Investment banking is crowded, but not uniformly — competition is fiercest for entry-level analyst roles at the largest firms, while middle-market banks and specialized groups have thinner pipelines.
The field draws more applicants than it has seats. A single analyst class at a top-tier bank like Goldman Sachs or Morgan Stanley might receive 200,000 applications for 300 to 400 positions. But "crowded" does not mean closed. The industry is large enough that thousands of people enter it each year, and the bottleneck is sharpest at the point most people aim for — the analyst program at a bulge-bracket firm right out of college.
If you are willing to enter through a different door, the competition thins considerably. Regional banks, middle-market firms, boutique advisory shops, and specialized groups (infrastructure, energy, technology) all hire analysts and associates with less fanfare and fewer applicants per opening. The trade-off is that you may start with lower pay, less brand recognition, or a narrower deal flow — but you also face better odds of getting hired and a clearer path to promotion once you are inside.
Key Takeaways
- Entry-level analyst roles at the largest investment banks receive hundreds of thousands of applications for a few hundred positions, making them statistically difficult to land without strong credentials or connections.
- Middle-market banks, regional firms, and boutique shops hire analysts with significantly less competition and may offer comparable exit opportunities to larger competitors.
- Specialized banking groups — infrastructure, energy, technology, healthcare — often have smaller applicant pools because fewer candidates target them specifically.
- The crowding is worst at the analyst level; associate and vice-president roles have smaller applicant pools because fewer people make it that far.
- Your undergraduate institution, prior internship experience, and personal network matter more in investment banking than in most fields, so starting at a smaller firm can still lead to top-tier roles later.
Where the Real Competition Sits
The crowding is not evenly distributed. The bulge-bracket banks — Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America Merrill Lynch, Citigroup — receive the overwhelming majority of applications because they are the most recognizable names and offer the highest starting salaries. An analyst at Goldman might earn $100,000 to $110,000 base salary plus a bonus that can equal or exceed base pay in a strong year. That visibility and compensation draw applicants from every top university and many who are not at top universities.
The second tier — elite boutiques like Lazard, Evercore, and Centerview Partners — also draw heavy interest, though fewer applications than the bulge-bracket firms. They are known for strong deal flow and have built reputations as places where analysts can move into top roles at larger banks or private equity firms.
Below that, the applicant pool drops sharply. A regional bank in the Southeast, a middle-market firm focused on lower-middle-market deals, or a boutique specializing in a single sector will receive far fewer applications per opening. The pay is lower, but the odds of getting hired are substantially better, and the work itself is often more hands-on because the team is smaller.
How Your Starting Point Affects Your Path Forward
Investment banking is structured as a tournament. Analysts who perform well move to associate roles; associates who perform well move to vice-president roles; and so on. The firm you start at matters less than you might think once you are inside, because the industry values performance and deal experience over pedigree after your first job.
An analyst who spends two years at a middle-market firm doing real work on real deals can move to a bulge-bracket bank as an associate. An analyst at a regional bank who builds a strong track record can move to a better-known firm or into private equity. The path is not as direct as starting at Goldman, but it is open. What matters is that you have done actual work, closed actual deals, and can speak credibly about what you did.
The risk of starting at a smaller firm is that you may have fewer exit opportunities if you decide banking is not for you. A bulge-bracket analyst who leaves after two years can move into private equity, corporate development, or venture capital with relative ease. A regional bank analyst has a narrower set of doors that open immediately, though you can still move into those fields — it just may take longer or require more networking.
Specialized Groups and Sectors with Thinner Competition
Within investment banking, certain groups face less competition than others because fewer candidates target them. Infrastructure banking, for example, is smaller and more specialized than M&A or capital markets. Candidates who know the sector and can speak about it credibly — perhaps because they have an engineering background or prior experience in utilities or transportation — stand out immediately.
Technology banking is crowded because everyone knows it exists and it sounds interesting. Energy banking is less crowded, partly because it requires more sector knowledge and partly because fewer candidates are drawn to it. Healthcare banking sits in the middle — well-known but not as flooded as tech.
If you have genuine interest or background in a specific sector, targeting the banking group that covers it can improve your odds. You will face less competition, and your sector knowledge makes you more valuable to the bank because they do not have to teach you the basics of how the industry works.
What Credentials Actually Matter in a Crowded Field
Investment banking hiring is heavily weighted toward three things: your university, your prior internship experience, and your network. If you attended a top 20 university and have a prior banking or finance internship, you are in the top tier of applicants. If you attended a less-known school but have strong internship experience and can get a referral from someone inside the bank, you are competitive. If you have neither, you are competing against a much larger pool for a much smaller number of spots.
This is not fair, but it is how the industry works. The crowding is partly a crowding of applicants from non-target schools who have no internship experience and no connections. If you have even one of those three things, your odds improve significantly. If you have all three, you are likely to get interviews at multiple banks.
The implication: if you are serious about investment banking and you are not at a target school, your best move is to get an internship at a smaller bank or in a related field (corporate finance, private equity, hedge funds) during college. That internship becomes your credential for the analyst role. Without it, you are competing in the most crowded part of the market.
The Analyst-to-Associate Bottleneck
Another crowding point sits between analyst and associate roles. Most banks hire 300 to 400 analysts per year but promote only 50 to 100 of them to associate. This means that even if you land an analyst role at a bulge-bracket bank, you are competing with your cohort for a limited number of promotions. Some analysts are pushed out or encouraged to leave; others move to private equity or other fields; and a select group move up.
This bottleneck is less severe at smaller banks because the analyst class is smaller to begin with. A regional bank might hire 20 analysts and promote 8 to 10 of them. Your odds of promotion are better, and the competition within your cohort is less intense.
If you are thinking about investment banking as a long-term career — not just a two-year stepping stone — this matters. At a bulge-bracket bank, you may need to be in the top 20 percent of your analyst class to move up. At a smaller bank, you may need to be in the top 40 to 50 percent. Both are competitive, but one is more achievable.
Whether Crowding Means You Should Not Try
The crowding is real, but it is not a reason to avoid the field if you are genuinely interested. Thousands of people enter investment banking every year, and they do so despite the competition. The question is not whether the field is crowded — it is whether you have the credentials, the network, or the willingness to start at a smaller firm and work your way up.
If you are at a top university, have internship experience, or have a connection inside a bank, your odds are reasonable. If you are not, you can still enter the field, but you will need to be more strategic about where you target and more patient about your timeline. Starting at a regional bank or middle-market firm is not a failure; it is a different entry point that leads to the same destination.
The crowding also means that the field is selective about who it keeps. Investment banking is not just competitive to enter; it is also demanding once you are inside. The hours are long, the work is intense, and the pressure is constant. Some people who get in discover they do not want to stay. That attrition means there is always movement in the field, and movement creates opportunity for people who are willing to work hard and stay longer than others.
Frequently Asked Questions
Can I get into investment banking from a non-target school?
Yes, but you will need either strong internship experience or a personal connection inside a bank. Many analysts come from non-target schools, but most of them have prior banking or finance internships that made them competitive. Without that, you are competing in the most crowded segment of the applicant pool.
Is it easier to get hired at a smaller bank than a bulge-bracket bank?
Yes, significantly. A middle-market bank or regional firm receives far fewer applications per opening than Goldman Sachs or Morgan Stanley. The pay is lower and the deal flow may be smaller, but your odds of getting hired are substantially better, and you can move to a larger bank later if you perform well.
What happens if I cannot get promoted from analyst to associate?
Most analysts who do not get promoted move into private equity, corporate finance, or other fields. The two-year analyst role is often treated as a stepping stone rather than the start of a banking career. If you do not move up at your current bank, you can move to a different bank, a different industry, or a different field entirely.
Does the bank I start at determine my entire career?
No. Your first bank matters for your first job, but after that, your performance and deal experience matter more. An analyst at a regional bank who does strong work can move to a bulge-bracket bank as an associate. Your starting point affects your odds, but it does not lock you into a single path.
Is investment banking still worth entering if it is crowded?
That depends on your goals. If you want to work in finance and are willing to start at a smaller firm, the crowding is not a barrier. If you are set on a bulge-bracket bank and have no internship experience or connections, the crowding makes it much harder. Be realistic about your starting point and willing to take a different entry route if needed.