What major is investment banking?
For those seeking a career in investment banking, a bachelor's degree in finance is a prerequisite. Other potential acceptable majors include bachelors in economics or bachelors in business supplemented with a minor in finance.
College Degrees
A college degree in finance or economics is typically the starting point for entry-level jobs at an investment bank. Accounting and business are also common educational backgrounds.
What Is an Investment Banker? Investment bankers are investment professionals who combine financial services industry expertise, analytical prowess, and effective persuasive communication skills to support institutional clients in activities like capital raising and mergers and acquisitions.
Students looking to become bankers typically choose to major in business. Possible concentrations include a bachelor's in finance, economics, or accounting. However, for certain specialties in banking, a degree in math could be useful.
Investment banking is extremely competitive with way more applicants than available positions each year. You will often be up against students from Ivy League universities, with a high GPAs and multiple internships under their belts.
- University of Pennsylvania.
- Georgetown University.
- Harvard University.
- Columbia University.
- New York University.
- Cornell University.
- University of Notre Dame.
- University of Michigan.
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.
I estimated $450K – $650K total compensation for the 25th to 75th percentiles above, and I think that is true for most of the bulge brackets. However, plenty of elite boutiques paid well above this, with many reports of $700K+ or even $800K+ in total compensation.
Does an investment banker travel around the world a lot? - Quora. Depends on your role and level in the Organization. Client bankers tend to travel with their clients on global roadshows for equity or debt. M&A professionals will travel to analyse and negotiate cross border transactions.
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $142,000 | $11,833 |
| 75th Percentile | $123,500 | $10,291 |
| Average | $118,333 | $9,861 |
| 25th Percentile | $107,500 | $8,958 |
Does your major matter for investment banking?
A business major is not required as banks want diverse analyst classes and open themselves to all majors. However, the vast majority of bankers are finance or economics majors. Majors are irrelevant at universities like Harvard, but become more important as students progress down the prestige ladder.
- Commercial Banker. Salary range: $110,000-$179,000 per year. ...
- Banking Consultant. Salary range: $154,000-$171,500 per year. ...
- Investment Banker. Salary range: $107,500-$123,500 per year. ...
- Banking Services Advisor. ...
- Bank Secrecy Act Officer. ...
- Bank Examiner. ...
- Business Banker. ...
- Merchant Banker.
- Earn a bachelor's degree in finance or a related field. First, earn a bachelor's degree from an accredited college or university and focus on a finance major. ...
- Consider a graduate degree or MBA. ...
- Register with FINRA and obtain certification.
The typical investment banker has a graduate degree in business from an Ivy League school or other top-tier university and superior educational credentials [i.e., excellent grades (minimum 3.50 GPA), active participation in business and investment clubs, and participation in at least one internship or summer program at ...
Investment banking is a demanding and competitive field that can take a toll on your physical and mental health. Long hours, high pressure, and tight deadlines can cause stress, burnout, and anxiety. However, there are ways to cope with these challenges and maintain a healthy work-life balance.
Investment banking is very well paid, but sign-on bonuses and a healthy pay packet come at a price. To survive as an investment banker, you need to have a high stress threshold. You also need to be willing to say goodbye to your social life for a few years.
For example, Penn's first top employer is Goldman Sachs, because more Penn (undergraduate) alumni work at Goldman Sachs than at any of the other twelve banking firms.
New York, New York, USA
New York City is typically considered the finance capital of the world. Many of the largest investment banks, including Goldman Sachs,14 Morgan Stanley,15 and Merrill Lynch,16 are headquartered in New York City. So too are several large banks, including Citigroup and JPMorgan Chase.
The highest paying investment banks are typically the large Wall Street firms like Goldman Sachs, JP Morgan, Morgan Stanley, etc. Smaller or regional firms may pay 10-30% less. The highest bonuses go to bankers who generate substantial revenues by winning and executing high-profile deals.
While investment banks look for a diverse skill set in their workforce, there's a particular focus on mathematical reasoning and ability. This means that school-level Maths (if not Further Maths) is almost always necessary. Other mathematical subjects such as Physics and Computer Science can also be helpful.
Do investment bankers make a million?
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.
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.
Ways to make a lot of money in this world
Sure, anybody can make a good living being a doctor or a lawyer or an investment banker where you can make ~$200-500K per year a few years after you finish with your studies, but you hit a ceiling very quickly unless you start your own practice (aka start your own business).
The path to starting a career in investment banking can be as short as just 4 years — the typical length of a bachelor's degree program. Depending on the specific job you want, more time may be needed to complete a master's degree program or professional registration exams.
How much does a Wall Street Banker make in New York, New York? As of Apr 9, 2024, the average hourly pay for a Wall Street Banker in New York is $19.57 an hour.
