Investment banking is not a field you enter through a single path, but most people start with a bachelor's degree, then move into an analyst role at a bank, and build from there.
Investment banking involves helping companies and governments raise money, buy other companies, or restructure their finances. The work is technical, involves long hours, and requires comfort with financial modeling and client relationships. Unlike some finance careers, you cannot start as an investment banker without first working as an analyst or associate — the entry-level roles that teach you the actual work.
The typical route is: undergraduate degree (any major, though finance or economics is common) → analyst position at an investment bank → business school (MBA) → associate or vice president role. Some people skip the MBA and move up through analyst ranks, but most banks expect it within five to seven years. The timeline from college to a senior role is usually ten to fifteen years.
Key Takeaways
- Investment banking analyst roles are the entry point, and most require a bachelor's degree but not a specific major.
- You build a resume through internships during college, which is how most banks identify and hire their analysts.
- The work involves financial modeling, pitch books, and client meetings — skills you learn on the job, not in school.
- An MBA from a recognized program is expected if you want to move beyond analyst level, though the timing varies by bank.
- Networking with people already in banking is often more effective than applying through a bank's website.
What you need before applying for an analyst role
Banks hire analysts straight out of college, so your first step is finishing a bachelor's degree. The major does not matter — banks hire economics majors, engineers, history majors, and business majors. What matters is your GPA (most banks want 3.5 or higher), your ability to pass a background check, and whether you have done an internship in finance or banking.
The internship is the real gatekeeper. Most analysts are hired from the pool of summer interns who worked at the same bank or a competitor. If you did not intern during college, you can still apply for analyst roles, but you will be competing against people who already know the work and have relationships with the hiring team. Your resume needs to show some financial knowledge — coursework in accounting, finance, or economics helps, as does any experience with spreadsheets or financial analysis.
You should also be prepared to discuss why you want investment banking. Banks ask this in interviews, and the answer matters less than showing you understand what the job actually is. Many candidates say they want to work in finance without knowing the difference between investment banking and other finance roles. Reading about recent deals your target bank worked on, and being able to discuss them, makes a real difference.
How to get an internship during college
Investment banking internships are competitive and usually filled through recruiting events, campus connections, and online applications. Most banks recruit on college campuses in the fall for summer internships. If your school does not have a strong finance program, you are at a disadvantage, but not disqualified — you just have to reach out to banks directly.
Start by going to the careers page of banks you are interested in (JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and Lazard are the largest, but regional banks also hire). Look for "summer analyst" or "summer intern" positions. Apply through their website, but also try to connect with someone who works there — a recruiter, an alumnus from your school, or someone you meet at a finance conference. A referral from someone inside the bank makes your application much more likely to be reviewed.
During the internship, your job is to learn the work and make a good impression. You will build financial models, prepare presentations, and do research. You will also work long hours. If you perform well and the bank has budget to hire analysts, you may receive an offer before the internship ends. If not, the internship still counts as real experience on your resume for future applications.
What the analyst role teaches you
As an analyst, you are not advising clients or making decisions. You are building the financial models and documents that senior bankers use to advise clients. You might spend a week building a spreadsheet that models what a company's finances would look like after a merger, or preparing slides for a pitch to a potential client. The work is detail-oriented and repetitive, but it teaches you how deals actually work.
Analyst roles typically last two to three years. During this time, you learn financial modeling (building spreadsheets that forecast company performance), valuation (calculating what a company is worth), and how to work under pressure. You also learn whether you actually like the work — many people find the hours unsustainable or realize they do not enjoy the type of problem-solving involved. This is normal, and leaving after two years is common.
Your analyst years also build your network. You work with senior bankers, meet clients, and connect with other analysts at your bank and competitors. These relationships matter when you apply for your next role, whether that is business school or a move to another bank.
Business school and moving up
After two to four years as an analyst, most people pursue an MBA before moving into associate or vice president roles. The MBA is not strictly required — some analysts move up without one — but most banks expect it, and it significantly increases your earning potential. Top MBA programs (Harvard, Stanford, Wharton, Chicago Booth, Columbia) are preferred, but banks also hire from other strong programs.
You do not have to attend business school immediately after your analyst role. Some people work for a few more years, save money, and then apply. Others go straight through. The timing depends on your goals, finances, and how competitive you want to be for senior roles.
After business school, you return to banking as an associate, which is a step up from analyst. Associates manage analysts, work more directly with clients, and take on larger pieces of deals. The path from associate to vice president to managing director follows a similar pattern — you build expertise, manage people, and develop client relationships.
Skills you need to develop
Financial modeling is the core skill. You need to be comfortable building spreadsheets that forecast company performance, calculate valuations, and show the financial impact of different scenarios. This is taught on the job, but you can learn the basics through online courses or textbooks before you start. Many candidates learn Excel through YouTube tutorials or courses on platforms like Coursera.
Accounting knowledge helps significantly. You do not need to be an accountant, but you should understand how to read financial statements (income statements, balance sheets, cash flow statements) and what they mean. A single accounting course in college is usually enough, or you can learn through self-study.
Communication matters more than many candidates realize. You will present your work to senior bankers and clients. Being able to explain a complex financial model clearly, in writing and verbally, is a skill that separates good analysts from great ones. This develops over time, but practicing presentations and writing clearly in college helps.
Alternative paths into investment banking
If you did not intern during college or did not study finance, you can still enter investment banking, but it is harder. Some banks have "experienced hire" programs for people with two to five years of work experience in other fields — consulting, accounting, or corporate finance roles. These programs are smaller and more competitive than the college recruiting pipeline, but they exist.
You can also start in a related role and move into investment banking. Working in corporate finance at a large company, in equity research, or in private equity can give you financial skills and credibility that makes you attractive to investment banks. The move is not automatic, but it is possible.
Some people also start at smaller or regional banks and move to larger ones. A regional bank may be easier to enter, and after two to three years of solid work, you can apply to a larger bank's analyst program or move into a more senior role elsewhere.
Frequently Asked Questions
Do I need a finance degree to work in investment banking?
No. Banks hire analysts with degrees in any major. What matters is your GPA, your ability to learn financial concepts quickly, and ideally an internship or coursework that shows you understand finance basics. Many successful bankers studied engineering, economics, or liberal arts.
How much do investment banking analysts make?
Analyst salaries vary by bank and location, but most large banks pay a base salary in the range of $80,000 to $100,000, plus a bonus that can equal or exceed the base salary in good years. Smaller banks and regional banks typically pay less. The hours are long, so the hourly rate is often lower than it appears.
Can I get into investment banking without an MBA?
Yes, but it limits your advancement. You can move from analyst to associate without an MBA, but most senior roles (vice president and above) expect one. Some people stay in analyst-level roles or move to other finance careers instead of pursuing business school.
What if I did not intern during college?
You can still apply for analyst roles, but you will be competing against candidates who interned. Emphasize any finance coursework, financial analysis experience, or relevant projects. Consider applying to smaller banks or regional offices where competition is lower, or look for "experienced hire" programs if you have work experience in a related field.
How long does it take to become a managing director?
The typical path is analyst (two to three years), MBA, associate (three to five years), vice president (three to five years), senior vice president, and then managing director. The full timeline is usually fifteen to twenty years from college graduation, though it varies by bank and individual performance.