How to become an investment banker

Investment banking offers high earning potential and impactful career opportunities, attracting professionals within the financial sector and those seeking a career change from related fields. 

If you’re drawn to the idea of helping companies, governments and institutions raise capital, and playing a pivotal role in mergers, acquisitions and initial public offerings (IPOs), investment banking may be the trajectory for you.

But how do you launch into it? In this article, we’ll outline the roles and responsibilities of investment bankers and walk you through how to become an investment banker in Australia.

This includes getting the necessary qualifications, networking and developing unique skills to secure top investment banking positions.

What do investment bankers do?

Most people are familiar with the job title, but many don’t know what investment banking actually is. 

Put simply, investment bankers are financial experts who play a key role in financial markets. They often act as intermediaries between companies that need capital and investors who are looking for profitable opportunities. 

They also advise their clients—who are most often large corporations, institutions and governments—on how to make and navigate important financial and strategic decisions.

Specific day-to-day tasks will vary depending on the specific role and level of seniority, but common responsibilities of an investment banker include:

• Raising capital: Helping companies secure funds through debt and equity markets.
• Advising on mergers and acquisitions (M&A): Consulting clients on buying, selling or merging companies.
• Managing IPOs: Guiding firms through the complex process of going public.
• Financial modelling: Building models to forecast future performance and evaluate investment opportunities.
• Strategic advisory: Offering insights on market trends and business strategies.

How to become an investment banker in Australia

Your pathway to an investment banking career will depend on where you’re starting from, but generally speaking, the journey involves a combination of education, hands-on experience, networking and core skill development. Here are the key steps to take:

1. Gain a bachelor's degree

Investment banking does not have a specific degree requirement. However, most individuals enter the industry with a strong academic background in finance. 

A bachelor’s degree is typically the minimum qualification required for an investment banker. Degrees in finance, economics, business or a related discipline are most common—but they aren’t the only way. 

Some postgraduate degrees like VU Online’s Master of Business Administration (Finance) can provide alternative pathways if you have undergraduate qualifications from an unrelated field or approved work experience. More on that below.

2. Consider an internship

You might consider an internship if you are looking for entry-level roles and a way to gain experience.

Internships not only provide invaluable industry experience and a solid foundation for industry networking but are often a stepping stone to full-time employment. 

Boutique firms, financial institutions and many investment banks such as Goldman Sachs, JP Morgan, and Macquarie offer internship programs that allow you to gain exposure to and experience in real-world operations such as M&A, financial analysis and capital markets. 

To find these programs, you can search for internship opportunities on job platforms like Seek and LinkedIn, as well as specialised platforms like GradConnection.

3. Gain a postgraduate qualification

If you want to make a career switch or fast-track your industry advancement, a well-chosen postgraduate qualification can be a game-changer. There are several investment banking courses available, so choosing the right one for you is vital.

Courses like VU Online’s Master of Business Administration (Finance) equip graduates with the skills—financial analysis, corporate finance, business consulting, accounting and financial management, and more—and qualifications that offer a competitive edge in the job market. 

Suppose you don’t have a bachelor’s degree in a related field. In that case, courses like the Graduate Diploma in Finance provide strong pathways to a career in investment banking.

4. Engage in networking and events

Like many industries, networking is crucial to a successful investment banking career. Not only can it help you meet potential employers but also potential clients and business mentors. 

In addition to completing an internship, attending industry events, conferences and seminars can help build relationships with key players who could catapult your career forward.LinkedIn is also a great place to connect with fellow finance professionals and find local industry groups in your area.

What skills are required to become an investment banker?

There are a number of skills required to thrive in the financial industry. When it comes to investment banking specifically, both technical financial knowledge or ‘hard’ skills and interpersonal abilities or ‘soft’ skills will be called into play regularly. They include:

• Analytical thinking: Analysing complex data, identifying trends and making informed decisions is at the heart of investment banking, regardless of the specific role you may have.
  
  This requires a strong understanding of financial modelling, valuation techniques and quantitative analysis.
   
• Risk management and compliance: Knowing how to foresee, identify, assess and mitigate financial risks is crucial, especially in highly regulated environments. It is one of the most critical investment banker skills required.
  
  It’s also essential to be aware of any regulatory requirements and compliance issues that could impact deals.
   
• Communication: While there’s a strong focus on numbers, this career certainly isn’t just for ‘numbers people’. Investment bankers must be able to clearly and persuasively connect and communicate with clients, colleagues and stakeholders.
  
  This may include writing detailed reports, delivering presentations and negotiating deals effectively.
   
• Capital markets knowledge: A deep understanding of equity and debt markets, including how securities are issued, priced and traded, is important for structuring deals and raising capital for clients.
   
• Attention to detail: Managing large sums of money and complex transactions is a big part of this role. A small mistake can lead to significant financial consequences, so meticulous attention to detail is non-negotiable.
   
• Problem-solving abilities: Whether structuring a deal, identifying potential risks, or responding to an unforeseen change in the market, being able to develop innovative solutions is key to success in this field.
  
  Thinking critically and solving complex financial problems creatively are integral.
   
• Time management: Investment banking often requires working on multiple projects simultaneously, each with tight deadlines. Strong organisational and time management skills are essential to handle the fast-paced nature of the industry.
   
• Networking and relationship building: Building and maintaining strong relationships is vital. Whether networking with potential clients or fostering long-term partnerships, strong interpersonal skills are essential for success in this industry.
   
• Resilience: This industry can be highly demanding, with long hours and intense pressure. Having the ability to remain resilient and thrive in a high-stress environment is a must for anyone looking to excel in this field.

Commonly asked questions

Prospective students curious about how to become an investment banker frequently have the following additional questions:

What salary can investment bankers make in Australia?

Investment banking has a reputation for being a well-paid profession—and not without merit. 

According to industry reports from Talent.com and Indeed.com, the average salary for a junior-mid level investment banker in Australia can range from A$100,000 to A$222,000.

Due to the confidential nature of salary information in private companies, specific financial data is not readily available online. However, reports have suggested that senior positions can potentially earn up to A$1 million or more. 

Graduating from an MBA can also be a factor in potential salary increases, although this does depend on experience, role and industry. 

It’s important to note the bonus structure in these positions is also often a major incentive, with most businesses offering a bonus of 50-100 per cent of the base salary.

Do I need a degree to become an investment banker?

Yes, a degree is typically required for entry into investment banking. But if you have an undergraduate degree that isn’t in finance, don’t fret. 

A postgraduate qualification like VU Online’s Master of Business Administration (Finance) can help you transition from other fields without stepping back or pausing your professional progress.

How long does it take to become an investment banker?

On average, it takes four to six years to become an investment banker. That includes four years of undergraduate degree and two years of postgraduate study. However, the timeline can vary, depending on your educational background and career trajectory. 

With VU Online, you can gain your master’s degree in as little as two years, benefiting from flexible part-time study options so you can continue to work while you study.  

Invest in your future career

Investment banking is a fast-paced, highly influential and highly rewarding career. Whether you’re looking to advise on multi-million dollar deals, work with global corporations, or manage large-scale financial portfolios, this pathway is ripe with potential for both personal and professional growth.

With VU Online’s Master of Business Administration (Finance), you can gain the financial knowledge to drive corporate strategies that result in optimal business decision-making.

Delivered 100% online through our award-winning VU Block Model, our courses are designed for working professionals who are ready to capitalise on their ambitions and launch into the next phase of their careers.

From applying for your MBA through to graduation, you will receive 1:1 personalised support when you need it. Our online facilitators are available seven days a week for academic support, and you will also benefit from a personal Student Success Advisor who will support you throughout your studies. 

Discover how you can find career success with the Master of Business Administration (Finance). 

Speak to a Student Enrolment Advisor today and find a flexible learning path that works for you.