The truth about the investment banking jobs outlook now (2024)

FAQs

What is the job outlook for investment bankers? ›

According to the US Bureau of Labor Statistics (BLS), this sector employed 466,900 people in 2021 and is expected to grow by 10% between 2021 and 2031.

Investment banking trends for 2024 show the sector at a pivotal crossroads—one that's marked by demand for digital transformation, shifting economic paradigms, and opportunities in emerging new areas like sustainable finance, blockchain, and RegTech (among others).

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.

Investment banking recruiting is an extremely competitive process, so you'll want to do whatever you can to stand out during the recruitment process. Banks value the quality of your job experience, and the quality of your schools attended, and how hard you network or “hustle” for the role.

Due to high demand and a scarce talent pool, investment banks have significantly increased wages for investment bankers in order to secure and retain top talent. With wages rising even at the lower pay scales, entry-level investors can expect six-figure salaries at leading firms.

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).

Investment banking is a demanding and competitive field that can take a toll on your physical and mental health. Long hours, high pressure, and tight deadlines can cause stress, burnout, and anxiety. However, there are ways to cope with these challenges and maintain a healthy work-life balance.

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.

Investment bankers often work long hours, including weekends and holidays, and are expected to be available around the clock. The demanding nature of the job and the sacrifices required are reflected in the higher compensation packages. 4.

Banks don't break out investment banker headcount specifically, but data released last week by research firm Coalition, suggests investment banker headcount across the industry fell only 4% year-on-year in the first half, which is when many of the cuts at Goldman and Morgan Stanley took place.

At what age do investment bankers retire? ›

Age Range: It's nearly impossible to reach this level before your early 30's, so we'll say 35-50 for the range. Few MDs continue working until the official retirement age (65-70); it's a stressful, high-pressure job, and past a certain net worth, it's just not worth it.

AI may eliminate some jobs but generate others. Thus, a complete replacement is impossible. But people who can acquire new skills and use new tools will be in demand. AI won't replace investment bankers, but it will enhance them.

JP Morgan is renowned for its rigorous recruitment process, resulting in extremely low acceptance rates. According to industry data, the acceptance rate for entry-level positions at JP Morgan stands at approximately 3%. Out of every 100 applicants, only three individuals successfully secure a position within the firm.

Ex-Goldman Sachs helping train students/recent grads to secure jobs in banking - 90% placement rate to banks like GS, UBS and JP. These are the 10 hardest investment banks to get a job at in the world🌍👇 1. JP Morgan 2. Goldman Sachs 3.

Investment Banking Managing Director Salary + Bonus: Base salaries are in the mid-six-figure range, with total compensation in the high six figures to low seven figures. An MD doing decently should earn between $1 and $3 million per year, and sometimes a low multiple of that (as of 2022).

On average, a first-year investment banker makes a 5-digit salary, in the range of $70,000 – $90,000, while a 7-digit salary is considered above average and is difficult to achieve for most people in their careers.

The career is challenging, often demanding 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.