Banking & investment

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Banking and Investment Management offers specialised financial services and advice to private, industrial, commercial and government clients. It offers a variety of interesting and fast-paced roles including some of the highest salaries and bonuses.

A career in banking, particularly within Investment Banking and Global Markets roles translates to long hours and hard work, although very stimulating, fast paced and at the forefront of world affairs.

A career in banking, particularly within Investment Banking and Global Markets roles translates to long hours and hard work, although very stimulating, fast paced and at the forefront of world affairs.

The banking sector is starting to pick up again after a couple of years in crisis which saw a worldwide credit crunch that led to recession in 2008. Signs of recovery among the investment banks are starting to show with many declaring good profits and continuing to award high bonuses.

The return of confidence means investors of every kind - wealthy individuals, speculators, and insurance/pension funds – are looking to put money to work and/or hedge against risk. That means buying and selling a variety of financial products, for example, derivatives, commodities, equity securities and foreign exchange.

Although front-office roles in sales and trading may be more difficult to secure at some banks, there is an increase in other roles such as risk management, financial management and IT services. Many opportunities are still available in other parts of the sector, including financial services, hedge funds, the insurance industry and the actuarial profession (Career Briefings available).

What types of jobs are there?

Stripped of the jargon, the basic function of the financial markets could not be simpler – the industry primarily exists to channel money from savers to borrowers, from those who have surplus capital to those who require capital to finance trade or expand businesses. They provide a market for people to exchange securities, allowing the original investors in a company or a bond to sell on their shares or bonds to other investors, and are not locked in; they also advise companies on new projects including mergers and acquisitions.

The financial market operates 24 hours a day allowing ‘round-the-clock’ trading in foreign exchange, securities, financial futures and commodities. London is one of three primary world financial centres, alongside Tokyo and New York.  London especially is an important centre as its working day bridges the US and Asian markets.

Front Office roles are among the most competitive graduate positions, often with thousands of applicants per position. In deciding which business area would suit your profile most, you should carefully consider your strengths in and appetite for persuasion, risk-taking, analysis and research.  For example, selling US equities to UK institutions requires great confidence and persuasive ability with customers, face-to-face and via the telephone. Money market trading and Eurobond dealing require the ability to make rapid decisions and the ability to take risks. Fund managers and investment advisers require high levels of aptitude and application in research and analysis. Front office roles include:

•    Investment Banking - Corporate finance
•    Investment Banking - Capital markets
•    Sales and trading
•    Private equity
•    Asset and private wealth management
•    Research
•    Structuring

Middle Office roles include:
•    Risk management
•    Compliance
•    Finance

Back Office roles include:
•    Finance
•    Operations
•    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 responsible for achieving this, and are typically called fund managers in the UK or portfolio managers in the US. 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 then make investment decisions on the portfolios they manage.

Hedge Funds – The name ‘hedge fund’ derives from the idea of money managers hedging 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 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, looking for an additional challenge normally associated with high levels of risk. Graduates with two years experience in investment banking, with strong financial analysis skills could move into a trader position earning £80,000 plus unlimited bonuses.

Private Equity and Venture Funds help raise money for companies by offering cash in return for an ownership stake. They typically invest in an under-performing company, turn it around financially, selling their stake at a profit further down the line. However, they occasionally engage in the unpopular practice of asset stripping. The industry hires very few graduate trainees within this area.  This is normally due to the relationships cultivated and credibility built over long periods of time.

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 of some retail banks and introducing higher control of the banking system. These banks are very large businesses, not only recruiting into High Street banking and 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 include: bank manager, retail banker, trainee financial planner or credit analyst roles.

Independent Financial Advisers (IFAs), company representatives or ‘tied agents’ also provide financial advice. They advise on investment products, such as pensions, life assurance, savings and investment of stocks and shares. Tied advisers can only sell products from one financial company; to which they are ‘tied’. Company representatives, or sales people, are employed directly by a company, e.g. an insurance company, bank or investment company.  Again, they only sell the products of the company they represent.

What skills do I need?

A keen interest in and understanding of wider concepts within the banking industry and global markets is essential. A high degree of analytic intelligence, the ability to deal confidently with figures, and decisiveness are some of the common traits of successful graduates in these areas. The ability to express themselves clearly and succinctly, orally and on paper, with persuasive conclusions either internally in the organisation or externally with clients. Given the high levels of responsibility, competition and pressure, it is important for bankers to show sustained stamina, energy and competitiveness over long periods, the ability to cope well under pressure whilst maintaining good working relationships at the same time. The ability to work well in a team is highly valued, as junior and senior members will rely on your support with varied tasks ranging from administration to supporting clients and senior stakeholders.

What are the entry points?    

Most recruitment takes place between September – December, otherwise known as ‘Milkround’.  The majority of graduate application dates close by early November. Given a number of Investment Banks recruit on a rolling basis, it is best advised to apply early on in the process ensuring your preparation is done well in advance.  Most selection dates take place between September and February with a few vacancies throughout Hilary and Trinity Terms and during summer. This industry is market-driven, so there is no guarantee that jobs will consistently be available.

Investment management firms generally have more flexible hiring practices, as they are more market-driven than banks. Most attend the Finance Fair and/or the Milkround events, while others post vacancies as and when they become available during the year.

How do I get experience?    

In this competitive environment, knowledge of the employer, job requirements and your own strengths are essential in ensuring your success. Background reading on Investment Banking, global markets and the various roles available within banks and how they fit together is essential.  Knowledge of the intricacies of banking and investments, the ability to speak of them with interest, enthusiasm and realism further highlights your credibility for the industry.  Networking and utilising contacts of those already in the industry is vital to improving your understanding of the industry and possible roles you could consider.

The Investment and Finance Society partner with a number of financial services organisations to organise a host of networking and informational events to assist in increasing your knowledge and awareness of the industry.

Summer internship programmes are becoming the main method for banks to source full time hires. Many banks aim to convert between 60-80% of their summer intern class to full time hires. As a result many banks do ‘top-up hiring’ for full time roles in September/October, often in difficult to fill areas with specific language requirements. It is advisable to check the current situation with the recruitment team at each firm. Some banks will allow finalists to complete a summer internship, however this is not the norm, and most recruit penultimate year students or those who can prove they are continuing in education following the summer internship.

A number of banks organise week long programmes for first year students to provide an insight into roles within banking. These are generally organised over Easter with students required to apply online. Spaces are limited and competition is fierce so it is necessary to demonstrate how the programme could benefit you often via a covering letter and/or initial interview. On the whole, these programmes are used as a pipeline for the summer internship programme with many organisations hosting fast track assessment centres after these events for summer internships the following year.  In addition some banks organise ‘Insight Days’ targeted at 1st and 2nd year students throughout the year. These are designed to provide a taster of the banking industry.

Most banks include competency-based interviews as part of their recruitment process and will look for evidence that you can demonstrate competencies such as team work, drive, enthusiasm, determination, and communication skills from your interests and experience. They are less interested in technical skills (unless applying for quant/highly technical work) – these can be learnt – but getting the right person is crucial and evidence of this through a variety of scenarios is key.

How do I get a job?

1) The Oxford University Careers Service vacancies database provides a comprehensive listing of available roles throughout the year from a number of key recruiters. (Log into CareerConnect, the password-protected area of the website).

2) Attend the presentations in Michaelmas Term of the firms that interest you, and talk to their representatives, ensure you read the firms’ literature, and scrutinise their websites but remember they are not looking for you to regurgitate what is written online!  Utilise any company alumni contacts to increase your knowledge of the company and roles available to you.

3) Vacancies can also be found in the national press, though usually for candidates with existing financial services experience.

4) To increase your knowledge of Global Markets, read relevant material that you find interesting, for example the business pages of the main national papers include comprehensive information to help shape your views. The Economist provides a general global overview with the Financial Times as the most comprehensive banking press.

5) Use the Oxford Careers Network or speak with practising analysts and associates.

6) If you are London based, another useful tool is to approach City recruitment agencies with your CV to discuss potential job opportunities. They will not normally put your name forward for vacancies, unless you have a respectable amount of industry experience, e.g. three to six months in a ‘blue-chip’ firm and familiarity with Excel, Access and Word. Hays Personnel, Joslin Rowe, Michael Page (City), Morgan McKinley, or Canary Wharf Jobs are suggested contacts if you have 3-6 months office experience. Remember that recruitment agencies respond to immediate vacancies, so you need to apply at the time when you are available for interviews and to start work.

7) There are a few specialised recruitment agencies (such as the Cornell Partnership) recruiting at Oxford on behalf of boutique investment firms and smaller investment banks.

8) Whatever stage you are at in your career, developing your knowledge of the field and seeking out vacancies is often best achieved through networking, ie speaking with alumni, former interns, graduates, contacts met at Careers events.

Do remember that a major city services firm recently released figures showing that out of the 400 graduate applicants from Oxford that applied for graduate positions in 2010, over 130 did not progress past the first stage (CV/application stage), with 45 accepted offers of employment at the final stage.  These figures demonstrate the importance of your CV and cover letter reflecting your experience and abilities, being tailored to the company and role you are applying to. See the Information Sheet on CVs and Applications available online and at the Careers Service for further guidance.

Employment rights and equality

For information about your employment rights, including the National Minimum Wage, please visit: http://www.direct.gov.uk/en/Employment/Employees/index.htm  and http://www.direct.gov.uk/en/Governmentcitizensandrights/Yourrightsandresponsibilities/DG_10014458

Postgraduate students

Master’s graduates may find themselves in a ‘grey area’ between traditional undergraduate analyst programmes and MBA associate-level positions. Your best recourse is to study each bank’s website in the university recruiting section, or to speak directly with graduate recruiting staff from the banks at the Finance Fair or company milkround presentations to discuss positions of this level individual to their firms.

DPhils are actively sought after for quantitative analytical roles in banks or financial institutions, particularly students with advanced degrees in Statistics or Mathematics. See On Becoming a Quant by Mark Joshi (Occupational File J7). Advanced C++ skills are required. A helpful website for quant roles is Wilmott - www.wilmott.com and the books to read are John C. Hull. Options, futures and other derivatives and Baxter & Rennie. Financial Calculus.

International students

Banking is a global industry, with many opportunities for international students to find work in the industry, both in the UK and globally. This will vary by firm and, more importantly, by the current state of the markets.

Investigate individual bank websites to determine where the firm’s major offices are located, especially the global headquarters: HSBC, for example, has its headquarters in London, but has extensive offices throughout Asia and the Middle East.  Barclays Capital has key offices in London, New York and throughout Asia. In the City of London, as London's financial district is known, as many as 70% of trainees at some investment banks are non-UK nationals.

HSBC runs a variety of programmes including the international management programme with rotations to a different location every 2 years.  Utilise the graduate recruiting process and staff members of the London office of whichever bank(s) you are interested in. They should be your first point of contact in determining how to best go about applying for a position in a global office of the bank. Generally, each bank’s graduate recruiting website will state explicitly if the firm is unable to assist applicants with work permits.

There are frequent changes to the rules affecting international students and recent graduates wishing to work in the UK. Until April 2012 the Tier 1 Post-Study Work category of the Points-Based System to work in the UK will be in operation. Under this scheme, international students can apply for leave to live and work in the UK for a maximum period of two years, provided they meet the eligibility criteria. In April 2012 this will be replaced with a new route in Tier 2 which will require a job offer, a minimum salary and students will need to apply within the UK. It is recommended that, for the most up-to-date information, you check the UKCISA: UK Council for International Student Affairs website which offers independent information and advice about immigration, finance and working in the UK, and also the UK Border Agency website. Please refer to our Diversity files at the Careers Service for more information, or consult the University's Student Information and Advisory Service.

Relevant events

For full details of events, check the What’s On section of our website and log in to CareerConnect.

Major events for this occupational area are:
•    Careers Boot Camp, Tuesday 4 & Wednesday 5 October, All day, Careers Service
•    How to Prepare for Psychometric Tests, Monday 10 October, 14.15, Careers Service
•    Thinking about Investment Banking or Management Consultancy, Tuesday 11 October, 14.15, Exam Schools
•    CVs for Investment Banking & Management Consultancy, Tuesday 18 October, 13.00, Exam Schools
•    The Finance Sector Fair, Thursday 20 and Friday 21 October in Oxford Town Hall, 14.30 – 18.00
•    Also running short employer panel discussions before the fair:
Thursday 14.00-14.30, Demystifying the Finance Sector
Friday 14.00-14.30, Finance for Arts Students
•    How to Tackle a Finance Case Study, Monday 14 November, 14.15, Careers Service
•     ‘cITy View’ for female IT students, open to all years interested in technology, Tuesday 8 November (venue TBC)
•    Attend the Commercial Awareness session on 10 November, 14.15, Careers Service.
•    ‘This Ability’ Interbank Disability Event organised by Scope, for first and penultimate years,
Date: TBC
•    ‘Inside & Out’ for LGBT Students, Date: TBC

Resources available

OXFORD CAREERS NETWORK (OCN)

The OCN is a database of Oxford alumni who are willing to be contacted about their career. Read their case studies for behind-the-scenes insights into an organisation or occupation, and contact volunteers for more advice and information via CareerConnect.

ONLINE INTERVIEW FEEDBACK

The careers website includes access to online interview feedback forms completed by Oxford students; please see the link below to access.

https://www.careers.ox.ac.uk/auth/interview_feedback/

The Careers Service also has an extensive resource centre at 56 Banbury Road, Oxford, where you can drop in to browse during opening hours (visit our website for details).

FILES
•    Occupational Files:
o    J4 Management Accountancy
o    J6 Retail Banking and Personal Financial Services
o    J7 Investment Banking and Corporate Financial Services
o    J8 Investment Management

•    Employer Files:
o    Banks: A-Z
o    Investment Fund Managers and Stockbrokers A-Z
•    Applications & Interviews Files:
o    Assessment Centres
o    Case Studies
o    Interviews


BOOKS
•    All You Need to Know About the City , Christopher Stoakes
•    Heard on The Street: Quantitative Questions from Wall Street Job Interviews , Timothy Crack
•    The Fast Track, Mariam Naficy, Broadway Books
•    Careers in Asset Management & Retail Brokerage, WetFeet Guide to Careers
•    Investment Banking, WetFeet Guide to Careers
•    Venture Capital, WetFeet Guide to Careers
•    WetFeet Application & Interview Guides
•    Beat the Street, WetFeet Guide to investment banking interviews
•    How to Read the Financial Pages, Michael Brett
•    British Venture Capital Association (BVCA) Directory 1999/2000
•    Careers in the City, Joanna Minett
•    The Money Machine, How the City Works, Philip Coggan
•    The Mathematics of Financial Derivatives, Paul Wilmott et al.
•    Options, futures and other derivatives, John C. Hull.
•    Financial Calculus, Baxter & Rennie
•    The Death of Gentlemanly Capitalism, Philip Augar
•    Liar’s Poker, Michael Lewis
•    An Introduction to Global Financial Markets, Stephen Valdez
•    Common Stocks and Uncommon Profits, Kenneth Fisher
•    Traders: Risks, Decisions and Management in Financial Markets , Mark Fenton-O'Creevy et al.
•    How the City of London Works: An Introduction to its Financial Markets, William Clarke
•    How the World Really Works: Investment Banking

JOURNALS
•    The Banker, monthly e-journal
•    The Economist, weekly
•    The Financial Times, daily

TO TAKE AWAY
•    E Financial Careers, Careers in Banking & Finance
•    Targetjobs, City & Finance
•    Inside Careers, Banking, Securities & Investments
•    Inside Careers, Career Choice - City & Finance

PODCASTS
The Careers Service has recorded a series of podcasts.  Subscribe in iTunes or find a full list here: http://podcasts.ox.ac.uk/#career-unit

Useful websites

In addition to the websites listed below, all companies and organisations mentioned throughout this Briefing can be found via a web search.

GENERAL VACANCIES AND OCCUPATION INFORMATION
•    www.prospects.ac.uk
•    www.targetjobs.co.uk
•    www.jobs.ac.uk
•    www.economist.com
•    http://jobs.guardian.co.uk
•    www.jobs.telegraph.co.uk
•    http://jobs.thetimes.co.uk
•    www.thejobcrowd.com

SECTOR VACANCIES
•    www.topinternships.com  Undergraduate Internship Guide
•    www.cityjobs.com  Accounting, Banking and Finance Jobs
•    www.vault.com  graduate careers information.
•    www.efinancialcareers.co.uk  useful practice tests
•    www.thegatewayonline.com  good answers to interview questions.

NEWS
•    www.ft.com  Financial Times
•    www.ubswarburg.com  up-to-date analysis on the global economy.
•    www.bloomberg.com  up-to-date financial news.
•    www.reuters.com  City-related news and information.
•    www.fool.com  advice on investing.
•    www.bis.gov.uk  Department for Business Innovation and Skills
•    www.bbc.co.uk  For business news and Robert Peston’s blog.

COUNCILS, GUIDES AND ORGANISATIONS
•    http://village.albourne.com  information about hedge funds.
•    www.benedix.co.uk  helpful descriptions of financial markets.
•    www.fssc.org.uk  Financial Services Skills Council, informative site on all financial roles.
•    www.cisi.org  useful material from the Securities & Investment Institute.
•    www.yudu.com Chartered Financial Analysts Careers Guide
•    www.liba.org.uk  London Investment Banking Association
•    www.londonstockexchange.com  London Stock Exchange
•    www.mckinsey.com  up-to-date news on banking.

In addition you should look at the individual banks’ home pages, which will have links to their recruitment brochures and online applications, and information on their recruitment activities and vacancy details.

Social media

Twitter is a quick way to develop your knowledge about the sector and find opportunities.  You can read and search it without an account.  We’ve made 20 handy lists, so that you can see at a glance information tailored to your interests.

If you’d like to join Twitter, remember to ‘follow’ us (www.twitter.com/OxfordCareers) as well as your chosen lists to keep receiving useful information to help your career.

See our Finance & Management Consultancy list at: http://twitter.com/#!/OxfordCareers/finance-mancon 

In addition you should look at the individual banks’ home pages, which will have links to their recruitment brochures and online applications, and information on their recruitment activities and vacancy details.


Page last edited: 24 October 2011

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