In a competitive global economy, investment banking remains one of the most prestigious and rewarding careers in finance. The role is often associated with high salaries, fast-paced environments, and access to complex financial deals that shape industries and economies. For ambitious professionals, investment banking offers a strong earning potential and an exceptional exposure to global markets, influential organisations, and career advancement opportunities.
But how does one enter this competitive industry? Whether you’re considering a career change or planning your path from early on, this article will walk you through the essential steps to becoming an investment banker. You’ll discover what the job entails, the qualifications and skills you need, and how an advanced program like EDHEC’s Online MSc in Financial Management can support your journey.
What Is Investment Banking?
Investment banking is a core area within financial services that focuses on facilitating high-level financial transactions for corporations, institutions, and governments. This includes helping clients raise capital and navigate mergers, acquisitions, and other strategic deals. Investment bankers act as financial advisors, guiding clients on valuations, market trends, and optimal deal structures.
Investment Banking Meaning
While often used interchangeably with corporate finance or financial advisory, investment banking has a specific role in capital markets. It focuses on supporting large-scale financial transactions by:
- Structuring and underwriting the issuance of debt and equity instruments
- Advising on mergers, acquisitions, and corporate reorganisations
- Facilitating the sale of securities to investors
In addition, investment banks provide insight into market dynamics, regulatory frameworks, and the optimal timing for raising capital.
Types of Investment Banks
Investment banks vary in size, focus, and the range of services they provide. Understanding the different types can help you determine where your interests and skills best align:
Bulge Bracket Banks:
These are large, multinational firms like JP Morgan and Goldman Sachs. They offer a full suite of investment banking services globally and work on some of the largest and most complex deals.
Middle Market Banks:
These firms, such as Raymond James or Houlihan Lokey, focus on mid-sized clients and deals, often within specific regions or sectors.
Boutique Investment Banks:
Specialising in a narrow service area, typically M&A advisory, these firms like Evercore or Moelis & Company provide deep expertise and high-touch client service.
Elite Boutiques:
Combining the prestige of bulge brackets with a focus on advisory, elite boutiques handle high-value deals without offering the full range of banking services.
Each bank type offers a different working culture, deal exposure, and career trajectory, an important consideration for professionals entering the field.
What Does an Investment Banker Do?
Investment bankers manage large-scale financial projects such as initial public offerings (IPOs), bond issuances, corporate restructuring, and M&A deals.
Investment Banker Responsibilities:
Common responsibilities include:
- Conducting financial analysis and modelling
- Preparing pitch books and presentations for clients
- Managing due diligence processes
- Negotiating terms of deals
- Coordinating with legal and compliance teams
The role typically starts at analyst or associate level, with progression to vice president, director, and managing director roles over time.
Skills Required to Succeed in Investment Banking
Succeeding as an investment banker demands a distinct blend of technical expertise, soft skills, and the ability to thrive under pressure. Each of the following competencies plays a critical role in navigating the fast-paced and competitive industry:
- Quantitative analysis: The ability to interpret financial data and perform valuations is fundamental in assessing investment opportunities.
- Financial forecasting: Professionals must predict future financial outcomes to guide strategic decision-making.
- Strategic thinking: Investment bankers need to consider long-term goals and market dynamics when advising clients.
- Time management under pressure: Managing multiple high-stakes projects simultaneously requires excellent organisational skills.
- Communication and negotiation: Clear, persuasive communication is essential when presenting deals and negotiating terms with stakeholders.
- Attention to detail: Precision is vital when handling complex financial data, legal documents, and regulatory compliance.
Due to the intensity of the role, long workdays and tight deadlines are common—making resilience and adaptability essential.
Step-by-Step: How to Become an Investment Banker
The path to investment banking can vary between individuals. While the following steps offer a widely accepted roadmap, some professionals may enter the field through alternative routes depending on their experience, network, or niche expertise.
1. Earn a Degree in Finance or Related Field
A strong academic foundation is essential. Most investment bankers start with a bachelor’s degree in finance, economics, business or accounting. A postgraduate qualification, such as an MSc in Financial Management, can significantly enhance your credentials and readiness for technical roles.
2. Develop Technical and Analytical Skills
Investment bankers are expected to master:
- Financial modelling and valuation
- Advanced Excel and PowerPoint
- Accounting and corporate finance
- Market research and analysis
- Familiarity with key financial tools such as:
- Bloomberg Terminal: For real-time financial data, news, and trading analytics
- Refinitiv Eikon: Platform for financial analysis, market research, and deal tracking
- Capital IQ: A research analysis platform for company profiles, transactions, and market insights
- FactSet: Toolset for portfolio analysis, risk management, and market screening
A program like EDHEC’s Online MSc in Financial Management equips students with these in-demand skills through practical coursework and case-based learning.
3. Pursue Relevant Internships
Summer analyst internships at major investment banking firms are a gateway into the industry. These experiences offer a preview of the work environment and often lead to full-time analyst positions.
4. Build Experience in Finance
Early work experience in investment banking, business consulting, or private equity builds credibility. Some professionals transition from roles such as financial analyst or management consultant before entering banking.
5. Network Within the Industry
Joining reputable professional organisations, attending industry events, and leveraging alumni networks can help you connect with recruiters and professionals at top firms. EDHEC gives you access to its extensive alumni network of 60,000 professionals from day one.
6. Apply to Analyst or Associate Programs
Major investment banks offer structured entry points:
- Analyst program for recent graduates
- Associate program: often requires an MBA or master’s degree
Firms such as JP Morgan, Goldman Sachs, and Barclays have competitive graduate intake schemes.
7. Continue Developing and Advancing
After gaining experience, professionals can move into specialised roles like investment analyst, risk manager, or vice president. Progression is often performance-based and requires a combination of technical competence, deal-making ability, and leadership.
Career Opportunities and Salary Expectations
Investment banking is known for high compensation, particularly in financial centres like London. Entry-level analyst roles can command salaries, with bonuses significantly increasing total pay. Senior roles such as vice president or managing director can earn well into six figures.
Investment Banking Jobs:
- Investment banker: Oversees large-scale financial deals, including IPOs, M&A, and debt offerings, acting as a strategic advisor to clients.
- Investment analyst: Conducts financial modelling, valuations, and market research to support investment decisions and deal execution.
- Corporate finance associate: Works on capital raising, restructuring, and corporate strategy, often supporting senior bankers in transaction management.
- M&A advisor: Specialises in guiding companies through mergers, acquisitions, or divestitures by evaluating targets and structuring deals.
- Equity research analyst: Produces investment reports and forecasts for specific sectors or companies to help clients make informed trading decisions.
Take the First Step Towards a Career in Investment Banking
Becoming an investment banker requires commitment, technical expertise, and a strategic career path. Whether you’re looking to switch careers or advance within finance, investing in your education and earning a degree in finance can open doors to new opportunities in this high-impact and competitive industry.
EDHEC’s Online MSc in Financial Management offers a strategic edge. Designed to be completed while working full-time, the program provides a comprehensive understanding of key financial areas. The curriculum includes multiple courses that help you build practical, cross-functional expertise, including:
- Valuation
- Financial Planning & Forecasting
- Corporate Financial Risk Management
- Financial & Managerial Accounting
With academic rigour and practical relevance, the MSc empowers students to transition into roles in banking, finance, and beyond.
