Investment Banking Recruiting 101
SOPHIE JAEGER, ‘26
Incoming 2024 Investment Banking Summer Analyst at Bank of America
Internships and analyst positions in investment banking are some of the most highly coveted positions in the job market. While investment banking has a reputation for long and intense hours, the experience and connections that young professionals receive set them up for success in any path that life may take them. Investment bankers go on to do anything and everything from working in private equity, as CEOs or other C-suite executives, venture capitalists, entrepreneurs, and even Christmas tree farmers (trust me, it’s a true story). For all of these reasons (and more!), the investment banking recruiting process is extremely competitive, and it is imperative to be on top of your game if you want to secure an internship. This is a guide to the investment banking recruiting process, featuring the advice of current Women in Business members who have secured internships in the field.
What is investment banking and what do investment bankers do?
Investment banking pertains to certain activities within a larger financial services company. Investment banking provides advisory services to large corporations and helps organize, structure, and execute these transactions. Some of these transactions include initial public offerings (IPOs aka when a company goes public on the stock market), mergers and acquisitions, and capital raising (either through debt or equity aka bonds or stocks).
Investment banks are divided into industry and product groups that either work with companies in a specific industry or work with a specific product. Some examples of industry groups are consumer and retail, real estate, gaming and lodging, and natural resources. Some examples of product groups include mergers and acquisitions and leveraged finance. Each bank organizes its groups slightly differently, and you will typically apply into the general investment banking program and then get sorted into a specific group.
What does the timeline look like for investment banking internships?
There are two main application cycles for undergraduates in the investment banking world. The first cycle is the sophomore summer internship. The applications for these internships typically open in early summer and offers go out in late summer/early fall. These internships are completed during the summer between your sophomore and junior year. The applications are targeted for rising sophomores (current freshmen). These spots are typically much more limited and smaller banks may not have as many opportunities for sophomores.
The main investment banking recruiting cycle happens for junior summer internships (for the summer between your junior and senior year). These applications are intended for sophomores. Applications typically open in the winter and offers go out in the spring. However, diversity applications or programs (for people of color, women, and LGBTQ+ candidates) may go out earlier.
What are the specific steps in the application process?
The application typically begins by filling out a general application about yourself and submitting your resume. Some applications may also require a cover letter. The next step in the application process is completing a HireVue. HireVue is a virtual interview platform, in which the platform will auto-generate a question, you will have around 30 seconds to think of an answer, and then you get a few minutes to respond in a video format. HireVue questions are typically “behavioral questions” (think of these as standard interview questions).
A few common behavioral questions for investment banking include the following:
Why are you interested in investment banking and why specifically at “x” firm?
What is a deal in the market you have been following that is of particular interest to you?
Tell me about a time when you worked in a team project.
Tell me about a time when you showed integrity.
What is your greatest strength/weakness?
After the HireVue, the next step is a “SuperDay” during which you’re interviewed by bankers at the specific firm you’re applying to. Typically, the SuperDay will include 1-2 behavioral interviews and 1-2 technical interviews. The behavioral questions will typically be similar to the HireVue style questions, and the technical questions will be about accounting, valuations, discounted cash flow models, and enterprise and equity value.
Thank you to our WIB Contributors:
Jaclyn Christina (Class of 2025), Incoming 2024 Investment Banking Summer Analyst at Barclays
Julia Isaacman (Class of 2026), Incoming 2025 Investment Banking Summer Analyst at Goldman Sachs
Avni Rajpal (Class of 2026), Incoming 2024 Investment Banking Summer Analyst at Goldman Sachs