Investment banking has a reputation for being one of the most demanding and financially rewarding careers available. It’s a high-stakes world of mergers, acquisitions, and raising capital that attracts thousands of ambitious students and professionals every year. The path to landing a coveted analyst position at a top firm is notoriously difficult, requiring a unique combination of academic excellence, sharp skills, and relentless networking. 

What Do Investment Bankers Actually Do?

Before you commit to this challenging career path, it’s important to understand what investment bankers do on a daily basis. At its core, investment banking is about helping companies and governments raise money. This can involve several key activities. One major function is advising on mergers and acquisitions (M&A), which is when one company buys another. Bankers help value the companies, structure the deal, and negotiate the terms.

Another key role is underwriting. An investment bank helps a company issue new stocks or bonds to the public to raise funds. The bank buys these securities from the company and then sells them to investors. Essentially, they act as the middlemen connecting companies that need cash with investors who have cash to spend. Junior bankers, known as analysts, do much of the foundational work. They spend long hours building financial models, creating pitch books (presentations for clients), and conducting detailed research to support these high-level transactions.

Step 1: Excel Academically (at the Right School)

There is no sugarcoating it: investment banks heavily recruit from a small list of top-tier universities, often called "target schools." These are typically Ivy League institutions and other prestigious universities like Stanford, MIT, and Duke. Attending one of these schools gives you a significant advantage because banks actively recruit on campus, holding information sessions and conducting first-round interviews right there.

Getting into investment banking from a "non-target" school is still possible, but it requires much more effort. Regardless of where you attend, your academic performance must be outstanding.

  • Maintain a High GPA: You should aim for a GPA of 3.7 or higher. Your grades are the first filter banks use to screen candidates, and a low GPA can get your resume thrown out before it's even read.
  • Choose a Relevant Major: Finance, economics, and accounting are the most direct paths. Banks also value the quantitative skills of students in math, engineering, and computer science. A liberal arts degree is also acceptable, provided you have a strong GPA and can portray your quantitative abilities elsewhere.
  • Take Challenging Courses: Load your schedule with rigorous courses in corporate finance, financial modeling, accounting, and statistics. This shows you are serious about the field and can handle the intellectual demands of the job.

Step 2: Master the Technical Skills

Investment banking requires a specific set of technical skills. You are expected to know these before you even start your internship. You will be tested on them during the interview process, so mastery is non-negotiable.

  • Financial Modeling: You must be able to build a three-statement financial model (connecting the income statement, balance sheet, and cash flow statement) from scratch in Excel. You should also understand how to build discounted cash flow (DCF), LBO, and comparable company analysis models.
  • Accounting: You need a rock-solid understanding of accounting principles. Interviewers will ask you technical questions like "How does a $10 increase in depreciation affect the three financial statements?" You must be able to answer these questions flawlessly.
  • Valuation: You need to know the different ways to value a company and be able to walk an interviewer through each method.
  • Excel and PowerPoint: You must be an expert in both. Your life as an analyst will be spent in these two programs, so you need to be fast and efficient. Learning keyboard shortcuts is essential.

You can learn these skills through online courses (like Wall Street Prep or Breaking Into Wall Street), campus finance clubs, and self-study.

Step 3: Network Relentlessly

For investment banking, your network is equally as important as your resume. You need to start building connections early and strategically. The goal of networking is to get your resume in front of the right people and secure a first-round interview.

  • Use Your Alumni Database: Your school's alumni network is your most valuable resource. Find alumni who are working at firms you are interested in and send them a polite, concise email. Ask for a 15-minute "informational interview" to learn about their experience.
  • Attend Information Sessions: Go to every on-campus event hosted by banks. Arrive prepared with intelligent questions, dress professionally, and try to have meaningful conversations with the bankers there. Collect business cards and follow up with a thank-you email.
  • Keep Track of Your Contacts: Use a spreadsheet to track everyone you speak with, the date you spoke, and key notes from your conversation. This helps you stay organized and follow up appropriately.
  • Be Persistent but Professional: You may have to email someone multiple times to get a response. Be persistent without being annoying. Always be respectful of their time.

Step 4: Secure a Prestigious Internship

The single most important step to getting a full-time offer in investment banking is to complete a junior year summer internship at a bank. The vast majority of full-time analyst positions are filled by converting successful summer interns. This 10-week program is essentially an extended job interview where you get to experience the work and the firm gets to evaluate you.

Getting this internship is incredibly competitive and requires starting the process early. Many banks begin recruiting for their junior year internships more than a year in advance. This means you need to be preparing your resume and starting your networking during your sophomore year of college. A prior internship in finance after your sophomore year, perhaps at a smaller boutique bank or in a corporate finance role, can significantly strengthen your application.

The Final Hurdle: The Superday Interview

After passing initial resume screens and a first-round interview, you may be invited to a "Superday." This is the final round of interviews, where you will spend a full day at the bank's office meeting with multiple bankers, from analysts to managing directors. You will face a mix of behavioral questions ("Tell me about a time you worked on a team") and intense technical questions. You must come prepared, confident, and ready to prove you have the knowledge, drive, and personality to succeed in this demanding environment.