Investment banks have been recruiting earlier than ever before to fill their coveted summer internship programs – beginning the process as early as freshman year. This forces students to make career decisions very prematurely and puts those who are late to the recruiting game at a significant disadvantage.
The stakes for landing one of these internships are incredibly high. A stellar performance during the summer program often leads directly to a full-time job offer from the bank after graduation. However, these positions are extremely competitive, with top firms receiving thousands upon thousands of applicants for just a tiny fraction of available spots. For example, Goldman Sachs reportedly accepted only 1.5% of applicants for their 2022 summer intern class out of over 236,000 candidates worldwide.
Here is some key advice for students at different stages of college to navigate this process:
Freshmen:
- Take introductory finance classes right away to start gaining foundational knowledge of the industry, even Finance 101. Self-study topics like accounting, financial statements, and Excel modeling if a class is not available.
- Join finance-related clubs on campus as soon as possible and attend their events to start learning about the industry, networking, and building your resume – even if you can’t participate directly as a freshman.
- Make connections early on with upperclassmen who have already gone through recruitment and landed internships and jobs. Learn from their experiences.
- Hold off on reaching out directly to bankers at firms for now. As a freshman, focus on networking with juniors and seniors at your own school.
Sophomores:
- Kickstart networking in the fall by emailing 1st year analysts at your target firms. The analysts handle initial outreach like resume reviews and coffee chats before passing candidates to senior bankers for later round interviews.
- Perfect your resume with high GPAs, finance coursework, club leadership if possible, and activities that show passion for the industry. Apply for internships very early on, within the first few days of applications opening.
- Use winter break to intensely prep for technical interviews. Reach out to upperclassmen to do mock interview sessions. Study accounting, financial modeling, valuation, DCF, LBO models, and financial statement analysis.
- If you are late to the recruiting process, expand your search to smaller regional banks and firms outside of NYC that recruit on later timelines. Any relevant experience is crucial.
REMEMBER!
Don’t Wait to Apply
Most banks open their internship applications around mid-January, even though listed deadlines may be months later. The reality is that by March, many top firms have already filled a large portion of their intern class, according to experts. Interviews were taking place as early as January at some banks this recruitment season.
Therefore, you need to submit your application materials within the first few days of an application going live to have the best shot. The earlier, the better.
It All Comes Down to Your Resume
When firms are evaluating candidates, there are two main factors that determine whether you get an interview and pass initial screening: your GPA and your activities/involvement.
According to one former analyst and recruiting captain, a GPA below 3.9 heading into sophomore year is problematic given the easier freshman classes. She said seeing GPAs of 3.6 or lower is often an automatic rejection when firms have so many applicants. Between two similar resumes, recruiters will choose the higher GPA.
Your resume should also showcase commitment to finance. Joining relevant campus clubs like investment organizations is a must, experts say. The former analyst stated that your resume needs to “scream finance” through activities and coursework. Things like a minor in a quantitative field or leading a finance club will help you stand out.
Take advantage of winter break to intensely prep for the technical interviews that come in spring semester. Reach out to upperclassmen in the field to do mock interviews. Study accounting, financial modeling, DCF, LBO models, valuations, and analyzing financial statements. You want to have a solid grasp of the technical skills needed for the internship by the time interviews roll around.
Be Responsive
Once firms start scheduling interviews, they will email applicants directly. It is crucial to reply promptly to these emails and any follow-up correspondence.
Taking too long to respond can eliminate you from consideration, according to experts. Investment banking is fast-paced, and bankers are expected to be available 24/7. Even if you have a valid reason for a delay, it likely won’t matter in their evaluation.
You want to respond as quickly as possible – within the same day, if not within just minutes or hours. A lag of even a day or two can hurt your chances. Also be sure to carefully check spam folders so you don’t miss vital emails.
The bottom line is that firms want to see that you can be responsive and on-call at all times. Lack of timeliness in simple email replies sends the wrong signal about your work habits and commitment.
The key is making finance connections and demonstrating interest in the field starting early on. With proper planning and persistence, even those who missed the recruiting boat as underclassmen still have a good chance of landing a spot at a top firm down the line. Treat the recruiting journey like a marathon, not a sprint.
Andrea Benson, Managing Director
Andrea Benson is a Managing Director at Prospect Rock Partners. Prior to joining, Andrea spent 13 years at Bank of America across the IBD (M&A), HR (Campus Recruiting) and Tech (CIO) divisions respectively. Most recently, Andrea was the Global Head of Campus Recruiting and Operations at Morgan Stanley. She holds extensive knowledge of the global recruiting landscape and has a vast network given her tenure in the campus recruiting space. She holds a B.A. from Stonehill College, and lives in New Jersey with her husband and young son.
