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

Jan 25, 2021 / 5 Minutes Read / By Albert

How to Become

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Investment banking summer internships provide a valuable opportunity for young professionals to gain financial expertise and develop their skills in an industry with a lucrative future. By taking on an internship in the banking sector, interns gain a unique insight into the world of finance, learning about asset valuation, modeling, and analysis. They also gain hands-on experience in dealing with clients and transactions, as well as networking and developing important business contacts.

This experience can lead to greater career prospects, as having a summer internship on their resume will make candidates more attractive to potential employers. Furthermore, internships provide interns with an understanding of the culture of the banking sector, which can be crucial for success in the industry.

Steps How to Become

Research. Start by researching Investment Banks to get an understanding of the industry and the companies they work with. Consider interning at banks in the area where you live, as this will give you the best chance of obtaining a full-time position after graduating.
Network. Develop a network of contacts in finance, such as alumni, professors, and industry professionals. Use these contacts to learn more about the industry, and to gain access to internships.
Apply. Visit the websites of the investment banks youre interested in to view their available internships. Submit a resume and cover letter tailored to the position.
Prepare. If you are invited for an interview, begin preparing by researching the company and practicing common interview questions.
Interview. Attend the interview, and be sure to demonstrate your knowledge of the industry and your enthusiasm for the job.
Acceptance. If you are offered a position, accept it and begin preparing for the internship. Read up on the company, its clients, and the industry as a whole.
Internship. During the internship period, work hard to impress your supervisors and build relationships with other professionals in the industry. Make sure to take advantage of any extra training or learning opportunities offered by the bank.
Follow-up. After your internship is complete, keep in touch with your supervisors and mentors from the bank. This will help you stand out when applying for full-time positions in the future.

Investment banking summer internships provide an invaluable opportunity to gain experience and develop the skills necessary to become a reliable and capable member of the financial industry. Interns are exposed to a wide range of activities, including financial modeling, market analysis, and asset management. Through hands-on experience and mentorship from experienced professionals, interns are able to learn the fundamentals of investment banking, develop a deep understanding of the industry, and build relationships with peers and mentors.

As a result, interns gain practical knowledge, hone their analytical skills, and develop a strong foundation of technical knowledge that makes them reliable and capable members of the financial industry. Furthermore, internships provide a platform to showcase their abilities, build a network of contacts, and potentially secure full-time positions post-internship.

You may want to check Investment Portfolio Manager, Investment Banking Technology Intern, and Investment Management Associate for alternative.

Job Description

Assist in the preparation of financial models to support investment banking transactions.
Develop detailed financial analysis of companies, including cash flow, ratio and trend analysis.
Participate in client meetings, industry calls and roadshows.
Assist with the development of presentation materials for new business pitches.
Support the evaluation and execution of M&A transactions, capital markets offerings and other strategic initiatives.
Research and analyze industry trends, macroeconomic developments and other relevant data.
Develop valuation models for companies in different sectors.
Utilize financial databases to source and analyze company data.
Build relationships with clients, bankers and other professionals in the industry.
Prepare written summaries of research and market trends.

Skills and Competencies to Have

Financial modeling
Mergers and acquisitions
Valuation analysis
Financial statement analysis
Equity research
Pitch book preparation
Corporate finance
Advanced Excel and PowerPoint skills
Investment banking industry knowledge
Strong communication and interpersonal skills
Problem solving and critical thinking
Research and analytical skills
Technical writing and presentation abilities

The ability to think critically and analytically is essential for success in Investment Banking Summer Internships. Being able to process large amounts of information quickly and accurately and draw logical conclusions is an important skill. Good communication skills are also a must; being able to clearly explain complex financial concepts in a concise manner is paramount.

Furthermore, having an aptitude for numbers and being comfortable with financial programs such as Excel will help interns understand data and perform calculations. Finally, developing strong interpersonal skills is essential for networking and interacting with clients, colleagues, and supervisors. All of these skills combined will help interns make the most of their internship experience and gain the knowledge needed to become a successful investment banker.

Investment Strategist, Investment Account Manager, and Investment Analytics Manager are related jobs you may like.

Frequent Interview Questions

What experience do you have in Investment Banking?
What do you believe are the most important skills for Investment Banking?
What do you think makes a successful Investment Banker?
How do you handle high-pressure situations?
What are your thoughts on risk management?
What financial models have you used in the past?
Describe a time when you had to work with a difficult colleague.
How do you stay organized with multiple tasks and deadlines?
What is your experience with creating financial models and presentations?
Are you familiar with the regulatory environment of Investment Banking?

Common Tools in Industry

Microsoft Excel. Spreadsheet software used to organize, analyze, and visualize data. (eg: creating financial models to assess a company's performance)
Bloomberg Terminal. Financial software used for real-time market data, news, and analytics. (eg: tracking financial markets, researching new investments)
Financial Modeling and Valuation. Toolset used to create realistic financial models of a companys performance. (eg: performing a DCF Valuation analysis to assess a companys stock price)
Investment Banking Software. Database used to store research data, market data, and client information. (eg: creating presentations for potential clients and investors)
Pitchbook. Research platform used to analyze private companies, their investors, and the competitive landscape. (eg: comparing competitors to identify potential investments)
Mergers & Acquisitions Software. Toolset used to track and analyze mergers and acquisitions activity. (eg: monitoring M&A activity in a particular industry sector)

Professional Organizations to Know

Association for Financial Professionals (AFP)
The Investment Banking Association (IBA)
National Venture Capital Association (NVCA)
American Bankers Association (ABA)
The Securities Industry and Financial Markets Association (SIFMA)
Private Equity Growth Capital Council (PEGCC)
The Financial Services Roundtable (FSR)
The Financial Services Forum (FSF)
Investment Company Institute (ICI)
National Association of Investment Bankers (NAIB)

We also have Investment Banking Vice President, Investment Risk Analyst, and Investment Management Operations Analyst jobs reports.

Common Important Terms

Investment Banking. The act of buying and selling securities on behalf of an institution or individual for the purpose of raising capital or providing financial advice.
Mergers and Acquisitions. The process of combining two companies into one or acquiring one company by another.
Equity Capital Markets. The market that enables companies to raise capital through the sale of shares in their company.
Leveraged Buyouts. The process of using borrowed money to finance the purchase of another company or asset.
Initial Public Offerings (IPOs). A type of public offering where a company offers its shares to the public for the first time.
Debt Capital Markets. The market that enables companies to raise capital through the sale of debt instruments such as bonds.
Structured Finance. A type of financing that involves complex financial instruments and structures to manage risk and maximize returns.
Valuation. The process of determining the current worth of an asset, company, or security.

Frequently Asked Questions

What is the typical length of an Investment Banking Summer Internship?

Most Investment Banking Summer Internships last for 8-10 weeks.

What kind of tasks do Investment Banking Summer Interns typically perform?

Investment Banking Summer Interns are typically tasked with performing financial analysis, researching potential investments, and helping to prepare presentations for clients.

What kind of skills do Investment Banking Summer Interns need?

Investment Banking Summer Interns should have a strong understanding of finance, accounting, financial modeling and analysis, and strong communication skills.

What is the average salary for an Investment Banking Summer Intern?

The average salary for an Investment Banking Summer Intern can range from $3,000 to $7,000 per month, depending on the firm and location.

What is the best way to prepare for an Investment Banking Summer Internship?

The best way to prepare for an Investment Banking Summer Internship is to become familiar with financial concepts and models, practice financial modeling and analysis, and develop strong communication skills.