Investment Banker Career Guide

What Does an Investment Banker Do?

Investment bankers (categorized by BLS as financial analysts) guide businesses and individuals in making profitable investment decisions. They evaluate financial opportunities, assess the performance of stocks, bonds, and other investments, and recommend individual securities and portfolios. They evaluate current and historical financial data, study economic and business trends, examine company financial statements, meet with company officials, and prepare detailed reports. Investment bankers may specialize as buy-side analysts (developing strategies for institutional investors) or sell-side analysts (advising financial services sales agents).

Education & Requirements

• Typical Education: Bachelor's degree in business or finance; many employers prefer master's degree (MBA or Master's in Finance)
• Certifications: FINRA licenses required for selling financial products; CFA (Chartered Financial Analyst) highly recommended
• Key Skills: Analytical skills, communication, computer proficiency, decision-making, detail orientation, advanced math
• Experience: None required for entry-level; internships at investment banks during college highly valued

Salary Information

According to the Bureau of Labor Statistics (May 2024 data for Financial Analysts):

• Median Annual Salary: $101,350 (financial and investment analysts)
• Entry-Level (10th percentile): $62,410
• Experienced (90th percentile): $180,550
• Top-Paying Industry: Securities and financial investments ($124,050)
• Note: Investment bankers at major firms often earn significantly more through bonuses and commissions

Job Outlook & Growth

Employment of financial analysts is projected to grow 6 percent from 2024 to 2034, faster than the average for all occupations. About 29,900 openings are projected each year. Demand will increase with overall economic activity as these workers are needed to evaluate investment opportunities for new and expanding businesses. Emerging markets worldwide are providing new investment opportunities requiring geographic expertise. Financial analysts will also be needed to assess growing volumes of data and help businesses manage finances and reduce risk.

How to Break Into This Field

1. Education: Earn a bachelor's degree in finance, economics, business, or accounting from a target school. Consider pursuing an MBA or Master's in Finance for better advancement opportunities. Maintain a high GPA (3.5+).
2. Entry-Level Roles: Secure summer analyst internships at investment banks during college (critical for full-time offers). Entry-level positions are typically Analyst programs at investment banks, which are highly competitive.
3. Build Skills: Master Excel financial modeling, valuation techniques (DCF, comparables), and presentation skills (PowerPoint). Learn accounting fundamentals and stay current on market trends. Develop proficiency in financial databases like Bloomberg and Capital IQ.
4. Network: Attend career fairs, join finance clubs, connect with alumni at target firms. The CFA Institute offers networking opportunities. Investment banking relies heavily on networking for recruitment.
5. Apply Strategically: Target bulge bracket banks (Goldman Sachs, Morgan Stanley, J.P. Morgan), boutique investment banks, or the securities/financial investments sector (23% of analyst jobs). Most work full time and many work 60+ hours per week.

Career Path & Advancement

Investment banking follows a structured hierarchy: Analyst (2-3 years) → Associate (MBA or promoted Analyst, 3-4 years) → Vice President (3-4 years) → Director/Senior VP (2-4 years) → Managing Director. Analysts start by specializing in an investment field or industry sector. With experience, they may become portfolio managers or fund managers. Many analysts exit to private equity, hedge funds, or corporate finance roles after 2-3 years. Having an MBA or CFA significantly improves advancement chances.

Pros & Cons

Related Careers

If you're interested in Investment Banker, you might also consider:

• Financial Manager (median $161,700)
• Personal Financial Advisor (median $102,140)
• Securities, Commodities, and Financial Services Sales Agent (median $78,140)
• Budget Analyst (median $87,930)