How to Become an Investment Banker: Education, Licensing, and Career Entry Points

Investment banking requires a bachelor's degree, financial industry licensing, and entry through analyst or associate roles at a bank

Investment banking is not a single job title you can apply for directly. It is a career path within financial institutions where you help companies and governments raise capital, merge with other firms, or restructure their operations. The route in starts with a four-year degree, moves through licensing exams, and typically begins with an analyst or associate position at a bank's investment banking division.

The path takes time. Most people spend two to three years as an analyst, then move to associate, then to vice president. You cannot skip the early roles or test directly into senior positions. Banks hire from specific schools and through specific recruiting windows, and the process is formal enough that timing matters.

Key Takeaways

• A bachelor's degree in finance, economics, accounting, or business is the standard entry point; investment banking does not hire people without one.
• You must pass the Series 7 and Series 63 licensing exams after you are hired, not before, because your employer pays for the exam fees and study materials.
• Investment banks recruit analysts directly from college through on-campus recruiting in the fall, or through internship programs during the summer before your senior year.
• The first role is analyst, which typically lasts two to three years; you cannot move to associate or higher without completing this step.
• Networking and internships during college matter more than your specific major, because banks care about your ability to model financial statements and pitch deals.

What degree you need and where to get it

Investment banks do not require a specific major, but they hire overwhelmingly from finance, economics, accounting, and business programs. A bachelor's degree from any accredited four-year university is the minimum. Many analysts come from non-finance majors—engineering, mathematics, physics—but you will need to demonstrate financial knowledge during recruiting.

The school you attend matters more than the major. Investment banks recruit heavily from a small set of universities: the Ivies, Stanford, MIT, University of Chicago, Northwestern, Michigan, and a handful of others. This does not mean you cannot break in from elsewhere, but it means you will face more competition and may need stronger internship experience to compensate. Banks have dedicated recruiting teams at target schools and conduct on-campus interviews in the fall.

During college, take courses in financial accounting, corporate finance, and financial modeling if your school offers them. These are not required for hiring, but they signal that you understand the work. More important is an internship at an investment bank, a private equity firm, or a corporate finance department during the summer before your senior year.

How to land an internship and analyst role

Investment banking recruiting happens on a fixed calendar. Banks begin recruiting for summer internships in the fall of your junior year, with interviews in November and December. If you do well in the internship, the bank will often offer you a full-time analyst position to start after graduation. This is the most common entry route.

If you do not land an internship, you can still recruit for analyst roles directly from college. Banks conduct on-campus recruiting in the fall of your senior year, with offers coming in December and January for positions starting in June or July. The process is competitive: you will submit a resume, pass a phone screen, complete a case study or modeling test, and then interview with senior bankers.

Your resume should highlight any finance-related work, leadership roles, and quantitative skills. Banks care about your ability to build financial models and understand how companies make money. If you have not done this work yet, spend the summer before recruiting learning Excel and financial modeling through online courses or textbooks. This is not optional—banks will test you on it.

Licensing exams you will take after you are hired

You do not need any licenses before you are hired. Investment banks will hire you as an analyst, then require you to pass the Series 7 and Series 63 exams within your first year. Your employer pays for both exams and provides study materials. You typically take the Series 7 first, then the Series 63 within a few months.

The Series 7 is the General Securities Representative Exam. It covers securities products, trading rules, and compliance. The exam is six hours long and costs around $300, though your bank covers this. Most people study for four to eight weeks using materials their employer provides. You must pass it to work on deals that involve selling securities.

The Series 63 is the Uniform Securities Agent State Law Exam. It covers state securities laws and regulations. It is shorter than the Series 7 and typically easier. You take it after you pass the Series 7. Both exams are administered by FINRA, the Financial Industry Regulatory Authority.

What the analyst role actually involves

As an analyst, you will spend most of your time building financial models in Excel, preparing pitch books for client meetings, and working on transaction documents. You will model how a company's finances might look under different scenarios, build valuation analyses, and create presentations that senior bankers will show to clients. The work is detail-oriented and repetitive at first.

Analysts typically work long hours, especially when deals are active. A normal week might be 60 to 70 hours; during deal closings, it can stretch to 80 or more. You will work nights and weekends. This is not a secret—banks are explicit about it during recruiting. The pay is high relative to other entry-level jobs, but the hours are the trade-off.

After two to three years as an analyst, you can move to associate. Associates manage analysts, work more directly with clients, and begin to develop their own deal ideas. The path from analyst to associate is not automatic—you need to perform well and often need to pass additional exams or complete an MBA.

MBA and advanced credentials

An MBA is not required to start in investment banking, but many people pursue one after a few years as an analyst. Some banks have programs where they will pay for your MBA if you commit to returning to the bank afterward. Others expect you to pay for it yourself or attend a part-time program while working.

If you want to move into senior roles—vice president, managing director—an MBA from a top program (Harvard, Stanford, Wharton, Chicago Booth) becomes increasingly common. However, you can reach associate and even vice president without one. The MBA is more important if you want to move into private equity or hedge funds later, or if you want to work at a smaller or regional bank.

Beyond the Series 7 and 63, you may eventually take the Series 65 (Uniform Investment Adviser Law Exam) if you move into advisory roles, but this is not required for most investment banking positions.

How investment banking differs by bank size and type

Bulge bracket banks—Goldman Sachs, JPMorgan, Morgan Stanley, Bank of America Merrill Lynch, Citigroup—have the most formal recruiting processes and the highest pay. They recruit from target schools and hire large analyst classes each year. The work is prestigious but the hours are long and the competition is intense.

Middle-market banks like Lazard, Evercore, and Centerview Partners are smaller and sometimes offer better work-life balance, though the pay is lower. They recruit from a broader set of schools and sometimes value relevant work experience more than pedigree.

Regional banks and boutique firms hire fewer analysts but may be more willing to take people from non-target schools if you have strong internship experience or connections. The work is similar, but you may have more exposure to specific industries or deal types.

Frequently Asked Questions

Do I need to study finance in college to become an investment banker?

No. Banks hire people from any major, including engineering, math, and liberal arts. What matters is that you understand financial concepts, can build Excel models, and have done an internship in finance or a related field. You can learn the technical skills during college or before recruiting.

Can I break into investment banking without going to a target school?

Yes, but it is harder. You will need a strong internship at a bank or in corporate finance, excellent modeling skills, and often a personal connection to someone at the bank. Recruiting from non-target schools is less formal, so networking and cold outreach matter more than they do at target schools.

What happens if I fail the Series 7 or Series 63 exam?

You can retake it. Most people pass on the first attempt if they study for four to eight weeks using their employer's materials. If you fail, you typically have 30 days before you can retake it. Your bank will support you through the retake. Failing does not end your career, but it delays your progression.

How much do investment banking analysts make?

Base salary varies by bank and location, but typically ranges from $80,000 to $130,000 for first-year analysts at bulge bracket banks. Bonuses are usually larger than base salary and depend on the bank's performance and your individual performance. Total compensation for analysts often exceeds $150,000 in strong years.

Is investment banking the only way to work in finance?

No. Private equity, hedge funds, corporate finance, asset management, and commercial banking are all finance careers with different paths and requirements. Investment banking is one route, and it is often a stepping stone to other finance roles, but you do not need to do it to work in finance.