Does school matter for investment banking?
Attending a target school makes the biggest difference if you want to work in investment banking or private equity at one of the largest firms (bulge bracket banks or PE mega-funds) in a major financial center. Outside of that, a better university still helps, but more so for your first job and less for future jobs.
It's a common consensus that if you want to have a good shot at breaking into investment banking, you need to go to a target school. It's not to say that it can't be done if you don't attend one of these universities, but it does seriously hurt your chances and create the need for you to work much, much harder.
College Degrees
While it is true that liberal arts majors can possibly get jobs on Wall Street, you'll have much better chances of getting the right job with math or business degrees. Major investment banks recruit from the best colleges and universities in the world.
A GPA of a 3.7+ can make up for weaker experience, but is by no means a gimme. Banks prefer good experience to good GPAs (subject to a minimum in the 3.3-3.5 range).
Since the majority of investment banks hire analysts from top colleges and universities, it's very important that you earn stellar grades in high school, take as many advanced placement classes as possible, participate in a lot of extracurricular activities (e.g., business clubs, sports teams, speech team, etc.)
The University of Pennsylvania is one of the top schools for Goldman Sachs, Citigroup (C), and Credit Suisse (CS).
Bulge bracket banks and almost all other investment banks will look at your GPA when applying for a job and you should include it in your resume. Typically banks screen resumes based on GPA and will often remove anyone below 3.5.
University of Pennsylvania is no surprise and they are very clearly the overall best school for finance placement. UPenn dominates investment banking recruiting and even sends dozens of people directly into great private equity firms and hedge funds every year.
You'll need an overall GPA of around 3.6 or better to be a competitive candidate, although that's more like the price of admission. The average for investment banking summer interns at top banks and similar leading firms is typically a bit higher than that, but it's not 4.0 either.
Not surprisingly, Harvard University and New York University are the top feeder schools for a career on Wall Street, according to Wall Street Oasis' 2022 Investment Banking Industry Report.
Does JP Morgan look at GPA?
Q: What are your GPA requirements? A: We value diverse degree backgrounds and experiences and while a GPA 3.2 (or equivalent) in your undergraduate degree is preferred it is not required. Our training programs are designed to allow everyone, regardless of major studied to succeed.
Goldman Sachs does not give a specific minimum GPA requirement, though some sources suggest a GPA of at least 3.6 is preferred. Additionally, you may need to show relevant coursework and hard skills for certain programs.
U.S. students joining Goldman Sachs and JPM, may not be the very, very brightest, but they're still incredibly bright. The average GPA at each firm was at least 3.72 (93%).
Not only that, but if you look at the offers our students have gotten from the top 50 investment banks on Wall Street - almost 30% of the elite boutique offers went to students that didn't attend target schools. At bulge bracket banks, that number increases to 56%.
The University of Notre Dame is a top-ranked U.S. university and is a phenomenal school for investment banking placement. Notre Dame ranks #7 on our investment banking target school list, boasting a strong number of hires into the top investment banks.
Most online advice on this topic tells you to “network intensely” or “use your activities and work experience to compensate for low grades.” Yes, sure, that's all well and good… but even if you do that, you'll still need a cover story to address your grades and explain why they don't represent your potential.
- University of Pennsylvania.
- Georgetown University.
- Harvard University.
- Columbia University.
- New York University.
- Cornell University.
- University of Notre Dame.
- University of Michigan.
They try to hire the top students from those schools as they have a track record of hiring talent from them. However, that does not mean that you cannot land such a job if you do not attend an ivy league school. If the banks do not come to your campus, then you need to get creative.
- Earn a bachelor's degree in finance or a related field. ...
- Consider a graduate degree or MBA. ...
- Register with FINRA and obtain certification. ...
- Take part in on-the-job training. ...
- Advance your career.
This is pretty simple - investment banks want to hire people with good grades in school. The closer you are to 4.0, the better. Anything 3.7 or above is considered a good GPA, and you probably won't get questioned about it.
What is the GPA cutoff for Morgan Stanley?
- Minimum 3.5 GPA. - You have basic knowledge and a keen interest in finance. - You are analytical, results-driven, able to multi-task, and a team player with a positive attitude. - You possess strong oral and written communication skills.
Grades. People usually say grades are not everything, but for investment banking, there is huge emphasis on your grades. If you're in the UK, you're going to need at least a 2.1 degree (preferably a First). In the US, your GPA should be > 3.6/4.0 to have the chance of breaking in.
These so-called “target schools” typically have rigorous academics, strong alumni networks, and well-established relationships with top banks. If you're serious about getting into investment banking, attending one of these schools can give you a significant leg up.
It is possible to become a millionaire as an investment banker, but it is not easy. Investment bankers typically earn salaries in the $200,000 to $700,000 range, with bonuses that can bring their total income up to several million dollars per year.
The lucrative and fast-paced career of an investment banker is a highly competitive one. For instance, in a recent year, 236,000 applicants competed for roughly 3,500 internships at Goldman Sachs. This is common across the industry where acceptance rates for programs are typically less than 2%.
