Preparing for a banking & finance degree / higher apprenticeship

The indisputable three stages of a fulfilling life are Learn, Earn and Serve

Most successful politicians and business leaders who are serving on FTSE 100 and Fortune 500 boards have all been through these three stages. Investment banking is a unique profession that allows individuals to use what they have learnt to earn well in the early part of their life, giving them a chance to serve and give back to society in the latter stages of their career without having to worry about bills.

Mark Carney, former Governor of the Bank of England (2013 2020) is a typical example. He is someone whose Learn’ phase included an Economics Bachelor’s degree at Harvard and Master’s and Doctorate degrees at Oxford. His ‘Earn’ phase saw him rewarded with seven-figure earnings during an illustrious 13-year career at Goldman Sachs. His ‘Serve’ phase includes leading the Banks of Canada before taking the helm at the Bank of England.

Prime Minister Rishi Sunak and ex-Chancellor Sajid Javid, are also other notable examples. From studying at top Uni's, to senior banking positions earning millions per year, before taking a 98% pay-cut to serve as a politician.

So, what does it take to break into investment banking?

Start preparation early For most City/Wall Street investment banking roles, early preparation helps to build an ideal profile. It is beneficial for your child to have made up their mind early in their education, as they will need to choose the ideal subjects and push for the right grades at College and University.

Subjects like finance, economics, accounting, mathematics, and engineering tend to be natural fits for City jobs, but most investment banks are now open-minded and accept candidates who are high achievers in any academic background.

Start networking Your child should aim to expand their network by connecting with recruiters at campus recruitment fairs and investment banking clubs. Connecting online with investment banking seniors, recent graduates and alumni who have joined financial firms is recommended. As ‘insiders’, they will know where the hidden ‘unadvertised’ opportunities may be, who the key contact in their firms are, the rules of the game and the inside knowledge and terminology that will impress interviewers.

Thisprovidestheidealopportunitytoaskquestions to help prepare for potential interview questions. It’s a good idea for your child to identify their key personal attributes and what makes them stand out from their peers.

Maximising opportunities There are a range of financial firms and banks, from top investment banks and middle-market firms to smaller brand boutique investment banks. Applying to them all will increase the chances of getting more interviews, and in the process, this will help fine-tune interview skills. Some smaller elite firms may have more attractive, unique opportunities and can act as a stepping-stone before joining bulge-bracket global banks.

Making an application shine Apart from top grades or mathematical, economics or financial acumen, there are other things which can help set an application apart. If your child is not coming from Oxbridge, a Russell Group University, an elite school or typical investment banking feeder school/ college, don’t worry, they can still enhance their CV by:

• Joining college/university clubs and extracurricular activities that can highlight their analytical prowess, aptitudes and interests

• Highlighting any achievements especially at an elite or professional level

• Including leadership roles at school or university as they demonstrate a track record of assertiveness and confidence

Prepare a job securing CV and cover letter Most City/Wall Street investment banks look out for the followingonCVsandcoverletterswhenevaluating candidates:

•Top grades in the ideal subjects and degrees

• Any outstanding extra-curricular performance including athletic achievements or club leadership

• Placement or internship experience in an investment banking or related environment

• Knowledge of the organisation your child is applying for, their core values and unique features. If they have met or connected with any key insiders, try to mention them in the cover letter

• A high level of enthusiasm both for the profession as well as for the bank itself

Internships and summer placements are a crucial sweetener that can provide a competitive edge. Most recruiters believe that candidates with junior role experience in the profession have an advantage over their peers.

Your child should expect a thorough scrutiny of their placement/ internship experience in the interview. They could be quizzed on anything including: types of clients, transactions values involved, key achievements, how they fitted within their team and details of any challenges encountered. It is important to give honest answers and focus on strengths and solutions.

Preparation, preparation, preparation

When making any application, knowledge of the industry and the bank is key. Hopeful applicants should get to know:

•Who the key players are

•Industry insights and latest developments

•What the bank specialises in

•What their current market position is

Every interviewee must be able to demonstrate good reasons why they are applying for a particular role, and with a particular firm. Find a way of clearly highlighting that the bank they are applying for is their first choice. Make sure they don’t appear as too confident or too humble, they should strike a balance between showing a keen interest but not being overly zealous.

Prepare for questions like:

• Why do you think you are the right person for this role?

• How do you see yourself adding value to the business?

It’s also important to be prepared for some Investment Banking Technical Skills questions such as:

•Financial modelling and advanced Excel

•Valuations

•Financial Statement Analysis

•Mergers and Acquisitions

•Financial sales and corporate communication

Lastly, your child should:

•Be prepared for a strict recruitment process

•Accept that a role in the financial and banking sector can require long working hours (sometimes 50+ hours per week)

• Allow enough time for the typically lengthy recruitment process. The entire process can be drawn out and very timeconsuming.

The banking and financial sector is interesting, demanding, rewarding and will put your child’s knowledge and aptitude for finances to good use. It promises excellent career progression and remuneration in return for hard work and dedication.

Key differentiators for prospective banking and finance candidates:

Finance, Maths or Economics degree or qualifications such as ACT, CFA, CFI, ACA or CISI

Useful further reading

Investment Banking Career Path - How to Plan for a Job in IB https://corporatefinanceinstitute. com/ resources/careers/map/banks/ investment-banking-career-profile/