eFinancialCareers

Hurdle 1: the application form

According to the graduate research company High Fliers, a large investment bank receives 60 applications for every graduate-level job. That's 9,000 candidates for the 150 or so places on the average bank's graduate recruitment scheme. More than 7,500 are eliminated at the online application form stage.

Academic criteria are the main stumbling block. In an ever more competitive environment, most of the big banks specify that would-be candidates must be on track for a 2.1 and typically have 320 or more UCAS points. If you don't meet the grade, you won't get any further than this. Most trainees come from the best universities.

However, even if you're on track for a first, the application form could still trip you up. Esther Oxenbury, head of investment banking graduate recruitment at JPMorgan, says many candidates fall down because of poor spelling or poor punctuation: "It is amazing how many applications come through with mistakes on them, yet our business is all about attention to detail," she says.

A cut-and-paste approach is also perilous. Everyone accepts people make multiple applications, but for heaven's sake put the right bank's name on the form.

"I once had someone email me explaining how motivated they were to come and work at Morgan Stanley – it did not go down well," says Jonathan Jones, EMEA head of recruiting at Goldman Sachs.

All application forms will have questions on your motives, says Vivienne Dykstra of recruitment firm Graduate Solutions. "What they are looking for is evidence that you have done your research and that you have the hunger and drive to thrive at their organisation," she says.

Hurdle 2: the numeracy test

Banks increasingly use tests to check candidates' numeracy. Some also use language tests to establish whether candidates can think logically in English.

Numeracy tests typically eliminate another 50% to 60% and are supposed to be academically neutral – they are designed to test your underlying numerical ability, not your knowledge of advanced calculus. They are also supposed to be impossible to prepare for. However, many university careers offices can help when it comes to sorting out advance practice. Sample tests are available on the eFinancialCareers site, and test provider SHL also offers sample questions on their website.

Hurdle 3: the first interview

By this stage, only around 1,000 of the original 9,000+ applicants will still be in the running. First interviews typically take place on your university campus. There you face junior people from the business area to which you have applied and people from HR.

The first round is all about ensuring you're the right kind of person for the bank. All banks have a list of skills and personal characteristics they try to identify. These are fairly generic and include: team building, communication, pro-activeness, assertiveness and leadership.

The key is to try and be yourself. "You are guaranteed to be asked some questions about your drive and motivation. We won't want people who'll just answer in parrot fashion. We want people who will really listen to what the interviewer is asking and digest that information," says JPMorgan's Oxenbury.

It's also important to come with some questions to ask of the interviewer. "If you have no questions, that would make me wonder how motivated are you," she adds.

"You need to research the division you want to work in, as that is going to be the main focus of your first interview, they will spend a lot of time on that," agrees Sally Whitman, head of specialist resourcing at Deutsche Bank. "You will need to be able to talk about it. You cannot overestimate the amount of research you can do," she adds.

Hurdle 4: the second interview

By this stage around 320 of the original 9,000 applicants are left. Between half and two-thirds will receive the coveted offer of a full-time place.

The second interview is a series of interviews with senior bankers, which normally take place at the bank's head office between September and January.

Second-round interviews place a greater emphasis on technical aptitude. The interviewers will want to ensure you can function under pressure and have at least a basic understanding of how the business works. To this end, applicants for fixed-income sales roles might be asked how bond prices respond to interest rate adjustments and why. Applicants for foreign exchange (FX) trading roles might be asked to explain how interest rates adjust to the price of FX options.

Hurdle 5: the assessment centre

At some banks, second interviews are replaced or preceded by an assessment centre. Assessment centres involve tests to show how people would perform at work. They typically include another interview, a numeracy test, a group discussion and a presentation. All this lasts a single day, with around 12 candidates.

The most challenging part is the group discussion. Six or so candidates are given a problem to solve together. The aim is to assess team-building skills. This is followed by a presentation, which can also sometimes be a sticking point. Candidates are normally asked to analyse some data and use it to present a convincing argument around a particular point. The main failings include not identifying the salient points, presenting a weak argument and changing your views when challenged.

Hurdle 6: the exploding offer

Finally, you may have to deal with a final obstacle: the exploding offer – a deadline by which you have to accept an offer before it 'explodes', meaning when it is withdrawn.

"All students will be given an exploding date by which to make a decision," says Brian Hood, head of graduate recruitment at Citi.

This can be a problem if you have several offers – particularly if you have offers from your second and third choices and are waiting to see if you get an offer from your first choice.

The best advice? Tell the top banks on your list and leave the rest in the dark. If a bank knows you have several offers and are in a dilemma about which to choose, it may make allowances for you.

In reality, however, very few banking candidates will be this spoilt for choice. A foot in the door is your first objective and a good spellchecker is the first step.