Securing an entry-level analyst role in investment banking is competitive and depends on a combination of academic credentials, university prestige, technical skills, and practical experience. While there is no single prescribed route, certain educational paths are more effective for breaking into this demanding industry.
Common Undergraduate Degrees for Investment Banking
The most direct academic path into investment banking is through traditional business-focused degrees. Majors in Finance, Economics, and Accounting are highly favored because their curricula are directly applicable to the daily responsibilities of a banking analyst. These programs provide a strong grounding in corporate finance, financial analysis, investment theory, and financial statement analysis. Students in these programs learn the language of the industry, making their transition into the professional environment more seamless.
Beyond the traditional route, investment banks increasingly value candidates with strong quantitative backgrounds. Degrees in STEM fields such as Mathematics, Statistics, Engineering, and Computer Science are held in high regard. Recruiters from top firms actively seek these graduates for their advanced analytical and problem-solving abilities. The rigorous training in logical reasoning and data analysis from these majors is directly transferable to financial modeling and market analysis.
While less common, it is possible to enter investment banking with a degree in the liberal arts, such as History, Philosophy, or English. This path is more challenging, as it requires the candidate to demonstrate a well-researched interest in finance. Success for these graduates hinges on supplementing their degree with relevant coursework, self-study, and competitive internships. Exceptional critical thinking and communication skills can be a significant differentiator if paired with a demonstrated passion for the financial markets.
The Importance of Your University
The reputation of the university you attend plays a significant role in investment banking recruitment. Banks categorize schools into a hierarchy: “target,” “semi-target,” and “non-target.” This system directly influences a student’s access to opportunities and is fundamental to navigating the recruitment process.
Target schools are institutions where a large number of bulge-bracket and elite boutique investment banks consistently conduct on-campus recruiting (OCR) for front-office positions. These schools, often including Ivy League universities, have structured hiring pipelines and deep-rooted alumni networks within the banks. This creates a direct path for their students, as firms reserve a significant number of interview slots and internships for them.
At semi-target schools, fewer banks recruit on campus, or recruiting may focus on middle or back-office roles. Students from these universities can still land premier front-office jobs, but it requires more proactive networking and effort. For students at non-target schools, where there is little to no on-campus recruiting from major banks, the path is considerably more difficult and relies almost entirely on independent networking and building a compelling resume.
Essential Skills and Experience
Beyond a degree, investment banks look for a specific set of hard skills. Proficiency in financial modeling is important, including the ability to build discounted cash flow (DCF), comparable company analysis (CCA), and precedent transaction models. Advanced capabilities in Microsoft Excel and PowerPoint are basic requirements. A solid understanding of accounting principles and the ability to analyze financial statements are also required.
Soft skills are equally important and are heavily screened during recruitment. Investment banking is known for its demanding hours and high-pressure environment, so a strong work ethic, resilience, and meticulous attention to detail are prerequisites. Excellent communication and interpersonal skills are needed to work effectively in deal teams and interact with clients. The ability to articulate complex financial concepts clearly is a highly valued trait.
Relevant internship experience is one of the most important credentials for an aspiring investment banker. The summer analyst program is the primary pipeline for full-time analyst roles at major banks. These internships serve as a prolonged interview, allowing the firm to evaluate a candidate’s technical abilities, work ethic, and cultural fit. Securing a summer analyst position is a nearly mandatory step toward receiving a full-time offer upon graduation.
The Role of Advanced Degrees
For individuals looking to enter investment banking after gaining several years of professional experience, the Master of Business Administration (MBA) is the most established path. Top MBA programs serve as a primary recruiting ground for investment banking Associate positions, which is the post-analyst level. Banks value the maturity, management skills, and expanded network that MBA candidates, often career switchers, bring.
Specialized master’s degrees, such as a Master’s in Finance (MFin), offer another route. These are “pre-experience” programs designed for recent undergraduates who want to deepen their technical financial knowledge before recruiting for Analyst roles. An MFin can be beneficial for students from non-traditional academic backgrounds or those from non-target universities, as it provides a credential demonstrating a strong commitment to finance.