FIG Investment Banking Career Path

What is FIG Investment Banking?

FIG investment banking refers to a specialized advisory practice within investment banks that focuses exclusively on institutions that operate within the financial services ecosystem. The acronym stands for “Financial Institutions Group”. These firms include commercial and investment banks, insurance carriers, asset and wealth management firms, specialty lenders, and emerging financial technology companies. Rather than serving traditional industries that produce goods or deliver standard services, FIG professionals work with businesses whose primary product is capital itself.

What Does FIG Investment Banking Involve?

The work within FIG is highly technical and shaped by financial regulations, risk frameworks, and capital requirements that do not apply to other sectors. FIG bankers provide strategic guidance on mergers and acquisitions, capital structure optimization, regulatory-driven financing, and public offerings. Unlike other coverage groups, the role often requires a detailed understanding of how financial firms manage leverage, liquidity, and long-term solvency.

To better serve this diverse client base, many banks organize their FIG teams into sector-specific verticals such as banking, insurance, or FinTech. This structure allows for a more tailored approach to advising clients while building deep sector knowledge within each subgroup.

Who are the Top Banks with Dedicated FIG Divisions?

Top investment banks including Goldman Sachs, Morgan Stanley, and Wells Fargo maintain dedicated FIG divisions staffed by professionals with advanced training in finance and accounting. Entry-level analysts typically undergo formal training to develop the modeling techniques and analytical skills needed to assess capital adequacy, regulatory metrics, and balance sheet dynamics unique to financial institutions.

FIG investment banking offers a rare opportunity to specialize in the core infrastructure of the global economy. It attracts professionals who are curious about how money moves through the system, how risk is priced and managed, and how financial institutions remain stable through both growth cycles and crises.

Why Work in FIG Investment Banking?

Financial Institutions Group, or FIG, is one of the most intellectually demanding and technical groups in investment banking. It is also one of the most misunderstood. While it may not have the allure of tech or the high-profile deals of M&A, FIG offers unmatched exposure to the inner workings of the global financial system.

If you are interested in how banks, insurance companies, and asset managers operate, FIG can be an ideal fit. The work involves advising these institutions on mergers and acquisitions, capital raises, restructurings, and regulatory strategies. The learning curve is steep, but for the analytically inclined, the rewards are significant.

On the other hand, FIG can be highly specialized. That specialization can narrow exit opportunities unless you are intentional about your path. It is a group that favors long-term thinkers who are looking to build deep industry knowledge rather than chase fast-paced generalist roles.

Educational Requirements for FIG

The academic requirements for breaking into FIG investment banking are similar to those for other investment banking roles. A strong undergraduate degree typically in finance, economics, accounting, or mathematics will set candidates up well for analyst roles. Top-tier schools offer an edge, but solid networking and internships matter more than a specific pedigree.

Candidates do not need to be experts in regulatory capital or bank accounting before joining. That said, a basic understanding of how financial institutions differ from other industries is helpful. At the MBA level, prior experience in financial services or internships in FIG can improve hiring chances significantly.

FIG Certifications and Courses

Certifications are not mandatory for FIG roles, but they can help strengthen a candidate’s technical foundation. The CFA designation is particularly useful for those seeking asset management roles or aiming for a transition to the buy side. The CPA may be beneficial for those involved in audit-heavy sectors such as insurance.

Specialized training in bank or insurance modeling is strongly recommended. Online courses that focus on regulatory capital, dividend discount models, and P/B valuation metrics can help candidates stand out in interviews and on the job.

Making connections and networking with those already in FIG roles can prove invaluable in terms of gaining tips and inside views on the best way to prepare for a role.

Learn more about financial modelling courses available at Financial Edge, plus free resources to help prepare for interviews.

Key Skills Required for FIG Investment Banking

Here is a guide to the key skills required for FIG investment banking and how they differ from traditional investment banking skillsets:

Technical Skills

• Specialized financial modeling: analysts will tend to use metrics such as ROE, regulatory capital ratios (e.g., CET1, RBC), and Dividend Discount Models instead of standard DCFs
• Equity-based valuation: enterprise value is often irrelevant in FIG work; multiples like P/BV and P/TBV are the norm in this area
• Regulatory awareness: knowing capital adequacy standards, liquidity ratios, and Basel III rules is a non-negotiable in this sector

Soft Skills

• Communication: FIG clients are highly analytical and expect precision in discussions and materials so strong communication skills are expected
• Pattern recognition: FIG team members will need to analyze interest rate sensitivity, balance sheet risk, and credit performance across cycles so ability to recognize and follow patterns is a great skill
• Endurance: FIG is intellectually dense; stamina and curiosity are key to staying engaged and performing ahead of expectations

FIG Investment Banking Salary and Bonus

Compensation in FIG generally aligns with industry norms for investment banking. Base salaries and bonuses increase with seniority and performance as is the case with all banking sectors. Unlike M&A groups where pay can be volatile, FIG benefits from steady deal flow, particularly through recurring capital raises and debt issuance.

Here is an idea of typical salaries relevant for each position of seniority in FIG:

The deal volume in FIG may be lower profile than traditional investment banking, but it tends to be more consistent. That consistency can lead to reliable year-end bonuses and long-term client relationships.

As with all careers, the compensation will depend on the employer and the market where it operates. Each financial institution will always have its own parameters for salaries and bonus schemes, however at entry level, the salaries will typically be competitive and similar. Later on analysts may look to move if an opportunity comes up or to further career growth and compensation. Typically FIG bankers become experts in their respective field.

FIG Investment Banking Hours

The hours in FIG are comparable to those in other investment banking teams. Analysts can expect to work between 60 and 80 hours per week. However, the nature of the work often makes the schedule more predictable. FIG bankers frequently execute capital raises, which follow a more structured timeline than mergers or restructuring assignments.

That said, technical complexity can extend the workload, especially when dealing with regulatory modeling or valuation for banks and insurance firms. While the group may be less reactive than M&A, it is far from relaxed. Time-sensitive deliverables and regulatory scrutiny ensure the pace stays demanding.

Pros and Cons of FIG Investment Banking

There are several advantages to working in FIG. The group offers unmatched exposure to complex financial systems and a high level of technical skill development. Analysts will learn how financial institutions manage capital, comply with regulations, and respond to macroeconomic changes. The client base is loyal, and deal activity is steady. This creates a stable and stimulating work environment.

However, there are trade-offs. FIG is a specialized group, and that specialization can make it difficult to pivot into generalist private equity or corporate roles. The work is intellectually challenging, and the learning curve can be steep. Some professionals find the sector less exciting than others due to its regulatory focus and relatively slower transaction cycles.

Is FIG Investment Banking Right for You?

A career in FIG investment banking is best suited to individuals with a strong analytical mindset and a genuine interest in the mechanics of financial institutions. This arena offers the opportunity to work closely with banks, insurance companies, and other financial entities that operate at the core of global capital markets. The work is complex and technical, involves regulatory capital modeling, specialized valuation techniques, and close attention to interest rate dynamics and monetary policy.

FIG is not the right choice for those seeking a broad, flexible skillset that can be easily applied to sectors like consumer, healthcare, or technology. The group’s specialization means that exit opportunities into private equity or corporate roles outside financial services can be more limited. However, for professionals who are interested in institutional finance and who value consistent deal flow, long-term client relationships, and technical depth, FIG offers a compelling and rewarding path.

It is also a group where intellectual rigor is valued, and where technical expertise compounds over time. While it may not carry the same brand recognition as technology or M&A banking, FIG provides a strong platform for building a career in financial services advisory, investment, or strategy. If you are comfortable with detail-heavy analysis and interested in understanding the rules and risks that govern global finance, FIG could be an excellent fit for your career.

Download the free Financial Edge CV template to start creating an attractive resume for a career in FIG investment banking.

Additional Resources

How to Pivot to a Finance Career from Any Degree

Corporate Finance – Career Path

Business Writing