With the allure of high salaries and fast-paced work, investment banking is an attractive career option for many students. However, the path from an engineering degree to investment banking may not be straightforward. By leveraging internships, networking and additional coursework in finance, engineering students can successfully make the transition into investment banking careers.
While an engineering degree alone does not prepare students for investment banking roles, engineering graduates possess many transferable skills like analytical thinking, problem solving and quantitative skills that make them strong candidates. With some additional preparation, engineering students can break into investment banking jobs at prestigious firms like Goldman Sachs, JPMorgan and Morgan Stanley.
This article will explore how engineering graduates can best position themselves to land investment banking roles through strategic decisions in college, internship experience, networking approaches and additional coursework in financial modeling and valuation techniques.
Obtain relevant internship experience in finance
The best way for engineering students to gain directly relevant experience for investment banking roles is through finance internships. Large banks like Credit Suisse and Bank of America specifically recruit engineering students for 10-12 week summer internships in their investment banking divisions. These programs are designed to train high potential candidates in financial modeling, pitch books, trading comps and other key skills. Engineering students who perform well during these internships commonly receive full-time job offers. Smaller boutique firms also offer internships that provide hands-on deal and client experience. Having direct internship experience in investment banking demonstrates interest and readiness to recruiting teams.
Take on coursework in accounting, financial modeling and corporate valuation
While engineering coursework develops strong analytical abilities, specific knowledge in finance is needed to be fully prepared for investment banking roles. Students should enroll in financial accounting and corporate finance courses to gain exposure to reading financial statements and understanding concepts like discounted cash flows (DCF), net present value (NPV) and cost of capital. Additional courses in financial modeling teach how to build DCF and comparable companies models from scratch. Through modeling courses and internship experience, students gain expertise in Excel, PowerPoint and other key tools used by bankers.
Coursework in financial statement analysis, business valuation, fixed income securities and options also build strong finance knowledge foundations. Graduates who demonstrate knowledge across accounting, corporate finance, modeling and other areas signal readiness for the demands of investment banking.
Network with investment banking professionals
Gaining exposure to investment banking through informational interviews, company presentations on campus and conferences supports career transitions for engineering students. Networking allows students to learn directly from bankers about day-to-day responsibilities, technical skills required and company culture. Building connections with professionals at target firms also helps secure referrals for internships and full-time positions. Active membership in finance clubs on campus provides opportunities to network with peers interested in banking. Joining organizations like the Investment Banking Club of America (IBCA) outside of school also expands networking circles.
Highlight transferable skills from engineering coursework
When recruiting engineering graduates, investment banks focus on transferable skills like problem solving, attention to detail, analytical abilities and teamwork. Engineering students should emphasize these strengths from course projects, lab reports and team design experiences when networking and interviewing. Comfort working with large datasets and analyzing quantitative information also appeal to banks hiring for data-intensive roles. In interviews and application materials, engineering graduates should articulate how their technical skills and mindsets equip them to thrive in the high-paced banking environment and provide value to deals and clients.
With deliberate planning in obtaining relevant internships, networking in the field, and developing knowledge in accounting and finance, engineering graduates can successfully transition into lucrative investment banking careers. By leveraging their analytical skills from engineering coursework, students can provide unique value to investment banking firms working on complex, data-driven deals and valuations.