While investment banking is what investment banks are most famous for, it's just the tip of the iceberg. Big investment banks are massive operations, complete with a whole world of other departments, not to mention support teams that keep the bank ticking.
We've already covered investment banking internships. This time we'll cover some lesser-known roles in the front and middle office of an investment bank.
The "front office" folks at a bank are the ones who talk to clients and help the bank earn money. While people usually think of investment banking as the main job here, there are also other important roles.
In addition, big banks also have their own private equity and hedge funds, though these are less likely to have internships.
What it means:
Here's an example:
Let's imagine Elon Musk wanted to buy $2 billion worth of Apple stock. He can't just log into an online account and do that – if he did, the price would shoot up because everyone would see what he's up to.
So, he'd need someone who can help him buy these stocks – without making a big scene. That's where Sales & Trading come in.
The sales team would talk to Elon Musk and understand exactly what he wants to do. Then they'd make sure the buy order is handled just right.
The traders at the bank then swing into action. They have a lot of experience and the tools to buy large amounts of stock without causing the price to jump too much. They might spread the purchase out over time or use special methods to keep things quiet.
What you'll do:
Sales & trading summer analysts ... have a vastly different experience than investment banking interns because they don’t have the licenses to trade or sell financial products.
This limits the amount of “real work” a summer analyst can contribute. Instead of actually trading or selling financial products, a summer analyst’s main responsibilities are to:
- Create market summaries
- Develop trade pitches
- Develop an understanding of their desk’s product
- Provide data analysis
- Shadow desk members
- Build relationships.
Look for:
For more information: Check out the resources at SalesandTrading.org.
What it means: Equity research is the department of an investment bank that studies companies, their industries, and the overall economy. Their goal is to figure out if a company's stock (its equity) is:
Equity researchers look at financial reports, talk to company executives, and keep an eye on trends to write reports and make recommendations. This helps investors make smart decisions on where to put their money.
What you'll do:
Interns can't write reports as you need a license, and they also don't have the capacity to write in a presentable way to clients either. So most just end up helping out with:
- Data gathering
- Market research
- Data entry.
However, my advice would be not let it weigh you down because the real value you will get is learning how the industry operates and learning through osmosis being immersed in the environment. You should use that time to pick peoples brains on how everything works during downtime, lunch, etc -
How do they speak to clients? How do you analyze data points in the market? What do clients look for in the work we do? How do we add value to clients? What are some challenges in our industry? Where do you see our industry going?
Look for: "Equity Research Summer Analyst" roles
For more information: Check out podcast[LINK].
What it means: In wealth management, you help individuals and families plan how to grow their money, save for the future (like retirement), and make smart financial decisions. It's about offering advice and services to help people manage their money better and reach their financial goals.
What you'll do:
The main aspects of my internship involved making cold calls as well as prospecting and qualifying leads. Making an average of 150 calls per day, I was able to develop over 100 qualified leads for the firm over the course of my internship.
Look for: Wealth Management Summer Analyst roles. "Private banking" and "Private Wealth Management" are other common terms.
For more info: What in the world is a wealth manager? A guide for students
What it means: Asset management is all about growing a pool of money by investing it in things like stocks, bonds, and real estate. You work with clients, who can be individuals or big organizations, to help them make their money grow over time. It’s less about individual financial planning and more about choosing the right investments to get the best returns.
What you'll do:
Most of the day-to-day deliverables consisted of working with bankers and investors in preparation for upcoming client meetings.
We interns put together a book with the client’s updated assets, investment returns analysis and other relevant portfolio information. We had to stay informed about key market events that could come up in client meetings, and we would often discuss how those events could affect the client’s investments at the bank or the business they worked in.
Look for: Asset Management and Investment Management summer analyst roles.
To recap, front office roles include investment bankers, sales and trading professionals, and wealth managers who work on the front lines of the bank.
Their work is supported by middle office roles, who are responsible for managing risk, ensuring compliance with laws and regulations, and providing financial analysis and technology support.
Essentially, the middle office makes sure the bank can safely and effectively make money and serve its clients. Here are some common internships in the middle office of investment banks.
What it means: Risk managers are like the lookout on a ship, helping banks avoid financial storms and icebergs. You're part of a team that makes sure the bank can make profits without taking on more risk than it can handle. For more information
What you'll do:
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– Investment Management Risk Coverage associate @ Morgan Stanley
Look for: "Risk (Management) Summer Analyst" internships. Risk teams support many different parts of the bank, so you might see some roles that support Asset Management and some that support Investment Banking.
What it means: Operations in investment banks is the backbone that keeps everything running smoothly. From processing trades to onboarding clients, you help the bank serve its customers efficiently and keep the financial gears turning without a hitch.
What you'll do:
Here's a glimpse of an operations intern's life in Sales Trading.
- A crash course on financial markets ...
Work shadowing staff to get a feel of how a trade flows (from sales to trading to the back office). ...
Handed a project aimed at streamlining trading and making more money for the bank ...
Handed a lot of the work for handling trades as they pass through my desk. I am now doing the job of a full time desk assistant.
Most operations people support the banks' trades, though there are operations teams supporting other departments too, such as in Asset Management.
Look for:
You can find plenty of internships on Prosple. We have a vast selection of internships curated for students like you. Just filter 'til you find the right fit!