The investment banking recruiting process remains as competitive as ever, but recent numbers provide some hope. In 2023, U.S. bulge-bracket banks filled about 10,000 summer program positions, while off-cycle and spring internships accounted for another 2,500 spots. Yet, landing the job is just the first hurdle. At top firms, return offer rates reached 68%, but regional banks saw only 55%.
Banks have begun slowing headcount growth and focusing more on cost controls and specialization – especially in areas like debt advisory and restructuring. This means candidates need to be more focused when targeting groups and offer evidence of specific skills, rather than a general interest in finance.
There are gradual improvements in diversity, with women now making up 35% of new analysts at leading firms. However, underrepresented minorities are still less than 20% of most analyst classes, indicating that while targeted diversity programs are moving the needle, progress is slower than hoped.
Traditional Analyst
Most hires land analyst roles straight from undergrad through on-cycle programs that run from June to August. Full-time offers typically go out by October. Average analyst class size is 300–350 in New York and 150–200 in London. For those who missed the cycle, 8–12 week off-cycle internships are a useful backdoor, offering later start dates and a chance to test fit.
Lateral Associate
Openings for lateral associates arise when second-year analysts are promoted or leave. These candidates usually bring 2–4 years’ experience – ideally from private equity, consulting, or boutique advisory roles – together with a strong technical background. Pay is often the same as for new analysts, but the work requires faster mastery of client relationships and deal execution.
Top banks report median GPAs of 3.7/4.0 for hired analysts. Many Tier-1 firms set hard cutoffs at 3.5. School prestige still matters, with elite schools (Ivy Plus, Oxbridge, or top European Grandes Écoles) providing about 40% of bulge-bracket recruits. First-round interview invites go to 60–70% from these schools, compared with only 20–30% for non-target applicants.
Still, many successful candidates hail from regional elites and top state schools, while some exceptional non-target students do break in, they simply need to be more deliberate and strategic in their efforts. Required coursework includes accounting, corporate finance, and statistics. If your transcript has gaps, online courses from reputable providers can substitute, and some banks are beginning to accept these credentials as evidence of capability.
Strong finance internships in hub cities such as New York, London and Hong Kong carry significant weight. Many boutiques recruit almost exclusively from their top summer interns, while bulge-bracket return rates hover between 60% and 80%.
It’s a common mistake to prioritize a high-prestige non-deal internship over a smaller firm offering true transaction experience. Given the choice, transactional exposure should win every time.
Extracurriculars should focus on building financial awareness and leadership. Involvement in investment banking clubs, student-managed funds, and winning case competitions all help. Service activities, such as enhancing financial literacy or increasing economic inclusion, look good on applications if they reveal measurable impact and reflect real growth.
A one-page resume in reverse-chronological order is standard. If your GPA is under 3.3, leave it off and concentrate on measurable results in your experiences.
Effective resume bullet points follow an “action-result” pattern:
Crucial keywords: M&A, leveraged buyout (LBO), comparable company analysis, precedent transactions, due diligence. Avoid vague phrases like “team player”. It is better to mention actions: “Collaborated with a three-member team to deliver a 20-page CIM ahead of schedule.”
Aim for a concise, 250-word cover letter. Start with a clear link between your history and the bank’s focus. Reference deals or sectors the team covers to show research and commitment. For resume and cover letter tips, see our Investment Banking Cover Letter Guide.
Internal referrals are still the best way to get interviews. Data shows a 35% interview-invite rate for referred applicants, versus 8% for cold online submissions.
Effective networking involves:
Aiming for five to seven outreach messages each week maintains progress without causing burnout. Smart networking isn’t just about numbers—it’s about quality connections.
For detailed tactics, check our Investment Banking Networking Guide.
Banks test your skills in accounting, valuation, and modeling. You should be prepared to answer questions about:
Recommended reading includes “Investment Banking: Valuation, Leveraged Buyouts, and M&A” by Rosenbaum & Pearl. Practicing in Excel is crucial; recruiters can spot those with weak technical abilities almost immediately.
Mock interviews, especially with former bankers, help you sharpen answers and learn how to discuss context, numbers, and outcomes with confidence. Using a daily curriculum of 20 technical questions for several weeks is a proven way to become fluent.
More tips are available in our Investment Banking Interviews Guide.
Interviewers assess your teamwork, leadership, and judgement with behavioral questions. The STAR framework (Situation, Task, Action, Result) keeps responses clear and organized.
Common questions:
Candidates who track recent deals and cite reputable sources get higher marks—they show real curiosity and industry awareness.
Some boutiques use live modelling as a key test, giving you 60–90 minutes to build an LBO or complete a valuation based on company summaries.
Looking to prepare for recruitment processes? Take a look at my case studies and financial models – they’re built to level up your financial modelling skills.
To perform well, remember:
Practice under time pressure: record yourself and review to identify improvements. Ask peers or mentors to critique your process.
Overstating your contributions is one of the fastest ways to get tripped up in interviews. Bankers verify your involvement by drilling into details—so stick to facts.
Ignoring culture fit can also backfire. Firms look for people who work well with existing teams, understand bank values, and have researched recent deals and news.
A final word of advice: Never lose momentum. Stay up to date on recruitment timelines, roles, and emerging group focuses (such as real estate, healthcare, or restructuring) to position yourself where demand is highest.
Landing a role in investment banking requires commitment, strategy, and continuous effort. By focusing on specialization, refining your credentials, building quality connections, and preparing meticulously for every interview stage, you’ll stand out in a crowded field.
Keep tracking deadlines, maintain momentum through targeted outreach, and leverage every resource available. With a disciplined approach and strategic focus, you can tackle the recruiting process confidently and secure your place in this dynamic industry.
Ready to start? Download a calendar of application deadlines, polish your technical skills, and build your networking schedule now. Explore more on breaking into investment banking or browse insights on requirements and expected compensation.
Seek out alumni mentors, get involved in finance-related campus groups, and make your outreach and interview practice part of your weekly routine.
P.S. – Check out our Premium Resources for more valuable content and tools to help you break into the industry.
