Banking and investment

Investment Banks

These are probably the most recognisable institutions in this sector eg: HSBC, Goldman Sachs, JPMorgan, Citi, UBS etc. - some of these banks also offer retail banking services. In a nutshell, investment banks provide services to organisations and high net-worth individuals who want to borrow, lend and invest money.
The services  they offer are wide-ranging which is why they are seen a popular option for graduates, as they have a number of divisions and roles graduates can choose from. Investment Banks have multiple divisions carrying out a range of work eg: Mergers & Acquisitions, Research, Asset Management, Sales & Trading, Technology, Infrastructure, Retail banking, Operations etc. Firms sometimes call the various divisions by different names, so carefully review firms' websites to understand the work each division does. 

Retail Banks

These are the more recognisable “high-street” banks that focus on personal and smaller business banking for the public eg: HSBC, Santander, Barclays, Halifax etc. These banks can provide financial services to members of the public and smaller/mid-sized businesses eg: personal banking, loans, credit cards etc. Some retail banks are divisions of larger investment banks.

Asset Management Firms

These firms manage investments on behalf of others e.g.: pension funds, governments, high net-worth individuals and corporates, to increase their client’s portfolio whilst at the same time mitigating risk. Examples of "stand alone" asset management firms are BlackRock, Fidelity, Baillie Gifford - many investment banks have asset management divisions.

Private Wealth Management Firms

Private wealth managers specialise in managing the finances of high net-worth individuals in order to grow their assets. They can work in a wealth management firm, in a division of a bank or independently.

Private Equity Firms

Private Equity (PE) firms earn money by charging management and performance fees from investors in a PE fund. For example a PE fund may acquire a company, improve its performance by restructuring and selling it. Firms include Blackstone, The Carlyle Group and KKR, some firms offer graduate entry-level positions and internships, those that don't will typically hire people who previously worked in investment banking.

Hedge Funds

These are asset management firms investing money for their clients, institutional investors (eg: pension funds) and high net worth individuals eg: Citadel, Two Sigma, D. E. Shaw.

Quantitative/Proprietary Trading Firms

(see Quantitative Finance briefing)

These firms (eg: Optiver, Jane Street, G-Research) develop trading strategies based on quantitative analysis using automated trading models and typically hire graduates with Masters and/or DPhils/PhDs in STEM subjects.

Investopedia has a dictionary of finance terms which can be a useful introduction to financial language 

This is a highly competitive sector and firms receive applications from students across the globe. So you will need to do comprehensive research and preparation to secure the right job. Firms in the sector are often some of the most pro-active recruiters, with detailed recruitment information on their websites, hosting in-person events, webinars, collaborating with student societies etc. Offering multiple opportunities to learn about who they are, what they do and how to navigate the application and assessment process.

In the UK, you don’t need to have studied a finance related degree, but it’s important to be numerate, have a keen interest in and understanding of the wider concepts within the banking industry and global markets. Follow financial news by reading publications such as the Economist and the Financial Times. You also need a high degree of analytical intelligence and the ability to build and maintain good working relationships in what can be a competitive and pressurised environment.

Having relevant work experience is a requirement for most full-time graduate roles in this sector - many firms only offer full-time roles to those who have completed their internship programme. 

Where to start

Spring Weeks - We would recommend looking for spring weeks in your first year (or second year if you are on a 4 year course). These typically take place in the Easter Vacation, however applications can open as early as the previous September - so do your research and apply early.

If you don't get on a spring week programme, don't worry you can still apply for summer internships.

Summer Internships - These are approximately 8-12 weeks, taking place in the summer of your penultimate year and are often the recruitment pipeline for graduate roles. Applications can open as early as July the previous year.

Off-Cycle Internships - These can vary in length (2-9 months) and are advertised on firm websites as and when they become available (check websites regularly).

Smaller firms may have graduate programmes open to finalists and recent graduates or offer full-time entry-level positions outside of a formal graduate programme.

Timing

It’s very important to have a good understanding of application deadlines as they are usually much earlier than other sectors. Check firm websites carefully and make a note of application opening and deadline dates.

Typically recruitment by large organisations takes place between July and November. However, most firms recruit on a rolling basis, interviewing applicants as soon as they apply - not waiting for the application deadline to start the process. As such, it's essential that you apply as early as possible, ensuring your preparation is completed well in advance.

Application and Assessment

Each firm will have a different application and assessment process and most with large graduate recruitment programmes have information about these on their website. So, make sure you understand the process before submitting your application, as some assessment processes begin immediately after application submission.

An application and assessment process may be structured as follows:

• Online Application: This could require completing an application form and/or submitting a CV and Cover letter. Read more information about Writing Applications.
• Online Assessment:  These can have multiple stages (depending on the role and location you are applying to). They can include numerical, verbal reasoning tests, case studies and/or video interviews. Some firms have examples of these on their website or allow you to answer a "practice" question before the assessment begins. Find out as much as you can about these beforehand to help you prepare and you can find general information on our Psychometric Tests webpage.
• Assessment centre: This is sometimes the final stage of the process, can be run virtually or in-person, during which you may take part in activities and exercises with other applicants and also be interviewed by various people across the firm, including the division/team you are applying to. We have general guidance about how to prepare for these on our Assessment Centre webpage.

Required skills

Different skills are needed for the different roles within the sector, however all roles require an interest in and comfort working with numbers, although the level of quantitative ability varies from role to role  - see E-financial Careers Student Guide to Banking & Financial Services for a high level summary of each role

You can also get a "taster" of what some of the different roles involve by completing online self-directed learning programmes on websites such as www.theforage.com 

Some of the common traits of successful graduates in this sector are:

• Demonstrable evidence of an interest in and understanding of the wider concepts within the banking industry and global markets
• A high degree of analytical intelligence
• Quantitative ability
• Given the high levels of responsibility, competition and pressure, it is important for graduates to demonstrate sustained stamina, energy and competitiveness over long periods.
• The ability to cope well under pressure, whilst maintaining good working relationships with co-workers and clients at all levels is essential.

Getting experience

In this competitive environment, knowledge of the employer, their skill requirements and your own strengths are essential if you want to be successful in assessment processes. Background research on the various roles available within banks and how they fit together is very important. Knowledge of banking basics and investments, the ability to speak about them with interest, enthusiasm and realism further highlights your credibility.

As mentioned above, many of the larger firms offer multiple opportunities to engage with them eg: in-person and online events, collaborations with societies etc. Actively engaging with firms not only demonstrates you are truly interested in them, but also offers opportunities to learn more and ask questions beyond what is on their websites. In-person events are also a great networking opportunity to meet recent graduates and other staff (including recruiters) to gain a better insight. 

In recent years, the Internship Office has also offered micro and summer internships in the sector, which are a great opportunity to gain experience.

Will I get paid?

Internships and summer jobs are governed in the UK by National Minimum Wage law, which means that if you are carrying out activities that class you as a “worker” by the employer, then you should be paid. Full details of Employment Rights and Pay for Interns are published by the government.

If you are undertaking a learning and development opportunity such as a micro-internship, or volunteering for a charity or statutory body, or shadowing or observing, then you may not be eligible for the National Minimum Wage. The organisation may reimburse you for your travel and/or lunch expenses, but they aren’t obliged to do so.

Top Tips

1. Conduct detailed research on the sector generally and especially the firms you are interested in. Note which programmes they offer (insight days, spring weeks, summer internships etc.) eligibility requirements and application opening and deadline dates
2. Many firms post their vacancies on CareerConnect but make sure you also check their own websites for job opportunities
3. Attend events and presentations (virtual and/or in-person) hosted by  firms to learn more about them, what they are looking for and to talk to their representatives. Make sure you read the firms’ literature e.g.: reports and scrutinise their websites to learn as much as you possibly can about them and the work they do – but remember they are not looking for you to regurgitate what they've written about themselves!
4. Apply early! Many firms recruit on a "rolling basis" which means that they begin the assessment process as soon as they receive applications  - don't wait until the application deadline, as the roles may already be filled by then.
5. Attend the Finance and Management Consultancy Fair in Michaelmas term. Do some preparation before the fairs, planning which firms you would like to speak to and what questions you want to ask
6. Get work experience, spring weeks, insight days, summer internships and/or create your own work experience opportunities.
7. To improve your sector knowledge, regularly read relevant publications  e.g.: the business pages of the national/international newspapers, the Financial Times (current Oxford students can sign up for free access via Solo - see "External Resources" section for more information)The Economist etc.
8. Connect with alumni e.g.: via LinkedIn or your college alumni office to learn more about specific roles and firms and speak firm representatives at fairs and events.
9. Join student societies and actively participate e.g.: The Guild, CapitOx, The Oxford Alpha Fund, The Finance Society
10. Think outside the box – don't apply to a firm just because you like the "brand name". Think about whether they do the type of work you're interested in and/or if it's your preferred work environment.  

Preparing for Interviews

Each firm/division/team creates an assessment process that they believe is the most effective means of evaluating applicants' abilities and motivations for the role - so they can vary. Check the firm's websites (many have comprehensive information about the process) and ask recruiters at events about the process and how best to prepare. 

Postgraduate students

Postgraduate students may find themselves in a ‘grey area’ between traditional undergraduate analyst programmes and MBA associate-level positions. Our advice is to find out more information directly from the firm, either by reading their website or speaking to recruiters at events, presentations etc.

Master's and DPhil students with quantitative and/or computer science backgrounds are often actively sought for quantitative finance roles. Try to keep an eye out for relevant events that are run by firms themselves, Careers, University of Oxford, societies and departments.

Sector vacancies and occupation information

N.B. Most firms have advertise their graduate jobs on their website alongside information about their various divisions/teams

• Prospects
• e-Financial Careers
• e-Financial Careers Guide to Banking & Financial Markets
• TARGETjobs
• The Economist
• The Job Crowd
• LinkedIn Jobs
• www.theforage.com  - free virtual job simulations for a range of sectors including banking

Test preparation

As well as the resources listed in the Psychometric Assessments briefing, the following websites offer general practice tests:

• SHL Direct: Practice Tests
• Practice Aptitude Tests
• Brainstellar

News

• Financial Times (current Oxford University students can access a free subscription via SOLO)
• Bloomberg
• Reuters
• The Economist 

Recruiters are keen to have a diverse workforce, and many will have policies and processes that are proactive in recruiting students and graduates from diverse backgrounds. An increasing number of recruiters are offering traineeships, internships and insight events that are aimed at specific groups and many are being recognised for their approach to being inclusive employers. 

Try the following to discover more about the policies and attitudes of the recruiters that you are interested in:

• Read their equality, diversity and inclusion policy
• Search their website to see if they have any specific staff networks
• Look for external accreditation such as whether they are a Disability Confident employer, a Stonewall Diversity Champion or part of the Mindful Employer charter promoting mental health at work
• Check to see if they are partnering with organisations such as Rare Recruitment, SEO London, MyPlus Students' Club, EmployAbility or one of the many other organisations that are working for specific communities
• Explore what they do to celebrate diversity on their social media pages

The UK Equality Act 2010 has a number of protected characteristics to prevent discrimination due to your age, disability, gender reassignment, race, religion or beliefs, sex or sexual orientation. For further information, visit the Equality and Human Rights Commission’s webpage on the Equality Act and the UK Government’s webpages on discrimination.