December 2025
Investment Banking: 2026 Talent Insights
Following a turbulent year across global markets, hiring in investment banking is beginning to stabilise, but the sector continues to shift. From macroeconomic pressures and refinancing waves, to the growing influence of AI in hiring, banks and professionals alike are adjusting strategies for the year ahead.
In this video, Summer-Jane Lewis, Principal Consultant at Selby Jennings, shares key insights to help hiring teams and candidates prepare for 2026. The insights are also explored in the written summary below.
What changed in investment banking in 2025, and how did that impact hiring?
"This year saw uneven hiring trends across the investment banking space. In M&A, activity was dampened by political uncertainty and tariff implications, particularly affecting consumer and industrials sectors. Hiring in these verticals slowed, especially during the first half of the year.
"However, momentum picked up in the second half of 2025. Hiring appetite grew across London, the Nordics, and Germany, particularly within TMT and healthcare. There was a clear demand for professionals with additional language skills, reflecting the growing need for cross-border deal execution capabilities.
"Larger investment banks saw limited hiring in capital markets, despite a rise in IPOs. Instead, hiring was concentrated in financing teams. A strong wave of refinancing's and recapitalisations led to increased demand for credit-experienced professionals across debt advisory, financing, and restructuring functions."
What should firms and professionals prioritise in 2026?
"To stay ahead of competition, investment banks are being advised to implement skills-based interview processes. Increasingly, firms are incorporating modelling tests and case study assessments early in their hiring cycles. This allows hiring managers to evaluate technical proficiency and candidate commitment earlier, while also accelerating time-to-hire in a highly competitive market.
"Professionals looking to advance in 2026 should anticipate the broader adoption of AI screening tools. CVs should be tailored to highlight relevant experience, technical skills, and analytical capabilities aligned to specific roles. Presentation and clarity will be key in standing out at the first stage."
The expanding role of AI in investment banking talent strategy
"AI adoption is beginning to impact both talent acquisition and day-to-day responsibilities for bankers. Talent acquisition teams are using AI screening tools to streamline early-stage hiring processes, making it even more important for candidates to have up-to-date and targeted CVs.
"More notably, senior bankers are adopting AI tools to support business development. Origination and market mapping tasks are becoming faster and more efficient, helping teams stay agile in a fast-moving market. Looking ahead, AI literacy will be a core differentiator. Bankers who can implement and utilise these tools effectively will be better positioned to succeed in 2026 and beyond."
To discuss your hiring plans for 2026 or explore our current investment banking opportunities, request a call back or browse open roles.
FAQ: Investment banking hiring, careers & compensation in 2026
Alongside core modelling, structuring, and commercial skills, and sector specialisation (e.g. TMT, healthcare), firms are actively seeking professionals with AI literacy and data analytics capabilities. As AI becomes embedded in market mapping, origination, and business development tasks, candidates who can work with advanced tools and contribute to faster deal execution are highly valued. Hiring talent with these future-facing skills will ensure a more resilient and competitive workforce.
Top investment banking talent expects transparent role descriptions, timely feedback, and streamlined interview stages. Reducing unnecessary rounds, defining clear performance metrics, and offering competitive compensation packages with transparent bonus structures significantly improve offer acceptance rates.
Selby Jennings works closely with hiring managers to streamline recruitment strategies – advising on interview structure, candidate engagement, and compensation benchmarking – so firms can secure the right investment banking talent faster and with greater confidence. Request a call back to learn more.
Investment bankers who receive clear promotion paths, access to professional development, and recognition through bonuses, leadership opportunities, or expanded responsibilities, are less likely to look for a role elsewhere. High performers stay where progression is visible, performance is rewarded, and workload expectations are balanced.
If you’re facing challenges retaining investment banking professionals, our specialist team at Selby Jennings can help assess your talent strategy and provide data-led solutions. Request a call back to speak with a consultant.
Selby Jennings provides strategic hiring solutions across permanent, contract, and multi-hire mandates. Our consultants specialise in investment banking and offer real-time market insights, salary benchmarking, and access to a deep network of qualified professionals across all levels and coverage areas.
We manage the entire hiring process end to end – from refining role requirements to presenting pre-qualified shortlists and supporting offer negotiation – helping you secure top talent efficiently, competitively, and compliantly. Explore our investment banking talent solutions here, or request a call back for more information.
Many professionals begin as analysts (graduate level) and progress to associate, VP, director, and MD roles. Some move laterally into private equity, corporate development, or strategic roles in corporate finance. Sector focus (e.g., energy, technology) can further distinguish career trajectories.
Strong financial modelling, valuation techniques, and commercial acumen remain essential. However, in 2026, investment banks are also prioritising AI literacy and data-driven skill sets. Candidates who understand how to use AI tools to support market analysis, improve pitch targeting, or automate research tasks are better positioned for long-term success. Ensure your CV clearly highlights relevant technical skills, programming or data experience, and AI familiarity.
Once it’s ready, register with Selby Jennings and upload your CV, and we’ll connect you with investment banking roles you won’t find anywhere else.
Prepare for technical questions covering valuation, modelling, accounting, and transaction scenarios, as well as behavioural questions about deal experience and teamwork. Research the bank’s recent deals and sector focus to demonstrate commercial awareness.
Working with a specialist talent partner like Selby Jennings means you’ll receive personal support with interview preparation, and we’ll also negotiate offers, and advocate for you on your behalf. Register with us to get started.
Yes. Investment banks want to see clear alignment with role-specific requirements, particularly around sector knowledge, deal experience, and modelling skills. In today’s market, it's also important to show technical fluency, including data analytics capabilities and AI literacy. If you’ve used AI tools to support research, origination, or reporting, include this in your application to reflect your relevance in a fast-evolving industry.
Looking for investment banking career opportunities? Browse exclusive roles at industry-leading firms.