The Investment Banking Recruitment Process

Introduction:

The recruitment process for investment banking has changed significantly in the last 10 years; banks are now hosting multiple ‘stages’ for students to apply for which will dramatically increase their chances of getting that all-important full-time offer post-graduation.

There are 3 main programmes that banks offer before they recruit for full-time positions, which are:

1. Insight days

2. Spring weeks

3. Summer internships

Each programme aims to expose students to the world of banking, with each stage becoming progressively more challenging and competitive. As well as giving students a great experience to learn skills/expand their network and insight into a potential career path for them, they also give banks a chance to recognise and recruit talent early on, and mould individuals into their company culture before they accept a full-time position. These programmes can be seen as a ‘trial run’ for both the students and banks to make sure it is the right fit before being tied into long-term contracts.

Why should you apply for insight days, spring weeks and internships?

Particularly as a 6th form student, insight days can be a great way for you to gain a practical understanding of what working at a bank means, and if it is a career you would like to pursue. Throughout each stage, you will be able to see the ‘day-to-day’ work of different divisions; cultivate mentor relationships with industry professionals; learn technical concepts; and improve your commercial awareness/industry understanding.

Whilst insight days/spring weeks are great experiences and impressive to have on your CV, they are not vital in securing your grad role. However, summer internships are becoming ‘prerequisites’ if you are aiming for an analyst position straight out of university, with 70%-80% of ‘average’ performing interns receiving a full-time offer. Considering the extremely structured recruitment process for investment banking, it is highly recommended that students wishing to pursue a career in the industry follow this process to secure their full-time position.

If you are successful in getting on to these programmes, they can be a fast-track to the next stage, which usually culminates in a full time offer. So, if you can secure a place on any of these programmes, particularly as a summer intern, and perform well, you will put yourself in a significantly better position than other students applying for the same roles.

What are Insight Days?

Insight days are usually a 2-3-day programme offered to 6th form and first year university students. They require no previous finance knowledge and are the very first step to learning about what a career in banking entails. During the 2-3 days, students engage in group discussions; presentations from employees; work shadowing of different divisions; and can often culminate in a group task which can be presented to senior bankers.

The application process for insight days is not very rigorous, and usually just requires your CV, a cover letter and potentially a telephone interview. You can often find these opportunities through your school, or alternatively there are websites such as ‘The Bright Network’ that advertise relevant opportunities with links to application portals.

What do you do on Insight Days?

Throughout the programme, you will have a number of opportunities to speak with employees, ask questions, and leave a good impression which may fast-track your application for a spring week. This stage is all about understanding what a bank and its different divisions so, as well as trying to get your ‘foot in the door’ and expanding your network of mentors which may help you in the future. There are very few technical skills learnt during these insight days, and the majority of sessions are based on an introduction to investment banking.

Advice for insight days:

At insight days, you should really consider all different divisions within a bank and aim to speak to professionals from a variety of departments to understand what their role entails and if it would suit your interests. Whilst on these programmes, you should display a huge amount of passion and ask to questions/be active within group discussions. They don’t expect you to know anything about finance yet, but if you can show recruiters that you are looking to learn then that could put you in a good position for securing a spring week at that bank.

What are Spring Weeks?

In the Easter Holidays of your first year of a 3-year degree, or second year of a 4-year degree, banks offer a 1-2-week placement for students looking to get a head start before summer internships. Your time at the bank will give you a comprehensive introduction to investment banking, as well as the work of that particular institution.

These programmes are becoming increasingly over-subscribed as the recruitment for investment banking is getting so competitive and anything that makes your CV stand out, or that may give you a fast-track to an internship is extremely sought after among all aspiring bankers.

Application process:

1. CV/Cover Letter submission

2. Online aptitude tests

3. Telephone interviews

4. In person interviews

5. Assessment centre

What do you do on Spring Weeks?

Spring weeks allow students a broad overview of the bank where they get to see multiple divisions, and they can offer students a chance to work shadow in divisions such as M&A, or S&T for the 2 weeks. During the programme, there are usually 5 activities that will take place:

- Work shadowing

- Learning how the business works

- Integration into teams across the company

- Short projects

- Presentations

Whilst students taking part in the spring week will not be given any ‘real’ work or attend confidential client meetings, they are still a great way to experience what the corporate culture and work is like in the industry. Building contacts, gaining practical experience, and attending technical/career workshops are all extremely valuable for students looking to apply for the summer internships or graduate roles in the future.

Why should you apply for Spring Weeks?

With an acceptance rate of ~4%, to be successful in applying for summer internships you need to have previous work experience that will make your application stand out.

Even though Spring Weeks are more focused on up-skilling students and introducing them do the functions of the company, they can also be a great chance for students to differentiate themselves and leave a good impression on recruiters. The top performers in these programmes can sometimes receive a fast track for the summer internship at the end of the 2-weeks, thus avoiding a lot of the stress from internship applications!

In addition to the potential recruiting benefits of attending these Spring Weeks, they are also just a great way to learn about finance and improve your technical skillset/commercial awareness. Even if you decide investment banking isn’t for you, you will undoubtedly pick up transferable skills to use in whatever career path you pursue.

What are Summer Internships?

Summer internships usually take place in the summer of your final year at university, and last for 3 months. This is the final stage/opportunity you have to make a good impression on a firm before graduate recruiting, therefore both securing and performing well on the internship are very important. With just 4% of applicants securing an internship, these are extremely competitive and require a lot of preparation.

Application process:

1. CV/Cover Letter submission

2. Online aptitude tests

3. Telephone interviews

4. In person interviews

5. Assessment centre

What do you do on internships?

You will be placed into a team, for example global markets, and within that team you will be treated as if you were a full-time analyst. The main task of an intern is to provide assistance to bankers in projects such as creating pitchbooks, or the execution of M&A mandates. The work will be under deadlines, with pressure coming from clients or senior bankers, however since you will be in teams there will be resources or more experienced bankers to assist you in your projects.

Interns will spend the majority of their time either working on PowerPoint with pitchbooks, or on Excel doing financial modelling. Where you are able to find time, it is important to network and build relationships with as many bankers from different teams/divisions as possible.

The standard of your work, interaction with your team, and relationships you build will all be important when deciding on your full-time offer. If you impress recruiters and the team you were placed into, it is likely that at the end of your internship you will be invited to join the institution as an analyst post-graduation.

Conclusion

The financial industry has created a very structured process for students to learn and grow their financial knowledge/awareness before leaving university. The programmes they have initiated aim to educate students interested in finance, and also notice talented individuals early on.

All of these programmes have massive benefits of attending. They will boost your knowledge of the industry, allow you to build mentor relationships, and help you stand out on your CV.

If you have the time and ability to get onto these programmes, we highly recommend that you attend them. Even if it just out of curiosity for banking and is not what you want to pursue a career in, there will be many transferable skills that you take from the projects/presentations that are part of the programme.