Careers in banking and investment

Where can I work in investment banking?

Investment banks can be split into the following sub sections:

• Bulge bracket firms – the biggest firms, with the most profitable investment banking divisions (eg, Goldman Sachs, JP Morgan and Morgan Stanley). These firms offer a full range of investment banking services.

• Big deal challengers – stand alongside the bulge bracket but may have slightly smaller offices/deal teams or specialisms/global reach (eg, BNP Paribas and HSBC).

• Emerging market experts – a select number of investment banks focused on emerging markets (eg, Standard Bank and Standard Chartered).

• Pure advisory firms – focus on giving advice to their clients, but do not provide access to capital markets or raising funds, often referred to as "boutiques" (eg, Lazard and Rothschild).

Many large investment banks also have an investment management arm (eg, asset management and private wealth management). There are also many independent investment management firms.

• Asset management firms – can be stand-alone firms or an arm of an investment bank (eg, Blackrock, Fidelity and JP Morgan Asset Management). The firms pool money from clients and invest it in a variety of assets like stocks, bonds, real estate and other financial products. Their goal is to grow the value of their clients' investments over time, usually in exchange for a management fee. This entails a focus is on long-term growth and capital preservation. Asset management firms often specialise in specific strategies, such as growth investing, value investing, or index tracking, and employ a team of portfolio managers, research analysts and traders, who use detailed research and financial models to make investment decisions. The firms create and manage investment products like mutual funds, exchange-traded funds (ETFs) and separately managed accounts.

• Private wealth management – many are smaller groups within larger financial institutions (eg, Bank of America Global Wealth Management, RBC Wealth Management and Bernstein Private Wealth Management). Private wealth management is a specialised service that provides comprehensive financial planning and investment advice to high-net-worth individuals and families. In addition to managing investments, they offer a suite of services, including estate planning, tax planning and philanthropy. The focus is on providing personalised, highly confidential, and integrated financial solutions, and the relationship with the client is paramount, as they often serve as a trusted advisor. Private wealth managers work directly with clients to understand their financial situation, goals and risk tolerance, and then build a bespoke financial plan and portfolio.

• Hedge funds – similar to asset managers in that they investment money in various asset classes on behalf of investors. However, they draw on alternative investment funds that use advanced and often aggressive strategies to generate high returns for sophisticated investors. Hedge funds invest pooled money from clients but draw on relatively more complex strategies (such as short selling, leverage and derivatives) that are generally not available to conventional investors. Their main focus is on generating absolute returns, meaning they aim to make money regardless of whether the market is going up or down. They seek to outperform the market by exploiting inefficiencies and taking calculated risks. Hedge funds employ highly skilled "quants" (quantitative analysts) and traders who develop and execute intricate trading strategies. Hedge funds are known for their fast-paced, high-stakes environment and often have performance fees, where they take a percentage of the profits in addition to a management fee.

• Private equity firms – these are perhaps the most sought after of all financial service roles, and also include sovereign wealth funds. Such firms are highly competitive for recent graduates (eg, Blackstone Group, The Carlyle Group and Sequoia Capital Partners). Private equity firms invest in and acquire private companies, or public companies that they then take private. Sovereign wealth funds are similar in that they are also investment funds. The firms raise capital from institutional and accredited investors to acquire stakes in businesses. Their objective is to improve the companies they invest in through operational changes or strategic acquisitions, and then sell them for a significant profit (typically within a three to seven year timeframe). Their focus is on creating value by actively managing and growing the companies in their portfolio – they are not passive investors; they often take a controlling interest and have a say in the company's management and strategic direction. PE firms have teams that specialise in sourcing deals, performing due diligence, structuring the transaction and then working with the management of the acquired company to execute a turnaround or growth strategy. The roles are in such high demand due to the potential for large bonuses based on the fund's performance.

Where can I work in banking in general?

There are several types of banking and other financial organisations that offer interesting and varied career paths, including the following:

• Retail (“high street”) banks – traditional, large-scale retail banks with a strong physical presence in a country or region (such as HSBC and Bank of America). The term originated in the UK, referring to banks on the main street.  They provide everyday banking services to individuals and small- to medium-sized businesses. This includes checking accounts, savings accounts, mortgages, personal loans and credit cards. The focus is on providing accessible and comprehensive banking services to the general public. They operate through a network of physical branches, ATMs (automated teller machines), and increasingly, robust online and mobile banking platforms. Their business model relies on attracting deposits and lending that money out to generate a profit. 

• Corporate banks – a division of a larger bank that provides banking services to large corporations, financial institutions and governments (such as JPMorgan Chase and Citibank). They offer a variety of services, including cash management, treasury management, foreign exchange and financing. Unlike a retail bank, they don't serve individual customers. They have dedicated relationship managers and product specialists who work with a company to understand its financial needs and provide tailored solutions.

• Central banks – public institutions (eg, the Federal Reserve in the US or the Bank of England) that manage a country's monetary policy and control the money supply. They set interest rates, act as the bank for commercial banks, issue currency and work to maintain financial stability and control inflation. They are not-for-profit institutions, and their primary focus is on promoting a healthy and stable economy. They act as a "lender of last resort" to prevent financial crises. They use a variety of tools, including open market operations and setting key interest rates, to influence the economy. Career opportunities here often involve roles in economics, research and regulation.

• Fintech – a broad term for companies that use technology to offer new or improved financial services (such as Monzo and Revolut). They provide a wide range of services, including mobile payments, online lending, peer-to-peer transfers and digital-first banking. They aim to disrupt traditional banking by offering services that are faster, cheaper and more convenient, often using data analytics and AI to personalise offerings.

• Alternative investments – refer to financial assets that don't fall into traditional categories like stocks, bonds or cash. Their focus is on finding and capitalising on unique investment opportunities outside of public markets (example companies include Apollo Global Management and KKR). This often involves taking on more risk and a longer-term investment horizon. These investments are typically handled by specialised firms (such as hedge funds and private equity firms) and are only available to accredited or institutional investors. They require a high level of expertise in specific industries or asset classes.

There are numerous different roles in this sector. We’ve outlined some of the major ones with links to where you can find more information. If you can, try speaking to someone who’s doing the job you’re interested in, so you get a real flavour of what it's like. Recruiters look for a clear understanding of the differences between roles.

• Mergers and acquisitions (M&A) – advises clients on large corporate transactions (eg, the sale and purchase of other businesses or parts of businesses) from strategy through to evaluation and exchange. The primary graduate-level role is Investment Banking Analyst. The eFinancialCareers explanation of careers in mergers and acquisitions provides a useful overview.

• Loan finance – advises clients on how to raise money from banks or other lenders. Specialised areas include leveraged finance (acquiring a target company) and project finance (funding an infrastructure project). A common entry-level role is Leveraged Finance Analyst or Project Finance Analyst. These professionals perform credit analysis, build financial models to assess a project's viability, and assist in preparing legal documents for the financing of acquisitions or infrastructure projects.

• Capital markets – advises clients on the best way to raise money on the public markets through issuing equity, shares or bonds. The eFinancialCareers explanation of careers in equity capital markets provides further details. In capital markets, you'll find roles like Equity Capital Markets (ECM) Analyst or Debt Capital Markets (DCM) Analyst. These roles involve assisting in the process of raising capital for clients by issuing new stocks (equity) or bonds (debt). Responsibilities include market research, preparing pitch materials and coordinating with a range of internal and external parties throughout the deal process. 

• Trading – executes all the trades, usually specialising in a particular kind of asset such as commodities, options and futures. The ability to analyse vast amounts of information and react quickly are key skills. The eFinancialCareers graduate guide to sales and trading links to several relevant blog posts. Prospects' financial trader job profile also provides more information. A graduate looking to work in trading might start as a Junior Trader or an Analyst in Sales and Trading. They often start by supporting senior traders. This involves monitoring markets, running reports, executing trades and learning about a specific asset class like foreign exchange, commodities or equities.

• Sales – first point of contact for clients interested in using the bank’s trading services, usually specialising in a particular industry or geography. Studies reports from research teams to develop expertise and advise clients. The entry-level role is typically a Sales Analyst.

• Research – analyses data, forms opinions and produces reports for use by the rest of the bank. Usually focusing on one industry/geography. Mainly used by sales team but also used by traders, investment banking side and clients. The eFinancialCareers graduate guide to research in investment banking links to several relevant blog posts.

• Risk management – ensures that trading risks taken are in line with the organisation's risk appetite. A common entry-level role is Financial Risk Analyst or Junior Risk Officer. Runs reports, analyses risk and talks to traders about risk exposure. Visit the Prospects financial risk analyst job profile and the targetjobs overview of risk management and control to find out more.

• Compliance – ensures that a company complies with its external regulatory requirements and internal policies. The Inside Careers compliance officer role description and the Prospects compliance officer job profile are useful resources.

• Operations – ensures that the vast quantities of information, money and products are flowing correctly and transactions are processed every day. The targetjobs overview of operations and the Prospects operational investment banker job profile provide further details.

• Technology – provides all the IT services used by the many business areas. Check out the targetjobs overview of investment banking techonology. For a graduate in technology, a role like a Software Engineer or IT Analyst is common.

• Investment – Investment managers manage money by investing it in a variety of asset classes such as equities, bonds, real estate, and alternatives for institutional and retail clients. The Prospects investment analyst job profile will tell you more. A common entry-level role is Investment Analyst or Research Associate. These roles are focused on the "buy side" of finance. They conduct research on companies and markets, analyse potential investments and support senior portfolio managers in building and managing investment portfolios for clients.

• Private wealth management – provides high-net-worth clients with professional advice and services that help them manage their finances as efficiently as possible. This can include financial planning, investment management and advice on tax, pensions, and inheritance. A graduate might start as an Associate or Junior Financial Advisor in this field. They assist senior wealth managers in providing comprehensive financial advice, which may involve preparing financial plans, managing client portfolios and providing administrative support.

• Private equity (PE) – specialises in buying companies, reshaping them and selling them on for a profit. Private equity is a challenging field to enter directly after graduation. Most firms prefer candidates with prior experience from an investment bank. However, some firms offer a post-undergraduate programme for an Analyst role. These individuals assist in sourcing and evaluating potential acquisitions, performing detailed due diligence and building financial models to value target companies.

It’s important to do your research and apply early. Applications are advertised through employer and industry-specific websites as well as CareerHub. Most investment banks and asset managers require you to have completed a relevant internship prior to securing a full-time graduate role.

How to prepare and position yourself

A strong career in banking and investment starts with proactive preparation. To position yourself effectively, get involved with relevant student societies, like those focusing on finance, banking and investment. Participate in work experience simulations offered by platforms like AmplifyME and Forage to gain practical skills and a taste of the sector.

Beyond academics, research the specific skills required for different roles, from the analytical abilities needed in M&A to the communication skills vital for sales. Critically, learn how to demonstrate these skills through transferable experience. For instance, show teamwork by highlighting a group project, or demonstrate data analysis through a university course or personal project. This strategic approach will make you a more competitive candidate. 

If you’re looking to gain experience

First years can get a feel for what to expect through the 'spring weeks' offered in the Easter vacation, but the main route in is through a summer internship between your second and final years or following your master's degree. Applications generally open as early as July and close between October and December.

If you’re early on in your career

If you have a relevant master's and/or relevant internship experience in the financial services industry, you may be able to apply directly for graduate analyst roles. Look out for early deadlines as most banking and investment firms convert summer interns into graduate hires, meaning there are a limited number of graduate level roles to apply to.

Many of the smaller and boutique firms recruit year-round, so it is worth looking out for the opportunities on industry-specific websites and on CareerHub.

If you have more experience

For individuals with more experience, the path into the banking and investment sector is less about structured graduate schemes and more about leveraging existing networks and specialised qualifications: 

• Specialist recruiters and networking: The most effective route remains connecting with specialist recruitment agencies and search firms that focus on finance. Additionally, networking is crucial. Attending industry events, conferences and alumni functions can open doors to roles that may not be publicly advertised. For experienced candidates, this is often about demonstrating how prior skills and knowledge are directly transferable to a new role within the sector. 

• Off-cycle opportunities: For those not coming through a traditional summer internship or graduate programme, off-cycle opportunities are a key way to enter the industry. These are non-standard recruitment windows that firms use to fill specific, immediate needs. These roles are often advertised on company websites or through targeted recruiters and can be a direct path to a full-time position.

• MBA and master's programmes: Many top-tier MBA and finance master's programmes have strong relationships with major banks and investment firms. These programmes often provide dedicated career services, networking events, and on-campus recruitment opportunities specifically for experienced hires.

If you’re changing career

The banking and investment sector tends to recruit at graduate level and train up through the organisation, so moving into the sector at a later stage can be tricky. Depending on how large the jump is, it’s often necessary to take some stepping stones to gain relevant experience. This could be an internship or low-level direct entry role. You should also utilise your networks to learn more about the industry and easiest routes in.

You can browse all upcoming events (including our flagship careers fair) on the Discover | Banking and financial services programme hub. Key events include:

• Discover | Banking and financial services: Introduction to investment banking alumni panel
• Discover | Banking and financial services: Introduction to asset management and investment management alumni panel
• Discover | Banking and financial services: Introduction to private equity, venture capital and hedge funds alumni panel

Large firms often hold insight events or offer work experience opportunities that will give introductions to the sector, the organisation and opportunities available alongside the chance to network with the organisation’s employees.

We also regularly host employers on campus; it is recommended that you look up campus visit dates on the organisations’ websites.

• eFinancialCareers – jobs and articles on the sector, includes useful student pages.
• Snippet.Finance – a blog with insights into stocks, macroeconomics, investing and finance.
• Investment2020 – A programme that collaborates with asset management firms to offer internships to graduates and school leavers.
• Skills-First Resource Library – A skills profile for financial analysts, detailing what each skill entails and what different levels of competence look like.
• Financial Edge Training – A LinkedIn page that provides students with brief, helpful guides and advice on various finance topics.
• AmplifyME – Finance accelerator simulation – A free, two-hour simulation in partnership with UBS and Morgan Stanley that gives students hands-on experience in sales & trading and asset management.
• eFinancialCareers: What is the front office, middle office, and back office of a bank? – An article explaining the different functions within a bank and the types of jobs in each area.
• eFinancialCareers: What are bank research jobs – and what do research analysts do? – A guide on what research analysts do and how to pursue a career in this field.
• eFinancialCareers: How to get a job in a hedge fund – An article defining hedge funds and detailing the roles and responsibilities of professionals working there.
• eFinancialCareers: Banking internships: A complete guide to summer analyst programs – An overview of summer analyst programmes, providing insights into what they entail.
• eFinancialCareers: What to expect at an investment banking assessment centre – A guide to what to expect during a typical investment banking assessment centre and how to prepare.
• eFinancialCareers: How to prepare for the case study in a private equity interview – An article explaining the importance of the case study in a private equity interview and how to approach it.
• Forage: Which banking careers are right for me? – An interactive quiz and guide to help students identify which banking roles align with their skills and interests.
• Forage: Superday: What it is and how to prepare – A guide explaining the final round of interviews in banking and providing tips on how to succeed.
• Forage: How to Get Into Finance With No Experience – A resource offering strategies for breaking into the finance industry without prior professional experience.
• Pitch Drive Academy: Venture Capital Entry-Level Jobs – A Student’s Guide: The Ultimate Guide: A resource outlining the steps and strategies for students to begin a career in venture capital.

• CareerHub – jobs board targeting LSE students, including events and networking opportunities.
• eFinancialCareers – jobs and articles on the sector, includes useful student pages.
• Targetjobs – graduate jobs, internships and role profiles.
• Inside Careers – graduate jobs, internships and role profiles.
• Bright Network – internships and jobs
• Investment 2020 – Employment opportunities for school leavers and graduates in investment management
• The LSE Business and Investment Group (BIG) student union society publishes a “tracker” document of finance-related opportunities at the beginning of the academic year. Please get in touch with the society to request access. 

If you’d like to discuss your options in this sector, or chat through your current plans, please book an appointment with an LSE Careers Consultant.

What skills are needed/sought after?

The banking and investment sector looks for a blend of technical skills and interpersonal skills. For example, a role as an investment banking analyst in M&A requires strong analytical abilities to advise clients on corporate transactions and conduct evaluations. Similarly, roles in loan finance and capital markets demand the ability to perform credit analysis and build financial models to assess a project’s viability or raise money through issuing equity or bonds.

Beyond these technical skills, recruiters also look for transferable experiences like teamwork, which can be demonstrated through group projects, and data analysis, which can be shown through university courses or personal projects. These skills are essential for navigating a fast-paced environment. 

Alumni journeys and insights

LSE alumni are found working in the banking and investment sector all over the world. A common path for graduates is to first complete a spring insight day over the Easter break of the first year of their studies, followed by a relevant summer internship between their second and final years of university. This is often a prerequisite for securing a full-time graduate role, as many firms convert their interns into graduate hires.

To get a real sense of what a job is like, it's highly recommended to speak with someone already in the role (you may wish to use the LSE LinkedIn alumni finder to do this). Many alumni and employers participate in events like the LSE Careers Discover programmes (such as Discover | Banking and financial services), which feature alumni panels and provide introductions to specific areas like investment banking, asset management and private equity. These events offer valuable networking opportunities. 

Employer insights

Most investment banks and asset managers begin recruiting for summer internships as early as July, with applications typically closing between October and December. Because many firms prioritise converting their summer interns, there are a limited number of graduate-level roles available for direct application.

For those who don't follow the traditional summer internship path, off-cycle opportunities are an important way to enter the industry. These roles are often advertised on company websites or through targeted recruiters and are used to fill immediate needs. Smaller and boutique firms, unlike larger institutions, often recruit year-round. 

Trends

The banking and investment sector is dynamic and encompasses a wide range of organisations, including the growing fintech sector and alternative investment firms. Hiring is becoming more focused on quality over quantity, perhaps especially given the ease with which candidates can use AI tools to produce large numbers of applications at scale.  

While some firms in the past may have hired a large number of junior analysts, the current trend is a more vigilant approach, emphasising the quality and precision of new hires – banks are seeking candidates who can add value from day one. 

The advent of AI and generative tools is impacting recruitment, particularly in the initial screening stages. AI is increasingly used to screen resumes, conduct initial interviews, and predict candidate success by analysing skills and personality traits. This can make the screening process more efficient and potentially reduce bias by ignoring demographic information. 

Within roles, generative AI is used by firms like Goldman Sachs to help employees summarise complex documents and by JPMorgan Chase for tools that assist in selecting financial securities. The rise of AI is also creating a demand for new skills, with a growing number of roles requiring expertise in data science, machine learning and AI programming.