What is Finance?
Finance is a term that addresses matters regarding the management, creation, and study of money and investments. It involves the use of credit and debt, securities, and investment to finance current projects using future income flows. Finance is closely linked to the time value of money, interest rates, and other related topics because of this temporal aspect. – Investopedia
Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting. – CFI
Learn More about Finance:
- What Does Finance Mean? Its History, Types, and Importance Explained (Investopedia)
- What is Finance? (CFI)
Is Investment Banking a Good Fit for Me?
Common Upsides |
Possible Downsides |
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Consider Finance Early
Many careers in finance require you to demonstrate interest in the industry as early as your first and early sophomore years— the sooner the better! Even if you are not entirely sure if a career in finance is for you, it is important to explore and engage early to keep doors open. Doing your own research and exploration is a great way to start. Have an initial conversation with Bryan Shealer or Kirsten Cahoon in the Piper Center.
Internship Recruiting Timelines
Recruiting timelines can vary and depend on the size of the firm, the functional area within finance, and factors in the broader economy. Knowing what timeline is right for you is important. Connect with the Piper Center to learn more and create your personal plan. Below are some general guidelines:
Investment Banks (Bulge Bracket, M&A and smaller Advisory Firms) | Extremely early recruitment cycle – generally 12-18 months ahead of the summer internship period. This means that sophomores should be prepared to engage with employers and apply to opportunities in January, February, and/or March for an internship after their junior year. |
Other/General Finance (e.g. Corporate Finance, Wealth Management, Accounting, Analyst roles) | Recruiting is 10-12 months ahead of the summer internship period. Juniors should be ready to engage and apply in August, September, and early October. This can vary dramatically by employer. |
Many firms fill their full-time roles through their internship programs – up to 70% of full-time hires come from prior interns. To ensure that you have the best shot at a full-time offer after graduation, it is important to focus on securing an internship in your junior summer. An internship in your sophomore summer is increasingly beneficial – ideally in a business role with quantitative and project-based elements. Before you apply, be sure to have your application materials reviewed several times in the Piper Center.
Traditionally Underrepresented Groups in Finance
Many organizations within the industry are focused on improving diversity and representation in the field. Employers are developing programs to encourage women, historically excluded minorities, LGBTQ+ individuals, veterans, and individuals with disabilities to consider careers in finance and work at their firms. These programs are usually for first-years (and sometimes early sophomores) and may be a traditional internship, externship, seminar/workshop, special info sessions, networking meet-ups, or leadership conferences. These programs often come with priority consideration for other internship programs. If these identities apply to you, watch for these programs and opportunities on employer websites and in postings.
Pre-Professional Finance Fast-Track Opportunity
Roles in Finance
The CFI Interactive Career Map is a great tool to explore the greater finance ecosystem. Where is your fit?
Important Factors For Success
Leverage Piper Center Staff |
It’s hard to secure a role in finance alone – speak often (and early) with Piper Center coaches for guidance and support. |
A competitive GPA |
Generally 3.5 or higher for mid-sized and larger financial institutions. Smaller and regional organizations may be more flexible with GPA, but a minimum of 3.0 is usually needed. |
A solid resume |
It must be curated and concise with bullets that demonstrate impact and results. There can be no errors or formatting inconsistencies.
Resumes should include experiences that demonstrate your interest in a career in finance. These can include:
Work with Kirsten Cahoon or Bryan Shealer in the Piper Center to shape and tailor your resume before sending. |
The ability to build and maintain a strong network of industry professionals |
A network is critical to success. You will need people to advocate for you throughout the application and interview process. You may have family, friends, or people in your community who work in finance – or you can create your own connections. All students can access the Ole alumni network. The Piper Center can help you prepare for those connections. You must first put in the work to research, reflect and articulate your career goals before building a network. Ways to build a network include:
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Meaningful leadership and co-curricular engagement |
Candidates can distinguish themselves through co-curricular involvement. Simple membership in a club or organization is a start, but what sets candidates apart is a track record of leadership – the ability to demonstrate clear results or impact within your involvements is the gold standard. The quality or depth of leadership and co-curricular involvement is far more important than quantity. At least some involvement in roles on campus that relate to finance or business will be helpful – examples include:
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An understanding of the finance landscape and employers |
An interest in finance is the first step. It must be followed up with research and reflection to articulate why and where you fit in the spectrum of careers in finance. How do your interests, values, strengths, skills and even personality connect to an area in finance?
Who are the international, national, regional, and even local players in the world of finance? Do you understand the different types of financial institutions from the very large to the very small? Why are you interested in certain organizations? Explore websites, especially the sections that deal with undergraduate (college or university) recruitment. Also, search for current news and updates about employers outside of their own websites. Participate in virtual info sessions, activities, leadership programs, or panel events sponsored by the employer. These opportunities are usually posted in Handshake as events. |
A clear understanding of the recruiting timelines |
Remember – early, early, early! |
Build relevant skills and Knowledge of financial terminology |
Learn how to “speak Finance” – build the ability to engage in conversations with finance professionals.
Participate in the Finance Fast Track (early course progression) – Incoming and first-year students are eligible to apply. Leverage Your Resources!
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Follow relevant publications and news about the industry to build industry awareness and vocabulary |
A daily and/or weekly practice of absorbing current events in the world of business and finance. Barron’s, The Wall Street Journal, The Financial Times, Yahoo Finance, Bloomberg News, and The Economist are a few examples to choose from. |
Get to know the Technology |
PC-based computers are the industry standard for careers in finance. PC shortcuts in Excel are a key skill.
Pay attention to the current emerging trends around technology in the industry |
Frequently Asked Questions
Whoa! This feels like a lot of pressure so early in my time as a student!
Yes, indeed. Many (rightly) argue against such early timelines within the finance industry but, for now, these very early timelines are the reality. It’s normal to not be 100% sure about a career in finance but you should at least take early steps to prepare in order to maintain your competitiveness for the industry. You can always change your mind but it’s hard to catch up if you wait too long to start.
What kind of students do financial organizations seek?
There is no one archetype here and, in fact, your liberal arts background can give you a stronger, well-rounded foundation to help you stand out. However, there are key strengths, skills, and even personality traits that often correlate with different roles within finance. In general, financial organizations seek candidates who are well-rounded, highly motivated, possess strong communication skills, and are able to organize themselves. While internships are an important way to build experience and success, employers will look at experiences that demonstrate leadership in both curricular and co-curricular venues. And frankly, strong GPAs and high-achievement academically are a foundational requirement for many larger financial organizations.
There is no one major, per se, that determines whether you can pursue a career in finance. An English major can succeed in this area IF they build necessary experiences and take important business and quantitative courses to round out their education. Most St. Olaf students who pursue careers in finance choose to major in Economics, Quantitative Economics, or Math and add a finance emphasis or the business and management studies concentration. The Finance Fast Track Opportunity is a course progression option that starts in your first-year at St. Olaf to ensure early access to the most important courses to help you prepare. Participation in the Finance Fast Track does require at least one major in economics with the finance emphasis.
Is my junior or senior year too late to explore finance?
If you’re just starting to explore finance as a senior or junior, it’s unlikely that you’ll be competitive for roles at larger financial organizations immediately after graduation. You may get lucky, especially if you have deep connections within the industry and you’ve had significant exposure to quantitative courses and financial markets, but it’s much harder to do.
This does not mean you can’t enter the world of finance, but you’ll most likely need to begin your professional career in a related industry or at smaller financial organizations and then network to move into your desired role or employer. During that time, you can network, take relevant courses or certificate programs, or perhaps pursue a master’s degree in finance.
Occasionally financial organizations of all sizes will do “just-in-time” hiring to fill full-time analyst classes not completely filled by summer interns. Because these opportunities typically have short turnaround times, pay attention to communication from the Piper Center, Handshake, LinkedIn, and other relevant platforms to make sure you don’t miss out on these time-sensitive opportunities. Have your resume ready so you can apply right away.
Will studying abroad affect my chances of getting internships?
Studying abroad is a great way to gain global perspectives on financial markets, so doing so shouldn’t limit you from applying for internships or getting selected for interviews. It can be helpful to choose programs that provide you with the opportunity to take business and finance courses while you are studying away from campus.
Since the pandemic, financial organizations are much more flexible and willing to interview candidates entirely through virtual platforms. However, depending on the employer the inability to engage with in-person interviewing can be a disadvantage even if there are virtual options. And for some employers, students may be expected to interview in person, especially for final interviews (often referred to as super days). In these cases, you may have the ability to interview in your host country or even fly for the on-site interviews.
What should I be doing over first-year or sophomore summer? What if I can’t get a sophomore internship?
Firstly, it’s very possible that you will be applying for sophomore summer internships AND junior summer internships at the same time. Yes, it can feel a little crazy! Remember that timelines for junior internships are far more rigid, so it’s important to prioritize those applications or at least be organized to ensure you don’t miss any deadlines.
Relevant summer experience is critical to showing an interest in and commitment to a career in finance. However, internships can often be hard for sophomores to obtain, especially when they’re competing against juniors with more knowledge and skills. Any opportunities that provide you with the chance to cultivate relevant knowledge and skills can be valuable. For example, exposure to financial statements and spreadsheets can be helpful if you’re interested in investment banking. A fast-paced environment with client-facing responsibilities can be useful if you’re interested in sales and trading. The emphasis should be on the nature of the work rather than the environment or industry in which it’s being done.
I’m an international student, is finance a good industry to pursue?
This is a difficult answer but the answer is usually no. The U.S. immigration system significantly limits the options of employers to hire international student candidates in the long-term, which often results in policies that exclude candidates who do not have unlimited work authorization already in hand. Some employers are willing to consider candidates who rely on CPT, OPT, or who need work visa sponsorship – but many, in fact a majority, have policies in place that limit eligibility for internship and job opportunities to U.S. citizens and permanent residents only – and that can fluctuate from year to year.
It’s not impossible. International students who meaningfully engage in the steps outlined above can find success. International Oles have found successful careers in finance in the past – but the journey is likely to be arduous and frustrating. You will have to work harder and longer – and deal with a lot of rejection – before finding success. Additionally, international students must observe, navigate and adapt to a very unique industry culture.
Students may want to investigate whether the pathway to careers in finance might be easier in your home (or third) country.
Resources
About the Industry Area
Asset/Wealth Management
- What Is Asset Management? (Wall Street Oasis)
- What is Wealth Management? (Forbes)
- Asset Management vs. Wealth Management (Smart Asset)
Commercial Banking
- What Is Commercial Banking? (Investopedia)
- Commercial Banking vs. Investment Banking (Wall Street Mojo)
Corporate Development
- What Is Corporate Development? (Investopedia)
Investment Banking
- What Is Investment Banking? (Corporate Finance Institute)
- What do Investment Bankers Do? (Corporate Finance Institute)
- Buy Side vs. Sell Side (Wall Street Mojo)
- Wall Street Wannabe (Industry guide created by Carlson Alum Dino Bilankov)
- 2018 Investment Banking Industry Report (Wall Street Oasis)
Finance Careers – a map of your options
Financial Career Options for Professionals (Investopedia)
Finance Career Cluster (O*NET)
Breaking Down “Corporate Finance”
Sample Student Involvement Opportunities
- Pause Kitchen Finance Officer
- SGA Finance Officer
- Student employment: Business Office
- Student employment: Teaching Assistant for Financial or Managerial Accounting Classes
- Treasurer of student government branches, clubs/organizations
- Finance Club
- Investment Club
- Women in Business
- Girls Who Invest
- Pillars of Wall Street
- LinkedIn Learning’s Excel Tutorials
Job Postings
- St. Olaf College’s Handshake database
- Finance Diversity Recruitment Programs
- Check company websites directly! Many postings require you to act right away.
Technical Interview Prep Resources
- Wall Street Prep Financial Modeling and Valuation Certificate (Ole Career Launcher Program)
- Key topics: What’s investment banking (capital raising, advising); valuation approaches (DCF, trading comps, precedent transactions, LBO); accounting/financial statements and how they are related (income statement, balance sheet, cash flow statement); current market knowledge
- Common Finance Technical Interview Questions
- Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions
- Banker Blueprint