Do I Need an MBA for Investment Banking?

• Many investment bankers earn six figures their first year out of business school.
• Competition for investment banker positions is high, but an MBA can help you secure a position.
• Many business school MBA programs provide networking opportunities with investment bankers.li>

An MBA degree is not a requirement for entering the investment banking field; however, you may have an easier time securing a job with this advanced degree. A business degree is a particular asset if you plan to work at one of the top multinational banks like Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America, Merrill Lynch, or Deutsche Bank.

The potential to earn a very high salary is what attracts many people to investment banking. Investment bankers routinely earn six figures their first year out of business school.

However, while the salaries are often high, the work can be grueling. A report from Goldman Sachs notes that, on average, first-year analysts work over 95 hours per week.

Even though the work is challenging, investment banking is highly competitive. As banks try to navigate their way through uncertain economic conditions by closely monitoring the size and scope of their workforce, the field is likely to grow even more competitive.

According to the Bureau of Labor Statistics, competition for investment banking and financial analyst positions is high. This competitive environment can make finding a job through traditional channels a challenge, especially for those with only a bachelor's degree.

Although it is possible to enter the field of investment banking with only a bachelor's degree in a business-related field, you will likely need an MBA or another advanced degree if you want to progress in your career. Most people who enter the field of investment banking for the first time do so after graduating from an MBA program.

Why Get an MBA for Investment Banking?

Most business school MBA programs can prepare you for a career as an investment banker. Investment bankers help companies raise money through facilitating acquisitions and mergers, arranging sales, selling stocks and bonds, and advising companies on going public. To be a successful investment banker, you must develop skills in finance, analytics, negotiation, and sales. MBA programs can help you develop these abilities.

While some schools offer MBA degrees with a concentration in investment banking, most professionals who enter the field do so with a concentration or heavy coursework in fields like finance, investment management, accounting, statistics, and/or economics. Earning an MBA from an accredited business school that offers a strong financial curriculum can give you an advantage over job-seekers with comparable experience and only a bachelor's degree.

There are definite advantages to getting an MBA when preparing for a career as an investment banker. If you enter the field with only a bachelor's degree, chances are you will need to get an MBA to advance. However, if you're not quite sure if investment banking is the path you want to follow, it may make more sense to complete an internship or gain a few years of work experience before enrolling in an MBA program.

You can help make this decision by reviewing the pros and cons listed below.

Pros of Getting an MBA for Investment Banking

Cons of Getting an MBA for Investment Banking

Alternatives to Getting an MBA

• Get a master's degree in a finance-related field, which offers many of the same benefits as an MBA.
• Get certified as a chartered financial analyst from the CFA Institute. This can help you develop many of the skills that employers seek. It's also a valuable designation to add to your resume and may improve your chances for advancement.
• Pursue other accounting- and finance-related certifications.

Frequently Asked Questions About Getting an MBA for Investment Banking