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.
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.
Where did most Goldman Sachs employees go to college? ›
Among investment banks, Goldman Sachs picked undergraduates most heavily from nearby New York University. Goldman Sachs prefers Ivy League schools, with Cornell, Harvard, and Columbia ranking third through fifth among employees with bachelor's degrees.
How to answer why JP Morgan? ›
Reputation: JPMorgan Chase is a highly reputable and respected company in the financial industry. Working at such a well-established and successful organization would provide me with valuable experience and opportunities for growth.
What motivates you 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.
Is a 3.8 GPA good 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.
Who are the top 3 employers in investment banking? ›
Global Investment Banking Companies in India
| Investment Bank Name | Key Services | Headquarters |
|---|
| Goldman Sachs | M&A, Capital Markets, Asset Management | New York, U.S.A |
| Morgan Stanley | M&A, Capital Markets, Wealth Management | New York, U.S.A |
| Bank of America Merrill Lynch | M&A, Capital Markets, Wealth Management | North Carolina, U.S.A |
7 more rowsJan 2, 2024
Investment banks tend to recruit from a variety of top universities, but some of the most common recruiting schools include Ivy League universities such as Harvard, Princeton, and Yale, as well as other prestigious universities like Stanford, MIT, and the University of Chicago.
What is the hardest bank to get into? ›
Which is the hardest investment bank to get into? Goldman Sachs is notoriously difficult to get into. One statistics recently rolled out was that it received 100,000 applications for just 2,300 global internship positions. This means that it received 24 applications for every job it posted.
The typical investment banker has a graduate degree in business from an Ivy League school or other top-tier university and superior educational credentials [i.e., excellent grades (minimum 3.50 GPA), active participation in business and investment clubs, and participation in at least one internship or summer program at ...
What is the acceptance rate for JP Morgan? ›
How to Prepare for a JP Morgan Interview. Like with any prestigious position, competition for offers is high and acceptance rates are low – routinely under 5%. Preparation is key for a successful interview.
Is it harder to get into Harvard or Goldman? ›
Goldman Sachs is the premier investment bank in the world. With an acceptance rate of roughly 4%, it's harder to get into Goldman than it is to get into Harvard or Yale. Let me share how to get a job at Goldman Sachs from someone who did.
Is Goldman Sachs harder than Harvard? ›
Bagging a job at Goldman Sachs (GS)' is a phenomenon rarer than receiving an acceptance letter from Harvard University.
Do investment banks only hire the Ivy League? ›
They try to hire the top students from those schools as they have a track record of hiring talent from them. However, that does not mean that you cannot land such a job if you do not attend an ivy league school. If the banks do not come to your campus, then you need to get creative.
What is investment banking and why is it important? ›
The primary goal of an investment bank is to advise businesses and governments on how to meet their financial challenges. Investment banks help their clients with financing, research, trading and sales, wealth management, asset management, IPOs, mergers, securitized products, hedging, and more.
How do you stand out in an investment banking interview? ›
It's also important to be aware of current events and market trends, as these can often come up in interviews. Stay up-to-date on industry news and be prepared to discuss how it may impact the bank or its clients. This shows that you have a genuine interest in the field and are proactive in your learning.
Why do you want to work in investment analysis? ›
Why do you want to be an Investment Analyst? “I want to be an investment analyst because the role is a clear match for the natural skills and qualities I possess and the fact that I have a genuine passion and interest in financial matters and investments as a whole.
How to answer why finance? ›
Tips to answer "Why do you want to pursue a career in finance?"
- Showcase your passion. ...
- Highlight your analytical skills. ...
- Discuss the impact. ...
- Emphasize the challenge. ...
- Show your understanding of the industry. ...
- Link it to your skills. ...
- Highlight the potential for continuous learning. ...
- Discuss the potential for growth.
