It can be a challenge to get into the financial services sector, particularly for individuals from non-finance backgrounds. Nonetheless, diverse perspectives and experiences are essential to foster innovation and improve decision-making within the finance industry. This guide is essential for recent graduates or those considering a career change in the finance sector.
Understand the Finance Industry
How Do I Find the Right Area of Financial Services for Me?
The first step in figuring out what area of financial services might suit you is to understand what you do and don’t like to do. For example:
- Investment banking requires expertise in financial modelling, client communication, and market analysis to manage capital raising and advise on mergers and acquisitions.
- Trading requires strong technical skills, excellent mathematical skills, and the ability to retain information quickly, analyze deals, and execute trades.
- Asset Management demands a strong grasp of market trends and portfolio management in order to successfully manage investments for clients.
- Venture Capital requires analytical skills, financial expertise, and industry knowledge as VC’s need strong investment acumen, along with the ability to communicate complex ideas clearly and persuasively. Expertise in a specific area like technology, biotech, or healthcare can also be of value particularly in specialist firms or teams.
- Risk management requires analytical skills, as well as a thorough understanding of financial products and market dynamics to effectively identify and mitigate potential losses.
Connect with as many people as possible who are working within a range of finance roles to get more insight and a better understanding of what these roles actually entail. Utilizing your school or university alumni might be a helpful starting point.
Educational Pathways
Educational pathways also play a critical role in transitioning to a finance career. If you haven’t taken a finance-related degree a course or qualification can be a great introduction to finance and also demonstrate your dedication to learning.
Pursuing a degree such as an MBA or certifications like the CFA designation or ACCA can significantly boost your employability. These programs offer a solid foundation in finance principles and are highly regarded by employers in the industry.
Get the same training as new hires at the top firms and demonstrate proficiency in essential skills for a career in Investment Banking, Private Equity, Asset Management, Venture Capital, Research Analysis, Credit Analysis, Real Estate, Restructuring, and Project Finance.
Find Opportunities to Apply your Interest in Finance
University societies and clubs can help you to apply theoretical knowledge. Many universities run virtual investment funds and M&A societies to practice trading and working with financial models.
How to Effectively Transition from a Non-Finance Degree to a Finance Career
Successful candidates for finance roles can come from a range of academic disciplines, and increasingly from fields like history and music. Studying finance may not be necessary for a career in finance, except for specialized areas such as quantitative analysis where mathematics is crucial.
Networking
Networking should not be underestimated. Building relationships within the finance industry can open doors to mentorship, job opportunities, and invaluable advice from seasoned professionals. Attending industry events, participating in online forums, and leveraging social media platforms like LinkedIn to connect with individuals who can provide insights and guidance.
When attending networking events, research the staff and teams. Many banks, especially smaller boutique banks, provide biographies of their senior bankers on their websites. This information can be useful when engaging with them.
Internships
Securing internships or entry-level positions in finance can help facilitate a smooth transition into finance. These positions offer hands-on experience and valuable industry connections.
Spring weeks, lasting 1-2 weeks, offer insights into banks through analyst shadowing, networking events, and workshops. Spring week programs are aimed at first year students on a three-year course, and second year students on a four-year course.
Summer internships are aimed specifically at second-year students and tend to run from June to August. They are like an extended job interview where your performance is evaluated.
These programs often have a strong emphasis on diversity and inclusion, aiming to attract candidates from various educational and professional backgrounds. By participating in these programs, you can gain a comprehensive understanding of different finance sectors and identify which area aligns best with your skills and interests.
Benefits of Internships
- Internships can be critical for receiving full-time offers and can help participants achieve a grad scheme opportunity.
- They aid in building technical and financial skills and enhance teamwork and communication.
- They are an opportunity to enhance teamwork and communication skills.
- Give insights into strengths and weaknesses, and where to improve.
- Help get experience in different areas of finance to discover the most suitable job role.
What Skills Do I Need Before Starting an Internship?
Excel Skills
Proficiency in Excel is crucial for an investment banking internship. While you will learn technical skills on the job, being efficient in Excel can help you advance faster. It’s a valuable and often underrated skill. Get a head start by learning the Excel skills taught at top global investment banks with Excel Efficiency for Financial Modelling and Data Analysis.
Commercial Knowledge
Having good commercial knowledge is valuable. You don’t need to know everything in the industry, but having a few recent news stories to discuss with your manager and colleagues is beneficial. As you gain experience, understanding the market will help you apply your knowledge more effectively.
Regulatory and Ethical Considerations
Understanding the regulatory landscape is essential for anyone entering the finance industry to ensure clients and institutions are operating according to laws.
Technology Skills
Mastering financial software, data analytics, and automation tools is crucial for improving efficiency and decision-making in finance roles.
Soft Skills
Soft skills such as problem-solving, effective communication, and adaptability are valued in the finance industry.
Application Process
How to Make your Resume and Application Stand Out
- Be honest, remember everything can be fact checked.
- Avoid spending too much time designing a unique resume; a straightforward and easy-to-read template works best. Read our Investment Banking CV Guide for some free templates and guidance.
- Including your outside interests, these can make your CV stand out and could spark the interest of a recruiter.
- Focus on experience, this is the most important part of a resume. Consider how experience in internships, volunteers, teams, projects, and other roles can be made relevant.
- Emphasize the times you have taken initiative, like leading a project or asking for more responsibility.
- Include leadership roles, including volunteering, university societies, or sports teams.
How to Prepare for the Application Process
Start Early
Begin the application process early. It usually starts almost 2 years before completing your degree. Summer internships typically occur the year before graduation, so applications are submitted the preceding year.
The Application Process
Applying for an investment banking internship involves:
- Submit resume.
- Attend first-round (and sometimes second-round) interviews.
- If successful, attend a Superday/assessment center.
- Complete psychometric tests, if required.
Research
Research both bulge bracket and boutique investment banks to determine where to apply. This research will help you explain in your application and interviews why you are interested in working for a particular bank and role.
Investigate the deals the firm has done, focus on less well-known deals and try to understand their significance.
Prepare
Candidates from non-finance backgrounds can impress in interviews by showing genuine interest and enthusiasm through their preparation and answers. Even without finance projects or internships, be ready to discuss other relevant projects you have worked on
Example questions you might get in an interview with a non-finance background:
- Provide an example of a situation where you had to explain complex information to a non-technical audience.
- Discuss a project where you encountered strict deadlines. How did you manage your time?
- Describe a scenario where you collaborated effectively within a team.
Conclusion
Pivoting to a finance career from any degree is not only possible but can also be highly rewarding. The finance industry values diverse perspectives and skills, which can lead to innovation and improved decision-making. By understanding the various areas within financial services to find which one is right for you, pursuing relevant qualifications and courses, as well as utilizing networks, individuals can successfully pivot into finance. Internships and entry-level positions provide invaluable hands-on experience and industry connections, while developing both technical and soft skills is crucial for success.
