Succeeding in Investment Banking

The following is a list we compiled of the skills you need in order to succeed in investment banking:

Intellectual and Analytical Capability

Investment banking is at its core, a business. You need to build quality products and sell them. In order to do so, you need to be able to think critically, analyze, and review your previous work

Communication and Networking Skills

In investment banking you will constantly be working with people, both clients and coworkers. On the client side, you need to learn how to effectively build relationships and sell your services. With your coworkers, you need to be able to communicate your opinions and resolve problems.

“As most people know or have heard, IB is certainly a demanding industry requiring several long nights in the office. That being said, it's really important to stay positive amid the stressful times and have the energy to endure the arduous hours.  I think being collaborative and willing to help others is another important trait-- during my internship last summer, one of the most precious resources was my fellow interns.  Like I said before, this job entails a very steep learning curve, and being there to help each other out will make it easier on everyone going through it.” (Intern at BofA, Harvard Class of 2021)

Focus and Organizational Skills

On the job, you will be analyzing Excel spreadsheets, perfecting the formatting of your slide-deck, and organizing conference calls for your team. The ability to pay attention to the details and stay organized, all while working 80-hours a week, is critical.

“Those who will be successful are extremely detail oriented, hard working, good at taking direction without getting upset for unreasonable requests. People successful in IB can operate on low sleep without breaking down or feeling like their world is falling apart. The work gets really thrilling at top shops and once you're an MD. You are literally making deals worth billions. But you have to be able to grind through the first 10 or so years where it is a struggle to find value in the work. People who succeed see the value of holding out, and the payoff is huge.” (Analyst at Truist, Harvard Class of 2019)

The "Hard Skills"

Investment bankers need to be proficient in using Microsoft Office and creating financial models. Within Microsoft Office, Excel and PowerPoint are the most important applications for IB. Being fluent in the various keyboard shortcuts and industry best practices is essential. There are numerous sources that can help you perfect all of these vital ‘hard’ skills.

“I think it's important to emphasize that these traits are more or less "learnable"-- I wasn't sure if I would be able to endure the grind/if IB was for me, but if you're up for the challenge and have a good attitude, I don't see why you wouldn't be a good fit.” (Intern at BofA, Harvard Class of 2021)

Types of Investment Banks

Experiences vary between the types of banks. Bulge bracket firms have higher deal flow and exposure to a broad range of opportunities. Boutique firms, on the other hand, are smaller and usually give interns more ownership of their work. Furthermore, location is also a factor that plays into choosing a type of firm. Most bulge bracket firms are headquartered in New York, which is also a hub for networking. Meanwhile, regional banks are constrained by location.

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Hear from the perspective of a couple of interns and analysts:

Bulge Bracket Banks

Higher deal flow and exposure opportunities “I only applied to bulge brackets and two boutique firms. I wanted to focus on a few and spend time networking instead. I preferred the bulge brackets just due to the higher deal flow and exposure opportunities. I also liked the idea of having a large analyst class.”

- Citibank Intern, Harvard Class of 2021

Wide variety of deals “I chose a bulge bracket because I wanted exposure to a wide variety of deals, and I think that's generally something more commonly found at bulge brackets. Boutiques tend to really specialize in a product or an industry. I also chose a bulge over a middle/regional bank because I knew I wanted to be in New York, and most headquarters for bulge brackets are in New York.”

- Intern at elite bulge bracket firm, Harvard Class of 2021

Elite Boutique Banks

Mentorship access and greater ownership over work “I worked at Plexus Solutions, a boutique firm that provides advisory and AM services to sustainable energy companies. It's a very small bank that started not too long ago. Pros: direct relationship with MDs, more responsibilities/ownership of work, etc. Cons: Narrow exposure, less deal flow.”

- Intern at Plexus Solutions, Harvard Class of 2020

Regional Boutique Banks

Accessibility “The Pros: I was able to land a full time IB offer without having ever interned in IB before, was a top hire at Truist, heard back quickly, would be able to get IB experience at what I thought would be a less stressful environment than elite boutiques, living in Charlotte so extremely low cost of living.  ​ The Cons: Regional banks have weak deal flow (so you are constantly pitching and not closing any deals). This makes it hard to recruit into the buy-side who prefer more brand name shops. Because of the constant pitching (no fee generation), we were often overworked. Living in Charlotte there isn't a good chance to network or meet head-hunters and recruiters over coffee or in person.”

- Analyst at Truist, Harvard Class of 2019