Unlock Finance Internship in New York

In this episode of "Jumpstart Your Career," we're joined by Eric Qu, a student from Rotman Commerce at the University of Toronto. With a hands-on experience as a Private Wealth Intern at BMO Financial Group, Eric navigated the intricacies of wealth management over a four-month span in Toronto. Progressing further, he embraced the role of a Sales & Trading Summer Analyst at Scotiabank from April to August 2023. He will be joining Bank of America Securities in their New York office for next summer within the global markets division.

Through Eric's lens, we'll explore the finance sector, diving into his enriching internship journeys and learning how to secure such valuable experiences in this competitive domain.

Navigating Early-Career Challenges: Explore First-Year Finance Internships

• Can you tell us about your early internship experiences, and why first-year students find it difficult to land a good internship in finance?

  My first real internship was with BMO Private Wealth during the summer after my first year. However, before that, I took on two part-time unpaid internships. The landscape for first-year finance students is tricky. Many students opt for unpaid internships because there aren't many opportunities available. The biggest barrier isn't a lack of qualifications but rather an information gap. Different universities offer different levels of guidance, and early networking can make all the difference.

• What would you recommend first-year students do to better position themselves, and is there pressure to decide their career path early on?

  I'd recommend deciding your finance path within the first three or four months. It's crucial for roles in the front office, for example, to be proactive from the get-go. Yes, there's a lot of pressure to determine your path early because the outcome is closely tied to the effort you put in. If you're not proactive, you could end up in less desirable roles.

• Why did you choose unpaid internships, and do you think they were essential for landing your first summer position at BMO Private Wealth?

  I chose unpaid internships because I knew early on what I wanted: finance-related experience that could help me secure better opportunities later. They were crucial in securing my BMO Private Wealth internship. In finance, there's a specific progression—first summer usually unpaid, the second could be any finance role, and the third aims for front office roles.

• What strategies helped you land a good first-year summer internship, and what other opportunities might be available for students?

  To land my first-year summer internship, I took on new experiences, found out early what I wanted to do, and strategized accordingly. For others, there are a range of opportunities including startups and entrepreneurship. If internships are hard to come by, consider starting your own company or a blog related to your field of interest.

Inside the Finance World: Reality vs Hollywood Perception

• Can you share your experiences from your internships, particularly any memorable or challenging moments?

  While my first-year internship was pretty straightforward, my summer at Scotia Bank had its moments. One story that stands out is attending an annual fixed income investor event on an empty stomach. One strong drink hit me harder than expected, but I had to maintain my professional composure. The first time I stepped onto a trading floor was also intense. It was chaotic, but that environment actually helped me get into the zone.

• What's the atmosphere like on a trading floor, and did you ever feel the urge to be one of those high-intensity individuals?

  The trading floor is not for everyone; it's loud, with traders sometimes yelling. I found the intensity invigorating and conducive to focus, although I never became someone who screamed—it would be a bad look for an intern.

• What is your take on people entering finance for the love of the field vs. those who are in it purely for financial gains?

  It's a spectrum. About 10% genuinely love the job, 70% like it but appreciate the financial upside, and 20% are in it only for the money. Your degree of interest does affect your career trajectory and earning potential.

• How does the modern finance world compare to its portrayal in movies like "The Wolf of Wall Street"?

  Movies like that are dated and not representative of today's finance world, which has seen many changes, especially post-2008 financial crisis. There's now a shift in culture and more regulations.

• What are the most desirable roles in finance today, and what qualifications do they typically require?

  Top roles include those in quant firms, requiring strong tech backgrounds. These are followed by positions in private equity and hedge funds, then investment banking, and sales and trading. Pay scales also differ significantly, with quant roles sometimes offering salaries upwards of $500,000 right out of university.

• Can you provide some insights into what private equity firms look for in candidates and which Canadian school is best for finance?

  Private equity values deal experience and your investment banking background. School networks also matter, with Ivy at Western considered the best for finance in Canada.

• Why is there a general preference for investment banking roles over sales and trading?

  Investment banking is often glorified but can involve long hours and repetitive tasks. Sales and trading offer a better work-life balance but may have fewer exit opportunities.

  I hope this condensed version provides a well-rounded view of what it's like to navigate the complex world of finance, especially as a student or young professional.

Securing a Finance Internship in New York

• You mentioned that you had multiple internship offers. What made you choose Bank of America, and what offers did you receive?

  I had three offers at the end of my recruiting process, from Bank of America, Wells Fargo, and BMO. They were all for sales and trading roles or roles that were very similar to sales and trading. I ended up choosing Bank of America for their sales and trading internship role because of the networking opportunities and learning experiences they offer.

• Can you share some insight into how you prepared for your internship recruiting and how much time you invested in the process?

  I prepared for technical, behavioral, and situational interviews. My previous internship at Scotia Bank in a similar role gave me a major advantage. As for the time investment, I'd say I spent a good 12 to 14 months of my whole university experience in a recruitment cycle, specifically focusing for six months on this recruiting process.

• Given that there are thousands of applicants, how did you make yourself stand out to snag this highly competitive internship at Bank of America?

  To stand out, I focused on three main pillars: GPA, network, and work experience. If you have these three, you're in a really good spot. I also tailored my resume carefully, emphasizing my previous internship and relevant skills like coding.

• What do you think are the key factors or criteria that applicants must meet for these New York finance internships? Is it different from applying in Canada?

  The criteria are pretty much the same globally, but the competition in New York is just on another level. My top tips for anyone applying are to have a strong GPA, build a robust network, and gather relevant work experience.

• Apart from New York, what do you think are the best cities in the world for finance internships?

  For finance internships, New York is number one, but London, Hong Kong, Chicago, and Toronto are also key players on the global stage.

• Were you part of any community like a finance club at your university? How beneficial was it?

  Yes, I was a part of my school's finance club, and it was a game-changer for me. It guided me towards what I wanted to do and how to get there. It's an invaluable resource.

• Lastly, any specific tips or recommendations for individuals aiming to land a finance internship in New York?

  Beyond focusing on GPA, network, and work experience, I'd say a solid preparation for all types of interviews is crucial. And never underestimate the power of a supportive community or network; it can make all the difference in this competitive landscape.

Eric's Insights into the Finance Industry

• How does age factor into the fast-paced environment of investment banking? Can people in their 30s or 40s keep up?

  In investment banking, by the time you're in your 30s or 40s, you're typically in a managerial role. The focus shifts to client relationships and deal-making, and the workweek tends to be shorter, ranging from 40 to 60 hours. So yes, people in that age bracket can absolutely keep up, but the nature of their work is different.

• What are your best tips for successful networking in finance? How important is networking quantity over quality?

  1. It's a balance between quantity and quality for sending out emails. Customization is great but not always necessary.

  2. Timing is key. Tuesdays to Thursdays are the best days for outreach.

  3. Strive for genuine conversations over formulaic interactions. Discuss interests outside of work to make a lasting impression.

• Were there any unexpected challenges during your interview processes with different firms like Bank of America, Morgan Stanley, and Evercore?

  My Bank of America interview was relatively smooth. However, interviews with firms like Morgan Stanley and Evercore were more challenging. At Morgan Stanley, I faced complex questions related to equity derivatives trading, including mental math and probability questions.

• Does the finance sector require a higher level of mathematical proficiency compared to consulting roles?

  Finance often requires more specialized and complex math, especially in roles like sales and trading or quantitative research, compared to consulting where the math is usually less specialized.