Investment banking is a popular career choice among people looking to establish a career in finance. Corporate finance, economics, and business administration are some of the best majors for investment banking. They’ll teach you the financial concepts you need to know to excel as an investment banker working with hedge funds, capital markets, and more.
The best college majors for investment banking will equip you with an in-depth understanding of the various aspects of this competitive and complex industry. Knowing how to choose a major for investment banking can be difficult, which is why we’ve put together a list of the best majors and attractive career options for aspiring investment bankers and financial analysts.
What Major Is the Best for Investment Banking?
Finance is the best major for investment banking because it opens the most doors for those wanting a high-paying job in investment banking. Since you will be managing other people’s money, you will need strong foundational knowledge in finance, accounting, and economics.
There are a wide variety of majors that offer students knowledge about important financial concepts. From financial planning to financial management, there are many finance degrees that can prepare you to become an investment banker.
How to Choose a Major for Investment Banking
- Consider your career goals. Investment banking is a diverse career field with multiple attractive career options. To achieve ultimate success, knowing what you want to specialize in will help you pick the right college major. The typical path isn’t right for everyone, so make sure to carefully consider your skills and interests.
- Determine the level of education you need. Not all positions require the same level of education. While some may only require a business degree at the bachelor’s level, other investment banking roles may require you to complete a top-tier MBA program or PhD program. If this is the case, you’ll need to choose your major accordingly.
- Consult an expert. Seeking advice from professional bankers, academic advisors, or investment banking employers can help you realistically determine your education requirements and career path. They may be able to recommend a specific business degree for investment banking that you can apply to or answer your technical questions.
- Consider your available options. Depending on your location, economic situation, and academic background, your options may be limited when picking a major and a school to study at. No matter the program, any talented student dedicated to earning stellar grades can make the best of their education as there’s no one formula for success.
- Have a look at your strengths. Investment banking is a specialized field, and strong analytical, logical, and problem-solving skills are needed to excel in this area. Depending on your skills, a job in sustainable finance, consumer and small business banking, or management consulting may be better suited for you. So choose your major accordingly.
What Are the Best Majors for Investment Banking?
- Computer Science | Average Salary: $87,000
- Mathematics | Average Salary: $81,000
- Economics | Average Salary: $80,000
- Statistics | Average Salary: $77,000
- Business Administration | Average Salary: $75,000
- Finance | Average Salary: $72,000
- Financial Engineering | Average Salary: $72,000
- Business Law | Average Salary: $71,000
- Accounting | Average Salary: $67,000
- Banking | Average Salary: $56,000
Best College Majors for Investment Banking: Explained
Computer Science | Average Salary: $87,000
A major in computer science focuses on the technical study of the many software and hardware components of computer systems that help them perform their functions seamlessly. A job in investment banking requires proficiency with different financial software. As such, majoring in computer science can help you master the financial functions used by these professionals daily.
Mathematics | Average Salary: $81,000
Majoring in mathematics can help you develop proficiency with the relationships, structures, operations, and functions of numbers. Students in this major develop essential skills in logical reasoning, problem-solving, and analysis, which are essential for any prospective investment banking analysts, finance analysts, and management consulting professionals.
Economics | Average Salary: $80,000
A major in economics revolves around the study of market forces, demand, supply, pricing, inflation, exchange rates, trade, unemployment, and taxes. Mastery of these concepts is crucial for the career field of corporate finance, entrepreneurial finance, and investment banking.
Students in this major perform detailed research on these concepts and their real-life application. They’ll learn how to make smart investment decisions through the in-depth analysis of key economic factors.
Statistics | Average Salary: $77,000
Statistics involves the collection, organization, analysis, and processing of data to solve real-world problems. A firm foundation in statistical concepts such as regression, statistical inference, hypothesis testing, and probability serves as a primary factor for ultimate success as an investment banker.
Understanding the complexities of the financial world helps investment experts, such as investment banking analysts, evaluate and monitor the performance of the investment portfolios of any small or multi-billion dollar business. Understanding market trends helps these professionals make better decisions.
Business Administration | Average Salary: $75,000
Business administration studies various aspects of the field of business, including finance, marketing, human resources, and supply chains. In addition to theoretical knowledge, a business admin program focuses on developing essential skills in leadership, problem-solving, management, communication, and decision-making.
Enrolling in a top-tier MBA program has been a formula for success for many investment bankers as it has enabled them to master corporate investment and risk management. By majoring in business administration, you’ll be able to lead teams and work as a project manager within investment banking, thanks to your knowledge and skills.
Finance | Average Salary: $72,000
Majoring in finance allows you to study areas such as entrepreneurial finance, corporate finance, and other financial issues related to business practices. You’ll also be prepared to perform core services in the financial services industry, such as preparing and analyzing financial statements and reports, drawing meaningful conclusions, and formulating strategies in light of your findings.
A major in finance also allows you to perform core services such as monitoring market trends and managing investments across multiple financial product groups. The knowledge and skills developed by studying finance in college are beneficial to nearly all finance-related jobs, including entry-level and senior-level positions in sustainable finance, investment banking, and more.
Financial Engineering | Average Salary: $72,000
Financial engineering is a relatively new field of study that focuses on the use of modern financial and investment systems for portfolio management, asset management, portfolio diversification, and risk assessment. As business practices evolve alongside technology, financial engineering will become an increasingly popular degree option.
Majoring in financial engineering can lead to ultimate success in the career field of investment banking as it offers extensive opportunities to study efficient investment management through the use of modern tools and strategies. It prepares you for a job in investment banking as a risk manager, financial advisor, investment banker, or portfolio manager.
Business Law | Average Salary: $71,000
A business law major involves studying the laws and regulations that govern business practices, including law implementation for business organizations at the individual and collective levels and the laws surrounding business transactions. Whether working in consumer and small business banking or with a multi-billion dollar business, knowledge of these laws is essential for any investment banker.
Accounting | Average Salary: $67,000
Accounting is another great major for prospective investment banking professionals as it involves the technical study of creating, maintaining, managing, and auditing the financial records of different organizations. This major allows students to learn how to perform specialized technical functions and familiarize themselves with proper business practices.
Accounting majors can analyze the financial strength of an organization and evaluate its risk tolerance and investment margins. It also involves using modern accounting software to perform accounting operations proficiently, which is essential for most investment banking jobs.
Banking | Average Salary: $56,000
A major in banking is a comprehensive learning program that prepares students for a wide variety of banking roles, all of which are attractive career options, by developing their technical and soft skills. The managerial skills students learn, including communication, coordination, leadership, and time management, are highly transferable.
As an investment banker, you need all of these skills to perform your duties efficiently. Even if you don’t end up becoming a full-time investment banker and would rather pursue other top-tier finance jobs, these skills and knowledge will benefit your career. A banking degree at the graduate level can also help you progress faster than other senior and mid-level investment bankers.
What Are the Best Careers in Investment Banking?
With a major in investment banking, you can get jobs such as an investment advisor, sustainable finance analyst, risk manager, and account manager. While the typical path is to start as a junior banker after graduating from college, there are a wide variety of other investment banking careers that offer high wages, professional growth, and extensive networking opportunities.
Top 10 Best Careers in Investment Banking
Investment banking is a lucrative career path thanks to the core services these professionals provide. It offers many attractive job options and extensive networking opportunities that lead to high earning and growth potential. Below are some of the best careers you can pursue after earning an advanced degree in one of the top majors for investment banking jobs.
Risk Manager
- Average Salary: $131,710
- Job Outlook: 17% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Risk managers perform the hybrid role of assessing and evaluating risk in an investment portfolio before modifying, diversifying, and managing it efficiently to maximize returns while ensuring maximum security. This position requires strong analytical and problem-solving skills and significant experience assessing real-life accounting and finance problems.
Investment Banking Vice President
- Average Salary: $98,980
- Job Outlook: 8% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Investment banking vice presidents play the role of project managers. These senior-level investment banking analysts need extensive experience in the field to properly oversee and monitor their employees’ performance. They also communicate with potential clients, craft plans to meet their needs, and produce profitable results for the investment bank and the client.
Personal Investment Advisor
- Average Salary: $94,170
- Job Outlook: 5% growth from 2020 to 2030
- Required Education: Bachelor’s degree
A personal investment advisor is responsible for advising clients about profitable investment opportunities along with their associated risks. Their job duties include management consulting, financial modeling, advising clients, and answering any common questions or technical questions clients may have about investing. Advisors help clients pick investments according to their needs.
Portfolio Manager
- Average Salary: $90,856
- Job Outlook: 6% growth from 2020 to 2030
- Required Education: Bachelor’s degree
A portfolio manager performs a decision-making role when it comes to managing investments. Their key job roles include crafting and implementing strategies to ensure profitable investments to meet the goals of their clients. These professionals typically need a bachelor’s degree, but graduating from master’s or certificate programs can help them stand out from other applicants.
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Account Manager
- Average Salary: $83,584
- Job Outlook: 7% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Account managers serve as mid-level investment bankers who bridge the relationship between clients and the bank. Their responsibilities include providing technical assistance, monitoring accounts activities, ensuring transparency, and providing customer support when required. These professionals need strong technical and interpersonal skills to work efficiently.
Investment Analyst
- Average Salary: $81,410
- Job Outlook: 6% growth from 2020 to 2030
- Required Education: Bachelor’s degree
An investment banking analyst performs detailed research on market conditions and investment opportunities in entrepreneurial finance. Investment analysts collect information and use it to educate stockbrokers, mutual fund managers, corporations, and individual investors to help them identify better investments. An undergraduate degree in finance or a relevant field is needed for this job.
Financial Analyst
- Average Salary: $81,410
- Job Outlook: 6% growth from 2020 to 2030
- Required Education: Bachelor’s degree
A financial analyst studies and analyzes the financial statements of an organization to evaluate its risk tolerance and corresponding investment opportunities. They are responsible for financial modeling, financial planning, monitoring investment performance, and identifying profitable investments. This top-tier finance job requires strong communication and problem-solving skills.
Risk Analyst
- Average Salary: $81,410
- Job Outlook: 6% growth from 2020 to 2030
- Required Education: Bachelor’s degree
A risk analyst advises companies on matters related to management consulting, derivative securities and risk management, and financial modeling. They collect information and share it with financial managers to craft effective risk management strategies. This position requires experience with various software programs for collecting and organization of information.
Investment Banker
- Average Salary: $62,910
- Job Outlook: 4% growth from 2020 to 2030
- Required Education: Bachelor’s degree
An investment banker serves as an intermediary between individuals or corporations and financial markets to facilitate investment activities. They play the combined role of a financial advisor and risk analyst. They have strong communication skills, analytical efficiency, and proficiency with financial software.
Investment Advisor
- Average Salary: $62,910
- Job Outlook: 4% growth from 2020 to 2030
- Required Education: Bachelor’s degree
An investment advisor uses their expert knowledge and experience to advise individuals, groups, and organizations when making investment decisions. They also monitor the performance of securities in which an individual has invested funds to ensure its security and minimize risk. The job requires good market research and information processing skills in addition to a bachelor’s degree.
Is Finance a Good Investment Banking Major?
Yes, finance is a good investment banking major because it offers diversified technical and theoretical knowledge. Completing a finance degree program can easily help you land the highest-paying careers with major banks such as Goldman Sachs and Morgan Stanley. Investment banking and the financial services industry are lucrative fields with a wide variety of career growth opportunities that are easily accessible by finance majors.
Best Majors for Investment Banking FAQ
Yes, investment banking is a rewarding career option, even though it is a challenging career. A job in investment banking comes with an attractive annual salary and additional benefits. Extensive networking opportunities for personal and professional development are the formula for success in investment banking, as is the case with many finance careers.
To seek investment banking jobs, you can apply for internships, which provide you with hands-on experience in solving real-world problems and extensive networking benefits. You can also look on job boards and company websites, or use career placement services offered by your respective college.
Double or triple majors are not always a good idea at the undergraduate level. A double degree isn’t always a formula for success. It can put you under pressure, dragging down your GPA and overall academic performance, which are key success factors. Focussing on one major rather than a double degree will give your investment banking career a stronger foundation.
The other career options available for investment banking majors other than working for an investment bank include post-investment banking options, the corporate sector, tech companies, financial organizations, and other non-tech organizations.
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