Peer Career Consultant Blogs

Are you confused about what "the world of finance" is? I know I was lost when I decided to take up my major. Through my experience talking to professionals in various career paths, I've developed an understanding of the finance industry and the variety of areas that can fit your unique interests. I hope this can serve as a guide as you explore the diverse internship and career opportunities in finance.

Investment Banking (IB) – I consider this industry one of the most competitive, time-consuming, and challenging areas in finance. Talking to directors in the industry, I found that extensive case study prep, quantitative expertise, and commitment are required to break into investment banking. If you are wondering what the timeline on IB is, you must start early. You need to  start preparing and applying for internships during your first couple of years at college. For investment banking, there are a ton of valuable resources and case studies to help you prepare for entering the industry. Additionally, when you start your career as an IB analyst, you need to be ready to put in some long hours. While this might seem like a huge commitment, usually compensation and bonuses make up for it.

Commercial Banking – I have personal experience here. Many may not realize that the public sector of banking is a very diverse field. In my  banking internship, I worked on loans. In this area,  you develop skills for underwriting and valuing loans, relationship management, and moving around funds to different accounts. Banking is an interesting career path because you can  gain skills with financial statements, valuation, and structuring commercial real estate and personal loans. In public banking, you can also face clients and develop your skills by building a portfolio and managing client wealth.

Financial Management – Speaking of relationship management and client-side roles, financial management is an area of finance that focuses heavily on these two things. Financial management is much like what you do as a relationship manager or officer at a bank. However, in financial management, you get to develop your portfolio from the network you build and the clients you obtain. I think of financial management as an area that combines the skills needed in both a sales and portfolio management role.  In financial management, developing expertise in asset allocation and valuation methods is a crucial part of the job.

Corporate Finance  – One of the more traditional routes, corporate finance is a career path that will provide you with the financial skills to help any firm in the future.  You will develop a holistic understanding of a firm's financials by gaining experience with capital funding, capital structuring, accounting, and investment decisions. You'll be focused on allocating a firm's funds to maximize profits and shareholder value while minimizing costs. If this is an industry that you choose to pursue, you'll find that there is a lot of overlap with accounting. If you decide to pursue a role in corporate finance after graduation, try looking into the many rotational programs companies offer for new graduates.

Private Equity (PE) – The shortest way to describe PE is that it deals in the business of firm buyouts. Private equity firms fund new or existing firms, work to develop or improve their business models, and then sell them for profit. In PE, you'll learn about raising capital for firms and Mergers & Acquisitions (M&A). Private Equity is comparable to investment banking in terms of workload and competitiveness, so I recommend you start working towards the skills you need if it interests you.  

I hope that I was able to familiarize the different areas of “the world of finance”! Informational interviews and coffee chats with professionals are always a great way to learn more about the different parts of finance that interest you. I always recommend exploring each area if you are passionate about finance as soon as possible.