A keen understanding of the banking industry and financial markets is essential. Graduate role interviews will often focus around current financial affairs and the basic mechanics of the financial system, so reading up in advance is crucial. Most people engaged in the work need a high degree of analytic intelligence, the ability to deal confidently with figures, and decisiveness.
They need to be able to express themselves clearly and succinctly, orally and on paper, and to be persuasive about the conclusions they have drawn, either within their organisation or directly to clients. Given the responsibility, the competition and the pressure, it is important for bankers to show sustained stamina, energy and competitiveness over long periods, the ability to cope with the stress involved, and to maintain good working relationships. Ability to work well within a team is highly valued, as senior members need to rely on you to support clients and sometimes pick up mundane tasks for the good of the team.
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Salaries
Banking is notorious for paying well, though of course don't forget that the long hours that go with the job mean a much more measly hourly rate than the total salary suggests.
This website gives you a fairly good idea of what you could expect to earn at different seniority levels.
This website gives you a fairly good idea of what you could expect to earn at different seniority levels.
The Diversity of Companies in Banking
Banking is a broad term given to a diverse array of different firms which operate in the finance sector. And, banking itself isn't one singular profession - there are multiple different faces of banking. If you want more information on what different roles within a bank entail, or what different types of financial firm do, then try one of the introductory books from the reading list on the right of the page.
Corporate finance
Capital markets
Sales and trading
Private equity
Asset and private wealth management
Research
Structuring
Middle Office includes:
Risk management
Compliance
Finance
Back Office includes:
Finance
Operations
IT/technology
- Investment Banks - these themselves are diverse and have a number of different roles within them:
Corporate finance
Capital markets
Sales and trading
Private equity
Asset and private wealth management
Research
Structuring
Middle Office includes:
Risk management
Compliance
Finance
Back Office includes:
Finance
Operations
IT/technology
- Investment Management – also known as fund management and asset management – is all about managing money, including investment in equities, fixed income, property and hedge funds, on behalf of clients. Asset managers are the people responsible for achieving this, and are usually called fund managers in the UK, while in the US they’re known as portfolio managers. Asset management is often referred to as the ‘buy side’, because it buys investment products with the aim of making profit for investors. Research analysts provide ideas and information to asset managers, who will then make decisions on the portfolios that they manage.
- Hedge Funds – The name ‘hedge fund’ comes from the idea that money managers can hedge their bets to ensure they make money, whether the market goes up or down. What distinguishes a hedge fund from a traditional fund is its willingness to push the boundaries of normal investment techniques to achieve unusually high returns. Hedge funds borrow money to invest, are highly leveraged and less regulated, which leads to these higher returns. Hedge fund assets are growing quickly, and London plays host to 12 of the largest hedge funds in the world. Most hedge fund managers are highly successful former traders or fund managers, who are looking for something different. Graduates with two years’ experience in investment banking, who are strong on financial analysis and spreadsheets, could make the leap into a trader position earning £80,000 plus unlimited bonuses. Private Equity and Venture Funds exist to help raise money for companies by offering cash in return for an ownership stake. In an ideal situation they invest in an under-performing company, turn it around and sell their stake at a profit some years later. However, they occasionally engage in the unpopular practice of asset stripping. The industry hires very few graduate trainees.
- Retail Banking is dominated by Barclays, LloydsTSB, HSBC, Santander and the Royal Bank of Scotland (RBS, who own NatWest). In order to stabilise the financial system by recapitalising the banks, the UK Government is taking part-ownership and introducing more control over the banking system. These banks are very large businesses, not just recruiting into High Street banking. Don’t overlook their specialist recruitment areas, such as Corporate Banking, Operations Management, International Management, Group Technology, Internal Audit, HR, Finance and Private Banking. Personal financial services vacancies can be found in banks and financial institutions but also within the manufacturing sector. The sector is characterised by rapid change and competition has become much fiercer. The most common entry-point positions in the sector are: bank manager, retail banker, trainee financial planner or credit analyst.
- Independent Financial Advisers (IFAs), company representatives or ‘tied agents’ also provide financial advice. They can advise on investment products, such as pensions, life assurance, savings and investing in stocks and shares. Tied advisers can only sell products from one financial company; the one to which they are ‘tied’. Company representatives, or direct sales people, are employed directly.
Graduate or Experienced?
At a graduate level, there is a wide variety of roles available, and these are competitively fought for by applicants.
Summer internships are fast becoming the way by which banks recruit their new starters - after all it gives them an extended period of time to vet potential employees before they join. As such, if you are a current university student, it would be wise to consider the internship option should you wish to enter banking at a later stage.
Applying for more senior finance roles without a background in finance is much harder, and most roles require previous industry experience, though there are certain roles where a professional services background or MBA may be sufficient to negate the lack of experience.
Summer internships are fast becoming the way by which banks recruit their new starters - after all it gives them an extended period of time to vet potential employees before they join. As such, if you are a current university student, it would be wise to consider the internship option should you wish to enter banking at a later stage.
Applying for more senior finance roles without a background in finance is much harder, and most roles require previous industry experience, though there are certain roles where a professional services background or MBA may be sufficient to negate the lack of experience.
Where do I start?
If you're sure you want to work in the banking and finance sector, then your first port of call is spotting vacancies and contacting specialist recruitment agencies who can work on your behalf to match you with suitable roles.
Specialist Recruitment Consultancies:
For graduate roles, it is also worth considering looking at websites which advertise graduate schemes:
Specialist Recruitment Consultancies:
For graduate roles, it is also worth considering looking at websites which advertise graduate schemes:
Of course, looking on companies' own websites for vacancies is also an easy way to see what is available. This website has a fairly comprehensive list of the investment banks in the UK and should give you lots of leads to check out.
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