What are the odds of getting into investment banking?
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%.
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.
The demand for coveted positions in investment banks consistently exceeds the available supply, making it a highly selective field. Statistics indicate that acceptance rates for top investment banks, such as JP Morgan and Goldman Sachs, typically range between a mere 3% to 5%.
Yes, GPA matters! 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.
Investment bankers are typically the highest-paid workers in the finance industry—high salaries are most prevalent even among younger employees. The starting salary for the typical investment banker exceeds that of most other finance positions, but working in this field has its challenges.
Last year, JPMorgan said it had 50,000 applications for 400 jobs in its investment banking division, an acceptance rate of 0.8%.
Even when you are working with financial models, none of the math is complex. There's addition, subtraction, multiplication, and division… and occasionally built-in Excel functions like IRR, Mean, and Median. You never use calculus or differential equations or even geometry / trigonometry.
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).
Becoming an investment banker requires several years of higher education in addition to licensure. It also requires strong mathematical and analytical capabilities, which may be challenging for some people. In addition to a bachelor's degree, investment bankers may need a master's in finance or an M.B.A.
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.
What GPA does Goldman Sachs look for?
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.
Target School Summary
Target schools are those that are particularly well-regarded by investment banks and tend to produce a high number of successful candidates who go on to work in the industry. There are several factors that contribute to a school being considered a target school for investment banking.
Most of the investment banking target schools are Ivy League schools and top liberal arts colleges. However, you may be surprised to know senior bankers at investment banks tend to recruit candidates from the schools that they attended!
Many investment bankers are Type A personalities, which means they are ambitious and driven. Young bankers are inducted into a stressful lifestyle from the get-go. They are encouraged to work long hours with very little free time to fit in socializing or relaxation.
- Even with education, experience, and enthusiasm, investment banking might not be for you.
- Investment bankers work long hours and often earn a high income.
- Lack of work-life balance is one reason to avoid becoming an investment banker.
- Investment bankers must also be able to manage high-pressure situations.
Investment Banking is a highly prestigious profession in the field of finance and whoever works in this sector is known to lead a luxurious life making it a hot career choice for many people. So yes, if you work hard and do your job right, there's no way you cannot become a millionaire.
The bank's tremendous size means it's often viewed as an economic bellwether and an entity that's “too big to fail.” The bank has gained a reputation as the first line of backup during crises for its history of interventions. When Bear Stearns collapsed in 2008, JPMorgan stepped in to purchase it.
The average J.P. Morgan salary ranges from approximately $53,386 per year for Document Processor to $213,024 per year for Executive Director.
The firm operates the largest investment bank in the world by revenue. It occupies 24th place on the Fortune 500 list of the largest U.S. corporations by revenue. In 2023, JPMorgan Chase was ranked #1 in Forbes' Global 2000 ranking.
That said, investment banking is a highly competitive field. Because the pay is so high and the job is so prestigious, particularly in cities such as New York, applicants far outnumber job openings every year. Having the right skills and being able to display them is paramount for getting a foot in the door.
Is it stressful to be an investment banker?
It is also one of the hardest. It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers.
Believe it or not, mastery of advanced math skills is not necessary to have a career in finance. With today's technology, all math-related tasks can be done by computers and calculators. That said, there are some basic math skills that would certainly make you a better candidate in the finance industry.
Hedge Fund Manager
Typically, you'd have earned a university degree, a CFA certification (Chartered Financial Analyst), and a decade of outstanding investment experience. To make this one of the jobs that pay $1 million dollars a month, you'll need to be one of the absolute best in the world at it.
Moelis (born 1958) is an American billionaire investment banker. He is also the founder, chairman and CEO of Moelis & Company, a global independent investment banking firm.
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