Investment banks are built on trust. Clients hire them not just for their technical skills, but because they believe the bank can deliver when it matters most. Whether it’s advising on a billion-dollar acquisition, raising capital for a public company, or helping a government finance its debt, reputation is often the deciding factor.
But what makes reputation so valuable in investment banking? Why do some banks dominate year after year, while others struggle to win business? And how do banks build, protect, and sometimes lose their reputation?
In this article, we explain why reputation is one of the most important assets an investment bank can have—and why it’s worth more than any single deal.
Clients Choose Based on Trust
In investment banking, clients face high financial stakes. A failed deal, bad advice, or weak execution can cost them millions—or even billions. That’s why most clients choose banks with a proven track record.
Reputation signals reliability. It tells clients that the bank has done this before, that it understands the market, and that it knows how to manage risks. For example, when Arm Holdings chose Goldman Sachs and J.P. Morgan as lead underwriters for its $4.87 billion IPO in 2023, it wasn’t just about fees. It was about trusting those banks to price, market, and execute one of the year’s largest public offerings.
This trust is hard to win and easy to lose. Banks spend years building client relationships, demonstrating expertise, and delivering on promises. One misstep can damage that trust, forcing the bank to rebuild its credibility from scratch.
League Tables Are More Than Marketing
Reputation in investment banking is often measured through league tables—rankings that show which banks lead in areas like M&A advisory, equity underwriting, or debt issuance.
These rankings are published by firms like Refinitiv and Dealogic, and clients, competitors, and even employees follow them closely. Finishing at the top boosts a bank’s visibility, attracts new clients, and gives bankers more confidence when pitching for future business.
For example, in 2023, JPMorgan topped the global M&A league table with $642 billion in announced deal volume. This kind of market leadership makes it easier for the bank to win the next big deal because clients want to work with the best.
But reputation isn’t just about volume. It’s also about the quality of execution. Some banks build reputations for handling the most complex transactions, while others are known for their deep industry expertise or global reach. Clients remember not just who led the most deals, but who handled them well.
Past Success Drives Future Business
In investment banking, success tends to attract more success. When a bank advises on a high-profile deal, it often leads to more opportunities in the same industry or region.
Take Morgan Stanley’s role in Tesla’s IPO back in 2010. That success helped cement the bank’s reputation as a trusted partner for innovative technology companies. In the years that followed, Morgan Stanley advised on other major tech deals, building a strong franchise in the sector.
This network effect means that banks with a strong reputation often get the first call when new opportunities arise. Clients want to work with banks that have been there before and can point to real-world results.
One Scandal Can Damage Years of Work
While reputation takes years to build, it can be damaged in an instant. Scandals involving conflicts of interest, fraud, or ethical breaches can shake client confidence and hurt a bank’s standing in the market.
One of the most famous examples is the Goldman Sachs Abacus scandal in 2010. The U.S. Securities and Exchange Commission accused Goldman of misleading investors by selling a mortgage-backed security that was designed to fail. The bank paid a $550 million fine, one of the largest ever at the time. While Goldman remains a market leader today, the scandal dented its reputation and sparked global debate about the ethics of investment banking.
Similarly, Deutsche Bank’s involvement in money laundering investigations and legal fines over the past decade has weighed heavily on its reputation, forcing the bank to restructure and rebuild trust with clients and regulators.
Banks Invest in Reputation Management
Because reputation is so valuable, banks invest heavily in protecting their brand. This includes:
- Maintaining strong compliance and risk management programs.
- Publishing high-quality research and market insights.
- Building long-term client relationships.
- Acting as trusted advisors in moments of crisis.
- Managing media and public relations carefully.
Some banks even position themselves as ethical leaders, promoting sustainability, diversity, and responsible business practices to strengthen their image with clients, regulators, and the public.
Why Reputation Is a Long Game
Reputation is not something that can be bought or built overnight. It comes from consistently delivering results, managing risks, and earning client trust over years—sometimes decades.
That’s why banks like J.P. Morgan, Goldman Sachs, and Morgan Stanley have remained at the top for so long. They have built reputations not just on size, but on execution, relationships, and trust. They know that in investment banking, your reputation opens doors—and losing it can close them just as fast.
Bottom Line
An investment bank’s reputation is one of its most valuable assets. It helps win clients, attract talent, and secure market leadership. But it takes years to build and can be damaged quickly if not protected.
Clients don’t just hire banks—they hire trust, experience, and reliability. That’s why the most successful banks never stop investing in their reputation. Because in the world of investment banking, being trusted is what keeps you in business.