Can you get an investment banking analyst job without internship experience?
Finance recruiting has been starting crazy early recently so you probably put yourself at a disadvantage if you don’t know years in advanced that you want to get into finance, or specifically, IB. There’s an argument to be made about whether the industry is for everyone and the reasons for pursuing a career in IB once you graduate but let’s save that for another day. The question is, do you still have a shot at landing an entry level analyst position in IB if you didn’t do an internship in IB as an undergrad?
The short answer is yes — but it will be hard. The full-time analyst acceptance rate is likely significantly lower than that of internships, especially considering the lack of relevant finance experience.
One of the main objectives of doing an internship is for companies to train you and for you to demonstrate to them your potential value. After a summer, they may or may not give you a return offer (conversion rate ranges from 60 to 80% on average depending on the firm), which you can also use to leverage a full-time offer. So banks use internships to hire bright, young talent who are mostly motivated and eager to learn. Another point is that you often get hired by a desk or team, which makes this decision based on your rotation with them during your internship. You can see how people prefer to have this experience of working together aside from just looking at your resume and interview questions. The internship can be viewed as an extended super day, if that makes sense. IB firms have the goal of filling all their entry-level analyst roles through the internship programs and if their hiring size is less than expected, they may not even be that inclined to significantly increase that number through full-time recruitment.
But if you didn’t manage to secure an IB summer internship (or one in finance in general) or you didn’t know you wanted to pursue IB until it’s too late, don’t lose all hope yet. Full-time recruitment can still turn out to be fruitful but it’ll just take some extra effort. Here are some things to consider:
Think about why you want to go into IB. Hiring managers may feel that since you didn’t do a summer internship, you may not be as passionate as the ones who did and made the decision earlier. Be prepared to answer questions during your interview regarding your interests and motivation for doing IB.
Network, network, network. People often say that applying online is like tossing your resume into a deep, dark abyss. Most finance internships are filled through referrals and in general, up to 80% of jobs are filled through networking. If you’re already at a disadvantage without internship experience, this is even more important. Keep a list of all the banks you want to apply to and reach out to people who work at all of these places. For more concrete tips, see this previous post. Ideally, you would have someone who’s somewhat senior vouching for you.
Don’t just go for the bulge brackets (BBs). Yes, it is prestigious to land an IB job at Goldman Sachs or JP Morgan but it may not be as realistic if you don’t have someone referring you internally. Explore smaller boutique firms and middle market banks as well. They may even offer higher compensations. Again, networking is your best bet here. You always have opportunities to work at BBs in the future so don’t worry.
Figure out how to sell yourself and spin your story in your favor. During an interview, don’t say things like “I know I lack finance experience” or “I may not have done a summer internship”. Use a few experiences you’ve had during undergrad like leadership of a club or personal accomplishment/interests that demonstrate your hard-work, curiosity and enthusiasm. Be confident and convince them that you possess the skills and attributes that allow you to do the job such as attention to detail.
Do a lot of research on the technical and behavioral pieces of IB and finance interviews. Prepare stock pitches if necessary, practice for situational questions such as “give me an example of a time when you had to overcome an obstacle as a team”. You want to stand out and excel even more than undergrads do for the internship interviews.
A certification or graduate degree. If you have the time and means, perhaps consider an MBA or other relevant masters degree (e.g. Masters in Finance), especially if it’s a top school. This will really boost your chances as well.
Consider doing an internship before you dive into full-time. Even if it’s low-level or at a less-known firm, it still gives you exposure and experience that banks look for.
Take advantage of all the resources out there, whether that be your school alumni network, career center, Indeed, forums, Leap etc.
If you’ve made up your mind, start right now. The earlier you start networking and preparing, the better your chances will be. Things don’t always pan out the way we expect but you never know what door may open for you if you explore all possibilities.
