Investment Banking Internship

Many investment banks offer internships, the duration of which is between 3 months and 2 years, depending on the profile an individual aspires to work in. As soon as the aspirant completes the internship, the journey as an investment banker begins.

One might choose any profile based on the skills and aptitude they possess. However, if the intern outperforms, the internship provider is likely to absorb the person as a permanent employee of the investment firm.

• An internship in an investment bank is the perfect opportunity to kickstart a potential career in investment banking. A good performance in such an internship can provide people with substantial employment opportunities in the field.
• Internships in the field of investment banking help individuals build a CV that is suitable and appreciated by employers in investment banks.
• Internships in investment banks can be found and procured through offline applications, employment and internship exchanges, company hunting, and social media.
• The basic responsibilities of an intern in an investment bank include corporate banking, mergers and acquisitions, trading and investment, and capital markets.

The companies or the investment banks hold on to their vacancies, for they have to make arrangements to pay for new recruitment when the market does not favor their pockets.

So, there are layoffs of non-performing employees who are replaced with fresh talent in such situations. These firms, therefore, come up with summer or off-cycle investment banking internship opportunities to have a temporary backup and absorb the candidate if found suitable for the permanent job profile.

Two major benefits for the banks here are

1. Internships are much cheaper and more economical for the company than full-time employees or permanent employees.
2. And the second benefit is if the interns are outstanding performers they will make sure to offer them a permanent job. It would be best to cash on their benefits to strike through this industry at the right time.

Getting an investment banking internship might not seem easy for candidates to have huge competition awaiting them. The unstable global economy has made working in this industry even though.

Getting through involves several calculations such as the right timing, the right type of skills, the correct understanding of the industry, creating a professional resume, and spreading across the industry through various means. Online and offline methods should be used, for you never know what method might work wonders. From drafting an investment banking internship cover letter to becoming part of the internship opportunities offered by the most reputed investment banks, aspiring candidates have to ensure a lot of things. However, the most important aspects to look at include:

Understanding the industry

Before one enrolls in any course or joins the concerned job, one must explore the field. The world today works with the help of the internet and its search engines. Using the internet to research the industry is the best step towards entering the field as an intern.

One must make sure to explore and know the different fields of investment banking and accordingly choose the profile they are most interested in. Some of the divisions found in the industry are listed below:

1. Corporate financing
2. Acquisitions and mergers
3. Capital markets
4. Trading and sales

The aspiring interns must make sure they know the topmost investment banks across the globe and the best performers around their locality. The career path of an investment banker, last but not least, the different profiles offered to an investment banker.

Along with knowing about the journey of an investment banker, the work schedule and the risk involved in the job must also be known of. The main job of an investment banker is handling the money from investors, mainly high-profile investors. They have to manage a tough job, and hence they work for approximately 60 to 90 hours a week. Undoubtedly, they receive a handsome salary, including incentives, in return.

Developing skills

Applying for an off-cycle or summer investment banking internship requires excellent financial skills. Finance graduate must read through the college course once to be prepared to apply for this designation. On the other hand, a non-finance graduate must get the fundamentals of finance correct before applying for the internship.

Start with knowing the basics of finance, for example, understanding the trends of market and investments, macroeconomics and microeconomics and their environments, financial deals and the mechanics involved behind these deals, etc. do not forget expertise in any field only comes with practicing them in person.

Besides finance skills, one must make sure to have certain corporate skills that will help deal with co-workers, seniors, clients, and the organization’s management. Developing these skills takes a lot of time and practice; however, having a strong professional attitude to work as an investment banker is a must. Basic skills of dealing with people or maybe different types of people, communication skills, interpersonal skills, and analytical skills. Having creative skills and the ability to display your creativity in finance and interest in taking initiative as an employee, as a co-worker, and as a team member is preferred.

Creating a resume

The investment banking internship cover letter and resume are expected to mention hard skills like Excel, Accounting, Valuations, DCF, Relative Valuations, Comparable Comps, Financial Modeling, Mergers & Acquisitions.

CFA Level1 will be an icing on the cake for an investment banking internship.

However, a resume needs to be honest and as precise as possible. A professional summary of what one is, their set of skills, capabilities, strengths, and suitability as an investment banker needs to be highlighted.

Communicate and display the resume in simple language with short and simple sentences. The interviewer will not be impressed by language but by skills.

To match up to the standards of an investment banker, the candidates can add a cover letter to the internship application. It needs not to be very long for the interviewer will only glance through it and not read it in detail.

These two documents work as the 1st impression in front of the management or the HR of the company. So, it would be best if that’s made right. Silly mistakes, spelling mistakes, and incorrect information is a simple NO.

The first document is the most important one to correct before applying for an internship.

Circulating a resume is the next job after the resume is ready. These days circulating resumes has become very easy since the internet is available. One can read further to check on how they can circulate the resume and make themselves recognizable.

If one desires to apply online, one can apply using:

• Job portals
• Company websites
• Social media

On the other hand, if one wishes to apply offline, one can apply via:

• Job consultants
• Campus interviews
• Networking

Preparation is an integral part of the interview. If one is prepared for the interview, facing an interview with the best investment banks without any hesitation becomes easy. One must start preparing as soon as they start applying for internships. It’s never known when an interview comes up urgently. If they are prepared, they won’t require rushing at the last minute.

Read about the finance industry and investment banking career, and study the best investment banks globally and locally. Study about the investment bank you have to face the interview at. Keep your data and stats ready; list them down in your head to fire them at the interviewer.

After the resume and cover letter, meeting in person for the 1st time has to be a remarkable experience for both the interviewer and interviewee. Create an impression to kill and sustain in the market. Being prepared for your interview gives one the advantage of being prepared before you walk in for an investment banking internship interview.

Besides interview preparation, make sure to be presentable enough to attend the interview. As a management or finance student, one must be aware of the presentation of an investment banker. A banker is always very professionally dressed, which is mostly formal. There is no option for casual dressing, investment bankers dress formally to be professionally dressed as this makes them presentable.

So, remember the interview not just includes the preparation on finance, the investment banking industry, and the investment bank one has an interview with. Instead, it also includes making preparation for carrying oneself well as an investment banker to reflect their professional side.

Sometimes Investment Banking Interviews are case-based, do have a look at these Investment Banking Case Studies for further details.

This has been a helpful Guide to Investment Banking Internship. Here we explain how to get an internship opportunity and how to prepare for it. You may also have a look at these articles to boost your skills in Investment Banking

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