Bank on Banking

It doesn’t take a genius to recognize the importance of attending a well-respected, if not top-tier school. Attending a school of this caliber (whether undergraduate or graduate) opens doors and presents far more networking opportunities, both while attending the school and post graduation for certain alma maters such as Princeton and Harvard. Needless to say, there is a visible advantage here. Let this advantage, however, not deter you from realizing the opportunities available, with a little hard work, to the many students who do not or did not attend a top-tier university.

Let’s be honest with ourselves; there are many reasons why students do not end up going to a top-tier or, for sake of this site, Target school. Many students slacked off in high school only to realize in college that there are more opportunities readily available to students of Target schools. For others, one bad day on the SAT, not enough extra curricular activities, or coming from a key demographic where huge numbers of students apply each year, all could have meant either denial of admission or not enough financial aid to make the option viable. There are other reasons, but let’s not harp on the negative. Here’s the $20,000 question: you’re not in the Target school, so what now – How do I break into Investment Banking?

Unless you have the usual “ins” that make it all possible, i.e. knowing a CEO, CFO, group head, or even several MDs, in a large IB, prestigious boutique, or the like, I can tell you from personal experience that it’s not easy, but absolutely possible. The first step is to do some research, put in the time learning the game as far what you’ll be doing in your immediate position, why you want to do it, and how you know that you can handle it, because coming from a non-Target, you will be grilled on the ins and outs of the business more than others. Start, or continue reading the Wall Street Journal, the Financial Times and investment banking insider web pages such as This Site, Dealbreaker and Clusterstock (see sidebar on the right for the full list) for current market and deal-related events, and insider perspectives into the business. Additionally, I would recommend familiarizing yourself with some general Excel and PowerPoint tips, tricks and skills – this can only help you both on the job and during the interview as I have been asked on more than one occasion (especially at the boutique shops) where on the scale I would rank my Excel skills.

As part of familiarizing yourself with the profession, lay out a plan of achieving your goals. You will probably not find yourself being offered a bulge bracket, investment banking internship your first summer interviewing, especially in this market, so don’t expect it. By all means apply to them, but at the least it is important to get into a good bank, even if it is not directly related to your field. Working for a summer in a high intensity group on the control, wealth management or trading sides at a top-tier bank will open doors for the next summer, and allow you to transition into that front office investment banking position. It doesn’t matter wheich group you worked in for a summer at Goldman Sachs (yes if it in banking it will obviously help more than the other groups to get you into banking), the employer was Goldman Sachs, so clearly you’ve got something to offer, and your interests may just be in investment banking instead of wealth management; no feelings hurt, no harm done, but a good name on your resume. Along the same lines, if banking is what you want to do, don’t underestimate the power of working for a summer, or a summer plus a winter semester at a small investment banking or M&A (mergers and acquisitions) boutique. There is a strong skill set to be gained through working for a small boutique, and remember, deal exposure is deal exposure and banking experience is banking experience – absolutely take it if you can get it.

Next and I can’t stress this enough (especially in light of current employment conditions and opportunities, or lack there of), network, network, and, of course, network some more. Not just at job fairs, but attend school-run career information sessions hosted by banks (even if they’re not for banking), contact alumni, current students who have already interned, and check the family/friend tree; you never know who will work in, or happen to know someone who works in the field and is eager to pass along your resume or a good word (don’t lead off with that request though, please). And remember, when it comes to networking, it’s an investment into your future, not an opportunity to beg for a job (you get the idea – it’s a marathon not a 100 yard dash). As an aside, I would recommend starting some sort of spreadsheet, which includes the name, phone number, email address, company and position, and other notes such as last date of communication for each new person (read: contact) you meet.

This is a more general point for students still in undergraduate school; if you have a good GPA, and have taken some challenging accounting, finance or math courses, showcase them! Show off that 3.8 or 3.9 GPA; show off your advanced corporate finance, intermediate financial accounting, linear algebra, or ordinary differential equations courses, you never know what will stand out as an impressive mark or credit to your intellect to someone looking at your resume. If you don’t have an outstanding GPA, work on getting your major GPA up so that you can include that in your resume so as to not arouse the red flag associated with a GPA-less resume.

Regarding the resume, the heart of every job application, make sure to use a professional “banker” style format, and I would also recommend using a resume proofing and editing service to ensure that you are properly showcasing your hobbies, work experience and scholastic accolades. Recently, one of my colleagues received a phone call regarding his resume. On this call he was told that his resume would not be forwarded because it didn’t look like the resume of an investment banker. He works in banking, but the format was juvenile, without structure, and lacked the “pop” that a banker’s resume demonstrates. Needless to say, he asked me to revamp his entire resume later that day. As embarrassing as the situation was for my colleague, he was luckier than most people who face the same problem, because these people are rarely, if ever told how their resume stacks up against others and where it needs the most dramatic improvement/alteration. I would recommend the same type of service, or a trusted colleague’s perspective, as it pertains to cover letters, which should always be included with your resume. Remember, in a market like this, everyone, top-tier or not, needs to find any way that he/she can to stand out and above the rest.

To summarize:

1. Make sure banking is right for you, and if it is, make the Wall Street Journal, Financial Times and investment banking web sites your close friends – they’re among the best ways to familiarize yourself with the ins and outs of the field.

2. Plot your course and be sensible – remember, a strong brand name goes a long way, but at the same time, don’t doubt the skills you can attain by working at a small investment banking boutique – deal exposure is deal exposure.

3. Network, network, and more networking – enough said.

4. A high GPA and challenging course load goes a long way, so show it off.

5. Have a friend or good service review your resume and at least one cover letter to make sure you are pointed in the right direction and don’t fall into any of the common pitfalls.

Have your own theories, want to share your opinions or concerns, need some help or just want to say hello….leave some comments…most will be posted for all to read…so make them good. Don’t forget to stay in the loop for my upcoming posts including more tips on breaking in from a non-Target school and a Target school, dressing the part, when to stand out as an analyst, and much more – RSS and Email updates…get them now.