Consulting or Banking

Tom Spencer

This post provides you with a high level comparison of management consulting and investment banking. Investment banks help companies raise money for various purposes including investment, acquisitions, and provision of working capital. Within an investment bank, the work is split into many roles including investment banking, sales and trading, equity research, risk management, operations, and technology. In comparison, investment banks are competitive and hierarchical.

From Banking to Consulting

What follows is a success story I received from a reader who transitioned from banking to consulting as an experienced hire. My background: 4 years as equity analyst, MBA, 5 years in banking in equity capital markets (IPOs and such). After getting quite disillusioned with the banking industry over the last few years, I got laid off, and had to reassess what to do next. Consulting Job Offer Reports banking experienced hire McKinsey offer success story


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Bitcoin, Digital Currency and The Future of Banking

Tom Spencer

When news broke in late October that some of London’s largest banks were investing in Bitcoin , cryptocurrencies in general got another boost. Beyond hoarding digital currency as a defensive move in the age of DDOS bank robbers, banks are beginning to think about ways that bitcoin could be used within the banking industry globally. Bitcoin itself was created by technologists and programmers with a deep-seated mistrust of central banks themselves.

Management Consulting versus Investment Banking

Management Consulted

The cons of investment banking – the long hours, the repetitive and unengaging nature of the work, the lack of non-finance exit opportunities – mattered far more to me than a 6-figure salary. Banking salaries average 50-100% higher than consulting salaries , with the difference increasingly significant as your seniority increases. Cashflow or not, the extra money is substantial and a defining driver of why many people do investment banking. INVESTMENT BANKING.

Is AI the Solution for the Banking Sector? (Part I: Problems)

Tom Spencer

The financial services industry has seen drastic technology-driven change over the past few years, and digital has fundamentally reshaped consumer behaviour in banking. According to Oliver Wyman, a global management consulting firm, 90% of Canadian banking customers use digital channels and more than 30% are now banking exclusively virtually. However, customer expectations are high and it is difficult for banks to decide which technologies to focus on.

Is AI the Solution for the Banking Sector? (Part 2: Solution)

Tom Spencer

Before we dive into why AI is the solution for the banking sector, let’s first explore what big tech companies have in common, how many of them have grown successfully, and what banks can learn. Furthermore, customers are increasingly expecting from banks much more value per dollar, better service, and seamless experiences regardless of channel. Usage of AI in the Banking Sector. As shown in the table above, the main usage of AI by banks across Canada and U.S.

Maternity Leave for Independent Contractors: Advice from Six Self-Employed Moms

ABA Community Banking

Maternity leave advice from six self-employed moms

Banking on Digital Simplicity


Despite a tentative financial recovery, the retail-banking industry faces unrelenting, disruptive challenges. Banks that hope to prevail must urgently pursue digital simplicity. That mandate for digital simplicity is the central insight emerging from the research behind this sixth edition of BCG’s annual Global Retail Banking report. BCG Banking Pools data shows that global retail-banking revenues rose 3% in 2015, to nearly $1.6 Report Tuesday, May 10, 2016.

Ralph Hamers on Disrupting the Banking Industry


The bank’s stated purpose: “Empowering people to stay a step ahead in life and in business.” To this end, ING aims to simplify the banking experience, making its services fast, easy, and accessible. Ralph) Hamers has been with ING for 25 years, becoming CEO in 2013 after a variety of roles in wholesale banking, lending, finance, credit risk management, and retail banking. Video Tuesday, September 20, 2016.

Management Consulting Vs Investment Banking

Management Consulting Prep

Why should you choose Management Consulting over Investment Banking? Now landing a job in either one … Management Consulting Vs Investment Banking Read More » The post Management Consulting Vs Investment Banking appeared first on Management Consulting Prep Two of the most prestigious career choices for business students. Two of the highest-paying jobs. Two lands of the smartest people. Two places to forget about work-life balance.

What If Central Banks Issued Digital Currency?

Harvard Business

The Chinese Central Bank has already begun experimenting with digital cash that could eliminate the need for paper money. Economic systems Financial markets Financial service sector Digital Article

First Woman CEO of an Investment Bank

She will be the first woman CEO of a major Wall Street investment bank. Here’s more on her career path via the New York Times: Citigroup’s Fraser to Be First Woman to Lead a Big Wall Street Bank. Thursday, Citigroup announced that they are appointing Jane Fraser to be CEO.

Bank of America Tests Peopleless Banks


Banks do need those services of course, but do those services have to be in every location? Tellers, cashiers, loan officers: Who needs em? Will video teleconferencing suffice? more…). Economics

Looming Banking Crisis?


Below is a transcript excerpting the main parts of the first section of the interview on the problems in the European banking system and what measures might be taken if push were to come to shove. Andy Duncan of interviewed Claudio Grass, managing director of Global Gold in Switzerland.

Project Midas: "Bad Bank" for "Bad Banks"


I seriously do not understand this "Bad Bank" concept. If for some reason you disagree, please note that Spain now needs a "Bad Bank" for "Bad Banks". Via translation from El Economista, please consider Another bad bank? The government is considering transferring the debt of insolvent banking business to a fund The Government is considering the possibility of creating a fund or financial vehicle to which banks could transfer the debt of insolvent companies in crisis.

Banking without Banks: Decentralized Finance is Coming

Harvard Business

Transparency and trust are at the core of the decentralized finance revolution. Currency Economics Technology Audio

Wholesale Transaction Banking: Leveraging “Fin” and “Tech”


Although B2B does not grab as many headlines as C2B, significant pain points still exist for banks’ corporate customers, and the opportunity to solve problems and deliver value is sizable. Indeed, banks that act decisively are in a prime position to be a core partner in corporate treasurers’ digital transformations. Wholesale transaction banking—which includes payments, cash management, and trade finance—generated about $370 billion in revenues globally in 2015.

Fintechs May Be Corporate Banks’ Best “Frenemies”


For all the angst over the disruptive impact of financial technology providers, the smart money in corporate banking sees fintechs as strategic allies, not enemies. Over the past decade, the fintech market has become a hotbed of customer-centric banking innovation. Although their service models have attracted considerable attention, fintechs are unlikely to endanger established corporate banks in the near term. Article Tuesday, July 05, 2016.

How Businesses Can Hold Their Banks Accountable on Climate Change

Harvard Business Review

It’s hard to call yourself a green company if your cash assets are underwriting global warming. Sustainable business practices Corporate social responsibility Financial markets Digital Article

What If Banks Had to Disclose the Climate Impact of Their Investments?

Harvard Business Review

A proposed SEC rule could pull back the curtain on the carbon emissions of the global economy. Sustainable business practices Finance and investing Digital Article

Occam's Razor and Bank Lending


I received an interesting question on bank lending just a bit ago. Would QE by the ECB spur European bank lending? Banks do not lend from excess reserves. Banks lend (provided they are not capital impaired), when credit-worthy borrowers want credit and banks perceive risks worth lending. For Occam''s Razor to hold, one must assume that the central bank has never talked to a banker, right? In this case, central banks clearly want to spur lending.

3 ways conversational messaging compounds CX growth for banks

1 to 1

The landscape of retail banking is rapidly changing. Physical banks are closing and the age of virtual banking is here. It is causing banks and financial services firms to adapt to a whole new way to provide personalized services. The shift to virtual banking.

Banks – Industry Overview

Tom Spencer

The Business of Banking. Banks are intermediaries for capital and hold the risk when supply and demand is not perfectly balanced. Historically, commercial banking and investment banking functions have been separated by law – these restrictions have since been repealed and larger banks tend to take on capital markets operations due to the complimentary nature of the businesses. Commercial Banking. Investment Banking. Commercial vs Retail Banking.

10 bank fraud lessons of 2012


As much as we’d like to think that remote banking is safe, the reality is threats across all customer channels still exist. With new and emerging threats facing financial institutions every day, banks need to stay one step ahead of today’s tenacious criminals. Continued education is essential for fighting bank fraud : With crooks cooking up new schemes all the time, bank fraud teams need to keep up with the latest criminal trends and tactics.

Retail Banks at the Crossroad


Nearly eight years after the financial crisis, the performance of many retail banks is still disappointing investors and financial markets, particularly in Europe. It seems that retail banks’ business models are incompatible with both the overall economic climate that has prevailed since 2008 and the competitive challenges arising from new entrants. In fact, retail banks have to reinvent themselves. Article Tuesday, June 21, 2016.

Number of Banks and Percentage of Problem Banks Over Time


Most understand the "too big to fail" banks have gotten bigger and bigger over time as they swallow up smaller banks bit by bit. Number of Banks Over Time by Type Total Number of Banks Percent of Banks Vs. 1990 Total Problem Banks as Percentage of All Banks Anyone feel any safer by this? Here is the concept in picture form courtesy of reader Tim Wallace. Click on any chart for sharper image.

What are the main challenges for a traditional retail bank?


Hi, The Head of Retail in a traditional bank in Eastern Europe is facing the consequences of the ever-changing environment. He understands the service of the disruptor banks and would like to initi

All You Need to Know About COVID Era Banking

Martinka Consulting

From June 4-10 Jessica and I interviewed bankers representing eight Puget Sound area banks.* This memo is a synopsis of those conversations about what’s going on in banking during the COVID crisis, with a focus on business acquisition loans. First, all the banks are, “Open for business” meaning they are considering making loans. The banks recognize there are a lot of unknowns and realize we all fear the unknown to varying degrees.

Why should you pick Management Consulting over Investment Banking?

Management Consulting Prep

Why should you choose Management Consulting over Investment Banking? Now landing a job in either one of them is already a … Why should you pick Management Consulting over Investment Banking? Read More » The post Why should you pick Management Consulting over Investment Banking?

Battle of The Central Banks: China Declares ICOs Illegal

Tom Spencer

As September dawned last week, six more major banks joined a UBS-led effort to create … Continue reading "Battle of The Central Banks: China Declares ICOs Illegal". As I have been writing in this space of late, the days of the Wild West for cryptocurrency are absolutely at an end. The writing has been on the wall all summer. The latest news to hammer the point home?

Central Bank Hubris Bubbles to the Surface


Albert Edwards at Society General commented today on Central Bank Hubris, deflation, and the flattening of the US yield curve. Here are some email snips. more…). Economics

Plotting the Number of Banks: Is the Goal One "TBTF" Bank?


Reader Tim Wallace sent in a spreadsheet on the total number of banks. click on chart for sharper image Whatever happened to the idea that something needs to be done about "Too Big to Fail Banks"? Consolidation numbers do not tell the full story, but the largest banks do keep getting bigger in the slow but steady march towards one bank.

Deutsche Bank Received Special Treatment by ECB in Stress Tests, Bank of England Complains


Under ECB stress test rules, bank asset sales must be booked (not just expected to close) to count. Numerous EU banks had asset sales pending but the ECB ignored its own rules in just one case: Deutsche Bank. more…). Economics

European Banking System on Verge of Collapse; Market Votes “No Confidence” in Italian Bank Rescue


European bank shares are down for the second day following a last minute bailout package aimed at Italian banks one … Continue reading → Economics

Deutsche Bank Chief Economist: “Europe is Seriously Ill”, Banks Need €150 Billion Bailout


David Folkerts-Landau, chief economist at Deutsche Bank, says “Europe is Seriously Ill”, and EU banks need a €150 billion bailout … Continue reading → Economics

Big Banks move internship recruiting back – what it means for consulting internship recruiting

Management Consulted

The post Big Banks move internship recruiting back – what it means for consulting internship recruiting appeared first on Management Consulted. The potential for spring internship recruiting madness is over – at least temporarily. Earlier this week, Wall Street titans Goldman Sachs and JP Morgan announced (mercifully) that undergrad internship recruiting would move back from Sophomore spring to the fall of … Continue Reading.

Will Industry Stacks Be the New Blueprint for Banking?


Digital technologies are reshaping the banking industry at an unprecedented rate, generating waves of fresh opportunity and potential peril for traditional banks. And a rapidly growing number of smaller fintech digital platforms—such as alternative-payment provider Earthport and mobile bank Moven—are winning customers with new digitally enabled products and services. The traditional value chains of banking incumbents show signs of fragmenting.

Reward Your Employees — Without Breaking the Bank

Harvard Business

Spot bonuses can boost morale during trying times. Managing people Compensation Digital Article

Should Banks Lend Money At All?


Banks are in the business of making loans. Exploring Lending Club Bloomberg columnist Mat Levine explores the issue in Lending Club Can Be a Better Bank Than the Banks. There are a lot of ways in which [Lending Club] is not a bank, but the big one is that basically all (95.6 Banks, on the other hand, are funded mostly by deposits and repo and other short-term senior borrowing. A bank, on the other hand, is in the business of borrowing short to lend long.

Retail Bank Operational and Digital Leaders Reap the Rewards


BCG’s Retail-Banking Excellence benchmarking study (REBEX) profiles the operational and digital practices and performance of 20 of the world’s leading retail banks, a group of 40 institutions chosen for their size and the strength of their capabilities. We refer to these banks as the “premier league.” This year’s benchmarking showed, once again, that banks leading in measures of operational and digital excellence reaped the lion’s share of financial rewards.