The Struggle of Finding Banking Jobs for Students
If you’re a student looking for a banking job and are feeling beaten down by your inability to find one, you can take some solace from the fact that you’re not alone. The well-connected offspring of managing directors who’ve spent decades working in the banking industry are struggling to find jobs too.
Quentin Nason, a former Deutsche Bank equity capital markets managing director and ex-partner at a mid-market private equity fund in the UK, has a son who would like to work in finance. Nason tells us that his son made 150 job applications and achieved one job offer. The recruitment process for getting junior banking jobs has become tortuous, says Nason: it’s a “meat grinder.”
The Current Job Market
The acceptance rate for banking jobs has plummeted to below 1% in recent years as applicant numbers have swollen and banks have reduced hiring. At Goldman Sachs, for example, 315,000 people applied for 2,700 entry-level jobs in 2024. This year, 360,000 people applied for 2,600.
It’s a problem of both “numerator and denominator” says Nason. On one hand, students in the UK are targeting highly paid jobs because they now graduate with £50k ($66k) of debt, and they can use AI to send out hundreds of applications. On the other, banks are hiring fewer people as they prepare for jobs to be done by AI instead.
The Impact on Students
Nason says the process is brutal. His son leapt through hoops to get his job offer and attended an assessment day at which half of the applicants were sent home after being unsuccessful. Students with first-class degrees from good universities are finding it increasingly challenging to secure banking positions.
For all the complaints of nepotism in financial services, Nason’s son isn’t the only one facing difficulties. Other senior people from top banks have shared similar stories of their children struggling to land jobs in the industry.
Nowadays, having connections in the industry doesn’t guarantee success. All student applicants face the same automated sifting systems, tests, and digital interviews. The competition is fierce, and even highly qualified candidates are finding it tough to break into the banking sector.
Potential Solutions
What’s the solution to this challenging job market? Nason suggests more in-person events to help students network and stand out from the crowd. Other former bankers recommend focusing on smaller companies or industries of genuine interest, rather than solely pursuing roles in traditional banking.
As AI continues to reshape the financial industry, the job landscape for students is likely to become even more competitive. It’s essential for aspiring finance professionals to adapt to these changes and explore alternative career paths that align with their skills and interests.
Overall, the struggle of finding banking jobs for students reflects a broader shift in the industry towards automation and increased competition. While the road to a banking career may be challenging, perseverance, networking, and a strategic approach can help students navigate this evolving job market successfully.
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