Things I wish I knew when applying for internships in finance

Our vice-chairman, Alex Woodruff, provides valuable advice on the best ways to prepare yourself for what can be a gruelling process.

Securing an internship is arguably the best way to distinguish yourself from the vast competition for graduate jobs in finance, but this contributes to making them increasingly competitive and sought-after. Everyone has heard the standard advice; have a polished resume, do extra-curricular activities, research the company and so on. All of these things are helpful, but they are typically not enough on their own. With this in mind, here are some more specific things I wish knew when applying for internships that should hopefully save you a considerable amount of time and reduce the stress of applications.

1. Gain basic commercial awareness

Taking some time to get your bearings in the world of finance will save you from confusion, unsuccessful applications and wasting precious time. One of the first things you should consider as you begin researching is what type of finance appeals to you the most. Many candidates flutter between applications for jobs in accounting, investment banking and management consulting and, whilst it is fine to keep your options open, knowing your preferred sector will make you a much more effective applicant.

Another insight you should look for is an idea of what you are realistically able to attain. I, like many others, began by applying purely to investment banks, because this was the area that I had gathered was the best paid and most advantageous for my career path. However, after a few rejections and further research into the banking hierarchy, I was able to better gauge what level of candidate I was and adjust the firms that I applied for accordingly, after which I was successful. Even if, at the moment, you are sure that investment banking is the least you are willing to settle for, in the case of internships, something is always better than nothing.

The type of insights discussed here are more individualistic, and you are less likely to find them online. It is a good idea to seek out people who have been successful in getting internships, especially students the same university as you, to gain an awareness of what made their applications successful, as well as the level of candidates that firms accept.

2. Consider big firms

There is a perception that the biggest firms are not worth applying to because they have too many candidates chasing too few places. Taking extra time to discover more niche companies, some say, will boost your chances of success. However, this is not necessarily the case. Of course, the largest firms attract the largest volume of applicants, but they also have far more openings, meaning the ratio of successful candidates is no smaller than for any other firm.

Big firms are a particularly good opportunity for candidates who do not have a Russell Group education or finance background because their greater demand for recruits means they cannot afford to be overly exclusive. In contrast, some smaller firms with less space for new hires and interns will look to cherry-pick what their criteria dictates are ‘elite’ candidates, often casting aside non-Russell Group applicants straight away.

Recognising that aspiring hires have made specific efforts to seek them out, some small firms also demand a greater level of company and industry knowledge, often asking for tailored cover letters at the first stage of application. This is in spite of the fact that the business of these more obscure companies is often not covered by major newspapers. Whilst having a decent awareness of the business is always advised, big firms are more likely to focus on the question ‘why should we hire you?’ instead of ‘why do you want to work for us’? Applications that focus more on you, not just the firm, can be more time effective.

Moreover, big firms usually employ larger human resource and recruitment teams, making it easier for them to keep applicants up to date with the progress of their application. Smaller firms, on the other hand, have been known to take a long time to get back to candidates, which can cause frustration.

So, the opportunities that big firms offer is an aspect that I wish I had appreciated earlier. Those with uncompromising ambitions of careers in areas such as private equity or fund management may still prefer smaller firms that are more specialised. But, for those who want to maximise their chances of success and are open to trying a range of roles in finance, the big and obvious firms are, in my opinion, the best place to start.

3. Be flexible

Like most other aspiring bankers, accountants and consultants, my goal is to soon work in London. However, I completed my internship in Nottingham and have accepted a graduate job, from a different firm, that will base me in Milton Keynes. Hence, my next tip is to be flexible on location in the early stages of your career, especially with internships. In these turbulent times, few of us will achieve the exact career path that we pictured at university. This does not mean that we will not eventually achieve our goals, but it does mean that we should learn to compromise and exercise patience along the way. It can be daunting to leave the part of the country where you have the strongest network of friends, and I felt this way when heading up to spend my summer in Nottingham, where I knew nobody. Now, I look back on that time as a greatly enriching experience on both a professional and personal level.

4. Be resilient

One of the biggest reasons I have seen capable people fall short of getting an internship is that they give up. Some feel they don’t have the time. Others become disheartened by rejections. It is important to bear in mind that there are rarely shortcuts in the financial industry. To succeed, you will have to develop a thick skin at one time or another. Also remember that, the more applications and interviews you do, the better you get at them. Rejections can make for a potentially positive experience, if you take the time to learn from the mistakes you will inevitably make and reflect on any feedback you receive.

Finally, it is worth reemphasising just how valuable internships are. As well as complementing your resume, they offer precious experience and opportunity for character building. My advice is to make getting an internship a top priority in your penultimate year of university or thereafter. It may be tough, but it will almost certainly be worth it.