How to Become an Investment Banker: Career Path, Skills, Qualifications and Salary

Investment banking is a competitive finance career involving capital raising, mergers and acquisitions (M&A), initial public offerings (IPOs) and financial advisory. However, entering this field can be confusing for students and graduates because there is no single investment banker qualification or fixed career route. Questions about which degree to pursue, what skills to develop, whether an internship is necessary, and how qualifications such as an MBA or CFA fit into the process can make career planning difficult.

So, how to become an investment banker? A relevant degree, financial modelling skills, practical internship experience and an entry-level analyst role can provide a strong starting point. Additional qualifications can support career progression.

What Is Investment Banking?

Investment banking is a specialised area of finance that helps companies raise capital and manage major financial transactions. Investment bankers advise businesses on fundraising, issuing securities, IPOs, mergers and acquisitions (M&A).

Key areas include:

• Initial Public Offerings (IPOs)

• Mergers and acquisitions (M&A)

• Debt and equity fundraising

• Securities underwriting

• Corporate financial advisory

• Company valuation

• Financial analysis

• Capital markets

Unlike retail banking, which mainly serves individuals and businesses through services such as loans and savings accounts, investment banking focuses on corporate finance, securities and major transactions.

How to Become an Investment Banker?

There is no single route to becoming an investment banker; education, technical skills, internships, and experience all play a role. A step-by-step pathway is: 

Step 1: Get a Relevant Degree

A bachelor's degree can provide the academic foundation needed for entry-level investment banking opportunities. Commonly relevant fields include:

• Finance

• Accounting

• Economics

• Mathematics

• Business

• Statistics

• Other quantitative or finance-related disciplines

During graduation, students should build knowledge of:

• Financial statements

• Accounting

• Corporate finance

• Valuation

• Economics

• Financial markets

• Statistics

A finance degree is useful, but it is not the only possible academic route. Students from mathematics, economics, accounting or other quantitative disciplines can also develop the finance knowledge needed for investment banking.

Step 2: Build Investment Banking Skills

Investment banking requires both technical and professional skills. Among the most important technical abilities for entry-level roles is financial modelling. Financial modelling involves using financial information, assumptions and calculations to analyse a company's performance, valuation or potential transaction.

Key technical skills include:

• Financial analysis: Understanding income statements, balance sheets, cash flow statements and financial ratios.

• Financial modelling: Building and analysing models used for forecasting, valuation and transaction analysis.

• Valuation: Understanding methods used to estimate the value of companies and financial assets.

• Excel: Using spreadsheets for financial analysis, calculations and modelling.

• Accounting: Understanding how business transactions affect financial statements.

• Research: Collecting and analysing company, industry and market information.

• Presentation skills: Preparing clear financial presentations and transaction materials.

Communication, attention to detail, teamwork, time management and problem-solving are equally important. Investment banking teams often work on time-sensitive assignments, so professionals must be able to analyse information accurately while working to deadlines.

Step 3: Gain Investment Banking Internship Experience

An internship can be one of the most useful ways to understand investment banking before applying for a full-time role.

An investment banking internship may provide exposure to:

• Financial modelling

• Company research

• Industry analysis

• Valuation

• Transaction-related work

• Financial presentations

• Data collection

• Client-related projects

Internships can help you understand how financial concepts are applied to real companies and transactions. They can also strengthen a graduate CV by demonstrating practical exposure beyond classroom learning.

Step 4: Start as an Investment Banking Analyst

For many graduates, the investment banking analyst role is the first full-time position in the profession. Analysts generally support senior professionals on financial and transaction-related assignments. Their responsibilities can include:

• Collecting financial information

• Analysing company data

• Building financial models

• Supporting valuation analysis

• Preparing presentations

• Conducting industry research

• Analysing potential transactions

• Organising information for senior team members and clients

The analyst stage can involve significant learning because professionals are exposed to real businesses, financial data, transactions, deadlines and client requirements.

Step 5: Consider an MBA or Advanced Degree

A bachelor's degree can be sufficient to pursue entry-level investment banking opportunities. However, some professionals choose to pursue an MBA or another advanced qualification later in their careers.

An MBA can provide exposure to:

• Corporate finance

• Accounting

• Financial markets

• Strategy

• Business management

• Leadership

• Corporate decision-making

An MBA can be particularly relevant for professionals seeking certain post-MBA investment banking opportunities or those looking to change their career direction.

Step 6: Consider the CFA Charter

The CFA Charter is an optional professional qualification that can strengthen knowledge of financial analysis, investment management and financial markets. However, CFA is not compulsory for becoming an investment banker.

The CFA Program has three exam levels. To earn the Charter, candidates must:

• Pass all three CFA exams

• Complete the required qualifying work experience

• Become a CFA Institute member

• Complete at least 4,000 hours of relevant work experience over a minimum of 36 months

The curriculum covers areas such as:

• Financial statement analysis

• Economics

• Equity investments

• Fixed income

• Derivatives

• Alternative investments

• Quantitative methods

• Corporate finance

• Portfolio management

• Ethics

Those exploring the qualification can learn about the CFA Level I Exam and review the CFA Level I Syllabus.

CFA preparation can strengthen finance knowledge, but passing the exams does not guarantee an investment banking role. Skills, internships, experience and recruitment performance remain important.

What Skills Are Required to Become an Investment Banker?

The skills required for investment banking include a mix of financial knowledge, technical expertise and professional abilities.

Technical Skills

• Financial modelling

• Financial statement analysis

• Company valuation

• Accounting

• Corporate finance

• Excel

• Market research

• Data analysis

• Understanding of capital markets

Professional Skills

• Communication

• Attention to detail

• Time management

• Teamwork

• Problem-solving

• Presentation skills

• Ability to work under deadlines

• Ability to manage multiple assignments

Technical knowledge helps analysts perform financial work, while professional skills are important when working with teams, senior professionals and clients.

How Long Does It Take to Become an Investment Banker?

There is no fixed timeline for becoming an investment banker. Some graduates can enter an analyst role soon after completing a relevant bachelor's degree, while others may take longer to gain experience or complete an MBA or professional qualification.

A 4–6 year period can be considered a broad estimate for becoming established in the field, but the actual timeline varies based on:

• Educational background

• Internship and work experience

• Financial modelling and technical skills

• Recruitment opportunities

• MBA or other qualifications

• Career progression

Therefore, the time required depends more on gaining the right education, skills and practical experience than completing a specific qualification within a set period.

How Much Does an Investment Banker Earn?

Investment banking compensation generally includes a base salary and performance-linked bonuses. However, there is no single salary that applies to all investment bankers.

Compensation can vary based on:

• Job title

• Experience

• Employer

• Location

• Type of investment bank

• Individual performance

• Firm performance

• Bonus structure

Analysts and senior professionals can have different compensation structures, and bonuses may form a significant part of total compensation at some firms.

Can a Non-Finance Graduate Become an Investment Banker?

Yes, non-finance graduates can pursue investment banking by building the required finance knowledge and technical skills.

Key areas to learn include:

• Accounting and financial statements

• Valuation

• Corporate finance

• Financial modelling

• Economics

• Capital markets

A non-finance graduate can enter investment banking by building relevant finance knowledge, technical skills and practical experience.

What Is the Career Path of an Investment Banker?

Investment banking typically follows a progression from entry-level roles to senior positions with greater responsibility.

Intern → Analyst → Associate → Vice President → Director → Managing Director

Professionals may also move into:

• Private equity

• Asset management

• Corporate finance

• Venture capital

• Equity research

• Corporate development

• Financial advisory

Career progression depends on experience, skills, performance and career goals.

Is CFA Required to Become an Investment Banker?

No, CFA is not required to become an investment banker. However, it can strengthen knowledge of investment analysis, financial markets and related finance concepts.

Candidates can enter investment banking through a relevant degree, internships, technical skills and practical experience. CFA is an optional qualification and does not guarantee an investment banking role.

For CFA preparation, PW CFA Batches provide course options, while PW CFA covers CFA-related learning and examination information.

Investment Banking vs Other Finance Careers

Investment banking is one of several career options within finance. The main difference is the type of work involved.

These fields can overlap in terms of financial knowledge, but their day-to-day responsibilities and career paths can differ.

Investment Banking Skills vs Qualifications

A successful investment banking profile usually combines qualifications with practical abilities.

No single item in this table guarantees employment. The value of each depends on the candidate's career stage and target role.

Becoming an investment banker requires a combination of relevant education, financial knowledge, technical skills and practical experience. A relevant degree can provide the foundation, while internships and entry-level analyst roles offer valuable industry exposure. An MBA or CFA Charter can support career development but is not compulsory. With consistent skill development and relevant experience, professionals can progress from analyst roles to senior positions in investment banking.