Want to accept Analyst offer, already signed somewhere else

I already signed a contract for an internship that starts after I'll finish my Master's degree next summer (background check tbd, signed recently), but now received an offer for A1 from a bank in London I would really like to work at (+London instead of Paris/Frankfurt).

How do I approach this situation? Has anyone been in the same/similar position?

Do I inform the bank's (A1) HR about this? Or do I just cancel the internship contract now and do not tell them anything?

Ideally I would even wait for the end of the successful background check at A1 bank before cancelling the internship contract, but I guess this will/may come up in the background check and look bad? I am afraid that I - for whatever reason - do not pass the background check and then end up with nothing lol

Thanks!

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