The Financial Institutions Group — commonly known as FIG — is one of the most specialized and technically demanding coverage groups in investment banking. FIG bankers advise banks, insurance companies, asset managers, fintech companies, specialty finance firms, and other financial institutions on mergers, acquisitions, capital raises, and strategic advisory. If you are interested in the intersection of finance and financial services, FIG can be a fascinating and rewarding career path.
In this guide, we will break down what FIG investment bankers do, the key subsectors within the group, the unique technical skills required, the top banks in this space, and how to recruit for FIG. If you are preparing for investment banking interviews, this guide will help you understand what makes FIG different from other groups.
What Makes FIG Different From Other Coverage Groups?
The fundamental difference between FIG and other industry groups is the nature of the companies being covered. Financial institutions have unique business models, balance sheets, and regulatory frameworks that require specialized knowledge. Unlike a typical industrial or technology company, a bank’s primary assets are loans and its primary liabilities are deposits. An insurance company’s value is driven by its investment portfolio and underwriting reserves. These differences affect how you model, value, and advise these companies.
Here are some of the key ways FIG analysis differs from general investment banking:
- Balance sheet-driven analysis — While most companies are valued based on income statement metrics like EBITDA, financial institutions are often valued based on balance sheet metrics like book value and tangible book value. Price-to-book (P/B) and price-to-tangible-book-value (P/TBV) are the go-to multiples in FIG, not EV/EBITDA.
- No enterprise value — The standard enterprise value framework does not apply cleanly to financial institutions because debt is an operating liability for banks (deposits, borrowings) rather than a financing item. FIG analysis focuses on equity value.
- Regulatory capital requirements — Banks and insurance companies must maintain minimum capital ratios (like CET1 for banks or RBC ratios for insurers), which directly affects deal structuring, capital returns, and valuations.
- Different financial statements — While the three financial statements still apply, the line items look very different. Instead of revenue and COGS, you see net interest income, provision for credit losses, and fee income.
Key Subsectors Within FIG
FIG covers a broad range of financial services companies. Most banks organize their FIG groups around several key subsectors.
Banks and Thrifts
This is the core of FIG at most banks. Coverage includes commercial banks, savings institutions, and bank holding companies. Deal activity includes bank M&A (which has been a consistent theme as the industry consolidates), equity and debt offerings, and advisory on regulatory matters. Valuation focuses on metrics like P/TBV, P/E, deposit premiums (core deposit intangible analysis), and dividend discount models.
Insurance
Insurance coverage includes property and casualty (P&C) insurers, life insurers, reinsurers, and insurance brokers/distributors. Insurance companies have unique accounting (statutory vs. GAAP), and valuation often involves embedded value analysis for life insurers and combined ratio analysis for P&C companies. M&A activity in insurance has been robust, driven by both strategic consolidation and private equity interest in the sector.
Specialty Finance and Consumer Finance
This subsector covers non-bank lenders, credit card companies, auto lenders, student loan servicers, and mortgage companies. These firms often operate outside the traditional banking regulatory framework (or under a lighter regulatory regime) and have distinct credit risk profiles.
Asset and Wealth Management
Coverage of asset managers, wealth managers, and investment management firms. This subsector has seen significant M&A activity driven by fee compression, scale advantages, and the growth of passive investing. Valuation focuses on AUM (assets under management), fee rates, and flow dynamics.
Fintech and Payments
Financial technology companies — including payments processors, digital banks, insurtech companies, and lending platforms — have become a major area of FIG deal activity. Some banks cover fintech within FIG, while others have carved it out into a dedicated technology group or a joint FIG/tech team. Fintech M&A has been one of the most active areas in recent years.
Common Deal Types in FIG
FIG bankers work on a range of transaction types, many of which have unique characteristics:
- Bank M&A — Community and regional bank consolidation is a consistent source of deal flow. These transactions involve regulatory approvals (from the OCC, Fed, FDIC, or state regulators), deposit premium analysis, and mark-to-market adjustments on the target’s loan portfolio. FIG bankers build detailed merger models that incorporate purchase accounting adjustments specific to financial institutions.
- Insurance M&A — Acquisitions of insurance companies or books of business, often involving actuarial analysis and embedded value considerations.
- Capital raises — Banks and insurance companies frequently need to raise equity or debt capital to support growth, meet regulatory requirements, or fund acquisitions. FIG bankers advise on common and preferred equity offerings, subordinated debt, and trust preferred securities.
- Restructuring and FDIC-assisted deals — During periods of banking stress, FIG bankers may advise on FDIC-assisted transactions where a failing bank’s assets and deposits are acquired by a healthier institution. Understanding restructuring dynamics is valuable in FIG.
- De-mutualization and conversion transactions — Mutual insurance companies or mutual savings banks converting to stock form, which are unique to the FIG space.
Top Banks for FIG
Several banks are recognized for having particularly strong FIG practices:
Bulge brackets: Goldman Sachs, JPMorgan, and Morgan Stanley all have large and active FIG groups. Given that these firms are themselves financial institutions, their bankers have a natural understanding of the sector.
Strong middle-market and specialized players: Keefe, Bruyette & Woods (KBW), a subsidiary of Stifel, is one of the most prominent FIG-focused banks and consistently ranks among the top advisors for bank M&A. Piper Sandler and Hovde Group are also well-known in community and regional bank advisory.
Elite boutiques: Evercore, Lazard, and Centerview have FIG capabilities, though the depth of coverage varies. For more on these firms, see our guides on Goldman Sachs and JPMorgan.
FIG-Specific Technical Skills
In addition to the core technical knowledge every banker needs — like DCF analysis, WACC, and LBO modeling — FIG bankers need to master several additional concepts:
- Dividend discount model (DDM) — The primary intrinsic valuation methodology for banks. Since banks cannot easily separate operating and financing cash flows, you value the equity directly by projecting dividends (or excess capital returns) and discounting them at the cost of equity. Understanding the cost of equity calculation is critical here.
- Regulatory capital analysis — CET1, Tier 1, and Total Capital ratios for banks. Risk-based capital (RBC) ratios for insurance companies. These ratios constrain how much capital a financial institution can return to shareholders or deploy for acquisitions.
- Credit quality metrics — Non-performing assets (NPAs), net charge-offs, allowance for loan losses, and provision expense. Understanding a bank’s credit quality is central to its valuation.
- Net interest margin (NIM) analysis — For banks, the spread between what they earn on assets and what they pay on liabilities is a key driver of profitability.
- Purchase accounting adjustments — In bank M&A, you need to mark the target’s loan portfolio, deposits, and other items to fair value and calculate goodwill. This is more involved than standard purchase price allocation.
Exit Opportunities From FIG
FIG exit opportunities tend to be more specialized than exits from a generalist group, but they can be very lucrative:
- FIG-focused private equity — Firms like Warburg Pincus, Stone Point Capital, Corsair Capital, and Aquiline Capital Partners specialize in financial services investing and actively recruit from FIG banking groups.
- Fintech venture capital and growth equity — The explosion in fintech has created demand for investors with FIG banking backgrounds.
- Hedge funds — Financial sector-focused hedge funds value the deep understanding of bank and insurance company analysis that FIG bankers develop.
- Corporate development — Large financial institutions have active M&A teams that hire from FIG banking.
- Insurance investing — Firms that manage insurance company assets or invest in insurance-linked securities.
How to Recruit for FIG
Recruiting for FIG follows the standard investment banking recruiting process, but there are a few things to keep in mind.
Demonstrate sector interest. FIG interviewers want to know that you understand what makes financial institutions different and that you are genuinely interested in the sector. Be ready to discuss why you want FIG specifically, not just any IB group. Read up on current themes like bank consolidation, the interest rate environment, fintech disruption, and insurance M&A trends.
Know the key differences. Be prepared for questions like: “Why don’t we use EV/EBITDA for banks?” or “How does a bank’s balance sheet differ from a regular company?” These are classic FIG interview questions and you need crisp answers.
Network with FIG professionals. As with any group, networking is critical. Use our networking guide and networking deep dive to structure your outreach. FIG is a smaller community than some other groups, so building relationships early can make a real difference.
Prepare for standard and FIG-specific technicals. You still need to nail the standard questions — walk me through your resume, why our bank, and the core technical topics. But expect additional FIG-specific questions on DDMs, bank valuation, and regulatory capital. Download our technical cheatsheet to prepare for the fundamentals.
Is FIG Right for You?
FIG is ideal for candidates who find financial institutions genuinely interesting and are willing to develop deep sector expertise. The work is intellectually stimulating, the deal flow is consistent, and the exit opportunities — while more niche — can be highly lucrative. If you want to keep your exit options as broad as possible, a more generalist group might be a better fit. But if you are drawn to the complexity of financial institutions and the unique technical challenges they present, FIG is an excellent choice.
For candidates coming from non-target schools, having a clear and compelling story for why FIG specifically — rather than just “any IB group” — can actually work in your favor during recruiting, since it shows genuine conviction and preparation.
Want Personalized Interview Coaching?
If you are serious about breaking into investment banking, the best thing you can do is work with someone who has been through the recruiting process and knows exactly what top banks are looking for. At Wall Street Mastermind, we have helped over 2,100 students land offers at every bulge bracket and elite boutique bank on Wall Street. Book a free strategy call to learn how we can help you prepare for your interviews and maximize your chances of landing the offer.
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