How to become an investment banker

The inside track on how to break into investment banking

It's no secret that the graduate job market has become much more competitive since the global financial crisis of 2008, but the investment banking industry has always arguably been one of the toughest to break into.

On the face of it, prospects for graduates are better in 2012 than in recent years. Graduate research company High Fliers suggests that the leading investment banks intend to hire 2,700 this year, which is a 5% increase on 2011.

Investment banking is also the highest paying industry for graduates, and median salaries have increased to £45k this year – or a 7% uplift on last year.

A caveat to all this is that, as many recent headlines have shown, the investment banking industry is going through a tough period. Things can change – last year, the leading investment banks intended to hire 3,300 graduates, but the actual number of new recruits was around 2,650. Similarly, the 2012 figure is still over 20% down on the pre-crisis 2007 figure.

The fundamental point, however, is that these roles remain a popular choice among graduates and therefore the fight for places is as intense as ever – there were more than 230 applicants for every vacant role last year, according to the Association of Graduate Recruiters, and this is expected to increase in 2012.

Guiding you through the graduate recruitment process

How can we at eFinancialCareers help? Quite simply, we offer insight into all the careers available within the financial sector, as well as tailored news and advice around every aspect of the graduate recruitment process – from applications, psychometric tests, assessment centres and tips on making it through the interview process.

We also offer advice on how to gain an internship and capitalise on this to secure a full-time offer. Internships are integral to breaking into investment banking – typically around 70% of graduate places are filled by interns, particularly those roles in the front office (or the investment banking and sales, trading and research divisions of banks).

"The internship programme is more than just 'summer work experience' – it is a two-way interview as it allows the employer to assess your ability and potential, and enables the candidate to determine whether this is the right industry, firm or division for them," Isabella Crocker, vice president APAC graduate recruitment at Deutsche Bank, told our annual graduate guide Careers in Financial Markets .

How to avoid tripping up during interviews

If you make it through the application process, and the online numerical tests (which you can practice at eFinancialCareers), you'll be invited to interview, and this is where the hard work really starts.

Banks test potential recruits by posing four types of interview questions – competency (or how you would behave in a given situation), motivation (why you want to work for a particular company/job/division), technical (testing your knowledge of finance or the sector you're applying to) and brain-teasers.

It's the latter where most graduates fall down. How would you respond to questions like 'Why are manhole covers round?' or 'How many tennis balls could you fit into Bank underground station?', for instance?

This is the tip of the iceberg, and we can offer in-depth advice on how to make it through the interview process. We provide real examples of interview questions, bank by bank and for specific divisions, along with ideal answers as well as tips from people who have made it through the graduate recruitment process.

For further information on careers in financial markets check out the eFinancialCareers Student Section – students.efinancialcareers.co.uk

On the website you will find the latest graduate hiring news, top tips from senior industry figures, a full list of key deadlines, sample numerical tests, as well as our online trading game, the Investment Challenge, and much more.

The eFinancialCareers Student Section will ensure that you are among the best informed candidates around, which is half the battle when applying for a job in the highly competitive world of finance.

Visit students.efinancialcareers.co.uk

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