Why Does the University You Go to Matter So Much for a Career in Investment Banking?

Did you know that the university you to is one of the most important, main determining factors when it comes to dictating your success for a career in high finance?

In fact, many argue that it is the most important factor.

And for these reasons, you’ve got high school students fighting for seats in the top, most prestigious universities in the country, all buzzing over the ‘target schools’ that investment banks seem to cherry pick their latest hires from.

But why is the school you attend so important?

That’s exactly what I’ll be helping you explore in this article!

Why Does the University You Go to Matter So Much in Investment Banking?

There are a number of main reason why you need to make sure that you get into a top university if you want to do well in, or even have a shot at breaking into a career in investment banking

Attending a top university is going to come with huge advantages and benefits that other students from less prestigious universities simply aren’t going to be able to overcome, even if they might be smarter or harder working than you.

That’s why a lot of people will stress that you need to go to a ‘target school’.

What is a ‘Target School’?

A target school is a prestigious college or university that gives you a high chance of being able to break into the investment banking industry.

Typically, target schools will be more expensive but come with better research and teaching facilities, as well as more opportunities to gain exposure to prestigious partnering firms, such as investment banks or top management consulting firms.

Many countries have a list of schools that are generally considered to be ‘target schools’ for investment banking graduates.

For example, in the US, the following universities are commonly considered to be target schools based off of their historical and statistical successful placement of students into investment banking roles.

• The University of Chicago
• Harvard University
• The University of Michigan
• Duke University
• Princeton University
• Yale University
• New York University
• Georgetown University
• The University of Virginia
• The University of Notre Dame
• Columbia University
• Cornell University

As you will have noticed, many of these are the prestigious, ivy league universities we all think of when we think of the US education system.

These are the expensive, selective schools that are hardest to get into, and are well known for producing high quality graduates who make good job candidates.

Outside of the US, other countries will have their own target schools as well.

For example, the Go8 (group of eight) universities in Australia are well known to be the target schools in the country, including:

• The University of Melbourne
• The University of Sydney
• The University of New South Wales
• Australian National University
• Monash University
• The University of Adelaide
• The University of Western Australia
• The University of Queensland

It’s a common consensus that if you want to have a good shot at breaking into investment banking, you need to go to a target school.

It’s not to say that it can’t be done if you don’t attend one of these universities, but it does seriously hurt your chances and create the need for you to work much, much harder.

Now, let’s get into the reasons as to why the university you go to matters so much in investment banking.

Networking Opportunities

It’s no secret that the investment banking industry is a place where your network really does equal your net worth.

Having the right connections, and knowing who to talk to is essential for anybody wanting to find success.

Going to a more prestigious university can offer unparalleled networking opportunities, whether that’s with fellow students, alumni, professors, or at the school career fairs (which will be much larger and more comprehensive than they would be at other schools).

Internships, mentorship programs, and even job opportunities in investment banking can be gained through these connections, and having the advantage of all these connections can seriously increase your chances of breaking into the industry.

Those going to smaller universities will have a tough time being able to build such a network, and any extensive efforts that they put into networking could either prove to be futile, or cut heavily into their time, taking away from their ability to keep on top of their student workload.

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Prestige and Reputation

It’s no secret — reputation matters.

Perhaps the biggest and most important reason for going to a target school; investment banks have shown time and time again that they prefer candidates from universities with a strong academic reputation.

I mean, they don’t know anything about you, and your educational background is one of the only things that they can judge you on.

If one candidate went to a small, lesser well known university with no real reputation of having a good business school, while another came from a top target school in the country that the firm has worked alongside for several years, I think we both know who would be getting the job offer.

The same would hold true, even if the student from the more prestigious university had a slightly weaker GPA or grade marks.

Having a big university name on your resume is going to signal to employers that you are not only smart, but hard working enough to have completed rigorous training and education from a reputable institution.

Trust me, it’s a very good look on your CV.

Resources and Curriculum

Investment banking requires sharp candidates who can prove they have a strong analytical mind.

Going to a larger, more prestigious university is going to give you the chance to access more advanced learning resources and curriculums that are potentially better suited for aspiring finance students.

Professors will be more qualified and suited to teach, and the finance labs will be equipped with more advanced, cutting-edge technology to help you learn at your best.

When entering the job market for investment banking, exposure to real-world financial scenarios and access to the best industry tools can give you an advantage over other candidates.

Top Universities Have Partnerships with Employers

Top investment banking firms want to recruit high-caliber graduates in finance and related fields.

Therefore, many establish strong ties with specific universities and target schools, meaning the recruitment process can be streamlined if you attend a university that has had a history of successful placements in investment banking.

Banks are more likely to seek talent from these institutions actively, so you’ll be actively putting yourself in the right place, at the right time.

This can more easily open up opportunities for you to gain internship or even graduate role opportunities, thanks to your school’s connections with the top investment banks.

Closing Thoughts

The university you attend really does matter if you want to break into a top finance career like investment banking.

These competitive roles are going to require you to have as many good points on your resume as possible, and having a big, reputable university name on your CV will do you wonders over the other candidates who don’t.

There are a plethora of reasons as to why this is important, and in almost all cases, aspiring investment bankers should be doing their absolute best to get into the best universities they can.

I hope this article has been helpful, and that you were able to learn something from it.

If you’d like to learn more about excelling as a student and breaking into a top business career like investment banking, check out the rest of the Medium publication, Grad Excel!