Economist Internship or Risk Internship
I have offers to choose between a 1 year economist Internship at the central bank of UK, and a 1 year risk internship at a commercial bank. As someone who does not yet know what I want to do in the future, which internship would keep more doors open for different career paths in finance?
Ah, you're standing at a crossroads with two intriguing paths ahead, each leading to its own set of adventures in the finance world. Let's break down the treasure map for both options based on the most helpful WSO content, shall we?
1. Economist Internship at the Central Bank of the UK
Pros: - Broad Exposure: You'll gain insights into macroeconomic policies, financial regulations, and their impact on the economy. This could be invaluable if you're interested in roles that require a deep understanding of economic principles. - Prestige and Networking: Working at a central bank is prestigious and can open doors to government positions, policy roles, or further academic pursuits in economics. - Skill Development: You'll likely develop strong analytical and research skills, which are transferable to many areas in finance.
Cons: - Specialization: The focus on economics might narrow your path if you decide later that you're more interested in hands-on financial market roles.
2. Risk Internship at a Commercial Bank
Pros: - Diverse Financial Exposure: You'll learn about different financial products, how banks manage risk associated with lending, investing, and trading. This is crucial knowledge for many roles in finance. - Transferable Skills: Skills in risk management are highly valued and transferable to various roles in finance, including investment banking, asset management, and trading. - Career Flexibility: A background in risk can lead to opportunities in both front and back-office roles, keeping your career options open.
Cons: - Perception of Back-Office Role: Some might view risk as a back-office function, which could be a disadvantage if you're aiming for front-office roles. However, the importance of risk management has been increasingly recognized, especially post-financial crisis.
Decision Time
Given your uncertainty about the future, the Risk Internship at a Commercial Bank might keep more doors open in the finance sector. It offers a broad foundation in finance, applicable to various roles, and the skills you develop will be highly valued across the industry. However, if your heart leans towards understanding the broader economic forces at play and influencing policy, the Economist Internship could be a once-in-a-lifetime opportunity.
Remember, the treasure lies not just at the end of the path but also in the journey. Choose the one that excites you more, and you'll find the doors open along the way. Good luck, adventurer!
Sources: International Student - Chance of getting an IBD internship in London?, Intro to Investment Banking, 10 years in banking, tech, and consulting, https://www.wallstreetoasis.com/forum/investment-banking/investment-banking-in-the-uk-an-overview?customgpt=1, How to deal with a recession career-wise? A few lessons learned during the previous GFC
The CB job is a no-brainer. You would be doing a lot more thoughtful analysis and sets you up for fixed income/fx research/trading jobs on both the buy and sell side
Thanks for the response. Just want to confirm, do you mean CB as in commercial banking or central banking?
Central Bank 100%, i assume that's with the Bank of England? A lot of useful skills you can pick up as an economist that can be leveraged into other finance roles in a broader sense. Risk not so much unless you are specifically interested in things like credit, market, liquidity risks or compliance.
Thanks for the insight, and yes it's the Bank of England. What if I had the opportunity to apply for another summer internship after the Risk Placement, whereas I cannot after the Bank of England Placement. This is because my Risk Placement ends June next year whereas the Economist Placement ends September, so there's no time to do another summer internship, forcing me to directly apply for graduate schemes. This is making me lean towards the Risk Placement. Would love to hear what you think considering this.
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