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June 22, 2026
Investment bankers are basically financial advisors who work for large and small firms to raise money for their clients. Their job descriptions often have broad responsibilities and require highly specific skills. Investment bankers are highly valued by their clients. Successful ones are extremely hardworking and dedicated to thriving in the fast-paced and demanding work environment of investment banking.
Learn more about the roles and responsibilities of investment bankers.
An investment bank is not the same as a bank where you set up your checking and savings accounts—those are called retail banks. Simply put, investment banks help corporations raise money. When a corporation wants to buy or sell something, they work with an investment banker to figure out how to invest or attain the funds they need to get it done.
Investment bankers help their corporate clients secure funds in the capital markets, act as financial advisors, and occasionally help companies navigate mergers and acquisitions. Investment banker positions vary from entry-level to high-level executive.
Investment bankers are highly valued in the corporate world. Without them, it would be very difficult for companies to get the money they need to serve their customers and clients, or develop a solid competitive position in their market.
Being an investment banker can be hard because the day-to-day operations are long and stressful. Getting enough sleep and reducing stress can be a challenge for investment bankers, especially early in their careers. Investment bankers who make it through the adjustment period early in their careers will often have long and financially rewarding careers in the industry.
Investment bankers are ultimately responsible for their clients' success. In some roles, they take on many responsibilities, while others specialize in one or two specific areas. All positions are responsible for raising money for their clients primarily through issuing debt and selling equity in capital markets.
When a company wants to raise capital by issuing debt in the form of bonds, it often has a hard time finding qualified investors with enough money to invest. Investment bankers will help these companies find qualified investors within their large network and structure how the bonds get issued.
When a company plans to hold an initial public offering (IPO) to sell stock to the public, investment bankers will help that company find large investors to ensure their IPOs are purchased for the highest price possible.
Investment bankers also help broker mergers and acquisitions. The process often involves them lending their expertise to make sure things go smoothly. Investment bankers will advise their clients by presenting their research with recommendations about the best opportunities.
Investment bankers need many skills to be successful in the investment banking industry. Learning how to make financial forecasts and develop relationships on both sides of the transaction is key to advancing throughout your career.
Investment bankers often develop various types of financial models to value debt and equity for mergers, acquisitions, and capital-raising transactions. The process often involves using Excel or other software programs to make smarter investment decisions in an efficient manner.
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Knowing how to develop and maintain working relationships with clients is an important skill for investment bankers. It’s common for investment bankers to work long hours and be available to their clients as needed when large deals are in process. Ultimately, investment bankers have a responsibility to expand their firm's book of business and meet the needs of their investors.
Starting as an investment banker should begin with having realistic expectations. The career is challenging, often demanding that analysts or associates work over 80 hours per week. Most investment bankers are very ambitious and competitive because the jobs are prestigious and earnings have the potential to be enormous.
It’s common for investment bankers to possess undergraduate and MBA degrees from competitive universities such as The Wharton School of the University of Pennsylvania. Internships and entry-level positions are also fiercely competitive within investment banks, which often recruit individuals directly from school for analyst positions.
The interview process for entry-level investment banker positions usually goes quickly and requires you to be prepared to answer common questions like “Why do you want to work in investment banking?” and demonstrate your technical skills, such as financial modeling.
It can take 4-6 years to become an investment banker. If you are currently pursuing a relevant undergraduate or graduate degree from a prestigious university, you may be able to become an investment banker after graduation by being recruited.
Top-rated firms that hire investment bankers to provide financial services around the world often pay them high salaries and expose them to global markets. Investment bankers are a type of securities, commodities, and financial services sales agents. Currently, there are 514,500 employment opportunities for securities, commodities, and financial services sales agents in the U.S., according to the U.S Bureau of Labor Statistics.
Individuals interested in working as an investment banker may interview with firms such as:
Investment banking positions are highly competitive in part because of their high salaries and bonus potential. The bonus is a large part of an investment banker’s total compensation package. Yearly bonuses have the potential to be over double that of the investment banker’s base salary and continue to rise with more responsibilities.
Since the Bureau of Labor Statistics classifies Investment Bankers as one type of Securities, Commodities, and Financial Services Sales Agents, the median salary for an investment banker is $78,140 per year, according to the Bureau of Labor Statistics.
However, service sales agents in securities, commodity contracts, and other financial investments and related activities have a median wage of $103,370 according to the Bureau of Labor Statistics.
Investment bankers who pursue earning the CFA designation will gain in-depth, specialized knowledge, skills, and abilities in financial analysis and investment management. Other benefits of earning the CFA include
The CFA designation is recognized globally.
Some job descriptions for investment positions say “prefer CFA” or “CFA required.”
You become a member of a global organization and can optionally join a local CFA Society for networking and further learning opportunities.
CFA Institute and local CFA Societies Compensation surveys have found that CFA Charterholders have higher median compensation than non-CFA Charterholders.
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