Since most common jobs in investment banking pay less than they used to, the appeal of the job is lessening. Junior bankers work extensive hours with no way to keep up the extra duties that got them the banking job in the first place. Although investment banking has waned, there are still other positions that earn much greater benefits than they might deserve.
Though it may seem all well and good, there’s also a downside. Constant flying can be a detriment to your health, the politics are nonstop, and the job comes with loads of stress. “My Wall Street was an endless-seeming succession of late nights, ruled by the demands of clients and bosses,” said William Cohan, former J.P. Morgan MD, in a Bloomberg article. With constant travel, Cohan said he was always in a state of panic, constantly running from one meeting to another and hoping for a chief executive to pick up his deal.
As a senior banker, there are no off days. Junior bankers are now able to report bad senior bankers, and senior bankers are rarely awarded days to themselves.2. Mid-ranking sales role
As customers are being steered toward direct market access systems, the need for human intervention and sales staff is deteriorating.
In the UK, the German Deutsche Bank is a perfect example of this. The bank has encouraged low volume clients that have simple demands to access the market on their own, employing only ‘low touch’ traders and customer service pros to deal with them in Birmingham. Banks like J.P. Morgan and Nomura are following a similar suit. As a result, unless you have worked to gather yourself some important, ‘high touch’ clients, your job in sales may be a thing of the past. Even obtaining these high touch clients can be an incredibly difficult task.
“Since 2008, there’s been less natural upwards movement in sales,” a prior saleswoman from Goldman Sachs said. Because senior bankers seem to hold on to major accounts, she explained that it has become important for junior business men and women to build their own client base.
Building a client base from the ground up has become an increasingly difficult task, and if you do land a new client the amount of work required for them to become a potential counter-party is excessive.
Structured product salespeople creating modified solutions are protected from the move away from ‘low touch’ clients because their clients are, by-definition, high-touch. However, even these people still face issues having to deal with politics and administration.
3. Relationship management in private banking
Though private banking isn’t exactly investment banking, it’s great for those tired of their investment banking careers. However, private banking can oftentimes be more draining than in M&A.
Along with the fact that relationship managers are expected to bring in heavy assets, banks are now expected to vet private clients and ensure everything is done to standard, making first time paperwork with a client a lengthy process.