For those looking for a career in investment banking, it helps to know where investment banks are looking for employees. So where do investment banks recruit? As it happens, the search field for the major investment banks such as Goldman Sachs Group Inc. (GS) is relatively narrow.
Many university graduates are drawn from a list of "target schools" where investment banks concentrate most of their recruiting efforts in terms of regularly showing up on campus and offering multiple interviews and summer internship opportunities to undergrads.
Attending one of the top target schools makes getting an interview with multiple investment banks a fairly easy process, while students at other, non-target schools may find it difficult to line up even one or two interviews, and have to put forth considerably more effort to land those interviews.
Key Takeaways
- Breaking into investment banking is easier done if you go to one of the top “feeder” schools where the major investment banks recruit.
- Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor.
- Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
- Students looking to get a permanent job at an investment bank should consider trying to get a 12-week internship that many of these investment banks offer.
Investment Banking Profession
It is generally well known that investment banking is one of the hardest career fields to break into. Investment banking involves, along with exciting merger and acquisition (M&A) deals, exceptionally high salaries and bonuses, which makes an investment banking career attractive and one where there is a lot of competition for the available entry slots each year.
Investment banking is a relatively small niche within the overall financial services sector. There are simply not that many jobs available in the field as opposed to, for example, the field of accounting or retail banking. Attending a school that is an established source for employees of investment banks is, therefore, a key advantage.
Top Schools
University of Pennsylvania
The University of Pennsylvania, home to the famed Wharton School of Business, is one of the top feeder schools for the investment banking industry. However, the recruiting statistics for the overall number one university reveal an important point about investment bank recruiting, which is that each investment bank has its own individual list of preferred schools.
The University of Pennsylvania is one of the top schools for Goldman Sachs, Citigroup (C), and Credit Suisse (CS).
New York University
New York University (NYU) is right with the University of Pennsylvania in terms of where investment banks most frequently recruit new employees. NYU is a top school for many investment banks, including being a top school for new hires for Barclays (BCS), JPMorgan Chase (JPM), and Credit Suisse.
The University of Michigan at Ann Arbor
The University of Michigan at Ann Arbor is another top feeder school. The University of Michigan is a top school for boutique investment banking firm JPMorgan Chase and Goldman Sachs.
Other Top Schools
The Ivy League dominates many other spots for schools that investment banks target, including:
- Harvard
- Yale
- Cornell
- Princeton
- Columbia
Other notable schools include the University of Michigan, Georgetown University, the University of Notre Dame, and the University of Chicago.
For individuals aiming to get on with a certain bank, it is important to keep in mind each bank has its own preferred recruiting sources. For example, Bank of America (BAC) tends to grant more jobs to Cornell and Vanderbilt Universities versus the University of Penn. or NYU.
The Importance of Internships
Nearly all the major investment banks offer summer internship analyst programs that last approximately 12 weeks. Students who can land one of these internships not only gain valuable experience but also have the opportunity to develop networking relationships at the bank that can give them a substantial advantage when it comes to final hiring decisions.
FAQs
Common Answers for “Why Investment Banking”
- Learning experience.
- Fast-paced environment.
- Relevant internship / club experience / personal experience.
- Opportunity for lots of responsibility at a young age.
- Interface with executives from different companies.
- Exposure to different business models and industries.
Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor. Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
Is investment banking recruiting hard? ›
Preparing for the investment banking recruitment process is far from the ordinary relative to other industries in the business world. The process requires profound preparation and networking that can dramatically increase your chances of securing an offer.
What is the minimum GPA for investment banking? ›
In recent years, the GPA cutoffs for investment banking have been trending higher. Currently, a GPA around 3.7 is often preferred for interviews at large banks, while elite boutiques and bulge bracket firms like Goldman Sachs and Morgan Stanley may look for a GPA of 3.8 or higher.
Why did JP Morgan answer? ›
Informal Tone:- Well, I've always been interested in the financial industry and jpmorganchasecc.com in particular has a strong reputation and a wide range of opportunities for growth and development. I also appreciate the company's commitment to diversity and inclusion, which aligns with my own values.
Why am I suited for investment banking? ›
Essential Qualities for an Investment Banker
For example, if you've built financial models and attempted to value companies on your own, this will stand you in good stead at the interview stage. Finally, would-be investment bankers need to be self-motivated, good communicators, natural leaders, and team players, too.
Who are the top 3 employers in investment banking? ›
Global Investment Banking Companies in India
| Investment Bank Name | Key Services | Year of Establishment |
|---|
| Goldman Sachs | M&A, Capital Markets, Asset Management | 1869 |
| Morgan Stanley | M&A, Capital Markets, Wealth Management | 1935 |
| Bank of America Merrill Lynch | M&A, Capital Markets, Wealth Management | 2009 (merger year) |
7 more rowsJan 2, 2024
Top Feeders (Adjusted for Undergraduate Enrollment)
| Search Search in Rank (Total) Institution #Employed Top Employer (Total) Top Employer (Share) |
|---|
| Rank (Total) | Institution | Top Employer (Total) |
|---|
| 8 | Yale University | Goldman Sachs |
| 9 | Middlebury College | Goldman Sachs |
| 10 | Princeton University | Goldman Sachs |
27 more rowsMinimum overall GPA of 3.5. Relevant internship experience (preferred) Accounting, security analysis, and financial modeling skills. Strong communications skills, both written and oral.
Why is IB recruitment so early? ›
Recruiters at banks tend to copy each other, so once one bank started to recruit early, everyone else joined in. In practice, that means that if you're not prepared for IB recruiting by the start of your 2nd year, you're probably not going to join a large bank right out of undergrad.
Last year, JPMorgan said it had 50,000 applications for 400 jobs in its investment banking division, an acceptance rate of 0.8%. This year, JPMorgan says it had 270,855 applications for 4,604 internships globally, an acceptance rate of 1.7%. Click here to create a profile on eFinancialCareers.
Why is it so hard to get a job in investment banking? ›
Investment banking recruiting is an extremely competitive process, so you'll want to do whatever you can to stand out during the recruitment process. Banks value the quality of your job experience, and the quality of your schools attended, and how hard you network or “hustle” for the role.
Does Goldman Sachs have a minimum GPA? ›
Goldman Sachs does not give a specific minimum GPA requirement, though some sources suggest a GPA of at least 3.6 is preferred. Additionally, you may need to show relevant coursework and hard skills for certain programs.
Does JP Morgan care about GPA? ›
Candidates must demonstrate academic strength – a minimum 3.2 GPA for juniors and a minimum 3.5 GPA for freshmen and sophom*ores, strong teamwork, communication skills and a high energy level.
Why did you want to get into investment banking? ›
An example answer to the “Why Investment Banking?” question
Here is an example of how to answer the question concisely: I want to work in investment banking because it's the fastest way to learn financial modeling, valuation, Excel, and to understand the nature of large corporate transactions.
How do you answer why did you choose banking? ›
Sample Answer:
The banking industry is lucrative and plays an important role in our economy. It offers challenging roles and opportunities to develop skills and knowledge. The dynamic nature of the industry and its relevance in the economic scenario is why I want to pursue a career in the banking sector.
Why stay in investment banking? ›
If you stay on as a banker for life, you can go from making $150K per year as an Analyst, to $300K per year as an Associate, to $450K per year as a VP and then much more if you can continue to get promoted.
How do you stand out in an investment banking interview? ›
Preparing for Investment Banking Interviews: Dos and Don'ts
Interviews are an opportunity to demonstrate your knowledge, skills, and fit for the role. Prepare by researching the bank, reviewing technical skills, and practicing behavioral questions. Also, dress appropriately, make eye contact, and stay engaged.
