Can a Graduate get an Investment Banking Job? (Engineers/Freshers)
Can a graduate or an engineer or any fresher get an entry-level Investment Banking job? Yes…No…Maybe! You may think about why to waste the degree and move into the Investment Banking field altogether. Don’t be shocked, “Change is the constant new”. I am from non-finance background and moved into the Investment Banking industry. The journey was not easy for me, but I bet it is not impossible. :-)
If you want to learn what is Investment Banking, you may take advantage of this Free Investment Banking course.
So I thought it would be interesting to write an article on Engineering graduates who want to get an entry-level Investment Banking Job. However, please note that it applies to all sets of graduates or freshers.
Getting an entry-level Investment Banking Job may be difficult for engineering graduates, but not impossible! So what are the ingredients you need for the Perfect Recipe?
Can a Graduate Engineer get an Investment Banking Job?
Here are quick infographics on the steps that you can take to move into Investment Banking.
Top 8 Points to get an Entry Level Investment Banking Job as a graduate
#1 Don’t doubt yourself, you have not made the wrong decision.
When you are entering into the world of Investment Banking as a graduate, it is ok to feel lost at first. But it is definitely not OK to feel sorry for yourself. Do not think that you have made the stupidest decision. Remember that you will not learn all the Finance Jargons in one go and become a PRO. Hard work is definitely the key that will bring you in focus.
When you feel a little low at the initial stage I would recommend you think about the Three People listed below and get motivated.
- K Rowling – Twelve publishers rejected her Harry Potter manuscript. Imagine if she stopped at the first rejection? The fifth? Or the tenth?
- Steve Jobs – Even though his company became successful at a young age he was kicked out of it and had to start over. He managed to become successful once again in his mid-thirties.
- Frederick Henry Royce – Multimillionaire co-founder of Rolls-Royce. Dropped out of elementary school.
These examples are just to let you know that anything and everything is possible. There are CEO of Finance companies who are from an engineering background. So getting an Investment Banking job for an Engineering graduate is definitely not a hard nut to crack.
#2 If you are short of time, you can take up some Online Finance Training.
Is getting a Master’s degree in Finance is the only way? Yes, I agree that you can get into the field of finance by either completing your MBA or CFAMBA Or CFACFA focusses on imparting skills associated with Investment Management including Investment Analysis, Portfolio Strategy, Asset Allocation, and Corporate Finance. MBA focusses on overall Management Skills like Marketing, Operations, Finance, Human Resource Accounting, etc.. These are some of the well-known and the traditional ways of getting into the finance field, but definitely not the only ones. Other options could be –
- Skilled Based Organizations– There are various training organizations that are all equipped to provide with some excellent training in finance.
- Practical Applications- The training provided by these organizations is not just theoretical, it comes with all the practical applications of finance.
- Industry-Based Training- Here you are ought to get some value-added industry-based training through various courses in Investment bankingInvestment BankingInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc., Equity Research, Financial modeling and many more. You definitely can get into one of such courses to sharpen your financial skills.
#3 You can complete your Post-Graduation in Finance
- Giving Competitive Exams- If you are opting for an MBA, you need to have a graduation degree for entering into MBA finance. You will have to give the competitive exams to make yourself eligible for entering a good MBA college. Candidates can begin preparation during the third year by enrolling in training institutions and gain some knowledge. Also, have a look at CFA or MBA
- Academic Performance Helps- One needs to complete engineering with at least 50% marks. The candidate’s performance in their engineering academics will help in the later stages of the selection process. Hence, a candidate needs to focus on performing well in both, engineering semesters as well as entrance exams.
- Figure out what you want- Prior to considering finance after engineering, one needs to figure out why they want to do an MBA or get into finance. Hence, one should not get into Finance merely to become a manager in a reputed organization.
- Career Prospects- Getting a finance job after engineering definitely improves career prospects. However, before becoming a manager, you can gain some work experience and understand the way businesses function.
- Understand the Difference- If you want to shift from engineering towards finance, you need to understand the difference between the two fields and need to have a passion for Investment Banking. Some self-examination combined with some amount of research on finance will help in determining the goal.
- Experience helps ?- If you pursue MBA or any other degree in finance after gaining some work experience, you will be in a better position to grasp the course contents and apply them appropriately to your work.
#4 Craft a Winning resume for your interview!
Prepare to keep in mind that the interviewer is going to have good fun while interviewing you. This is what I kept in mind during my Interview and it helped me prepare for the stress interview. So to prepare yourself you can start first by having a Winning Resume. Here’s how you can do that:
- Step 1 – Use Resume Templates- Use some investment banking resume templates if you are unsure about how to structure the perfect resume. All the templates are available online, you can select the one which best suits you and get it to download.
- Step 2 – Highlight your Experiences- Pick some experiences that you would like to highlight the most. These may include what you’ve done during the entire finance courseFinance CourseInvestment Banking Certification Course, Financial Modeling Certification Course, Equity Research Certification Course, Private Equity Certification Course, Mergers & Acquisition, and so on are among the Top 10 Finance Certification Courses you can take., summer internship projects, Business competitions or any other major activities where you have displayed your leadership quality.
- Step 3 – Rephrase your Resume in finance Terms- It is best that you rephrase your resume in business and finance terms rather than using big jargon or some engineering lingo.
#5 Be confident while answering Tricky Questions
What I mean by Tricky questions is: Your mischievous neighbour pouring cold icy water on you on a 5-degree night.
Interviewers can shoot some similar questions like:
- Are you genuinely interested in Investment Banking?
- Why Investment Banking after graduate degree?
- Don’t you feel that you have wasted “Four Years of Engineering graduation”?
- Have you learned enough about accounting and finance to compete with commerce students?
- Do you have the stamina and passion to work 100-hour weeks?
- Do you like to communicate with people?
Here’s how you can answer these questions with Confidence-
- Talk about Projects & lab Work- The 100-hour work question can be answered easily. You may talk about all the lab work you had to do during your engineering degree. Focus on all the last-minute projects you have worked on or the experience that you gained during your summer internship or full-time job if you have previous work experience.
- Talk about Interesting Firms- You may talk about some interesting companies or IPO’s or stocks to prove your interest in finance. You may stick to some unusual companies or success stories rather than opting to talk about common companies, as everyone is bound to do the same. Talk about any investment you’ve done or any recent market news, which displays your market awareness.
- Interview guides & Programs- To answer technical questions, you can get access to some interview guides or you can also join financial modelling programs that will teach you everything you need to know.
- Mock Interviews Helps- To answer the questions related to your interpersonal skills you must be absolutely polished and well prepared. Do not hesitate or get confused while answering such questions. The best way to get good at this is to practice with any friends who are smooth talkers.
- Be Crisp & Clear- Make sure that all your answers are crisp and to the point. Do not run around the same bush again and again.
“In Your Favor points” for engineering students during the Investment Banking QuestionsInvestment Banking QuestionsThe purpose of this Investment Banking Interview Questions and Answers is simply to help you learn about the investment banking interview topics.!
- Employers won’t doubt your quantitative skills or your attention to detail.
- Depending on your experience, you can convince the employer that you can work long hours relatively easily.
- Also, you have options outside of investment banking that lawyers and accountants don’t have access to.
#6 Prepare for the Finance Technical Round like a Pro
- Don’t Ignore- Since you do not have a finance background, employers may have lower expectations when it comes to technical questions. But this does not mean that you just ignore them.
- Strengthen the Basic concepts- You must know all the basic concepts, for example, fundamental accounting and valuation questions.
- Get Financial Statements on your Tips- Be thorough with all the three financial statements, financial statement analysis, how they are linked together, how to walk through changes to the financial statements, and how to value a company.
- Prepare for Advanced Topics- You can also prepare questions on advanced topics like merger and Acquisitions, Credit rating and Leveraged BuyoutsLeveraged BuyoutsLBO (Leveraged Buyout) analysis helps in determining the maximum value that a financial buyer could pay for the target company and the amount of debt that needs to be raised along with financial considerations like the present and future free cash flows of the target company, equity investors required hurdle rates and interest rates, financing structure and banking agreements that lenders require.. At the same time stick to the basics of these topics, you do not have to know all the absolute and intricate details of the topics at the initial steps.
#7 Smart people always have an alternate plan and remember you are Smart ;)
You prepared your story, crafted an excellent resume and have gone through all the technicalities of finance, but what if you do not get a job in the desired investment bank? You came out of the interview room with no offers. Are you already thinking that Getting a finance job in engineering is indeed difficult? Do not panic and don’t get depressed. It’s not the end of the world for you. Keep other options open as well. Also, consider Finance Roles Outside of Investment Banking.
Some of the other options are as follows:
- Corporate Finance– Corporate finance jobs include working for a company and managing the capital necessary to run the enterprise.
- Commercial Banking– A career option available in commercial banking includes bank tellers, loan officers, operations, marketing, and branch managers. (also look at Investment Banking vs Commercial BankingInvestment Banking Vs Commercial BankingInvestment banking primarily acts as a broker between entities in a financial arrangement like dealing in the purchase and sale of the stock, mergers and acquisitions, and helping in an IPO. In contrast, commercial banking provides the services to taking deposits and give loans to individuals and companies.)
- Hedge Funds– Hedge funds are private investment funds whose managers can buy or sell an array of assets and financial products. Because of the mystery that surrounds them, jobs of Hedge-fund are considered by many to be glamorous. (also look at Investment Banking vs Hedge Fund)
- Private Equity– Private equity job includes helping businesses find capital for expansion and current operations. It also includes providing financing for corporate business transactionsCorporate Business TransactionsA business transaction is the exchange of goods or services for cash with third parties (such as customers, vendors, etc.). The goods involved have monetary and tangible economic value, which may be recorded and presented in the company's financial statements. like buyouts and restructurings. (also look at Investment Banking vs Private EquityInvestment Banking Vs Private EquityInvestment banking is the financial mechanism through which a person receives financial advisory services from the investment banker regarding the share capital. In contrast, private equity funds are investment funds that pool funds from different investors with high net worth to acquire stakes in different entities.)
- Venture Capital– Venture–-In the case of private equity, investments are typically made in companies which are in their mature stage of working. Venture capital, on the other hand, invests in businesses that are still in the early stages of development.capital job includes evaluating pitches by founders and small-company leaders to determine if the venture capital firm will make an investment in such businesses.
- Financial Planning– Financial planning job includes helping individuals develop plans to ensure their present and future financial stability.
- Insurance– Finance jobs in insurance involve aiding businesses and individuals to anticipate their potential risks and protect themselves from losses.
#8 Choosing the Right Direction is the Key to a Happy Carrier Life!
- Focus on your Skills- Different finance jobs require different skills and portray different work environments. And this is why it is wise to select your job that aligns with your long-term interests and abilities.
- Get to know where you Stand- For example, someone with good interpersonal skills can do well as a financial advisor, while on the other hand, someone who enjoys working with numbers might do better in accounting.
- Do your Research- It is wise to do the research first to discover your options.
Getting an entry-level Investment Banking job after engineering graduation may seem tough, but definitely not impossible! It is important you get some knowledge of finance before you apply to Investment Banking. Appearing for CFA or taking a short-term course in Investment Banking can surely help. Additionally, be sure to be well prepared for all the tricky nonfinance questions that you may face.
Remember that if you are detail-oriented, Hardworking, analytical and trained in systematic problem-solving nothing can stop you!
This has been a guide to Investment Banking Jobs for Graduates like Engineers or any other freshers. Here we discuss how a graduate can get an Investment Banking job. We provide you with the top 8 must-know tips for crafting a great resume, preparing for your technical interview rounds, and more.