What is the Accelerate Scholarship exactly?

It’s a scholarship programme offered each year by Deutsche Bank to candidates from back African, Caribbean, or mixed black heritage backgrounds.

Sounds interesting, what does it involve?

Successful applicants get:

-  £3,000 financial support package each year for three years.

-  A place on Deutsche Bank’s Spring into Banking programme.

-  An optional summer internship with Deutsche Bank at the end of their penultimate year of studies.

-  An ambassadorial role on their university campus.

-  Exclusive invitations to conferences, seminars and workshops.

-   A dedicated sponsor at Deutsche Bank and access to development opportunities.

How many scholarships are awarded each year?

It’s flexible, but in both 2011 and 2012, three Accelerate scholarships have been available each year for candidates of black African, Caribbean or mixed black heritage.

Do you get a job at the end of it?

The scheme is in its infancy – 2011 was the pilot year and all three scholars went on to secure a Spring Week at Deutsche Bank as a result of them winning the scholarship prize. Of the three, one scholar has secured a place on this year’s Summer Analyst Internship.

I’m still interested, how do I apply?

If you want to get onto Deutsche Bank’s Accelerate company, you have to be a Rare candidate first.

Now I’m confused, what’s a Rare candidate?

Rare is the graduate diversity company that runs the Accelerate programme for Deutsche Bank. We help bright individuals from minority backgrounds get into professional careers. The vast majority of our candidates on our database (92%) have as a minimum, AAB at A Level.

So, what does it take to become a Rare candidate?

The first step is to complete an online application form (www.rarerecruitment.co.uk/apply) which gives students an opportunity to tell us a about themselves, their background and their achievements – both academic and extracurricular.

And, once I’ve become a Rare candidate, what does it take to get onto the Deutsche Bank Accelerate scholarship?

In order to be eligible for the Accelerate Scholarship, candidates must be black (by that we mean of black Caribbean, black African or mixed heritage) and be in either the first year of a three-year undergraduate degree or the second year of a four-year long undergraduate course at one of ten universities (click here to see which: http://www.rarerecruitment.co.uk/rare/DB/accelerate.html).

In term of academics, a consistent and high level of attainment is expected. Just to reiterate: only applicants who will be either in their first year of a three-year course or in the second year of a four-year course are eligible for the Accelerate Scholarship.

Why is Deutsche Bank doing this?

Black students are under-represented on top graduate programmes.

Rare and Deutsche Bank developed this programme to encourage greater numbers of top-performing black students to consider not only a career in investment banking, but specifically one with them.

Accelerate scholars act as ambassadors and positive role models to others on-campus. This can be a great source of encouragement to many black students, who may “self-select” out and not apply for a role, considering the industry to be out of their reach or “not for them”. Having a ‘real’ example of success to which candidates can directly relate is a powerful testimony.

How many people typically apply?

Typically, around 50 students apply each year for the Accelerate scholarships but we always want more.

What’s the application process like?

There is an application form with questions where we try to gauge your achievements, enthusiasm and to a much lesser extent your knowledge of the financial industry and Deutsche Bank. One question gives applicants the chance to express their reasoned opinions about a current financial and/or economic occurrence.  You have to complete an online numerical reasoning test which is testing your numerical skills. You will be asked to re-take the test at first round interview should you be successful. 

When do applications for 2013 open?

In order to apply for the Accelerate Scholarship, applicants must first be a Rare candidate. Applications to become part of Rare are open all year round and can be completed by completing our online application form (www.rarerecruitment.co.uk/apply).

The 2012 Accelerate Scholarship process closed in February and 3 new scholars have been invited to take up their ambassadorial roles.

Plans for the 2013 Accelerate Scholarship Programme have not been finalised but applications are likely to open in autumn, closing early in the New Year. Testing, interviews and other assessments will take place over January and February.

More information about Accelerate: DB Rare Scholarship can be found here.

This is Katherine’s advice (summarised), and what we’ve gleaned from her account of getting into Goldman:

1.   Be persistent, start young

Initially, Katherine thought she wanted to go into law. When she realised she didn’t, she decided to investigate her interest in banking. While she was at sixth form college, a teacher recommended she go for an insight day at Goldman. That was enough to ignite her enthusiasm:  “everything else was simply a step [to getting there],” she says.

2.  If you have a pre-university gap year, spend it in a big brand name – even you apply for an admin role

Katherine’s gap year was in the Bank of England during the financial crisis. She applied for a role as a secretary but ended up taking on far more responsibility.

“[My placement] was in 2008 when the financial crisis happened… Because of that I took on a lot more responsibility and by the end of the year I was doing data analysis which was really interesting.”

3.   Don’t be put off by rejection

When Katherine applied for spring weeks (first year internships at banks), she was rejected. This didn’t deter her.

4. Do some volunteering

“I volunteered at Christians Against Poverty and they’re a national debt counselling charity, so it’s a different side of finance. In first year I did that on a weekly basis and I also spent a month working in their head office in Bradford.”

5.   Apply for a lot of internships

Katherine applied for 15. She only heard back from one: Goldman Sachs.

6.   Don’t expect a numeracy test if you apply to Goldman. Do expect a big emphasis on fit

The graduate application process had three stages: an online application, two interviews, but no numeracy test.

The first interview was, “more of a chat I found, [with] them trying to see if I’d fit in with their culture.”

7.  Don’t expect bizarre questions

Katherine said there weren’t any trick questions: it was more about testing how she arrived at an answer to a standard question.

8.  Do expect a combination of ad hoc projects and a long term project during the internship

“My long term project was ‘What are the opportunities for consumer staples in Africa?’” said Katherine. “So consumer stocks are items like shampoo and Africa is potentially the next big demographic of people who will be able to buy shampoo, packaged food, and beer, so I was looking at when is Africa going to be big and rich enough to afford these products?”

9.  Do expect speed-dating style networking dinners

Goldman Sachs’ intern networking events apparently include a dinner set up like speed dating event, with a different course at each table.

10.  Do expect to be actively assessed against other interns

There was an intern debate halfway through the internship and Katherine was also asked to make a stock pitch presentation to the research directors at the end of the summer.

11. Do expect to work very hard. Try to be enthusiastic and pleasant

Katherine arrived daily at 6.45am and finished around 7.30pm.

She attributes her success to hard work, passion about her Africa project, and to being a good team member.

12. Don’t expect to receive an offer immediately

Katherine had to wait until two weeks after the internship until her offer from Goldman Sachs came through.

We’ve started the process by asking Sarah a few questions below. Please post your questions in the comments box at the bottom of this page. Sarah will be answering three a day between the 14th and 16th of May inclusive. Only answered questions will be published!

1. In recent years, we understand that Barclays has recruited significant numbers of graduate trainees into wealth and investment management. Why do you have such a large graduate programme compared to your competitors?

Barclays has invested and continues to invest heavily in its wealth management division in recent years, allocating £350m as part of Project Gamma.  We recognise that if we are to achieve our ambition of becoming one of the premier global wealth and investment managers, that our people will be a critical element to gaining competitive advantage.  By recruiting graduates and training them to become private bankers, we are not only growing our own talent but supporting our ambitious business growth plans.

2. Why should someone want to become a trainee at the wealth and investment management division at Barclays?

Wealth and investment management is an industry which is growing and evolving rapidly.  Not only is the face of wealth changing; in terms of demographics, geography and industry, but it is a challenging environment to work in.  Private wealth management is about relationships.  We need graduates who are not only interested in finance and technically capable, but those who are hugely capable with the relationship aspects of the role.   To become the trusted advisor of a wealthy individual is not always easy.  We provide all graduates with the skills to be successful, including sponsorship through the prestigious CFA qualification and international, product and wider wealth rotations, but we place equal importance on relationships, communication and sales/entrepreneurial skills

3. What kind of career path can you offer? What would one of your trainees be doing on the programme compared to what they do when they come off it?

All of our graduates undergo a six week initial training programme in London to orientate them into the wealth and investment management industry and Barclays.  They then spend their first six months assigned to a private banker, understanding the fundamentals of wealth management.  Subsequently we tailor three rotations across our business, one in product, one international and one in our wider businesses to ensure that our graduates are able to show a broad understanding and knowledge of our business.  Alongside this we sponsor graduates through the CFA (Chartered Financial Analyst) qualification.  When graduates leave our programme after two and a half years, they become a Junior Private Banker and typically will work alongside an experienced private banker in a master/apprentice model.

4. What’s the most important characteristic you look for in graduate hires?

We look for an interest in finance and specifically wealth management, numerical and analytical skills but also – and of equal importance – communication, relationship management and sales/entrepreneurial skills to enable our graduates, ultimately, run their own book of clients.

5. What’s your favourite interview question?

I will often ask students to explain their thesis, dissertation or a final year project.  It can be an insightful way of assessing whether an individual is able to explain complexity and technical detail in a way that anyone can understand.  This is a vital skill in any sector, not least private wealth management.

6. Which particular skills will you be looking for in graduate hires during 2012?

In addition to the skills I have already mentioned, we are looking increasingly for graduates who understand the business development and sales side of private banking.  As the profile of wealth management as a career option increases, we are getting more and more students seeing the appeal of running their own book and working to a target.  If you understand that relationship skills and the ability to position yourself as an expert are the fundamentals of your success, I am not sure what career can be more appealing.

Your questions to Sarah, and Sarah’s responses:

How do graduates with non-traditional qualifications gain access to the graduate programmes? The application process itself asks for undergraduate and post graduate degrees and results and does not account for students with professional qualifications who go on to take pos graduate courses. Are they at a disadvantage here?

SARAH: Graduate programmes are often only one way of entering an organisation. There are often numerous other entry points which may be more appropriate to your background and skills including apprenticeships, direct entry roles and within wealth and investment management at Barclays we have a career switcher programme called Embark for those with a proven record in other industries, for more information please visit www.barclayswealth.com/careers.

For working in London in particular, how important is it to have a foreign language skill?

SARAH: In global businesses where we are often dealing with global clients language skills are becoming increasingly important, in our International Private Bank we have a need for graduates who speak languages, as, put simply: our clients expect it. However, this can often depend on the role and from a wealth management perspective, Barclays has a strong position in the UK market where we do not require graduates to have language skills.

Is it possible to start in an entry level role in Barclays Wealth and then move into the graduate scheme after internally or would you have to complete the whole assessment as usual? Also how easy is it to move into other areas of Barclays internally after (e.g. Barcap) if an individual wanted a career change?

SARAH: All applicants to our graduate programme undergo the same assessment regardless of background. It is also important to acknowledge that the skills we look for in a private banker are not necessarily  the same as those we would look for in an investment or retail banker. As a result our application assessments for these programmes are different as are the graduate programmes, training and qualifications. Time spent in advance of applying to a graduate programme, researching the job role and really trying to understand whether it is a role that will play to your strengths is invaluable.

A lot of applicants for these roles will come from good universities and have obtained 2.1s and good grades in secondary education, along with some experience and extra-curricular activities, often showing strengths and leadership skills. What can candidates do to really stand out from the crowd to show they really are motivated to work at the company and in that role when put against these applicants, who otherwise have equally good applications?

SARAH: The application stage of the process is usually the most challenging for some and it is a skill to articulate your candidacy on paper. My advice on completing a strong application is to spend more time researching before you apply than on any other stage of the process- this will stand you in good stead for the later stages of the process also. Your research should focus on two areas; firstly yourself and secondly the role you are applying for.  We are looking for candidates who are self aware, who know their own strengths, weaknesses and can articulate why this role is suitable for them – in essence what is your unique selling point? Secondly show focus on the role and Barclays; why us? The reasons will be different for everyone but the key is in the detail. We can decipher the level of research you have done into the role from your answers and that in itself can provide an indication for your motivation to work for us.

I have heard that Barclays tend to recruit from within their summer analyst classes, so what programm would you recommend to someone graduating in Summer 2012? Would it be more beneficial to apply for a Summer 2013 summer analyst role or a 2013 full-time graduate role?

SARAH: The summer programme at the wealth and investment management division of Barclays is only for students in their penultimate year of study. Whilst we recruit a proportion of our graduate intake from the internship more than half of our graduate roles go to direct applicants.  My advice to you therefore would be to apply for the Fulltime Graduate programme in 2013 which we will open applications for on 1 September 2012. Good luck with your application!

How much technical detail is expected in the online application form competency questions?

SARAH: The questions that we ask focus in on the skills required to be a private banker and these are both technical and competency based.

The competencies we seek are relationship building, communication and teamworking skills-transferable  skills that you can demonstrate from both academic and non academic involvement. Similarly, those that are most successful on our graduate programme tend to be those most focused on a career in Private Banking. The research you have conducted into what the role entails and evidence that an applicant understands the difference of that role from say, investment banking, demonstrates your commitment to this particular career path at Barclays. This combined with demonstrable knowledge of the CFA (Chartered Financial Analyst qualification) that all of our graduates undertake and interest in the financial markets show us that you are someone who could excel on our graduate programme.

Would you accept applications to the grad scheme from people that have completed a graduate scheme elsewhere first? I currently work in audit and I am studying for the ACA but I would like a career change into Private Banking.

SARAH: Our graduate programme is designed to train individuals into becoming the next generation of Private Bankers and diversity of backgrounds amongst our employees helps us to maintain a strong proposition to our clients. In short, we would accept an application from you but, as with all candidates you would need to articulate a clear commitment to this career path. I would also advise you to look at the CFA, all of our graduates must undertake this qualification and if you have already completed the ACA this will be something that you may want to consider.

Whilst Wealth Management graduate schemes claim to take student from all disciplines, how important is experience in the financial sector?

SARAH: Our clients are all individuals with diverse backgrounds and so our work force needs to echo that.  We do not therefore ask for either experience or academic background in finance. Our 2012 intake comprises of students who have studied biology, history, psychology and the majority had no experience of working in finance prior to joining Barclays.

I would like to work in the UK, but don’t have a visa. Would this prevent me applying to be a trainee?

SARAH: Not at all. We select candidates on merit and will support your application to gain the relevant working visa should we make you an offer of employment. We would ask that you clearly state your visa requirements on your initial application form.

Today’s release from graduate research company High Fliers, reveals that a lot more students want to be actuaries this year than last year. Human resources is popular too (possibly because of all the redundancies?). Investment banking is a little bit more popular, but not much. The full results are below.

If you want to become an actuary, we have a handy interview with the head of actuarial consulting at Hymans Robertson in Edinburgh here. 

Thing one is the Guardian’s university league table. This offers a ranking by university and by universities with the best career prospects.

Thing two is a new report from research company High Fliers (known also for its reports on graduate recruitment trends), which has ranked universities according to expected starting salaries and students with a job offer.

According to the Guardian, the UK’s top ten universities, in descending order are: Cambridge, Oxford, the LSE, St. Andrews, Warwick, UCL, Durham, Lancaster, Bath and Exeter.

Also according to the Guardian, the UK universities with the best career prospects (defined as  the % of graduates who are in graduate level jobs or studying further within six months of graduation) are:

(Source: Guardian)

Meanwhile, High Fliers has ranked the percentage of this year’s graduates who’ve received job offers (as opposed to those who’ve received job offers and are studying). This suggests LSE, Oxford and Cambridge students are most employable. Notably, students with job offers are in a very small minority this year.

 (Source: High Fliers) 

Finally, High Fliers has ranked UK universities according to how much finalists expect to earn in their first job. LSE and Oxford graduates are most optimistic about their initial earning prospects. Students at Cardiff expect to earn £10k less from their first job than students at the LSE.

 (Source: High Fliers) 

Nadia Capy-Osgood is a seasoned graduate recruiter who’s worked at various investment banks and is now a project manager for Graduate Solutions, an independent firm which operates graduate recruitment programmes for different firms in the City.

If you have a graduate career issue, send it to us at editor@efinancialcareers.com, with ‘Graduate careers coach’ in the subject line. We’ll forward two of your questions a month to Nadia, who will respond with advice on that plus two follow-up questions. The thread will be posted on the site and your identity will remain anonymous throughout.

Here are the latest student questions, and Nadia’s responses:

I’ve received a Summer Internship offer at a top Bulge Bracket Investment Bank. Given current tough market conditions, do you know what the conversion ratio will likely to be from summer internship to full time offer this year?

NADIA SAYS: 

CONGRATULATIONS! Banks hire interns for one reason alone – to feed their full-time pipeline the following year. So they want this to work as much as you do! The conversion rate in internships is usually around 70% and the hiring process for an intern is almost identical to the hiring process for a full time graduate.  Gone are the days when interns are allowed to be “green” or “raw talent” for firms to mould to fit the business’ needs.

Getting a FT offer from an internship is better too as you are unlikely to fail your probation period as you have already proved yourself over the summer. The conversion ratio of summer offers does not really change much year on year and is not affected by the economic climate – unless unforeseen circumstances happen – such as a desk closing or a team walking! If you don’t get an offer it will be because you don’t perform or because you don’t “fit”.  In my many years of running summer programmes at various banks there are always the naive interns who get over excited at a networking event, or over step the mark in a client meeting and ruin their chances of converting their internship and probably spend the rest of their lives regretting it.

Make sure you keep you head down, delight your managers (even if they are cocky analysts only hired last year), be a fabulous collaborator, help your peers shine and make sure you are not your intake’s Frankie Cocozza!!!

Thank you Nadia. Can you also tell me who ultimately decide when it comes to choose interns for a full time offer? Is it the MD, or the analyst, or other members of the team? Who has the most influence? 

NADIA SAYS:

This is an interesting question.  The MD gives the final sign-off and yes - he has the power to make or break an offer.

However the offer process for summer interns is more detailed than you may think. This is why interns usually make great hires as poor hiring decisions rarely happen – on both sides – the graduate and the hiring team are usually very happy with the match!  You are observed throughout your summer programme and your team skills, communication skills, interpersonal skills, technical ability, drive, attitude – how you interact with your peers, how hard you work – are all taken into consideration.

During the internship, you will most likely rotate through different areas. This will allow the bank to see where you flourish and where you fit. Then, at the end of the summer programme and after all the final-round summer interviews have taken place, all the data is collated on each intern. The desk heads then meet to discuss every candidate. A huge grid is usually drawn up on flip chart and each candidate’s grades and key information are added. A fiery debate happens – no one agrees! – and then offers are made.

A desk head usually “commits” to take a graduate at that point for her/his desk. However, sometimes specific desk hires are not made. This is particularly the case if there are uncertainties on who will hire in 12 months’ time.  In this situation, you may be given a generalist offer and rotate again for the first 6 months when you are a FT graduate hire.

Thank you! Lastly, are full time hiring decisions dependent upon forecasted business needs of the specific team which the intern has worked in? 

NADIA SAYS:

Right at the start of the hiring season, desks have to request an intern and they need to put up a business case why they need one.

They also need to prove that they can honour a place for a FT graduate in 12 months time.  It is not easy for a desk to be allocated an intern as they are expensive to hire and need to be looked after (i.e. Given interesting work and not just grunt work that no one else wants to do).

Every business wants an intern because they don’t pay for them out of their own cost centres – the costs for hiring graduates and interns come from HR.  So HR ultimately has the power to decide where they go and where they will be safe.  The hiring desks need to be performing well and consist of strong teams who will respect and therefore convert interns into hires.  It’s all about investing in you – developing tomorrow’s managers. Generalist programmes usually take care of uncertainties with the economic climate – that is why many banks favour rotation programmes.

So now what? Now that banks have been dumping equity researchers http://news.efinancialcareers.com/73816/lunchtime-links-rbs-is-declining-to-comment-on-the-new-rumour-that-its-closing-its-entire-equities-unit/ and M&A isn’t happening, can you really use a Big Four accounting job as a conduit into a front office financial services position?

That depends upon whom you ask.

Marcus Butler, principal at recruitment firm The Cornell Partnership, says it’s hard: “It’s become an incredibly difficult move for candidates to make,” says Butler, “There are so few jobs out there and so many experienced people willing to take entry-level roles in equity research or M&A that banks are unwilling to train ACAs up.

“ACAs are quite expensive hires, even though they have no experience,” adds Butler.

Conversely, James Heath of search firm Greenwich Partners, says ACAs do still have a chance of moving into the front office of investment banks and that private equity funds and corporate finance boutiques have actually increased their appetite for ACAs recently.

However, even Heath concedes that the days of widespread ACA transplantation into front office investment banking roles are over. Banks are very fussy about the ACAs they hire today, he says, claiming:  “There are quite a few jobs at the moment, but banks are being very specific about what they’re looking for. Increasingly, they will specify very precise amounts of experience in particular sectors like oil and gas.”

What it takes for an ACA to make the break into the front office

If you are thinking of taking, are currently taking, or have recently taken, an ACA, what makes it more likely that you’ll be able to make it into the front office?

Butler specifies several criteria, as follows:

1.  You need to move within two years of qualifying as an ACA. “Beyond that, you will become too specialised and far too expensive for an organisation to hire you,” says Butler.

2.   Don’t even try getting into trading. Most ACAs who move into front office investment banking roles go into corporate finance and M&A, equity research, or at a push – private equity.

3.   Avoid due diligence teams at the Big Four. This is critical, says Butler. Most transaction services teams at Big Four accounting firms have two elements and two teams: valuation modelling and due diligence. If you go into valuation modelling, you will gain the kind of experience that will enable you to move into a front office role at an investment bank. If you go into due diligence, you won’t. Avoid.

Both paint a remarkably similar portrait of naïve undergraduates tempted into banking by the promise of a glamorous life and insufficiently engaged with their studies. Here are the best bits from both interviews.

1. Students are panicked by banks’ demands for high grades

“The grades we give students determine if they are going to get that job in a bank and some don’t hesitate to pass on the pressure, so to speak. I get students saying ‘if I don’t get that grade, my career is over’. I tell them that’s rubbish, but this is how they are made to feel by the recruitment circus that banks and financial firms roll out.

I speak to students who are beginning to realise they won’t get the grades necessary to even apply. They literally think their lives are over, 21-year-old kids who have been led to believe that either you get into a top paying bank, or it’s a cardboard box under London Bridge.”

2.  Students spend so much time applying to banks that their studying suffers

“Banks send out their offers for summer internships between February and April. These offers are always conditional; if you don’t end in the upper-second class, there’s no internship for you. Some students invest so much time in applications, they don’t have enough time to actually study. They fail, then come to me and beg for a better grade.

3. Students aren’t really interested in economics as a subject. They just see it as a box to be ticked in order to get a banking job

“Most of our students could not care less about all this. They conceive of us as a hurdle; a selection station to get through. They aren’t here to learn, they are here to pass.

My impression is that this is what recruitment people tell students, too: ‘Doesn’t matter how you do it, just meet your target. Get the right grade.’ The right grade, then, is anything above the cut-off line established by banks for applications.”

“The thing is, 25% of our students are genuinely interested in economics. They lose out. We are thinking about offering special arrangements where they can meet like-minded students. So they can organise a lecture about an interesting economic topic, rather than how to get into Barclay’s bank.”

4. Asian students are especially ‘programmed’ into going into the City, but also more down to earth

“We will ask students, why economics? The English-born Asian and Chinese ones appear pretty programmed. They don’t admit directly to wanting to go into finance. They will tell me that they won’t mind being a teacher, ‘give something back’, work against world poverty … The truth is that their parents will throw them out of the window if they do that. They are expected to make it in the City and increase their parents’ status in the community. Many hopes are pinned on them and they know that.”

The other professor says:

“The students of Asian or Middle Eastern origin are very clever and engaging and fairly nuanced. They are not the cliche single-minded, robotic types at all. And they have a lot of time because they don’t go for the things that ‘William Smith from Surrey’ goes for. William is clever and he could get a first. But William plays rugby, he chases girls, he drinks a lot and he likes to do a line of cocaine every once in a while.”

5. The peer pressure to go into banking is enormous. It’s like students are brainwashed.

“It’s striking how quickly they get trapped in the nets cast by the financial industry. Student associations organise CV classes, literally from the first week. Students come under intense peer pressure to apply for internships, all highly competitive.

It’s crazy but they’ve heard little else for three years. I like to say, provocatively: if this kind of brain washing were done by a religious movement rather than the financial sector, it would have been banned long ago.

I tell students, look at how banks treat you – do you really want to work for an employer that treats you like this? And I point out that there’s a whole world out there between the bank where your bonus exceeds my yearly income, and that cardboard box under London Bridge. Most companies don’t have the money for the kind of recruitment circus that big banks and financial consultancy firms put up. They still need graduates.

6. Banks operate finely honed psychological strategies to suck students in

“I know that the major banks work with some of the top-drawer recruitment companies and they have global operations. That’s something you have to give to them; investment banks are organic learners, at the speed of light. They will pick up some effective recruiting trick in the US and tweak it until it works in Frankfurt and London; a particular story their recruiters tell at universities or job fairs; a very effective question they ask.”

7. Once students have done a summer internship, they’re hooked

“So, there they are, studying economics in their first year and then it’s summer time; time for the Square Mile. To be sure, some go off travelling or do a different kind of internships. But most of my students will go to a major bank. And there the change begins. Three weeks into the internship they have already spoken to someone who makes £600,000 a year. They see the cars in the car park. One day someone in the office says, let’s go to the vintage champagne party and they get to join in. So there they are, having vintage champagne with established bankers, the alcohol loosens people up and stories start to flow. ‘Did you see Jimmy’s Lamborghini? You haven’t? Come on, let’s go check out Jimmy’s Lamborghini. You know what, come on let’s smear chocolate on it. Let’s smear chocolate on Jimmy’s Lamborghini.’

My students will be 19 years old, and they come back after summer with their heads full of this.”

8.  Students start to get snobby about which banks are better or worse, and then to broadcast their successes on social media and use them to boost their status on campus

“Then there’s the peer pressure, which is colossal. Someone will say, Citicorp have a hiring buffet, they’ve taken a hall in one of the colleges, are you going? And the other student will think, ‘What hiring dinner? Why didn’t I know about that?’ And then the other says, ‘here’s a number you can call to get on the list’. Students are competing all the time, ‘How many job interviews do you have? Where did you go? You went to SocGen [Société Générale]? Why would anyone go interview at SocGen?’

“Now they say, ‘I’m with this bank, they’re thinking about flying me to New York’ So this SocGen student is going to think, ‘Oh my God, I seem to be slipping here.’ All of this is amplified even more by bloody Facebook and Twitter and social networks. These are clarions for peer pressure, with everyone advertising their successes.”

9.  Banks don’t necessarily wanted mathematical geniuses

“What kind of people do banks come looking for at Oxbridge colleges? They want well-rounded types, social skills, team players, people who think in answers not problems, slightly pushy but not overly, social connections really help.

“The banks are not necessarily looking to find mathmo types.  These potential quant recruits are really in a group on their own and they don’t seem to go that far in banks. Not to disparage them but they are regarded a bit as screwballs, so monist, so core-centric. To reach the top you need social skills and that’s often hard for quants.”

10.  Most economics students seem to go into banking, even now

“In the end almost all of my students go into banking. It wasn’t always like this. When I first started teaching, there were more opportunities for economists in the civil service, in consultancy. I once heard senior economist at the Foreign Office give a talk. That was one of the smartest people I have ever met, and my guess is that such a position still comes with almost unmatched cachet. People like that are what you might call ‘beyond money’, they may be on £120k but their prestige is equal to that of the senior economist at Goldman Sachs or JP Morgan.”

11. Students who go into banking get locked into a very specific career and have no option to move into anything else

“”I tell my students, if you go into the City you are very likely to end up in a field you haven’t even heard of yet. Finance is now so over-specialised, and this brings risks. If you find yourself the specialist in some arcane area, some cluster of two or three rundown emerging-market countries, and you are focused on two or three staples grown there … Yes, you have your career but you’re locked into a particular area. What if the bank decides to turn away from that? Your skills are not so readily transferable.

“So that may be your future; locked into a career path with, next to you, somebody who studied chemistry, another one who did maths, another with a physics degree, and then this guy with a double first in history from Oxford. What is he doing here? Oh wait, he is one of those smooth upper-class guys called Rupert who made it on the strength of his connections.”

The average tuition fees for an MA in the UK are £4k, while most Masters in Finance between £20-30k. It’s expensive, and for such a monetary outlay, you’d expect a decent return. Figures from our 2011 compensation survey suggest that a Masters definitely enhances your earning potential.

On average, respondents with a Masters earning a total compensation of £121k, compared to £95.4k for those with a graduate degree – or 22% more. Going one step further and taking a PhD, which in the financial sector usually implies working in a quantitative role, means average compensation of nearly £180k, suggests our survey.

What is more surprising, however, is quite how many are in this situation.

A survey of 221 graduates by PricewaterhouseCoopers found 55% of the graduates working in financial services were compromised by the downturn and accepted jobs they’d rather not do. Only 10% plan to stay in their current role for the long term.

John Terry, a partner at PWC, says recent graduates (‘millenials’) are hard to please and more conscious of an employer’s reputation than the graduates who preceded them.

“They want more than ‘just a job’,” says Terry. “They expect a varied and interesting career, constant feedback and the opportunity to progress quickly. Their high expectations mean that companies might find it harder than ever to keep their best talent if they don’t adapt their approaches to their development appropriately.”