How to Become an Investment Banker

Revenue within the investment banking industry has been growing by 7% yearly since 2018 and is expected to surpass $456 billion in 2025, according to IBISWorld. Along with this growth is the demand for investment bankers who can provide expert guidance.

To enter this field, aspiring professionals typically need a strong educational background, along with hands-on experience.

Read on to learn more about the educational requirements, necessary skills, and career paths that can help you break into the investment banking profession.

Investment bankers play a key role in helping organizations grow financially. They can help raise capital through investments or loans, manage mergers and acquisitions, and provide expert advice to make critical financial decisions.

They can also assist companies by conducting in-depth market research, developing financial models, structuring deals, and managing relationships with clients and investors.

A typical day-to-day of an investment banker can include:

Careers in investment banking typically begin with financial analyst roles. From there, you can move up through positions at the junior, associate, senior, and director levels, each bringing more responsibilities and complex tasks as you gain experience in the field.

Here are the main steps you may follow to become an investment banker:

A bachelor’s degree in finance can provide a strong foundation for a career in investment banking. You can also consider a degree in a related discipline, such as accounting or business administration.

These degree programs typically include courses in financial analysis, accounting, economics, corporate finance, financial modeling, and investment theory, which can help you gain the skills to land an entry-level job.

As an intern, you can gain experience in market research, data analysis, and financial modeling while also learning from industry professionals and observing how investment bankers handle business transactions.

These hands-on experiences can help you develop practical skills and stand out to employers. Additionally, internships can provide valuable networking opportunities, allowing you to build relationships that can lead to future job prospects.

Some entry-level positions for investment bankers include financial analyst and research associate. You can potentially improve your chances of employment by earning high grades, completing a relevant internship, and demonstrating relevant skills during your interviews.

In addition to using job search sites, consider attending your school’s career fairs and utilizing the career services department. You can also seek guidance from professors and alumni.

The Financial Industry Regulatory Authority (FINRA) regulates investment brokers and enforces industry standards and laws.

To work legally, you’ll have to register with FINRA, a process that starts with passing the Securities Industry Essentials® (SIE®) Exam.

To complete the process, you’ll also need to pass the Series 79 Investment Banking Representative Exam, submit an application, and pay the required fees.

You don’t need an MBA or a master’s in finance degree to be an investment banker, but earning an advanced business or finance degree can improve your job opportunities and earning potential.

These degree programs can help you develop leadership and specialized finance skills, often making it easier to land entry-level roles and progress into higher-level positions.

It typically takes between 6-10 years to become an investment banker. This timeframe accounts for the four years it takes to earn a bachelor’s degree and the time needed to gain experience as a financial analyst (typically at least two years).

Depending on your employer, you may also need a master’s degree, which would add roughly another two years to your journey.

Investment banker salaries vary by employer and location, but they often earn competitive wages and bonuses compared to the average rates across all occupations.

According to the Bureau of Labor Statistics (BLS), securities, commodities, and financial services sales agents — a category that includes investment bankers — earned a median annual salary of $76,900 in 2023. By contrast, the median annual salary across all occupations was $48,060 during the same time period.

Moreover, the top 10% of earners in this occupation category earned more than $212,180 annually in 2023.