How to Be Investment Banking Intern - Job Description, Skills, and Interview Questions

Feb 17, 2023 / 5 Minutes Read / By Albert

How to Become

Professional Organizations

FAQ

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Investment banking internships provide an opportunity for aspiring finance professionals to gain valuable experience and knowledge in the field. Being an intern in this highly competitive field can open many doors and provide a strong foundation for a successful career. The cause of this is the intense training and exposure to different aspects of the industry that come with the internship, such as financial analysis, mergers & acquisitions, sales & trading, and asset management.

The effects of this can be seen in the intern's increased understanding of the industry, improved skillset, and greater confidence when presenting their ideas. These benefits can be further leveraged by networking with experienced professionals in the field, building strong relationships, and creating a strong portfolio to showcase their talents.

Steps How to Become

Research Investment Banking Firms. Its important to understand the different types of firms that are involved in investment banking. Research the various firms that offer internships for investment banking and decide which one you would like to apply for.
Build Your Resume. Create a resume that highlights your key skills, experiences, and qualifications. Focus on any relevant experience you have had in accounting, finance, economics, or other related fields.
Network. Reach out to industry professionals who may be able to provide insight into the internship process and connect you with potential job opportunities.
Apply for Internships. Once youve identified the firms youd like to apply to, submit your resume and cover letter. Be sure to follow up with contacts youve made through networking.
Interview. When you get an interview, be prepared to answer questions about your qualifications, experience, and interest in the field. Be sure to research the company prior to the interview and ask questions about the position.
Secure the Internship. If youre offered an internship, make sure you understand the details of the position and the expectations for your performance. Ask questions and negotiate for any additional benefits or perks.
Prepare to Work. Once youve secured an internship position, start preparing yourself for the work ahead of you. Research current industry trends, read books related to investment banking, and practice common interview questions.

Investment banking interns gain the skills and competency they need to excel in their field through hard work, commitment, and dedication. Internships provide a great opportunity to learn the basics of investment banking and gain experience in the industry. Interns receive guidance and mentorship from experienced professionals, allowing them to develop the necessary skills and knowledge.

They also acquire hands-on experience by working on projects and interacting with clients. In addition, internships provide a chance to build connections, network with industry contacts, and explore potential career paths. By taking advantage of these learning opportunities, interns can become skilled and competent in investment banking.

You may want to check Investment Strategist, Investment Sales Representative, and Investment Compliance Analyst for alternative.

Job Description

Assist with financial analysis and research related to investment banking transactions
Support the creation of presentations for clients and prospects
Prepare financial models for M&A, capital raising and other transactions
Perform industry and company research
Assist in the preparation of marketing materials
Liaise with internal teams, clients, and external advisors
Participate in client meetings and calls
Prepare pitchbooks, financial statements, and investor presentations
Support the integration and due diligence process of transactions
Provide administrative support to the investment banking team

Skills and Competencies to Have

Financial modeling and analysis
Financial statement analysis
Equity research
Mergers and acquisitions
Valuation and pricing
Business development
Negotiation skills
Presentation skills
Risk management
Client communication
Strategic thinking
Market analysis
Relationship building
Regulatory knowledge
Data analytics
Excel proficiency

Investment banking internships are incredibly competitive and require a specific set of skills and knowledge to excel. The most important skill to have is the ability to think strategically, analyze financial data, and understand complex financial scenarios. Strategic thinking includes the ability to assess a wide range of information and develop innovative solutions to business problems.

Analyzing financial data involves being able to interpret financial statements, spot trends, and identify potential risks. Understanding complex financial scenarios involves the ability to comprehend market and industry dynamics, as well as financial regulations. In addition, having strong problem-solving skills and excellent communication skills are essential for success in an investment banking internship.

Through these skills, interns can effectively collaborate with clients, colleagues, and other stakeholders to develop innovative solutions for business challenges.

Investment Trading Analyst, Investment Analytics Manager, and Investment Compliance Officer are related jobs you may like.

Frequent Interview Questions

What is your understanding of the investment banking industry?
What experience do you have with financial analysis and valuations?
How have you handled challenging tasks in the past?
What do you feel sets you apart from other candidates for this position?
How do you handle working under pressure?
Describe a time when you had to take on a leadership role in a project.
What do you know about the current state of the markets?
How would you handle a difficult client or colleague?
What strategies have you employed in the past to identify and analyze potential investments?
Explain how you work with teams to reach consensus on decisions.

Common Tools in Industry

Microsoft Excel. A spreadsheet software used to store, analyze, and manipulate data. (Eg: Financial modeling, creating pivot tables, data analysis)
Bloomberg Terminal. A professional financial software used by traders to access financial data and analytics. (Eg: Analyzing stock prices and trends, tracking news and market data)
Pitchbook. A subscription-based research and analytics platform used by investment bankers to access information about private companies. (Eg: Due diligence, researching markets, valuing companies)
Financial Modeling Software. Software used to create financial models to forecast the future performance of a company. (Eg: Building complex models for mergers and acquisitions, valuing companies)
Capital IQ. A web-based platform with a suite of financial tools used to research companies and industries. (Eg: Comparative analysis, screening for potential investments, researching industry trends)
FactSet. A data analytics platform used for portfolio analysis and research. (Eg: Creating financial reports, evaluating investments, portfolio optimization)

Professional Organizations to Know

Securities Industry and Financial Markets Association (SIFMA)
Association for Financial Professionals (AFP)
Financial Executives International (FEI)
Chartered Financial Analysts (CFA) Institute
The Investment Banking Association (IBA)
American Bankers Association (ABA)
International Association of Financial Engineers (IAFE)
The American Finance Association (AFA)
The Institute of International Finance (IIF)
The National Association of Securities Dealers (NASD)

We also have Investment Operations Analyst, Investment Associate Analyst, and Investment Advisor jobs reports.

Common Important Terms

Investment Banking. A financial intermediary that specializes in raising capital, providing financial advice and underwriting securities for corporations, governments and other entities.
Underwriting. The process of issuing and selling securities, such as stocks and bonds, to investors on behalf of a company or government body.
Financial Statements. Documents that report the financial performance and position of a company. Examples include income statements, balance sheets, statement of retained earnings, and cash flow statements.
Mergers & Acquisitions (M&A). The process of combining two or more companies into a single entity.
Equity Capital. Funds raised by issuing shares of common stock to investors.
Debt Capital. Funds raised through the issuance of debt instruments such as bonds, notes, and loan agreements.
Market Analysis. A method of evaluating the performance of a company or industry by researching economic indicators, market trends, and other financial data.
Valuation. The process of determining the value of a company or asset based on its financial performance and market conditions.

Frequently Asked Questions

What is the typical duration of an Investment Banking Internship?

Investment Banking Internships typically last between 8 and 12 weeks.

What skills are necessary to be successful in Investment Banking?

To be successful in Investment Banking, you should possess strong analytical, financial modeling, and communication skills. Additionally, a knowledge of accounting, economics and corporate finance is beneficial.

What is the average salary for an Investment Banking Intern?

The average salary for an Investment Banking Intern is around $45,000 to $50,000 per year.

What type of work does an Investment Banking Intern do?

The work of an Investment Banking Intern typically involves creating financial models, analyzing financial data, performing industry analyses and participating in client meetings.

What type of degree is required to become an Investment Banking Intern?

Most Investment Banks require a Bachelor's degree in a related field such as Business, Accounting, Economics or Finance. Some Banks may also require a Master's degree.

Web Resources

Spring 2023 Investment Banking Intern Career Center careers.usc.edu
Investment Banking Internship: CHECK! - Life at Tepper blogs.tepper.cmu.edu
What Is Investment Banking? Definition, Careers & Salary - Maryville Onl online.maryville.edu