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Communication Skills in Investment Banking: Why They Matter More Than You Think

CareerCapital

New member
Dec
2
0
If you’re a student or junior banker looking at investment banking, it’s natural to focus almost entirely on technical skills. You’re told to master accounting, valuation, financial modelling, and Excel shortcuts. All of that matters, especially early on. But there’s a skill that quietly becomes just as important, and often much earlier than people expect: communication.

Not polished public speaking or “soft skills” in the abstract, but the ability to communicate clearly, confidently, and appropriately to very different audiences — internally and externally. This is the skill that determines who gets trusted, who gets staffed on live deals, and eventually, who progresses. And especially as AI becomes more and more relevant, and could more easily automate some of the above technical skills, communication and the ability to develop meaningful relationships will become even more important in the future.

Different Languages for Different Audiences


One of the first things junior bankers learn, sometimes the hard way, is that not everyone wants the same level of detail.
A common mistake is assuming there is one “correct” way to explain something. In reality, the right approach depends entirely on who you’re speaking to.
  • Your immediate team (analysts, associates): detail matters. You’re expected to be precise and technically sound, but as you become more acquainted with each other and spend long time together, language tends to become more informal as well
  • VPs and Directors: they want conclusions and risks, not a walk-through of every assumption.
  • MDs: they want a view, and they generally don’t have much time to be discussing all the finer points
  • Clients: clarity and confidence matter more than technical depth, especially as many of them may not be as technically strong on the product as yourself
  • Investors: outcomes, risk/reward, and timing come first.
Learning to adjust your communication style - without changing the substance - is one of the most valuable early-career skills you can develop.

Lead With the Answer

One simple rule that will dramatically improve how you’re perceived: start with the conclusion. Junior bankers often feel they need to justify every statement. As a result, they lead with background and only arrive at the point at the end, and in most cases senior people don’t really have time for that. If someone wants detail, they’ll ask. Leading with the answer signals confidence and good judgment.

Internal Communication: An Underrated Career Driver

In large banks, communication is not just about clients, it’s also about visibility. Investment banks are big, complex, and sometimes bureaucratic organisations. In periods of strong deal flow, good work tends to get noticed naturally. In quieter markets, it often doesn’t. That’s where internal communication becomes critical.
This does not mean self-promotion or politics, but making sure that relevant people know what you’re working on. So it’s essential that you keep updating seniors proactively rather than waiting to be asked. Your performance reviews, promotion decisions, and bonuses are decided by a relatively small group of people. If they don’t know what you’ve contributed, it may as well not have happened.

Being technically strong but invisible is one of the most common early-career mistakes. Managers look for people who can anticipate questions, communicate clearly without being prompted, and take ownership of workstreams. Strong internal communication signals all of this.
A short, well-structured update email can be more impactful than hours of silent work. It shows you’re engaged, organised, and thinking beyond your immediate task.

Investment Banking Is a Client-Facing Job (Eventually)

Another reality that’s often underplayed early on: investment banking is fundamentally a client-facing business. As you become more senior, your value is less about execution and more about building relationships, winning mandates, and ultimately bringing in revenues.

Execution is essential, but you eventually have teams for that. What you get paid for at senior levels is origination. Winning business means being in front of C-suite executives, building their trust over time, explaining complex ideas in an intuitive way, and persuading clients that you understand their priorities and that they should go with and not with a competitor bank. None of that happens without strong communication skills.

How to Actually Win Deals

Clients don’t choose banks purely based on models or pitch books. They choose people they trust, always in the context of the franchise strength. Trust is built through clear, confident communication, consistency over time, the ability to explain risks honestly, and also knowing when to listen rather than talk. The best originators are rarely the most technical people in the room. They’re the ones who can connect, frame ideas clearly, and make clients feel understood.

Start Practising Early

For students and junior bankers, the key takeaway is: don’t wait until you’re senior to work on communication skills. You can start now by practising presenting in public, speaking up (thoughtfully) in meetings, trying to explain complex topics simply, and writing clearer, more structured emails. Technical skills get you through the door. Communication skills determine how far you go once you’re inside.

Also in terms of career progression at the start of your career you’re generally assessed on output. Later, you’re assessed on influence, and the transition happens faster than most people expect. Those who invest early in communication get more responsibility sooner, build stronger internal networks, become trusted points of reference, and are ultimately better positioned when opportunities arise.

Final Thought

Banking is full of intelligent, technically capable people. What differentiates careers – especially in investment banking rather than trading for example - over time is not intelligence, but the ability to communicate effectively - to the right audience, at the right time, in the right way. If you’re serious about a long-term career in investment banking, treat communication skills as a core part of your development, not an optional extra. They will matter sooner, and more, than you think.
 
I would add that an excellent way to improve communication skills is simply by reading (both technical and non-technical) books. Podcasts will do fine too, depending on quality.

Might sound obvious and probably underrated but it really is an easy method to expand your vocabulary and see how point is taken across an audience effectively. Choice is important here too: like most things, books follow a normal distribution, and most books are mediocre. So choose wisely.

From my experience too, graduates tend to struggle with confidence, which is fine, but it needs to be coupled with open-mindedness and the ability to learn quick. Like, don't ask the same question twice (it's fine to clarify details though, better be safe than sorry) and expect that you will be told only once to do something: as you mention, there is no time for constant back and forth, and so being focused throughout the day and paying attention to the right things will make a huge difference.
 
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