One of my recent and important observations is that the interest in finance is declining. As I am teaching n London Undergraduate courses in Economics and Finance I see that people are less and less convinced to pursue a career in finance. My students claim, that "they found that Investment Banking is not for them...". They now prefer to go for management consultancy or government organization. The same is with my fellow PhD Students. Many of them decided that they want to abandon their Investment Banking dream, as the industry will probably not offer opportunities for many years to come.
The falling interest in finance is a big concern for many Banks in London. They now that if they lose the reputation among graduates it will be very difficult for them to fuel expansion when markets recover (if they do). The situation similar to that from 2001-2002 may be repeated... Then banks just couldn't find qualified graduates to fill their graduate programs.
Situation may be repeated, as nowadays the banks not only lost their earnings potential, but also a big part of a reputation. This is not likely that banking will be treated as prestigious profession anytime soon.
The falling interest in finance is a big concern for many Banks in London. They now that if they lose the reputation among graduates it will be very difficult for them to fuel expansion when markets recover (if they do). The situation similar to that from 2001-2002 may be repeated... Then banks just couldn't find qualified graduates to fill their graduate programs.
Situation may be repeated, as nowadays the banks not only lost their earnings potential, but also a big part of a reputation. This is not likely that banking will be treated as prestigious profession anytime soon.
4 comments:
The problem is that there are several people who are in process of taking advanced degrees in finance and several others unemployed who have degrees/experience in finance.All the MFE/MBA Fin programs are still filling all the seats and CFA applications hasn't decreased as such.
And if you look at the demand supply in the coming years people are still going to have a tough time trying to get a front office Jobs in finance.
You better time your PhD for hitting the upward curve.
Hi Arsonist,
Thanks a lot for your comment. Are you currently working in Financial Industry?
I agree with you the Supply Side is now huge - the competition for places will be enormous..
But on the other hand if you see that salaries go down significantly in Investment Banking - what is very likely - people will not be interested in studying and paying huge amounts of money just to be later unable to find a decent job...
I think it's now time for people who are genuinely interested in finance to go into finance industry. The reward will not be significant in the years to come...
Thanks again,
Stud
hi,
I would like to have your email id.Mine is abuthariq@gmail.com.
Thanks for this post. I couldn’t make it and this post has been useful.
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