When a finance professor got a request from an investment bank to visit campus in October to talk to sophomore students about post-junior-year summer internships, he was shocked.
It’s an annual ritual for banks to visit certain schools to recruit prospective interns through presentations and meet-and-greets, explained Steve Sibley, co-director of the investment banking program at Indiana University’s Kelley School of Business. But never had one come this early — one year and eight months ahead of said internship’s start date.
“It felt like the spring of sophomore year was the earliest it was going to get,” Sibley told Business Insider, “but this year violated that.”
Presentations and campus visits are a precursor to the actual internship recruitment process, which usually kicks off in the months after and involves jockeying for “coffee chats” and multiple rounds of online and in-person interviews. Each year, there are tens of thousands of student applicants vying for very limited spots at top-tier firms. (Goldman Sachs, as BI previously reported, accepted just 1.5% of candidates into its 2022 summer internship class out of more than 236,000 applications worldwide.)
The stakes are high because an impressive performance during the summer can lead to a full-time return offer after graduation (if you miss the boat, it’s immeasurably harder to break into the industry later).
While it has always been competitive, the investment banking summer internship process has gotten increasingly premature. Before 2018, Sibley said, many banks made offers during the fall semester of junior year. Now, he estimates that about 20% of his sophomores have already signed internship offers, while others are doing final-round interviews this week.
The timing is pretty much in the hands of the banks. They go through the school or finance clubs to schedule presentations. The competition for talent between banks, he said, is what keeps edging up the timeline.
“We say yes because if we don’t let them come, we’re putting our students at a disadvantage,” he said. “We weren’t prepared for it this year.”
Some of his students returned from winter break in a scramble to submit their applications, network, and prep for interviews. Super Days — an industry term referring to the final stage of recruitment where firms invite applicants to the office and put them through several rounds of interviews with senior bankers — were happening as early as the second week of January for some banks this year, he said.
“Students feel like they haven’t really had time to figure out what they’re looking for in a bank before they’re asked to make decisions,” Sibley said. “If you didn’t network over the winter break, you feel behind now and need to catch up.”
He fears it will continue creeping up.
“I worry for next year. I could see banks doing Super Days in December,” he said. “The bankers I talk to about it recognize it’s not ideal, but it’s just the way things are being done. It’s a lot to put on young people.”
What does this mean for aspiring investment bankers? It means the window of opportunity to get that all-important investment banking internship is starting to open (and close) earlier than ever. As a result, wannabe financiers may want to start getting ready for the process as early as their freshman year.
BI compiled 15 tips to help students adjust to the new reality. They include advice for current freshmen, incoming freshmen, and sophomores who may have missed the recruiting boat. We spoke to the finance professor, a college senior who has successfully completed an investment-banking internship and was a leader in her campus finance club, and a former IB analyst who was a recruiting captain at her firm. The latter two’s identities are known to BI but are kept anonymous in this article to protect their current and future jobs.
“I absolutely hate kids who have a tone in their email that sounds like they’re assuming I will talk to them.” — former investment-banker.
Take finance classes ASAP
College students often spend their freshman year knocking out the most basic, non-major-specific courses required to graduate. But if you can, Sibley said, try to enroll in at least some finance classes your first year. Take any finance or accounting classes that are offered.
“Take financial accounting as soon as possible,” he said. “Any finance class you can take the first or second semester, take it.”
If you wait until sophomore year, you’ll be just learning the basics of the industry while simultaneously trying to recruit into it. Gain the foundational knowledge as soon as possible so you don’t feel lost or behind. If it’s not possible to get into a Finance 101 class, study up on your own.
“If you’re not in an undergrad business program, buy Financial Accounting for Dummies or a book like that and teach yourself,” Sibley added. “The earlier, the better.”
Get involved right away
Getting into campus clubs as a freshman may seem daunting, but it’s a priority for aspiring bankers.
“The key is to show up at school and hit the ground running,” Sibley said.
If the school has finance-related clubs, join them.
“It’s tricky because there’s an application process [to get into] finance clubs at most schools, but even if you don’t get accepted the first semester, they will likely take you the second semester,” said the college senior. “Just applying will help you have a better shot next semester. They take students who are involved.”
The clubs probably have some events open to everyone, she added. Go to those and meet people.
“I would go to most of the speaker events as a freshman to understand what finance was and what I wanted to do in finance.”
If you attend a school where banks actively recruit talent, known as “target schools,” attend recruitment events when you can, even if you can’t participate.
“Go to the sophomore presentations as a freshman,” Sibley said. “Even if you can’t apply, sit in on the presentation to learn about it, the bank, and investment banking.”
If the event is closed to members only or advertised for sophomores, ask leaders of the organizations if you can listen in and observe.
Network with upperclassmen first
Networking is one of the most important aspects of getting a competitive investment banking internship. As a freshman, it’s too early to talk to bankers, said Sibley and a former analyst.
Instead, you should network with the upperclassmen at your own school.
“Look at juniors and seniors at your school to see what clubs they’re in and to meet them,” said Sibley.
If you go to a business school, chances are some juniors or seniors will already have internships and full-time jobs secured. Take note of what they were involved in, and ask what the recruiting process was like for them and how they got their offer.
Resist reaching out to bankers as a freshman. “I never replied to a single freshman,” said the former analyst, who was also the recruiting captain at her firm in New York City. The only exception is if you are a freshman trying to land a sophomore summer internship. Many bulge-bracket banks offer these programs, like Bank of America and Citi, and they do look great on your résumé, said the former analyst.
“There is such value to having a sophomore summer internship early so you can market yourself as having that while recruiting for a junior summer internship,” said the former analyst.
When doing networking outreach for a sophomore internship, she added, just make sure to specify in your email what you’re applying to so people don’t think you’re just some way over-eager kid.
Even if you aren’t certain about IB as a career, participate in recruiting
If you still aren’t 100% sure you want the life of an investment banker, that’s fine. It’s a lot to ask a 20-year-old to make such a big decision on behalf of their post-grad self. But the three industry experts who spoke to BI agreed that students even remotely interested in IB should participate in the recruiting process during their sophomore year.
As previously discussed, banks source most of their full-time analysts out of their internship cohorts. And, like it or not, they recruit for those internships a year and a half in advance. So if you don’t participate and decide later you do want to do investment banking, it will be much harder to break into a top firm.
“Better to do it and regret it later rather than not do it and not be able to,” said the former analyst. “This is an industry that’s very inaccessible – you have to get in early.”
Even if you change your mind later, you can learn a lot by going through the process and, if you do land a spot, by doing the internship.
“A lot of kids don’t realize they don’t want to do it until they’ve done it for 10 weeks after the internship,” Sibley said.
Investment banking can also be a stepping stone to other parts of the finance industry like private equity, venture capital, and hedge funds.
“If you do an internship, you will see if it’s actually for you and if you can survive it,” said the finance student. “Even if you don’t end up pursuing it after graduation, it’s a great experience to build on. You learn so many key skills – modeling, valuation, using Excel. People who come from IB go off and do many roles.”
Start networking with bankers fall semester of sophomore year
The former analyst said her “biggest piece of advice” is to start networking with potential employers “as soon as the school year starts sophomore year.”
Doing this will give you an edge and a much higher response rate, she said. The process is uber-competitive. So when recruiting season kicks into high gear in the spring semester, analysts’ inboxes and LinkedIn are already being flooded.
“By January, every analyst is receiving upwards of five or six cold emails per day, every day,” said the former analyst.
She suggested starting in September or October. “The response rate earlier in the fall is much higher,” she said.
Having a targeted approach is also important, said the college senior. If, for example, you want to work at Goldman in tech, media, and telecom banking, then first contact people in the TMT group. You’ll also learn more about the group that way.
Target first-year analysts
Something newbies might not realize is that, at many top firms, the initial intern recruitment process — coffee chats, résumé reviews, first-round interviews — is handled by first-year investment bankers (not HR or senior bankers or headhunters). Though senior referrals are still a thing, seniors only get involved in the interview process at the time of Super Days.
“It’s pretty standard across different types of banks unless you’re in a diversity program,” the former analyst said.
At one point, she recalled, HR sent a 500-odd-page PDF of résumés to the analysts. “Then they asked us, ‘So who are you interviewing?’”
“The hit rate with first-year analysts will be much higher,” she said. “They might not have as much power in the internal recruiting process as the second-years, but a lot of the second-years will look to the first-years to ask them who the good kids they’ve spoken to are.”
The first-year investment-banking analysts may also be more sympathetic listeners being new to the industry themselves, she added.
“During my first year as an analyst, I was doing a million of these coffee chats and genuinely wanted to help these kids,” she said. “But as a second-year analyst, I just didn’t give a shit anymore, unless there was some sort of strong connection.”
How to ask for the ‘coffee chat’ networking call
When reaching out to analysts, do so by email rather than LinkedIn, Sibley said.
“Find them on LI, figure out the common email format for the firm, and try to guess their email,” he said. “An email is more likely to be responded to than a LinkedIn message.”
Be careful with the tone of your email, warned the former analyst.
“I absolutely hate kids who have a tone in their email that sounds like they’re assuming I will talk to them.”
She added:“I like them telling me a little about themselves or if they have talked to XYZ other person at my firm; show you are doing your diligence.”
You can include your availability to talk, but avoid sounding like you’re the one squeezing them in. Don’t overwhelm them with “I’m available from 12 to 1 or 3:30 to 4,” the former analyst said. The better approach, she said, would be: “Anytime in the afternoon this Wednesday or Thursday” or “Next Monday or Tuesday in the morning time.”
“Saying ‘looking forward to chatting’ before I have even replied is a no-no,” the former analyst added. “You should word it like: “If you are willing to speak and have time, here is my availability. Thank you for considering a chat.”
And always attach your résumé, she added.
“Most people do this at this point, but the ones who don’t, it’s like auto-delete,” said the former analyst. “I always enjoyed looking at the résumés to see their experiences and to see if it’s someone good for the firm.”
Ask for more connections
Avoid coming off as too transactional during your networking chats, Sibley said. You may be doing it for the internship, but try to show genuine interest in the person you’re talking to and their path.
“You aren’t doing networking just for the internship; ideally you’re making networking connections for life,” he said. “Being grateful for the time an analyst takes with you on the phone is critical.”
After each call, make sure to send an email thanking them for their time and politely asking if there’s anyone else in their group or at their firm they recommend you also speak to.
“I wish I’d done that more, thinking back,” said the finance student. “As a freshman or sophomore, it’s difficult to ask for something. But doing it can be super helpful.”
Take advantage of winter break
You’ll want to study for the recruitment interviews that happen in the spring, and the winter break is a great time to do this.
There are a ton of resources out there, from YouTube videos to online courses and guidebooks with interview questions. BI has also published several articles with interview tips and practice questions from execs at firms like Lazard and Goldman.
Don’t just memorize the questions and answers, the finance student warns. Really try to get a grasp of the deeper reasoning and function behind the finance technicals. Also, take the time to figure out why you want to work in finance.
“Having and knowing two or three reasons you want to work in the industry can go a long way both for your own sake and can help when you’re speaking with upperclassmen,” said the finance student. “It makes you seem like you’re not just doing it because everyone else is.”
Don’t wait to apply
Most applications open at the beginning of the year, around mid-January. Even though many will list “deadlines to apply” in May or even June, you don’t actually have that long to submit your application. The reality is that by the end of March, many top firms have already filled their classes, Sibley said. In fact, interviews at some banks were taking place as early as January this year, he added.
If possible, submit your materials within the first two days of an application opening, he said.
It all comes down to your résumé
Outside of networking and cold emailing, there are two aspects that determine whether you get an interview and how you are evaluated: GPA and involvement, said the former analyst and recruiting captain.
“If you have below a 3.9 heading into sophomore year, I think that is pretty pathetic based on the classes I know you take,” she said. “If I see a 3.6 GPA after freshman year, it’s an auto cut for me.”
That may seem cutthroat, she said, but with the amount of applications they get, they have to bring down the ax.
“Assuming two résumés are the same, why would I take a 3.7 versus a 3.9? It’s unfortunate, but it’s like, come on, there’s not much else to go off of when evaluating a résumé.”
Your résumé should also show a commitment to the industry. You need to be in the finance or consulting club at minimum, said the former analyst.
“Your résumé needs to scream finance,” she said. “If I have two kids’ résumé, and one kid is super involved in a student investment club, and the other is in theater club, I’m choosing the finance kid.”
The professor suggested activities to make the résumé stand out. If, for example, you want to be on a bank’s healthcare team, consider adding a minor in biology or joining a biotech club.
“Do something to make your résumé look different than an average business student who is only in business-related stuff,” said Sibley.
The former analyst added: “I don’t think you always have to be a finance major, but you should be able to demonstrate your interest in the subject, that you know what you’re getting into, and that you aren’t going to hate the job.”
Handle your emails well
When it comes time for interviews, firms will email applicants directly.
Taking too long to reply can be a red flag for firms, Sibley said. You may have a valid enough excuse, but it doesn’t matter. Investment bankers are expected to be available and responsive pretty much all the time. So what does it say if you’re a lackadaisical replier?
“If you don’t respond to emails in a timely manner, you aren’t going to be a top performer. If you respond within five minutes, it looks good. If it takes you a day and a half to respond, you might’ve just eliminated yourself out of that process.”
Make sure to check your junk mail, he added — a common and unfortunate mistake he has seen.
“How much would it suck to lose a Super Day from your No. 1 bank because you didn’t check your spam folder?”
Do mock interview sessions
About one or two months before interviews begin, sophomores should reach out to upperclassmen who have offers secured and ask them to do mock interviews, the college senior said.
“I’m more willing to help than they might think.”
If you feel awkward or sheepish asking for their time, buying them lunch or coffee while you’re practicing could be a nice way to thank them.
Don’t freak out
There are many reasons someone else could have gotten an interview email before you. For example, diversity recruitment — efforts by firms to hire more interns from traditionally underrepresented groups on Wall Street — typically happen a few weeks earlier than regular recruiting events. Some firms may also just have fewer employees to review the applications.
“Everyone’s experiences are different,” the finance student said. “I know some people who got offers two or three months after the initial people did, and they landed even better internships.”
If you’re a sophomore late to the game, consider regional banks
If you are just learning about or getting into the process as a sophomore, your internship options are probably limited — but you’re not completely out of luck. There are firms that will continue to hire into the fall for junior-year internships, said Sibley.
He suggested searching for opportunities at smaller, regional firms outside of New York City, which tend to have later recruitment timelines. This means looking for internships in cities like Chicago, Charlotte, Atlanta, and Houston, he said. It’s just about getting a seat at the table somewhere.
“If you belong at a top bank, you’ll get to a top bank. Just because the ship has sailed at your top bank doesn’t mean your potential career at that bank is over.”
You can always move to New York later on (but when applying, have a compelling reason why you want to live in that city — they don’t want to know you are only there to get to New York, he said).
“You’re getting a late start, so you need to cast a wider net than you would’ve had you been networking in December. And you’re gonna have to be more aggressive about it. I have some students who were sending 100 emails every week over December. If you weren’t doing that, you have a lot of emailing to do.”