An Investment banking career is one of the highest-paying paths in the finance world, with starting salaries around $100,000 per year and total compensation often reaching much higher. It plays an important role in helping companies raise funds, manage large transactions such as mergers and acquisitions, and develop strategic financial decisions. Big names like Goldman Sachs, Morgan Stanley, and JPMorgan Chase lead the industry, working with some of the world’s largest businesses.
Imagine you’re the owner of a growing company with a major project ahead — to maximize profit and reduce risk, turning to an investment bank could be your smartest move. This article uncovers how to become an investment banker, what the job involves, and why it remains a top career choice in finance.
Table of Contents
Who is an Investment Banker?
An investment banker is a money expert who helps big businesses, governments, and organisations expand their wealth and tackle big financial deals. They’re like trusted advisors, linking these groups with investors and guiding them to make wise choices with their cash.
Step-by-Step Guide to Becoming an Investment Banker
The blog’s most crucial question is about to be addressed. Although you were eagerly looking forward to this section, the topic of investment banks and their bankers was just as essential. To begin with, Investment banks, however, have a long list of requirements when it comes to hiring employees. How about starting with the most basic necessity that is required to be an investment banker?
Below is the step-by-step road map on how to become an investment banker:
Step 1: Choosing the Right Education to Advance Your Career
- Bachelor’s Degree – A degree in finance, economics, business, accounting, or mathematics is preferred. Degrees in data science or computer science are increasingly valued due to the rise of fintech and quantitative finance roles.
- Top Universities Matter – Investment banks mostly prioritise people from Ivy League schools or globally renowned institutions like Stanford, MIT, Oxford, or INSEAD.
- MBA – An MBA from a good business school like Harvard, Wharton, or London Business School makes it more likely to be chosen.
- Alternative Paths – Being certified in ESG (Environmental, Social, Governance), CFA (Chartered Financial Analyst), or FRM (Financial Risk Manager) can help if one has not opted for an MBA.
Tip: Gain some practical financial knowledge through financial internships as well as networking events in college years.
Step 2: Must-Have Skills to Excel in Investment Banking
To succeed as an investment banker, a blend of technical and soft skills has to be developed.
Technical Skills:
- Financial Modeling & Valuation – Learn the Discounted Cash Flow (DCF) Analysis and Comparable Company Analysis (CCA) along with Precedent Transactions Analysis. Familiarity with Python or R for financial modeling is increasingly expected, especially for tech-driven roles.
- Excel & PowerPoint Mastery – With investment banking, advanced Excel skill is required for financial modeling, as well as a suitable level of PowerPoint skills for presentations. Knowledge of BI tools such as Tableau or Power BI is beneficial for data visualization.
- Accounting & Financial Analysis – Anyone should be able to analyze statements of balance, profit and loss, and cash flow.
- M&A and IPO Process – Study the process of mergers, acquisitions, and public offerings.
- Market Trends & Economics – Be aware of global financial market developments, economic trends, and investment opportunities. Understanding AI-driven market analysis tools is now a competitive advantage.
Soft Skills:
- Communication & Negotiation – Capable of expressing financial information both verbally and in writing with clarity.
- Analytical Thinking – Expertise in critical thinking for AI-augmented decision-making is increasingly valued.
- Attention to Detail – Slight inaccuracies in monetary reports may result in losses amounting to millions of dollars.
- Resilience & Time Management – It is vital to have excellent patience and time management skills, as investment banking requires extensive work hours and working within very short deadlines. Adaptability to hybrid and remote work models and collaboration tools (e.g., Slack, Zoom) is now essential.
Tip: Register yourself for an Investment Banking Certification Program, such as Intellipaat’s Investment Banking Course, to gain knowledge.
Step 3: Gain Practical Experience Through Internships and Entry-Level Positions
- Internships Carry Weight – Most investment banks recruit full-time analysts through internship programs.
- Summer internships, particularly the Goldman Sachs Summer Analyst Program, give on-the-job training. Fintech enterprises and boutique banks also provide competitive internships in digital finance and ESG deals.
- Start as a Financial Analyst – The majority of investment bankers begin their careers as analysts in corporate finance or asset management.
- Work at Boutique Investment Banks – If you are unable to secure a position with a large company, begin at a boutique or midsize investment bank and work your way up. These organizations usually offer more hands-on business experience, which is beneficial for professional development.
Use your LinkedIn and alumni networks to land a summer job at a top bank.
Step 4: Build a Strong Professional Network for Career Growth
- Participate in Networking Events and Finance Conferences: CFA Institute Conferences and Wall Street Prep Seminars provide an excellent chance to network with recruiters.
- Online Participation in Finance Communities: Join investment banking discussions on LinkedIn, Reddit, and Quora.
- Find a Mentor – Learn from experienced investment bankers who can help your professional growth.
Use cold emails to contact recruiters and industry professionals about job openings and mentorship. Personalise outreach by creating expert correspondence using AI tools like Grammarly or ChatGPT while ensuring authenticity.
Step 5: Apply for Investment Banking Jobs and Succeed in Interviews
For the investment bank interview questions, gain insider access via platforms like Intellipaat.
Essential Skills for Becoming an Investment Banker in 2025
Investment bankers cannot be the ones who use hit-and-trial methods. Investment bankers must possess a variety of skills in order to excel in both their own growth and their clients’ profits.
Some of the skills required to become an investment banker include:
Technical Skills:
1. Financial Modeling:
Financial modeling is the process of developing accurate spreadsheets displaying a company’s financial performance. These models are used to evaluate business scenarios, make investment decisions, and determine business values during mergers and IPOs. Key techniques include Discounted Cash Flow (DCF), Comparable Company Analysis (CCA), and Precedent Transactions.
2. Excel & PowerPoint:
Investment bankers rely significantly on Excel to create and manage financial models. Advanced Excel skills, including pivot tables, VLOOKUP, macros, and advanced formulas, are required. PowerPoint is used to develop proposals and client presentations; therefore, clarity, structure, and visual appeal are essential. Both of these tools constitute the foundation of daily IB work.
3. AI & Fintech:
With the rise of automation, many investment banks are using AI tools to track market trends, forecast stock performance, and manage risk. Knowledge of fintech platforms, AI-powered valuation tools, or programming languages such as Python and R gives you a competitive advantage, especially in tech-driven or quantitative finance fields.
4. ESG Knowledge:
Investors and regulators are putting more emphasis on environmental, social, and governance (ESG) issues. Investment bankers are now focusing on ESG transactions such as green bonds and sustainability-linked IPOs. Understanding ESG standards and indicators is essential for guiding clients who want responsible investing and ethical business practices.
5. Blockchain & DeFi:
Blockchain technology and DeFi (Decentralized Finance) have changed the future of finance. Investment bankers who understand the principles of blockchain, such as digital assets, smart contracts, and tokenization, are better positioned to engage with clients interested in these new financial models.
Soft Skills:
1. Communication:
Investment bankers must present complicated financial information to customers, senior bankers, and cross-functional teams with confidence and clarity. This includes both verbal interaction in meetings and written communication via reports, emails, and pitch books.
2. Networking:
In investment banking, relationships drive deals. The capacity to build and maintain professional relationships with colleagues, customers, alumni, and recruiters is important. Strong networking skills may help with employment opportunities, customer referrals, and mentorship.
3. Adaptability:
New technologies, market crashes, laws, and other changes all lead to fast-paced change in the finance industry. Investment bankers must quickly adjust to changing conditions, tools, and client needs. This covers the shift to hybrid work patterns, virtual meetings, and new collaboration tools.
4. Time Management:
The deadlines in investment banking are severe. You may need to finish a presentation overnight or work on several agreements at once. One of the most important soft skills to learn in this fast-paced industry is time management, which must be done with accuracy and quality.
Why Choose Investment Banking in 2025?
Investment banking is the process of raising money, advising on mergers and acquisitions (M&A), and managing financial risks for businesses, governments, and investors. It is essential for making strategic financial decisions and implementing large-scale corporate transformation.
If you want to learn how to become an investment banker, you must first understand the role’s global reach and local importance. Investment bankers work on IPOs and billion-dollar mergers, among other significant financial transactions.
1. Lucrative Salaries
Investment banking offers some of the most profitable careers in the financial business. Even entry-level analysts can earn total salary packages ranging from $150,000 to $300,000 per year, with senior-level positions offering millions.
2. Global Impact
Investment bankers work on high-stakes deals that shape global economies, advising on mergers, acquisitions, IPOs, and large-scale investments. Their work directly influences markets, industries, and corporate growth worldwide.
3. Dynamic Environment
No two days are the same in investment banking. The fast-paced, high-pressure setting keeps professionals constantly engaged with live deals, financial modeling, market analysis, and client meetings.
4. Career Progression
The industry provides a clearly-defined profile for professional advancement-from analyst to associate, vice president, director, and finally managing director. Levels of advancement are matched by levels of performance and networking. Advancement can be quick and extremely rewarding.
Transitioning from another career to investment banking might seem difficult, but with the appropriate technique, it is entirely doable. Professionals in consulting, accounting (Big 4 companies like Deloitte and PwC), technology and data science, and entrepreneurship often achieve successful transitions due to strong foundations in strategy, finance, or innovation. To get started, focus on mastering financial modeling, valuation, and M&A analysis through courses like Intellipaat’s Investment Banking Certification. Develop your abilities in PowerPoint, Excel, corporate finance, and market research. Earning a CFA or MBA provides enormous benefits. Network regularly on LinkedIn, go to industry events, and seek positions such as Financial Analyst or IB Associate to gain relevant experience.
What Does an Investment Banker Do?
Investment bankers strategize to maximize client value through:
- Capital Raising: Issue IPOs, bonds, or equity to fund growth.
- M&A Advisory: Guide companies on mergers, acquisitions, or divestitures.
- Financial Analysis: Perform valuations using DCF, CCA, and precedent transactions.
- Risk Management: Mitigate financial risks in volatile markets.
- Client Relationships: Develop trust with stakeholders and partners.
Types of Investment Banks
Banks that provide service of investment solutions are primarily categorized into four types. These four types of investment banks are the following:
| Type |
Explanation |
| Bulge Bracket Investment Banks |
The best-known investment firms worldwide are covered by the Bulge Bracket Bank, which handles billion-dollar transactions regularly. Compared to other banks, they have the strongest brand value.
Example: Goldman Sachs and JP Morgan
|
| Elite Boutique Investment Banks |
They frequently pay their staff more than any other bank, including those with the highest brand value like Bulge Bracket banks.
Example: Lazard LLC, Moelis & Company, and Evercore Group LLC
|
| Regional Boutique Investment Banks |
These banks do not specialize in any particular industry or product. They work on a variety of projects for various local clients.
Example: Raymond James and Robert W. Baird
|
| Middle Market Investment Banks |
These focus on providing financial advice and assistance to small and growing enterprises. They typically serve middle-class clients and regional businesses.
Example: Jefferies and Macquarie
|
Future Trends in Investment Banking
The world of investment banking is changing fast. With new technologies growing a priority on sustainability, and a change in how people invest money, the industry is moving in a completely new direction. If you’re planning a career in this field or simply curious about where it’s heading, here are the important trends shaping the future of investment banking:
1. Fintech and Automation Are Reshaping the Industry
Conventional banking processes are being replaced by smarter, faster solutions. Investment bankers use artificial intelligence and automation to evaluate huge datasets, manage portfolios, and even predict market behavior. This allows people to make better, faster decisions.
2. ESG is No Longer Optional
ESG factors are becoming more important in finance. Investment banks are now advising companies on how to raise funds in an ethical, sustainable, and socially responsible manner. Deals that take into account climate impact or community welfare are becoming increasingly popular.
3. Digital Assets and Blockchain Are Creating New Opportunities
From cryptocurrency to tokenized assets, digital finance is growing. Investment bankers are looking into how blockchain technology can improve transparency and speed up transactions. Many major banks already provide crypto-related services to their customers.
4. Growing Focus on Indian and Emerging Markets
India is experiencing rapid growth in startups, IPOs, and digital infrastructure. Global banks are expanding their presence here, while local banks are rapidly growing. If you’re wondering how to become an investment banker in India, now is the time—opportunities are expanding by the day.
5. Hybrid Work and Global Collaboration
Following the pandemic, many investment banking teams now use hybrid models. Virtual meetings, cloud-based data rooms, and multinational transaction teams are the new normal. The capacity to cooperate across borders without being in the same office is becoming an essential skill.
Conclusion
Investment banking is one of the most rewarding and competitive jobs in the financial industry. Whether you’re a new student or a professional looking to change careers, the path is clear: build strong financial foundations, get practical experience, and constantly improve your skills in areas such as AI, ESG, and fintech. With India and other emerging countries on the rise, the demand for skilled investment bankers will only increase. If you’re serious about becoming an investment banker in India or all over the world, now is the time to get started. The opportunities are numerous, and the future is promising.
How To Become An Investment Banker – FAQs
1. Is 25 too late to get into investment banking?
Not at all! Many people start around 25, especially after doing an MBA or working in fields like consulting or accounting. What really matters is your skills and how motivated you are. If you’re ready to learn and work hard, 25 is a great time to start.
2. Is an investment banker a stressful job?
Yes, it can be quite stressful. Investment bankers often work long hours, handle high-pressure deals, and meet tight deadlines. But if you enjoy fast-paced environments, problem-solving, and big challenges, it can also be very exciting and rewarding.
3. Is it hard to become an investment banker?
Becoming an investment banker is not easy, as it demands long work hours, great competition, good technical skills, and an educational background.
4. What companies hire investment bankers?
Top companies hiring investment bankers, according to Glassdoor, are J.P. Morgan, Goldman Sachs, Citi, etc.
5. How long does it take to become an investment banker?
To become an investment banker, you will need to complete education, projects, and necessary internships, investing approximately 5+ years.
6. How much money can I make as an investment banker?
According to AmbitionBox, the average annual salary in India is about INR 3 lakh to 62 Lakh, and according to Glassdoor, the average annual salary in the US is 145,190 dollars to 200,000 dollars.
7. What are examples of investment banks?
Some of the top examples of investment banks are JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Credit Suisse, and Deutsche Bank
8. How to become an investment banker after the 12th?
To become an investment banker after 12th, start by choosing to pursue a relevant bachelor’s degree like B.Com, BBA, or Economics. Focus on building finance skills such as Excel, stock market basics, and financial modeling. Get practical experience through internships in finance or banking. For better career growth, consider higher studies like an MBA or CFA. Finally, apply for analyst roles and grow your network in the finance industry.