Investment banking requires a bachelor's degree, relevant work experience, and passing the Series 7 and Series 63 exams to sell securities legally

Investment banking is not a single role but a set of jobs in firms that help companies and governments raise money, merge with other companies, or restructure their finances. The path to this career starts with a four-year degree, usually in finance, economics, or business, though firms hire from other majors too. After graduation, most people enter as analysts, work for two to four years, then move to associate roles if they want to stay. The Series 7 exam (General Securities Representative Exam) and Series 63 exam (Uniform Securities Agent State Law Exam) are required to legally buy and sell securities on behalf of clients — your employer typically pays for exam prep and covers the fees.

The timeline from degree to first job is usually one to two years. Most investment banks hire analysts through campus recruiting programs during your junior or senior year of college, with offers made six to nine months before graduation. If you miss that window, you can explore directly to firms, but competition is steeper and you may need to start in a related role like equity research, corporate finance, or commercial banking first.

Key Takeaways

  • A bachelor's degree in any field is the baseline requirement, but finance, economics, or business majors are more common in investment banking roles.
  • Campus recruiting during your junior or senior year is the primary hiring channel for analyst positions, with offers made months before graduation.
  • You must pass the Series 7 and Series 63 exams to legally trade securities, and your employer typically covers the cost and study materials.
  • Analyst roles typically last two to four years before you can move to associate positions, and many people leave the industry after this period.
  • Internships during college — especially in finance, corporate development, or banking — significantly improve your chances of landing an analyst offer.

What a bachelor's degree should cover

Investment banks do not require a specific major, but certain fields make the transition easier. Finance, economics, and business administration majors learn financial modeling, valuation methods, and accounting — skills you will use daily as an analyst. Accounting coursework is particularly valuable because you will read and interpret company financial statements constantly.

If you choose a different major, take electives in corporate finance, financial accounting, and investments. Some analysts come from engineering, physics, or mathematics backgrounds; these firms value the analytical thinking, though you will need to learn finance concepts on the job. Regardless of major, your GPA matters during recruiting — most large investment banks screen for a 3.5 or higher, though smaller regional firms may be more flexible.

Internships and early work experience

An internship in finance during college is one of the strongest signals you can send to recruiters. Summer internships at investment banks, commercial banks, private equity firms, or corporate finance departments all count. Even one internship gives you real financial modeling experience to discuss in interviews and shows you have already worked in a professional finance environment.

If you cannot land a banking internship, other finance roles help: equity research, corporate development, financial planning and analysis (FP&A), or commercial lending. The goal is to show you understand how financial statements work and can build a spreadsheet model. Some analysts start in commercial banking or credit analysis roles first, then move to investment banking after two to three years.

Campus recruiting and the hiring timeline

Most investment banks hire analysts through campus recruiting programs at target schools. These firms visit specific universities each fall, hold information sessions, and interview students for positions that start after graduation. The timeline is compressed: recruiting typically happens September through November, interviews occur in October and November, and offers come out by December or January for roles starting the following summer or fall.

If your school is not on a firm's target list, you can still explore directly through their careers website, but you will compete against candidates from target schools. Networking helps here — connecting with alumni who work at the firm or attending recruiting events in your city can get your resume in front of a recruiter. Some people also move to a major financial hub like New York, London, or Hong Kong after graduation and explore to firms locally, which can open doors that were closed from a non-target school.

The Series 7 and Series 63 exams

The Series 7 exam, officially the General Securities Representative Exam, tests your knowledge of securities products, trading rules, and client protection regulations. The Series 63, the Uniform Securities Agent State Law Exam, covers state-level securities laws and ethical rules. Both are administered by FINRA (Financial Industry Regulatory Authority). You cannot legally buy or sell securities for clients without passing both exams.

Your employer will sponsor you to take these exams, meaning they register you, provide study materials, and pay the exam fees (each exam costs around $200 to $300). Most firms require you to pass within your first few months on the job. Study programs like Kaplan or STC provide practice questions and video lessons; most people spend four to six weeks preparing. The exams are multiple choice and taken on a computer at a testing center.

Analyst roles and the two-to-four-year track

Your first job in investment banking is almost always an analyst position. Analysts work on financial models, pitch books (presentations to potential clients), and due diligence for deals. The hours are long — 60 to 80 hours per week is common, with occasional weeks exceeding 100 hours during active deal periods. The pay starts around $85,000 to $100,000 base salary plus a bonus that can equal or exceed your base, depending on the firm and the year.

After two to four years, you can move to an associate role, which involves more client interaction and deal leadership. However, many analysts leave investment banking after this period for other finance roles, business school, or careers outside finance entirely. The industry has high turnover at the analyst level, and burnout is common. Some firms now offer analyst programs with defined two-year terms and explicit exit support, recognizing that not everyone wants to stay.

Alternative entry points if you miss campus recruiting

If you graduate without an investment banking offer, you have several options. The most common is to work in a related finance role for two to three years, then explore to investment banks as a lateral hire. Commercial banking, corporate finance, equity research, and private equity all provide relevant experience. Some people also pursue an MBA, which resets the recruiting clock — business schools have their own investment banking recruiting cycle, and many firms hire MBAs for associate roles.

Another route is to start at a smaller or regional investment bank, build experience, and move to a larger firm later. Boutique investment banks and middle-market firms often have less formal recruiting processes and may hire people without prior banking experience if they show strong analytical skills and motivation. The pay and hours may differ from large firms, but the work and exit opportunities are similar.

Frequently Asked Questions

Do I need an MBA to become an investment banker?

No. Most analysts are hired straight from college with a bachelor's degree. An MBA is useful if you want to move into associate or managing director roles faster, or if you missed campus recruiting and want to reset your timeline. Some people get an MBA after working as an analyst for two to three years.

What if I did not study finance in college?

You can still become an investment banker, but you will need to demonstrate financial knowledge in interviews. Take finance electives if you are still in school, or study financial modeling and valuation on your own using online resources. An internship in finance is especially valuable if your degree is in a non-finance field.

How much do investment bankers make starting out?

Analyst base salaries typically range from $85,000 to $100,000 at large firms, with bonuses that can match or exceed your base salary depending on deal activity and firm performance. Smaller regional banks may pay less. Compensation varies by year and firm, so these figures are not fixed.

Can I move into investment banking from a different finance job?

Yes. Commercial banking, corporate finance, private equity, and equity research all provide relevant experience. You would typically need two to three years in another role before explore to investment banks as a lateral hire, and you may start at a lower level than someone hired straight from college.

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

You can retake it. Most people pass on the first or second attempt with adequate study time. Your employer will let you retake the exam, though they may set a important date for passing. Failing repeatedly could affect your employment, but this is rare if you prepare seriously.