How to Become an Investment Banker: A Complete Guide

Introduction

One of the most profitable and competitive occupations in the financial industry is investment banking. It provides good professional advancement chances, substantial income, and the chance to work with financial institutions, governments, and large enterprises. However, a lot of prospective financial professionals wonder how to become an investment banker. The top degrees for investment banking, the necessary abilities, and expected salaries are all covered in this step-by-step guide to entering the field.

What Do Investment Bankers Do?

Before diving into the career path, it’s essential to understand what investment bankers do. Their primary responsibilities include:

Raising Capital: Assisting businesses in securing funds through stock offerings, bond issuances, or mergers and acquisitions.
Mergers & Acquisitions (M&A): Advising companies on buying or merging with other firms.
Financial Modeling & Valuation: Conducting complex analyses to evaluate companies and investment opportunities.
Risk Management: Identifying potential risks and advising on risk mitigation strategies.
Advisory Services: Offering strategic advice on business expansions, restructurings, and investment decisions.

Best Degree for Investment Banking

1. Finance & Economics

The most popular and favored degree for investment banking is a degree in finance or economics. Knowledge of corporate finance, investment techniques, and financial markets are imparted by these degrees.

2. Business Administration (BBA/MBA)

Investment banking places a high emphasis on a Bachelor of Business Administration (MBA) or Master of Business Administration (MBA), particularly from prestigious business schools.

3. Accounting

An Accounting degree helps in understanding financial statements, audits, and risk assessments, which are crucial in investment banking roles.

4. Mathematics & Statistics

Investment bankers deal with large financial data, so degrees in Mathematics, Statistics, or Data Analytics are advantageous for roles in quantitative analysis.

5. Law

A Law degree can be beneficial for legal compliance, regulatory understanding, and structuring investment deals.

Best Degree for Investment Banking in the UK

University of Oxford – BA in Economics & Management
London School of Economics (LSE) – BSc Finance
University of Cambridge – BA in Economics
Imperial College London – MSc Finance
Warwick Business School – BSc Accounting & Finance

How to Become an Investment Banker: Step-by-Step Guide

Step 1: Choose the Right Degree

Investment banks prefer candidates with a degree in Finance, Economics, Business, Accounting, or Mathematics. Consider studying at a top university to increase your chances.

Step 2: Gain Relevant Internships

Internships are crucial for breaking into investment banking. Apply for:

Spring Weeks (1st-year students) – Insight programs into the banking industry.
Summer Internships (Penultimate-year students) – Hands-on experience at leading investment banks.
Off-cycle Internships – Available throughout the year for additional exposure.

Step 3: Develop Essential Skills

Investment bankers require a strong skill set, including:

Financial Modeling & Valuation – Understanding company worth and structuring deals.
Excel & PowerPoint Proficiency – Essential for creating financial models and presentations.
Analytical & Problem-Solving Skills – Required for evaluating investment opportunities.
Communication & Negotiation Skills – Crucial for client interactions and deal-making.
Attention to Detail – Ensuring financial reports and valuations are error-free.

Step 4: Build a Strong Network

Networking is a key part of securing investment banking jobs.

Attend finance career fairs, networking events, and industry conferences.
Connect with investment banking professionals on LinkedIn.
Seek mentorship from alumni working in investment banking.

Step 5: Apply for Graduate Programs & Analyst Roles

Top investment banks in the UK, such as Goldman Sachs, JPMorgan, Morgan Stanley, Barclays, and HSBC, offer graduate analyst programs.

Research application deadlines and prepare early.
Focus on structured training programs designed for fresh graduates.

Step 6: Consider Additional Certifications

CFA (Chartered Financial Analyst) – Highly respected in investment banking and asset management.
ACA (Association of Chartered Accountants) – Useful for roles in financial auditing and advisory.
MBA from a Top Business School – Increases career opportunities in senior positions.

Investment Banker Salary

Investment banking is one of the highest-paying careers in finance. Salaries vary depending on experience, location, and bank size.

Investment Banker Salary in the UK

Job Role	Average Salary (GBP)
Analyst (Entry-level)	£50,000 – £80,000 + Bonuses
Associate (3-5 years)	£90,000 – £150,000 + Bonuses
Vice President (VP)	£150,000 – £250,000 + Bonuses
Director	£200,000 – £400,000 + Bonuses
Managing Director (MD)	£400,000 – £1,000,000+

Bonuses can double or triple base salaries, especially for top-performing bankers.

How to Become an Investment Banker in the UK

The process of becoming an investment banker in the UK involves the following steps:

Get a degree in Finance, Economics, or Business from a top UK university.
Complete investment banking internships during your studies.
Build financial modeling skills and network with industry professionals.
Apply for graduate schemes at major investment banks.
Gain experience and work your way up to senior positions.

Best Degree for Investment Banking (Reddit Community Insights)

Reddit finance and career communities suggest the following as the best degrees for investment banking:

Finance & Economics – Most relevant and direct path.
STEM Degrees (Maths, Physics, Engineering) – Valued for strong analytical skills.
Law & Accounting – Useful for investment banking legal structures.
MBA – Essential for career switchers aiming for senior roles.