Investment banking internships this summer and last: why so competitive?

[TheHouseofGirth]

Looking for some advice on IB internships. We are foreigners in the Uk and unfamiliar with the system, so please forgive any stupidity. DS is finishing his second year studying economics at a magnet uni, in the top five unis for economics. Not Oxbridge but close. He is in the top 1% of his class, with an average of 81%.. Also part of various relevant student societies. 4 Astars at A levels, including FM.

For the past two years, he has been trying to get a summer internship in IB. Applied to over 60 and made it to the interview stage in a few, but unsuccesful. We did advice him to apply more widely to thinktanks, consultances, and charities, but he said that applications are so time consuming he wanted to focus on IB internships as that is what he really wanted to do. I could see they were really complicated and he had tons of tests and interviews. So I let him do the best he could. Now he doesn't have anything for this summer, and it's too late to apply to other internships. In hindsight he should have set his heights lower, but it seems incredibly competitive this year. He is by no means shy or introverted; I think he presents well, but I guess he must be doing something wrong.

Would anyone have any advice? He seems certain that not having an internship this summer means he won't get a graduate job next year when he graduates and will have to do a Masters. It's harder for us as he is not yet a UK citizen ( though eligible for ILR next year).

Do people working in investment banking enjoy their job?

Or are they just doing it for the money?

@Lambiriyani can’t speak for everyone but I did it for 20 years and loved it. Travelled the world, worked with incredibly interesting and talented people and loved working in a fast moving environment. DH still doing it after 30 years and also loves it.

I found it impossible for both us to do it with 4 young children which is why I gave it up.

Do people working in investment banking enjoy their job?* Or are they just doing it for the money?*

In terms of content, it was the most interesting job I've had. But I wouldn't have worked the hours and made the personal sacrifices without the money. The potential to set yourself up for life with big bonuses definitely was a key factor.

I've worked in mainly IB for the last 20+ years and I love it. It's not about the money. I love the pace, I love working with so many sharp, switched-on people and I love that things are constantly changing so you can never get complacent and there are always new challenges. I also love that it's so international and that I work with people with so many different nationalities and backgrounds.

But the hours, the pressure and the intensity/pace are too much for a lot of people. It's not an easy environment to work in.

I have (late diagnosed as an adult) ADHD. I suspect many in IB also do. IB is a great fit for ADHD. Short attention span, fast pace, lots of change, hyper-focus....it ticks a lot of boxes. But it can be brutal. It's not a place for shrinking violets.

Work hours are only limited in term time, he can work full time between semesters.

Mine applied to >40 internships, and yes it was a slog and applications took a lot of work and time. His academic background is similar to your son's.
He went for IB but also consultancies, insurance companies etc etc. It was discouraging as literally all his friends got something through family connections. In the end, he did get something that will suit him to a T and is well paid, as a bonus, but it was very late in the day. As you say, it's incredibly competitive.

My husband is in a senior role at an investment bank. Impressive on paper graduates with fantastic grades and lots of extra curricular activities are ten a penny. He says that the problem they have in hiring now is that the young grads don’t want to put the graft in at the level that is expected and they also don’t have the charisma/confidence to talk to clients. They are not just looking for smart, as everyone applying for these schemes is smart.

I think the PP who mentioned hiring a communications coach for her son is onto something. Likeability, for want of a better word, and good communication skills go so far in this world from what I hear from my husband.

Literally ALL of my DS's friends have got summer internships in the banking industry through nepotism. The only firms I know will no longer do this are law firms.
And when my DS filled out his applications, often pages and pages long with essays, tests etc, there was usually a question about whether you had been recommended for this role by a current employee, and if so, who.

I can’t speak for interships but my DS has just graduated from a decent uni (Russel group) but certainly not a ‘magnet’ one with a 1st in chemistry. He had no idea what he wanted to do and has spent the last three summers travelling, fruit picking, bar work and labouring on building sites. He had no idea what he wanted to do so applied for multiple graduate jobs including some bank ones and got offers from JP Morgan and Lazards (that might not be quite the right name?!) and EY (which may not quite be an investment bank but is something financial??!) I obviously think DS is amazing but he’s certainly not got any if the ‘extras’ at uni that other posters mention. He’s basically been a typical student ….bit of sports, lots of music and probably a bit too much drinking!! He’s not a member of any ‘society’!! He decided in the end he didn’t want to go down the finance route and wanted infrastructure /civil engineering and so has got a graduate job with a Balfour Beaty. I know he’s just one example and I know he worked incredibly hard on the applications but, although he had a lot of outright rejections or didn’t make it through to final stages, he got offers from 5 big companies (JP Morgan, Lazards, EY, Amec and Balfour Beaty) so it isn’t impossible and he’s ‘normal’ lad with no internships etc. so it must be possible!!

Interesting ….maybe that’s it? He has a wide interest in all sorts - sports, politics, music, vintage engines, travel, cooking, obscure sports no has heard of …..and an opinion on everything!! 😀 They all
asked him about the travelling & labouring job at interview.

A 1st in chemistry will go a long way to securing an offer combined with a likeable candidate with good communication skills and an interesting and varied cv.