managing director or partner. This progression typically takes another ten to fifteen years. Not everyone makes it to the top—some people leave banking for other finance roles, start their own firms, or move into corporate finance at large companies.
Alternative routes if you don't start as an analyst
If you didn't intern during college or didn't get an analyst offer, you can still enter investment banking through other paths. Some people start in operations, compliance, or technology roles at a bank and move into banking roles after a year or two. Others work in corporate finance or accounting and move to banking in their mid-twenties.
You can also start at a smaller regional bank or boutique firm, build experience, and move to a larger bank later. This is harder than starting at a major bank—your network will be smaller and you'll have fewer deal opportunities—but it's possible. Many successful bankers started at smaller firms and moved up.
If you're already out of college and didn't take the analyst route, you can still pursue banking roles, but you'll likely need an MBA or a strong track record in a related field. Some MBA programs have banking placement rates above 50 percent, which can be a way in if you're coming from outside finance.
What investment banking actually involves day-to-day
Investment bankers advise companies on mergers, acquisitions, and raising capital. As an analyst, you'll spend most of your time building financial models in Excel, creating presentations, and doing research. You'll work on multiple deals at once, and the hours are long—all-nighters are common during deal closing periods.
The work is technical and detail-oriented. You need to be comfortable with spreadsheets, financial statements, and valuation methods. You also need to communicate clearly with senior bankers and clients. The job requires both analytical skill and client-facing ability.
The culture varies by bank and by team. Some groups are collaborative and mentoring; others are more competitive. Pay is high, but the hours are demanding. Many people work in banking for five to ten years, then move to corporate finance, private equity, or other roles where the hours are better.
Frequently Asked Questions
Do I need an MBA to become an investment banker?
No. Most people enter as analysts with just a bachelor's degree. An MBA is useful for moving into senior roles or for entering banking later in your career, but it's not required to start. Many managing directors never got an MBA.
What if I didn't intern during college?
It's harder but not impossible. You'll need a strong GPA, involvement in finance clubs, and ideally a connection to someone at the bank. Some people also take a year or two in a related role—accounting, corporate finance, or operations—then move into banking roles.
How much do investment bankers make?
Analysts start around $80,000 to $100,000 base plus bonus. Associates make $150,000 to $200,000 base plus bonus. Managing directors and partners can make $500,000 to several million per year, depending on the bank and their deal flow. Bonus varies widely based on deal activity and performance.
Can I work in investment banking if I'm not from an Ivy League school?
Yes. Top-tier schools have an advantage, but banks hire from state schools and regional universities too. You'll need higher grades, better internships, and often a personal connection to compete. Networking and internship experience matter as much as where you went to school.
What's the difference between investment banking and trading?
Investment bankers advise on deals and raise capital for companies. Traders buy and sell securities for the bank's own account or for clients. Trading roles also require Series licenses and often pay more, but the hours can be different and the work is more focused on markets than on client relationships.