The Ultimate Guide on How to Become an Investment Banker

With sleek suits, high-stakes deals, and the art of maneuvering colossal sums of money, investment banking is a career path with glamor and challenges. If you’re captivated by its allure, you’re most likely pondering how to carve your niche in this high-octane world.
This blog is your roadmap, a comprehensive guide to all your questions on how to become an investment banker. We will delve into the qualifications required to enter this competitive field, the time investment needed to build a successful career, and the strategies for securing a coveted position within an investment bank. Additionally, we’ll compare the earning potential of investment bankers to that of chartered accountants. It will provide valuable insights to help you make informed decisions about your career trajectory.
What Does an Investment Banker Do?

An investment banker plays a crucial role in the financial world, helping companies raise capital. They advise on mergers, acquisitions, and other financial transactions. Firstly, they assess a company’s financial needs and devise strategies to meet those goals, often through issuing stocks or bonds. After evaluating potential risks, they guide clients through the complex process of securing financing. Additionally, investment bankers conduct thorough market research to identify opportunities and assess economic trends. Consequently, they provide valuable insights that help businesses make informed decisions. Investment bankers are key players in facilitating large-scale financial operations, thereby driving growth and innovation in the economy.
Qualifications Required: How to Become an Investment Banker?
So, what does it take to get set on the track of how to become an investment banker? Let’s break down the essential qualifications:
1. Educational Foundation
A solid academic background is the cornerstone for building a successful investment banking career. While there’s no one-size-fits-all degree, certain disciplines provide a strong foundation. Majors in finance, economics, or business administration are often preferred due to their emphasis on financial analysis, market dynamics, and business operations. These programs equip aspiring investment bankers with the fundamental knowledge required to understand complex financial concepts and make informed decisions.
Moreover, a minor in mathematics or statistics can be a valuable asset. These subjects enhance quantitative skills, which are essential for financial modeling, data analysis, and risk assessment. A strong grasp of numbers is indispensable for anyone aiming to excel in the world of investment banking.
2. University Prestige
While academic excellence is paramount, the institution you attend can also play a role in your journey to becoming an investment banker. Top-tier universities often have strong alumni networks within the financial industry, providing graduates with valuable connections and increased visibility. Consequently, these institutions may offer more opportunities for internships and entry-level positions at prestigious investment banks. However, it’s important to note that exceptional performance and a strong academic record can open doors, regardless of the university you attend.
3. Essential Skill Set
Beyond academic qualifications, there are specific skill sets that are crucial for success in investment banking. Firstly, a deep understanding of financial modeling and valuation techniques is indispensable. These skills enable investment bankers to analyze companies, assess their financial health, and determine their fair value. Secondly, exceptional communication skills are essential for effectively conveying complex financial information to clients and colleagues. The ability to articulate ideas clearly and concisely is vital in building relationships and closing deals.
Furthermore, strong analytical and problem-solving abilities are indispensable. Investment bankers often face complex challenges that require critical thinking and innovative solutions. Additionally, teamwork and collaboration are essential, as investment banking involves working closely with colleagues to achieve common goals. Finally, resilience and the ability to thrive under pressure are crucial attributes for navigating the fast-paced and demanding environment of investment banking.
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How Long Does It Take to Become an Investment Banker?
The timeline for how to become an investment banker varies depending on several factors, including educational choices and career progression:
A. Educational Foundation
A bachelor’s degree, typically in finance, economics, or business administration, is the foundational requirement. This typically takes four years of full-time study. To enhance your profile and career prospects, you might consider pursuing an advanced degree, such as an MBA or a Master’s in Finance. These programs generally require an additional 1 to 2 years of study.
B. Work Experience and Certifications
Gaining relevant work experience through internships during your undergraduate studies can significantly boost your chances of securing an entry-level position. Additionally, professional certifications like the Chartered Financial Analyst (CFA) can enhance your expertise and credibility. However, obtaining a CFA designation is a time-consuming process that can take several years.
How Do You Get Into Investment Banking?
Here’s where the rubber meets the road. How to become an investment banker involves a strategic approach.
1. Networking
Investment banking is a relationship-driven industry. Start building your network early. Attend industry events, connect with professionals on LinkedIn, and reach out to your university alumni who work in investment banking. Let them know about your interest and ask for informational interviews.
2. Target Your Job Search
Research about investment bank jobs and identify their specific requirements. Tailor your resume and cover letter for each application, highlighting the skills and experiences that align with the specific role. Highlight your internship experiences and educational background.
3. Prepare for Interviews
Investment banking interviews are notoriously rigorous. Be prepared for technical questions that assess your financial modeling and valuation skills. Additionally, practice behavioral interview questions that delve into your teamwork, problem-solving abilities, and work ethic.
4. Ace the Assessments
Many investment banks administer online assessments that gauge analytical and problem-solving skills. Familiarize yourself with common assessment formats and practice sample tests online.
Remember, the earlier you start preparing, the better. Network during your college years and actively seek internship opportunities. This will give you a head start on how to become an investment banker and give you an edge.
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Who Earns More: CA or Investment Banker?
Once you have figured out how to become an investment banker, the next question is how much can you earn. The age-old question of whether a CA or an investment banker commands a higher salary is a complex one. It is influenced by factors like experience, location, and specific roles within each profession.
Investment Banking Salaries
Investment bankers working in top-tier firms in major financial hubs like Mumbai command substantial salaries, often supplemented by significant bonuses. Entry-level investment banking roles offer lucrative compensation packages commanding around ₹7-₹20 lakh per year, according to Glassdoor, attracting ambitious individuals. However, the demanding work hours and intense pressure are factors to consider.
CA Salaries
Chartered Accountants in high-demand specializations like taxation or auditing also enjoy competitive salaries. It averages around ₹8-₹13.5 lakh per annum, as per Glassdoor. While the earning potential might not match that of investment bankers, CAs often have a more stable work-life balance. Moreover, with experience and specialization, CAs can build successful practices or climb the corporate ladder to leadership positions. This leads to a substantial long-term earning potential.
Comparative Analysis
To make a precise comparison, it’s essential to analyze specific roles, experience levels, and geographic locations. While investment banking often offers higher starting salaries and potential bonuses, CAs with significant experience and specialization can command comparable or even higher compensation packages in the long run. Ultimately, the choice between the two professions should be based on individual career goals, risk tolerance, and work-life balance preferences.
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The path to becoming an investment banker is demanding yet rewarding. It necessitates a strong academic foundation, a specific skill set, and an unwavering dedication. While the journey might be challenging, the potential income is substantial. To enhance your chances of success, consider supplementing your education with specialized training. Emeritus offers a range of online finance courses designed to equip aspiring investment bankers with the necessary knowledge and skills. If the alluring prospect of playing a part in shaping the global economy has ever made you wonder how to become an investment banker, enroll with Emeritus today to be a part of this elite club!
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