Why a Career in Banking?
Allen Carding, former Head of Money Markets and Proprietary Trading, HSBC
Why a career in banking? Easy, I hear you say. Lots of money and money from day one. Graduates’ starting salaries are really quite attractive and the rewards for the successful banker can be outstanding. Indeed they are and indeed they can be. Don’t be afraid to admit it. There is nothing wrong in seeking to be well paid. But money isn’t everything…
The image of banking has undergone a wholesale transformation in the last 25-30 years. From sleepy institutions managing a few current accounts behind oak desks, to the modern, fast moving, customer driven industry that it now is. And it will continue to grow. Sure there will be further consolidation in the sector but that doesn’t mean contraction. And there is China and India and Eastern Europe - growing regional economies with literally millions of new consumers. Over banked? I don’t think so.
To my way of thinking the most important reason for seeking a career in banking is the breadth of opportunity. Banking encompasses a whole host of disciplines and skills. Corporate banking, consumer banking, investment banking, treasury, human resources, IT, investment management and so on. So here are a few personal thoughts about banking as a career:
- Don’t be seduced by the sexiness of investment banking. It is extremely hard work and the nuts and bolts of investment banking are not at all sexy. Traditional investment banking is very reliant on contacts, internal and external. No good coming up with a brilliant master plan if you can’t gain access to anyone to talk about it. But if you do make it….
- Banks are customer driven. Banking is a service industry and don’t forget it. The customer is king and banks make profit by helping their customer meet their needs. But remember, customers don’t always know what their needs are.
- Be willing to learn and work hard. Sounds obvious, I know, but you would be surprised how many candidates I have met who think they know an awful lot. They don’t.
- Be pre prepared to be comfortable with one or two topics that you can talk about sensibly. If you know something about the dynamics of the UK economy and where interest rates might be headed then talk about it. If you don’t then find something else that interests you and get the conversation around to that.
- Graduate schemes vary. Alot. Banks do as well. No point in applying to a graduate scheme that funnels you into a specific career path very quickly if what you want is a more general approach. Do your homework and don’t be afraid to ask questions.
If breadth of opportunity is the most important positive for a career in banking then a close second is that, on the whole, banks operate as meritocracies. Responsibility and promotion can come very fast, perhaps more than in any other industry. You will be expected to succeed. Indeed, you have been chosen to do so. But there is a downside! The fallout rate can be very high. Some of the more aggressive investment banks will expect and plan for a significant fallout from their graduate schemes.
To conclude: based on my personal experience I would wholeheartedly recommend you to a career in banking. I am 48 and contemplating retirement. I have enjoyed my work immensely. Perhaps these two facts say it all!
One final piece of advice - don’t get downhearted. Everyone gets rejected most of the time. Don’t give in but do think about where you might be going wrong.
And most of all, good luck!
