What investment banking actually requires
Investment banking is not a single job title — it is a set of roles in firms that help companies and governments raise money, buy and sell each other, and manage large financial transactions. To work as an investment banker, you need a bachelor's degree (usually in finance, economics, or business), entry-level work experience in finance or a related field, and the ability to pass a background check. Most people start as analysts or associates at a bank, not as bankers themselves.
The path is longer than many careers because banks use a specific hierarchy and expect you to move through it. You cannot walk in with just a degree and become an investment banker. You start as an analyst (two to three years), move to associate (two to three years), then to vice president, and eventually to managing director. Each step requires you to have done the previous one at a bank or a closely related firm.
The timeline from degree to your first banking job is typically four to six months if you start recruiting while still in school, or longer if you are already working elsewhere and need to switch. The timeline from analyst to a role where people call you a banker is five to ten years.
Key Takeaways
- A bachelor's degree in finance, economics, business, or accounting is the standard entry point, though some banks hire from other majors if you have strong math skills and finance coursework.
- Investment banking analyst roles are the only realistic entry point for most people; you cannot skip this step or enter at a higher level without prior banking experience.
- Recruiting for analyst positions happens on a fixed calendar — most banks hire in fall for summer internships and full-time roles starting the following year.
- You will need to pass a Series 7 or Series 63 securities license exam after you are hired, which your employer will prepare you for and pay for.
- The job involves long hours (60 to 80 per week is common), travel, and detailed financial modeling; it is not a desk job where you manage money for clients.
The degree you need and how to choose a school
You need a four-year bachelor's degree. The major does not have to be finance or business — some banks hire people with degrees in mathematics, physics, or engineering — but you must have completed coursework in financial accounting, corporate finance, and ideally financial modeling or valuation. If your degree is not in a business field, you will need to show that you took these classes and did well in them.
The school matters less than you might think. Large investment banks recruit from a wide range of universities, not just Ivy League schools. They do focus on schools with strong finance programs and a track record of placing students in banking roles. If you are at a school that does not have a banking pipeline, you will need to work harder to get noticed — through networking, internships at smaller firms, or a summer analyst program at a regional bank.
What matters more than the school name is your GPA (most banks want 3.5 or higher), your internship history, and your ability to talk about financial concepts in an interview. If you are still in school, your most important move is to land a summer internship at a bank or a related firm (private equity, hedge fund, or corporate finance department) before your junior year. That internship is often the direct path to a full-time analyst offer.
Summer internships and how they lead to jobs
A summer internship at an investment bank is the clearest route to a full-time analyst role. Most banks run formal summer analyst programs that last ten to twelve weeks, usually between May and August. During that time, you work on real projects — building financial models, preparing pitch books for client meetings, analyzing companies for potential deals. At the end, the bank decides whether to extend you an offer for a full-time analyst role starting after graduation.
The recruiting process for these internships starts in the fall of your junior year. Banks hold information sessions on campus, you submit a resume and cover letter, and if you pass the initial screen, you interview with current analysts and associates. The interviews focus on your understanding of finance, your ability to work through a valuation problem, and whether you can explain why you want to work in banking.
If you do not land a banking internship, a summer role in corporate finance (at a large company), private equity, or a smaller investment bank still counts as relevant experience. When you apply for analyst roles after graduation, you will be competing against people who interned at Goldman Sachs or Morgan Stanley, but you can still win if you can show you did real financial work and learned the tools.
The recruiting calendar and how to apply
Investment banks recruit on a fixed schedule. Full-time analyst recruiting for positions starting the following year happens in the fall (September through November). If you are a junior in college, you are recruiting for a summer internship in the fall of that year, and then for a full-time role in the fall of your senior year. If you are already out of school and working elsewhere, you can still apply, but you will be competing against recent graduates and you may need to take a step back (from associate to analyst) depending on your background.
The major banks (Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America, Citigroup, Barclays, Credit Suisse, Lazard) all recruit through their careers websites. Smaller regional banks and boutique investment banks also hire analysts, often with less competition. You can also work with a recruiter who specializes in banking placements — they have relationships with banks and can sometimes get your resume in front of the right person faster than applying online.
The application itself is straightforward: resume, cover letter, and an online form. The resume should be one page, list your education, internships, and relevant skills (Excel, financial modeling, valuation methods), and include a few bullet points about what you did in each role. The cover letter should explain why you want to work at that specific bank and what you know about their business.
Interviews and what they test
Investment banking interviews have two main parts: behavioral questions and technical questions. Behavioral questions ask about your experience — a time you worked on a team, a time you solved a problem, why you want to work in banking. Technical questions ask you to work through a financial problem, usually on paper or a whiteboard. A common one is: "Walk me through a three-statement model" or "How would you value this company?"
You will interview with analysts and associates, not senior bankers. They are testing whether you can think clearly under pressure, whether you understand how financial statements work, and whether you can explain your reasoning. They are not testing whether you know the answer — they are testing how you think. If you get stuck, say so and ask for a hint. If you make an assumption, state it out loud.
Preparation for these interviews involves studying financial modeling (building a spreadsheet that projects a company's future cash flows and values it), memorizing the three main financial statements (income statement, balance sheet, cash flow statement), and practicing case questions. Many people use books like Vault Guide to Finance Interviews or online resources like Wall Street Prep to prepare. You should spend four to eight weeks on this if you are serious about the role.
Licenses and certifications after you are hired
Once you are hired as an analyst, your employer will require you to pass the Series 7 (General Securities Representative Exam) or the Series 63 (Uniform Securities Agent State Law Exam) within a set timeframe, usually within your first year. These are exams administered by FINRA (Financial Industry Regulatory Authority). Your bank will pay for the exam and provide study materials. You will have a few months to prepare and take the test.
The Series 7 is the more comprehensive exam and covers securities products, trading, and regulations. The Series 63 covers state securities laws and is shorter. Which one you need depends on your bank's business and your specific role. Both are multiple-choice exams that take a few hours. Passing is not optional — it is a requirement to work in investment banking.
After you become an associate (usually after three years as an analyst), you may pursue the Chartered Financial Analyst (CFA) designation, though it is not required. Some people do this, some do not. It takes three years of study and passing three exams, and it is more common in asset management than in investment banking.
What the job actually involves day to day
As an analyst, you spend most of your time building financial models in Excel, preparing presentations for clients, and analyzing companies. A typical project might be: a client company wants to buy another company, and your team needs to figure out what price makes sense. You build a model that projects the target company's cash flows, calculate what it is worth, and present that to the client. The work is detailed and repetitive, but it teaches you how to think about business and money.
The hours are long — 60 to 80 hours per week is normal, and during busy periods (when deals are closing or pitches are due) you might work much more. You will have nights and weekends interrupted by work. You will travel to client meetings, sometimes on short notice. The pay is good (base salary plus bonus, often totaling $150,000 to $250,000 for an analyst in a major city), but you are paying for it with your time.
The job is not about managing money for clients or making investment decisions. That is wealth management or asset management. Investment banking is about structuring deals, raising capital, and advising companies on big financial moves. If you love spreadsheets, problem-solving, and the idea of working on transactions that reshape industries, it can be rewarding. If you want a job with predictable hours or a focus on client relationships, this is not it.
Frequently Asked Questions
Do I need an MBA to become an investment banker?
No. Most people enter investment banking with a bachelor's degree and start as analysts. Some people get an MBA later, after working as an analyst for a few years, to move into more senior roles or to switch to private equity or hedge funds. An MBA is not a requirement to start, and many successful bankers never get one.
What if I did not intern at a bank during college?
You can still become an analyst, but you will be competing against people who did intern. Your best move is to take a job in corporate finance, accounting, or a related field for one to two years, build your financial modeling skills, and then apply to analyst programs. Some banks have programs specifically for people who are a few years out of school.
Can I transfer into investment banking from another finance job?
Yes, but the timeline depends on your current role. If you are in corporate finance or accounting, you can move to an analyst role after two to three years. If you are in a completely different field, you may need to take a step back or spend time building your financial skills first. Recruiters can tell you whether your background is competitive for the roles you are targeting.
How much does the location of the bank matter?
Major investment banks have offices in New York, London, Hong Kong, and other financial centers. New York is the largest hub. Starting your career in a major financial center gives you access to more deals and more senior bankers to learn from. Regional offices exist but have fewer opportunities. Most analysts start in a major city and may move later.
What happens if I do not pass the Series 7 exam?
You get to retake it. Most people pass on the first or second attempt if they study. Your bank will support you through the process and give you time to prepare. Failing is not career-ending, but passing is a requirement to keep your job, so you will need to pass eventually.