What's the next step for an experienced investment banker in search of a change? Apparently, zero-salary finance technology jobs have become the next big thing among bankers looking for something new.
Since the financial crisis, many big banks such as UBS, Royal Bank of Scotland Group Plc and Deutsche Bank AG, have cut down on the number of individuals they employ, especially in their respective trading divisions. The four biggest U.K. and U.S. banks have cut their headcount by 350,000 since 2008. In recent years, bankers have watched their firms shrink down and coworkers lose jobs, and many of them have likely thought, "why should I stick around?" Bloomberg recently reported that this has led to a wave of bankers heading toward the technology industry in search of finance start-ups that need experienced financial minds, even if it means taking less money.
"Start-up forays seem worth the seven-figure pay cuts for bankers."
Why are bankers flocking to start-ups?
The start-up forays seem worth the seven-figure pay cuts for bankers. Many bankers, even those at the wealthiest of hedge funds, are considering changing jobs, and technology companies are the most attractive to them. The vast majority of bankers believe that technology companies are where the biggest advancements for the finance sector lie, and thus, that is where they want to be. Much of the revenue at banks is expected to be fueled by whatever digital advancements the future holds for the finance industry.
"Seven out of ten conversations I have with investment bankers now end with them asking me to keep them in mind for jobs in technology," Eric Anderson, who heads up finance technology company Egon Zehnder International Inc., told Bloomberg. "That almost never happened five years ago."
You may be thinking that this has been a phenomenon for a long time, the migration from Wall Street to Silicon Valley. While it is true that individuals at hedge funds have been leaving their firms for careers as venture capitalists, it seems that VC isn't the only reason bankers are interested in technology jobs. Why be a rich and successful venture capitalist when you can work long hours for a small – or nonexistent – paycheck for a brand new start-up? Or, at least, that's what many bankers have been thinking.
The love is requited
Remember all the jobs cut by some of the world's biggest banks? Well, there are over 500,000 open technology jobs on the market, and bankers hope to fill up those empty positions. These days, bankers want impact and opportunity, rather than money. And the best part for bankers? Silicon Valley wants them too.
In a love story that could make romance-fans everywhere swoon, disillusioned bankers have found a partner with open arms in America's technology capital. As double Windsors make way for double-laced sneakers, it is becoming apparent that Silicon Valley is more than open to the idea. Finance technology experts know that bankers and other Wall Street professionals are increasingly reliant on digital tools for their jobs. For this reason, finance is the new zip-up hoodie in Silicon Valley, and start-ups are picking up bankers like Steve Jobs bought up black turtlenecks