How to break into investment banking: It's about the way that you think-By Geoff Robinson

Came across this article on Guardian Graduate. It was written quite a while ago back in Jan 2011 so many ppl on this platform may have already read it. It might not provide much practical advice but still think there are some good points in there.

How to break into investment banking: It's about the way that you think
By Geoff Robinson

Despite the recent economic crisis, it seems that the appetite for a position within investment banking is as insatiable as ever. Recruitment numbers have bounced back up to pre credit crunch levels, having jumped up by more than a third in the last year, according to 'The Graduate Market in 2010' – carried out by High Fliers Research.

The demand for new talent might be increasing, but getting into investment isn't just a case of having stellar academics and the 'right' degree from the 'right' university. Given the depth of the global talent pool that the investment banks select from, there is still too much talent. Straight As at A-level or 40+ points from the International Baccalaureate may only be the first rung on the ladder.

Investment banks are looking for intelligent, hard working, proactive and intuitive talent. And, they can afford to be very picky. Stellar academics are considered something of a standard for most top-tier investment banks. This requirement is an effective macro-screener of talent – one way of trimming the population into a manageable sample to recruit from. However, it's not enough. The interview process will assess intuition and practical ability as well as intellectual talent and will aim to find out what drives your ambition.

True intellectual talent isn't the ability to retain facts and regurgitate on demand text book answers. Intellectual talent for me is the ability to view A and B, analyse the link and then derive what possibilities could get us to C, D and E - a cognitive talent so to speak. This is much rarer and seen in a small percentage of the candidates that pass through our hands. It is this type of talent that is the focus of investment banking recruiters across the world.

Applying the skills learnt in education is not always straight-forward. In a working environment the application of the appropriate method or skill is often judgement based and dependent on the personal characteristics of the applicant.

So the most crucial insight I can give is learn by understanding and develop by applying your skills to real-life deals and transactions. Do not be afraid to develop and share a view or an opinion. Investment banking is an advisory profession, it requires judgement and opinion. And while this is a skill that develops over a lifetime, you should start conditioning your thinking now. Don't just learn the A to B links – understand the link and what drives them. Consider what C, D and E derived options could be. Consider if there are any other ways of getting to B – rather than just using established principles. Change your angle or perspective of the thought process.

Often learning at school is focused on progressing past the next exam hurdle. And once you are accepted into the ranks of an investment bank, there is going to be a great deal of learning. As the learning is now applied to a new direction – actually demonstrating a vocational skill rather than just passing an exam, it forces a change in the approach to learning. Retention of facts or processing information is not an advisory skill. The brain needs to be re-tuned in order to adapt this approach.

So the advice bit. Think, don't process. If you find yourself learning through forcing knowledge into your head (I think back to university finals – late nights – last minute exam cramming and re-reading the same paragraph again and again – each time feeling likes it's the first time you've read it), you're probably going down the wrong route. If you understand an issue, you understand the key drivers and are able to follow the mechanism that pulls the issue together, then the likelihood is that there is little for you to learn – you understand it and you can apply it on the basis of rationale.

A good place to start is to read and interpret the financial press. Many would-be analysts read the financial press – which is great and should only be encouraged. But the error is that they often attempt to absorb the factual detail rather than examine and understand the drivers of the news. It is a massive advantage to anyone attempting to enter into the profession to be able to discuss why a transaction took place, what drove the deal, why was it financed in a particular way – rather than just regurgitate a deal term sheet. Also news flows over a period – sometimes days, often weeks. There is little value to be added by picking up a financial daily once a week – it's got to be a regular habit.

What else can you do?

Internships

In many ways an internship is a 10-week interview from the investment bank's perspective. It is pretty much a prerequisite these days to have a clutch of internships under your belt when applying for these positions. Securing an internship demonstrates early commitment and practical exposure to the profession.

Get a life outside of academics

Investment banking is a team effort. The analysts will be placed in teams or groups pretty much as soon as they arrive. Social and personal skills – the ability to work well within a team, adaptability and the emotional intelligence to interpret signals displayed by work colleagues are all essential skills when working within a time pressured and deadline orientated environment.

Be yourself

This may not be the right profession for you despite the desires you have. Be yourself. The recruiters will be assessing your fit into their existing team dynamics. You cannot fake your whole professional life in order to fit into role. On the flip side, flair, creativity and individuality can be very attractive attributes during the recruitment process – you'll be remembered – hopefully for the right reasons.