Entry into an Investment Bank

A guide on how to get into an Investment Bank

Your path...

If becoming an investment banker is your dream or if it just another career path that you are interested in, then we have some tips and advice to help you.

Below are things that you could and should be doing to help you realise your goal, from extracurriculars in school all the way up to the interview.

At school

If you are already considering investment banking as a potential career path, then there are many things that you could be doing to help realise that.

Do some research:

Go online and find out more about the world of investment banking or look at the other resources on our website
Visit company pages and understand the ethos and what they do

Read:

Read newspapers like The Economist or The Financial Times
Sign up for online newsletters and briefings from AmplifyMe and the New York Times to keep up to date
Read books like The Intelligent Investor or Principles

Clubs:

See if your school offers an investing or financial society
If they don't, then try and start your own one, you could invite speakers and hold talks - this shows great initiative
Start a weekly briefing or a school newspaper that discusses what is currently happening in the markets

Summer Courses:

Sign up for InvestIN's Young Investment Banker Summer Experience to learn more about the details of investment banking and network with professionals in the industry
Go online and find introductory courses to investment banking with organisations like edX

Work Experience/Shadowing:

Find work experience programs at investment banks
JP Morgan offer a week placement in their offices in the summer for children 14-17
This is a good website that shows programs for children in the UK https://www.studentladder.co.uk/year-12/work-experience-opportunities/banking/
Contact professionals in the industry on LinkedIn or that you have met and ask them if you could shadow them for a day - we will discuss how to go about this later

University + College

These next steps will be crucial to landing a job at an investment bank - remember networking is key.

Degree:

Although your choice of degree does not actually impact your chances of getting into an investment bank, we recommend a degree in economics, finance or business
However, it is not essential to do one of the three above as they are looking for people with certain skillsets that would allow them to more easily adapt to the different world of investment banking

Major school:

The big investment banks tend to do a lot of on-campus recruiting and this mainly occurs at the top-tier universities and colleges. In the UK, this would be at the Russell Group universities and in the USA, they would be looking at the Ivy League colleges as well as the other prestigious colleges such as Stanford and MIT
Whilst attending one of these top-tier universities will boost your chances it is not necessary. However, networking and your other related activities will need to be very important

Internship:

An internship is the best way to get yourself affiliated with a company or industry
Preferably, find an investment bank that you line with the core values of or that you like the culture of
Apply for an internship over the summer where you will doing some tasks around the bank and be given the opportunity to learn more
It is vital to stand out throughout the duration of your internship so that they are more likely to offer you a full-time job after you finish university
Also, make sure to network whilst you are there, it makes yourself better known and can allow you to integrate into the community a lot faster

Apprenticeship

If you would rather opt for an apprenticeship than going to university or college, then there are plenty of options in the investment banking world.

The first thing to decide is whether an apprenticeship is right for you. Below are aspects that you should expect of an apprenticeship and hopefully you can tell whether or not it suits you.

Duration: They can vary in duration but typically span from 1 - 3 years. Longer-term apprenticeships may be combined with formal education, such as earning a finance-related degree.

Structured Learning: They often include a structured curriculum that covers fundamental concepts in finance, investment banking, financial modelling, valuation, and other relevant topics. This curriculum may be delivered through in-house training sessions, online courses, or formal educational institutions.

On-the-Job Training: The core of an investment banking apprenticeship is the hands-on experience. Apprentices work closely with experienced professionals on real-world projects, such as financial analysis, due diligence, M&A transactions, and capital raising. They may rotate through different departments as well.

Mentorship: Apprentices often receive mentorship from senior bankers who provide guidance, answer questions, and help apprentices navigate the complexities of investment banking.

Networking Opportunities: As we have said, networking is key, and apprenticeships are a great way to achieve this due to you working with the professionals.

Responsibilities: They also give you a lot of responsibilities including conducting financial analysis, creating pitch materials, attending client meetings, and participating in due diligence efforts.

Exams and Certification: Some apprenticeships may require individuals to pass exams or obtain certifications related to finance and investment banking, such as the Chartered Financial Analyst (CFA) or Chartered Investment Banking Analyst (CIBA) designation.

Potential Full-Time Offer: Successful completion of an investment banking apprenticeship can lead to a full-time position as an analyst or associate within the same firm. It can also lead to full-time positions at other firms since the apprenticeship, in itself, is a qualification.

If you are very keen on investment banking then an apprenticeship is a great way to dive straight into the industry. However, make sure that you are comfortable with the decision you have made as there are many factors to consider, for example, an apprenticeship can hinder your chances of working in different industries as it is a specific course in a specific sector.

The Interview

The first step in this process is to land an interview. This will be the other route getting into an investment bank if you have not been offered a full-time job already from either an internship or apprenticeship.

To do this, you can either apply to the banks that you are interested in or try and land an interview through networking. To achieve the latter, you can contact someone working in the company you are interested in via email or LinkedIn. Choose somebody that either you know or that went to the same school as you. This builds an initial connection. Ask them if you could meet up for a coffee or you could ask about any job opportunities. Make sure you come across as respectful and qualified. Then see what their response is. You might have to talk to a few people before you succeed.

Once you have landed an interview, you must prepare. Firstly, you should already know a good amount about the industry and how an investment bank works. Keep up to date with current affairs in the markets by reading newspapers. It is always good to know the prices of certain major stocks and indices the day of your interview, this shows a genuine interest. Hopefully, you have an idea of which division in the investment bank you want to work in. Before you go in, you should know more about this division and what the work entails. Research the company's core values and ethos and try and tailor your personal responses to show that you align with them. Remember, treat each interview individually, you must show a genuine interest in the company and by referencing their ethos it shows that you have conducted your research and are a good fit for them.

Don't forget to practise the basic interview questions such as Why should we hire you?, What will you bring to the company?, What three words would your friends describe you as?. They may also ask questions like Why is teamwork so important? or How would you deal with a difficult client?

Obviously, since it is an investment banking interview, they are going to ask more specific questions about topics like accounting, valuations, M&As and the markets. To make sure that you are prepared for them, read through the other pages on the website.

On the day of the interview, make sure you are prepared for the weather and traffic. You have to turn up on time and presentable. Wearing smart clothes is key as it shows professionalism and that you are taking this job offer seriously. Some companies do an initial screening process where the receptionist tells the interviewer their initial impressions of the candidate. They observe the time you arrive, the state you arrive in, your manners and what you do in the waiting room. Don't fidget or go on your phone, prepare questions in your head or read a newspaper. In the interview itself, maintain eye contact, a friendly demeanour and don't fidget. Try and make the interview more personal and memorable. Find a connection with your interviewer or some common ground and work with it. If you treat it more like a conversation whilst proving that you are more than qualified, you have a much better chance of success.

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