While I'd love to say, "Absolutely!", the truth is, it's tough. Not impossible, but tough.
Investment banks look for the smartest and most hardworking candidates, and, rightly or wrongly, education pedigree is a big part of that screening. The majority of analysts come from top-tier private schools, as well as a handful from top-tier public institutions with good finance programs such as UVA, Michigan, and UNC. Assuming that your school doesn't fall into the categories above, there are a few things you can do to increase your chances of getting in the door.
The first step is obvious: identify the banks you're interested in and apply as anyone else would. Contact (and be especially nice to) their HR/Recruiting departments, and submit your resume for consideration. This is just a baseline measure to get yourself on file, but you may also gain an ally or two in HR along the way. Keep in mind that while the halls of investment banks are wallpapered with Ivy League diplomas, the HR/Recruiting departments are typically more down-to-earth in that regard. And besides, everyone loves an underdog :)
Second, another obvious point: use the HELL out of your alumni network. I don't care if you go to Southeast Podunk State U., SOMEONE from your school has taken the path you're interested in. Identify these people through your alumni directory or career services office and don't be afraid to ask for help. Chances are they were in a similar predicament as you not too long ago, and while they may not ALL come to your aid, the odds are that at least one will offer a hand in getting your resume in the right pile.
Lastly - and this one's a biggie - don't limit yourself to just the big-name banks. It's easy to get sucked into chasing the Goldman Sachs, Morgan Stanleys, and J.P. Morgans of the world, but there are quite a few smaller, boutique banks where you'll get every bit as good (and possibly better) of an experience. The big banks have so many employees that it's easy to become a very small cog in a big machine. Where at a smaller bank, you're less likely to be pigeonholed, more likely to get exposure to company leaders, and far more likely to take on greater responsibility. And once you've learned the ropes, after 2-3 years you'll have hurdled the school biases and become just as qualified as anyone to work at any bank, big or small.
When all is said and done, the hardest part is getting into the industry. But once you can show – even at a smaller bank – that you're every bit as capable as the next guy, you're on (or damn close to) equal footing going forward. Fwiw, during my time in banking, an employee's effectiveness and school reputation were highly UNcorrelated. I met plenty of morons from Harvard and rock stars from Penn State.
FAQs
Keeping this in mind, we have prepared the list of the top 35 most asked interview questions along with their answers.
- Check out this video on Investment Banking Interview Questions: ...
- Who is an Investment Banker? ...
- What are the three financial statements? ...
- How can a company be valued? ...
- How to calculate the cost of equity?
Some examples of common weaknesses in investment banking include public speaking, networking, and delegating tasks. Explain how you are working to improve your weaknesses. For example, you could talk about how you are taking a public speaking class or how you are practicing delegating tasks to your team members.
Is dating an investment banker hard? ›
Is It Even Possible to Date an Investment Banker? The good news is that, while most definitely more difficult, it's still quite possible to both date a banker and date as a banker. Plenty of people do it and plenty of people have found their lifelong partners while working as bankers. There will be rough patches.
How stressful is being an investment banker? ›
The intense competition, constant deadlines, aggressive atmosphere, high-stress environment and lack of work-life balance have been linked to mental health issues and burnout among financial services employees, with many considering leaving their jobs due to the impact on their well-being.
What are 5 questions you should ask when investing? ›
5 questions to ask before you invest
- Am I comfortable with the level of risk? Can I afford to lose my money? ...
- Do I understand the investment and could I get my money out easily? ...
- Are my investments regulated? ...
- Am I protected if the investment provider or my adviser goes out of business? ...
- Should I get financial advice?
The four main areas of investment banking activity are Capital Markets, Advisory, Trading and Brokerage, and Asset Management.
Why is investment banking so hard? ›
Investment bankers are notorious for working long and demanding hours, with work weeks well exceeding 40 hours being the norm for entry-level investment banking analysts. In a competitive culture where putting in extra-long hours is regarded as a badge of honor, a 9-to-5 routine is pretty much unheard of.
Is investment banking a declining career? ›
Banks don't break out investment banker headcount specifically, but data released last week by research firm Coalition, suggests investment banker headcount across the industry fell only 4% year-on-year in the first half, which is when many of the cuts at Goldman and Morgan Stanley took place.
What are the cons of being an investment banker? ›
Cons of an Investment Banking Career
- Extended Work Hours: Investment bankers frequently grapple with long working hours, including weekends and holidays, to meet stringent deadlines. ...
- Heightened Stress Levels: The fast-paced nature of investment banking often results in elevated stress levels.
Of the two careers, investment banking requires greater quantitative acumen and math skills. The educational requirements for becoming a lawyer are much more rigid than those for becoming an investment banker.
The Investment Banking Career Path
| Position Title | Typical Age Range | Timeframe for Promotion |
|---|
| Associate | 25-35 | 3-4 years |
| Vice President (VP) | 28-40 | 3-4 years |
| Director / Senior Vice President (SVP) | 32-45 | 2-3 years |
| Managing Director (MD) | 35-50 | N/A |
1 more rowThe math you do use is very simple. As in, arithmetic. Therefore, you don't have to be a math genius – but you do have to be good with numbers.
What is the hardest job in finance? ›
One of the most difficult jobs in Finance is to be the CFO of a PE firm or a PE-backed company. According to a Big 4 firm's survey, turnover of CFOs in PE and PE-backed companies is notoriously high, reaching 80% in less than five years; half of whom are gone within three years.
What are the odds of becoming an investment banker? ›
The lucrative and fast-paced career of an investment banker is a highly competitive one. For instance, in a recent year, 236,000 applicants competed for roughly 3,500 internships at Goldman Sachs. This is common across the industry where acceptance rates for programs are typically less than 2%.
Can you be happy as an investment banker? ›
A pretty good question because for many it's a dream job. From my experience - and I spent 8 years in the industry, many of my friends are investment bankers - most are indeed deeply unhappy. Saying that, many will be happy once they're out. Most dislike their job, it's a grind, it's hard work, it's soulless.
How do I prepare for investment banking? ›
If you are wondering how to be an investment banker in India, you can consider taking the following steps:
- Complete 10+2. ...
- Pass college entrance exams. ...
- Earn a bachelor's degree. ...
- Obtain a master's degree. ...
- Acquire a doctorate. ...
- Get a certification. ...
- Pursue an internship. ...
- Find a job.
Eight key concepts you should know about investment banking
- Bonds. ...
- Shares. ...
- Corporate Loan. ...
- Project finance. ...
- Trade finance. ...
- Initial Public Offering. ...
- Capital increase. ...
- M&A.
Most technical questions will be on basic accounting and valuation. But come prepared for technicals around discounted cash flow analysis (DCF), intrinsic valuation vs. relative valuation, etc. Sometimes, interviewers will also ask challenging brainteasers to gauge how you think about problems on the spot.
What knowledge is required for investment banking? ›
Strong financial skills with particular emphasis on economics, mathematics and accounting help investment bankers perform their job requirements efficiently. Besides these core financial competencies, financial curiosity helps candidates overcome challenges in the workplace and advance in their careers.
