banker profession essay

Why Becoming A Banker Instead Of A Lawyer Was The Best Life Choice I Ever Made

Being a corporate lawyer is even more terrible than it used to be.

In the cover story for the current issue of the New Republic, Noam Scheiber explains that demand for expensive legal services is in permanent decline, and it's turning big law firms into Lord Of The Flies.

It's one more datapoint vindicating my decision to become a banker rather than a lawyer.

When I was finishing college, I didn't know what I wanted to do with my life. Like a lot of directionless Harvard students, I took the LSAT and planned to go to law school, almost as a default choice.

But when I was a senior, I realized I wasn't sure enough that I wanted to practice law to merit taking on north of $150,000 in debt.

So I found a more cost-effective way to delay my decision about what to do with my life: I became a corporate banker.

From 2005 to 2008, I worked for Wells Fargo in their commercial real estate lending division. I worked on construction financings in New York and Washington and unsecured loans to real estate investment trusts.

Broadly, my job involved defending the choice to make a loan against a given piece or pool of real estate, either to loan officers inside the bank or to outside investors interested in buying Wells Fargo's debt.

What I learned in this job has been hugely formative for my later work as a policy researcher and a journalist.

I learned how to distill a wide variety of numerical and abstract information into a brief, easy-to-read memo for an audience of readers who are smart but busy. This was ideal training for writing policy briefs and op-eds.

I learned how to make oral presentations of that information and be prepared to answer questions on the fly. This is why TV and radio interviews don't stress me out: Wells Fargo's credit officers are much tougher than any MSNBC panelist.

I learned about zoning, rent control, property tax credits, brownfield cleanup, and many other land-use policy issues that I write about today—and I got to see how policy in these areas affected the choices of real estate developers.

What Exactly Is an Investment Banker? Essay

Introduction.

Investment bankers are considered dynamic professionals. These individuals thrive in environments that are susceptible to changes. The most important role that an investment banker plays is providing a high level of advice to various clients (Casparie, 2007). The job involves massive financial analysis; therefore, a strong foundation in finance and economics is necessary. Investment bankers are also known as a strategist and have the modicum capacity to produce future events. In addition, investment bankers do planning especially in allocating investment for various investment portfolios. Unlike other professionals, an investment banker is unique and covers different markets which are exclusive to the financial world.

It is common for investment bankers to cover a wide array of tasks. Specifically, investment bankers act as underwriters and agents for corporations and municipalities that issue securities. Moreover, investment bankers maintain both broker and dealer responsibilities. As mentioned earlier, investment bankers provide in-depth analysis of economic and market events and issue valuable advisory reports. Investment bankers perform as a facilitator during corporate events such as mergers, acquisitions, and buyouts. Further, investment bankers aid companies in doing financial restructuring and provide different options to maintain robust operations.

Constant learning is vital to individuals who plan to be involved with investment banking. The entry-level position serves as an orientation that will allow investment bankers to be merged with processes. Investment bankers normally start as analysts or at times associates. Analysts are required to provide financial proposals and familiarize the financial markets. Some companies provide options to analysts to acquire post-graduate education usually in the field of finance and management.

Investment banking provides a wide range of opportunities for its employees. One of the segments that investment bankers can work on is corporate finance. It allows investment bankers to help firms in raising their capital for projects and operations. Investment bankers are tasked to determine the capital requirement of companies. Capital necessities are usually sourced out through stocks, bonds, and retained earnings. Another job option that investment bankers can venture into is facilitating mergers and acquisitions. The role of investment bankers in these situations stretches to the normal advisory service (Beatty and Ritter, 1986). Investment bankers are asked to participate in biddings and negotiations and until the deal is finalized.

It is also possible for investment bankers to work in project finance. This segment is considered the most promising part of investment banking. Project finance involves the pooling of funds from companies and governments to pursue long-term capital projects such as oil exploration. Investment bankers check the viability of projects and the capacity of involved parties to make financial commitments. Structured finance is also another area that expands the career options of investment bankers. Investment bankers do this form of financing to boost the cash flow to investors. It is imperative for investment bankers to create financing vehicles to facilitate cash flow.

Among the job options for investment bankers, it is trading that is mostly preferred. Trading involves the selling of securities and can translate to better earnings for investment bankers. The process of trading necessitates knowledge of financial markets and forecasting abilities (Beatty and Ritter, 1986). Aside from stocks and bonds, there are other financial instruments that can be traded in the market. Foreign exchange trading is a common job as well as derivatives and warrants.

Some investment bankers function mainly as equity researchers. In some investment banks, this is a higher form of responsibility. Equity researchers are adept in the technical side of financial markets. These individuals provide the buy, sell, or hold recommendations to clients. Investment bankers who perform equity research base their decisions on market trends and company fundamentals (Beatty and Ritter, 1986). Because of the growing markets overseas, investment bankers are provided with the opportunity to make international sales. This expansion is evident among investment banks that have established operations in various financial points abroad. Investment bankers have to be skillful in handling language barriers and cultural differences.

Investment bankers with information technology capabilities have opportunities to improve on their craft. At present, financial markets rely on technology to make transactions fast. Because of these several investment bakers with knowledge of computers have learned to design trading software. Such a product is already popular among investors can further improve the careers of investment bankers. Finally, investment bankers can also act as rating analysts. Although it has to be noted that such a line of work provides low revenues for investment bankers. But it is a good start because investment bankers will a good feel at the events that affect financial markets.

The ultimate goal of an investment banker is to be a pillar of financial markets. It is important for investment bankers to shape the economy (Beatty and Ritter, 1986). Contrary to popular belief, being an investment banker is not a limited profession. Financial markets continuously expand and this means that investment bankers will be highly demanded. There are several requirements for an investment banker to be successful. But the most important aspects involve learning and flexibility.

Beatty, R.P. and Ritter, J.R., (1986), Journal of Financial Economics , “Investment banking, reputation, and the underpricing of initial public offerings”

Casparie, Jim, (2007), Entrepreneur.com, “What exactly is an investment banker?” Web.

Chicago (A-D)
Chicago (N-B)

IvyPanda. (2021, August 27). What Exactly Is an Investment Banker? https://ivypanda.com/essays/what-exactly-is-an-investment-banker/

"What Exactly Is an Investment Banker?" IvyPanda , 27 Aug. 2021, ivypanda.com/essays/what-exactly-is-an-investment-banker/.

IvyPanda . (2021) 'What Exactly Is an Investment Banker'. 27 August.

IvyPanda . 2021. "What Exactly Is an Investment Banker?" August 27, 2021. https://ivypanda.com/essays/what-exactly-is-an-investment-banker/.

1. IvyPanda . "What Exactly Is an Investment Banker?" August 27, 2021. https://ivypanda.com/essays/what-exactly-is-an-investment-banker/.

Bibliography

IvyPanda . "What Exactly Is an Investment Banker?" August 27, 2021. https://ivypanda.com/essays/what-exactly-is-an-investment-banker/.

Business Financing and the Capital Structure
Virtual Trading From End-to-End Websites
Personal Development Plans: Learning Styles
Commercial Banks’ Challenges in the Next 5 Years
The Influence of Commercial Banks’ Capital Structure on Business Performance in China
Wells Fargo Bank's Financial Analysis
Banking in Saudi Arabia: Main Facilities, History, and Future
Riyad Bank: Strategic Analysis and Recommendations

At Morgan Stanley, we lead with exceptional ideas. Across all our businesses, we offer keen insight on today's most critical issues.

Personal Finance

Learn from our industry leaders about how to manage your wealth and help meet your personal financial goals.

Market Trends

From volatility and geopolitics to economic trends and investment outlooks, stay informed on the key developments shaping today's markets.

Technology & Disruption

Whether it’s hardware, software or age-old businesses, everything today is ripe for disruption. Stay abreast of the latest trends and developments.

Sustainability

Our insightful research, advisory and investing capabilities give us unique and broad perspective on sustainability topics.

Diversity & Inclusion

Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. Hear their stories and learn about how they are redefining the terms of success.

Wealth Management

Investment Banking & Capital Markets

Sales & Trading

Investment Management

Morgan Stanley at Work

Sustainable Investing

Inclusive Ventures Group

Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals.

We help people, businesses and institutions build, preserve and manage wealth so they can pursue their financial goals.

We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments.

Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services.

We offer timely, integrated analysis of companies, sectors, markets and economies, helping clients with their most critical decisions.

We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors.

We provide comprehensive workplace financial solutions for organizations and their employees, combining personalized advice with modern technology.

We offer scalable investment products, foster innovative solutions and provide actionable insights across sustainability issues.

From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success.

Core Values

Giving Back

Sponsorships

Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. Underpinning all that we do are five core values.

Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back.

Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. Our board of directors and senior executives hold the belief that capital can and should benefit all of society.

From our origins as a small Wall Street partnership to becoming a global firm of more than 80,000 employees today, Morgan Stanley has been committed to clients and communities for 87 years.

The global presence that Morgan Stanley maintains is key to our clients' success, giving us keen insight across regions and markets, and allowing us to make a difference around the world.

Morgan Stanley is differentiated by the caliber of our diverse team. Our culture of access and inclusion has built our legacy and shapes our future, helping to strengthen our business and bring value to clients.

Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research.

At Morgan Stanley, giving back is a core value—a central part of our culture globally. We live that commitment through long-lasting partnerships, community-based delivery and engaging our best asset—Morgan Stanley employees.

As a global financial services firm, Morgan Stanley is committed to technological innovation. We rely on our technologists around the world to create leading-edge, secure platforms for all our businesses.

At Morgan Stanley, we believe creating a more equitable society begins with investing in access, knowledge and resources to foster potential for all. We are committed to supporting the next generation of leaders and ensuring that they reflect the diversity of the world they inherit.

Why Morgan Stanley

How We Can Help

Building a Future We Believe In

Get Started

Stay in the Know

For 88 years, we’ve had a passion for what’s possible. We leverage the full resources of our firm to help individuals, families and institutions reach their financial goals.

At Morgan Stanley, we focus the expertise of the entire firm—our advice, data, strategies and insights—on creating solutions for our clients, large and small.

We have the experience and agility to partner with clients from individual investors to global CEOs. See how we can help you work toward your goals—even as they evolve over years or generations.

At Morgan Stanley, we put our beliefs to work. We lead with exceptional ideas, prioritize diversity and inclusion and find meaningful ways to give back—all to contribute to a future that benefits our clients and communities.

Meet one of our Financial Advisors and see how we can help you.

Get the latest insights, analyses and market trends in our newsletter, podcasts and videos.

Opportunities
Technology Professionals

Experienced Financial Advisors

We believe our greatest asset is our people. We value our commitment to diverse perspectives and a culture of inclusion across the firm. Discover who we are and the right opportunity for you.

Students & Graduates

A career at Morgan Stanley means belonging to an ideas-driven culture that embraces new perspectives to solve complex problems. See how you can make meaningful contributions as a student or recent graduate at Morgan Stanley.

Experienced Professionals

At Morgan Stanley, you’ll find trusted colleagues, committed mentors and a culture that values diverse perspectives, individual intellect and cross-collaboration. See how you can continue your career journey at Morgan Stanley.

At Morgan Stanley, our premier brand, robust resources and market leadership can offer you a new opportunity to grow your practice and continue to fulfill on your commitment to deliver tailored wealth management advice that helps your clients reach their financial goals.

Students and Graduates
Mar 6, 2017

7 Reasons Why a Banking Career Should Be on Your Radar

Some of morgan stanley’s recruits knew nothing about banking when they started college and often had other career plans. why did they switch gears.

“You don’t start your freshman year [in college or university] thinking, ‘I want to have a banking career, so I guess I’ll study the history of North African Tribes’,” says 23-year old Lauren. “I didn’t know much about the industry and didn’t think it’s where I would end up because it’s not where I thought a degree in history would lead to.”

So what is she doing as an Analyst at Morgan Stanley, on her first rotation through the various areas of the Firm’s Wealth Management division? “I realized that the analysis and research skills I enjoyed while studying history were actually the kind of skills banks look for and that I now get to use every single day as an analyst,” she says. Lauren’s story is similar to a few other Morgan Stanley recruits we interviewed – here's why they decided to make banking their first career path after graduating.

Wanted: Non-Finance Graduates

1. it’s not hollywood style wall street.

“When I was a freshman I thought people in banking must be super cutthroat and competitive. It’s hard to explain to family, friends, and peers that it’s actually extremely collaborative and friendly,” says Lauren. “Everything is team-oriented, so all of your team members genuinely want to go out of their way to help you become as active a team member as everyone else. You are by no means left to sink or swim and no one is standing on your shoulders to get ahead."

2. Bigger is Better

“Some of my friends joined startups because they think that you’re just a cog in the wheel at a bigger firm and it’ll take you years to actually make any kind of personal impact. The reality is the complete opposite,” says Gabrielle, an Analyst in Human Resources. “If my manager is away then I’ll be asked to step up to the plate and take the lead on certain parts of a project. You’re constantly getting opportunities to lead and present your opinions straight away, not years after you’ve been here. "

3. It’s Happening Real-Time

“I can’t think of another job where I would feel so directly connected with everything that’s going on in the world,” says Lawrence, a New York based Analyst trading options in Fixed Income. “What drew me to my job in trading was the fact that the major market-moving issues of the day — elections, war, economic turmoil — are my issues. My job is pricing options and trading volatility, so we have to react to news events in real time. It really gets the adrenaline pumping.”

4. It’s a Global, Not a Parochial World

“One of the great things about working at Morgan Stanley is that you’re so often dealing with clients around the world,” says Heather, an Associate in the London Equity Trading department. “I’ve just been in a meeting with a client from Singapore and this afternoon I’m going to our Latin American conference to meet more clients. I love how much each day can vary. One minute I’m looking at the investing thesis on a multinational; the next a client could call for our view on emerging market currencies and the next I could be working on a bespoke field trip.”

5. Dynamic Training

“The training programs at banks are intense. You end up with a skill set that you couldn’t get anywhere else, and is relevant for multiple industries and careers. You’re not expected to turn up on day one and know how to trade volatility — you learn all of that when you get here,” says Lauren. “I think banks look for people who are smart, well-educated, passionate team players with all of the necessary ‘soft skills,’ so you know how to apply the training you’re given and how to work with those around you.”

6. The Choice is Yours

“During your summer program you’re rotated to different areas so you learn more and get to see what you like best,” says Annabel, who works in Fixed Income Sales. “In the last two years within my full time role I’ve worked for different teams, including eight months in New York and now back in London. There are so many areas that make up one business. In Sales & Trading alone you have sales, trading, structuring and research, and the products range from interest rates to foreign exchange and credit to equities.”

7. You are an Investment

“Global banks don’t go through the trouble of giving you a paid internship and putting you through an entire training program, only so you can leave for another job,” says Gabrielle. “It’s in their interest to make sure you feel like you’re thriving in your career. At Morgan Stanley, at least, there’s a huge focus on mentoring and training throughout your career so you can advance from your initial apprenticeship. The focus isn’t just on your first few weeks; career development continues throughout your time at the Firm."

Get Your Career Started At Morgan Stanley

The Emotional Quotient of Investment Banking

To succeed, you need to use your heart as well as your head. After 40 years as an investment banker, Jim Runde shares how he used both to get ahead.

Questions Interns Are Dying to Ask But Don’t

How do you know if you're being overly eager? Should summer analysts speak up at meetings? Here are some answers.

For Millennials It's Not Just the Money that Counts

Having plenty of volunteering opportunities is now one of the big attractions of having a career in banking.

The Advantages of Being a Banker

Business Insurance
')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

How Much Money Do Bank Managers Earn?

The pay rate of customer service reps at banks, bank trust officers compensation & average salary.

Job Description of a Branch Relationship Banker
Job Description for an Equity Dealer

If you are exploring business careers or simply writing an essay on the banking system, you'll likely find that many banks in your community have been in business for decades. The banking industry has existed for centuries, and it's expected to be a prominent part of society for the foreseeable future. But the sustainability of the industry and the positive outlook that creates for jobs are not the only perks of a banking career. Your career research or short essay on bankers and banking will reveal many tangible advantages to being part of this lucrative industry.

Fulfilling Career

Banking is a fulfilling career choice for individuals who want to help the public. Bankers play an essential role in society by protecting, investing and lending money. Many play a direct role in helping clients' make some of the most important decisions of their lives, such as saving for college, purchasing homes and planning for their business and retirement needs. Bankers also have opportunities to fulfill their civic desires. TD Bank says it gives millions of dollars to community-based nonprofit organizations every year, sponsors community events and programs and encourages its employees to contribute and volunteer to their communities.

Flexible Schedule

Bankers' schedules generally allow them to be off nights, weekends and holidays. But banks are opening more branches in more diverse locations, such as inside grocery stores or big-box retailers, which provides opportunities for people who want to work alternative schedules. TD bank, for example, intentionally provides employees with a variety of work options to address employees' varying needs. Bank of America offers wholistic wellness programs to help employees live well-rounded lives and stay healthy.

Attractive Compensation

Compensation can vary greatly depending on a person's position, tenure and the bank for which she chooses to work. Still, bankers are usually paid competitive salaries. According to the U.S. Bureau of Labor Statistics , in 2019 the median annual salary of loan officers was $63,270 and the top 10 percent of loan officers earned more than $132,680 . Financial managers earned a median annual salary of $129,890 with those in the 90th percentile earning at least $208,000 , the BLS further notes.

In addition to their base salary, many bankers receive commissions, performance incentives and annual bonuses. High-level investment bankers who work in corporate finance or mergers and acquisitions receive bonuses that exceed their base salaries.

Generous Benefit Packages

Most bankers enjoy comprehensive benefits packages. Large banks typically offer medical, dental and vision insurance to its bankers and their families. Bankers have access to a retirement plan, life insurance, disability insurance and flexible spending accounts for health care and child care. Other commonly offered bank job benefits include paid time off, free financial services, adoption assistance and fitness programs.

Advancement Opportunities

Banks also tend to offer educational development and tuition assistance programs. Getting a degree or continuing education is not a waste of time in the banking industry. Financial firms are well-known for providing advancement opportunities and a career ladder for those who are talented and highly motivated. The BLS says many investment banks use an "up or out" policy where entry-level investment bankers are either promoted or terminated after two or three years, keeping the pipeline of opportunity flowing for newcomers.

TD Bank: Employee Benefits
Bank of America: Benefits and Other Programs
TD Bank: Our Community Involvement
U.S. Bureau of Labor Statistics: Loan Officers: Pay
U.S. Bureau of Labor Statistics: How to Become a Securities, Commodities, or Financial Services Sales Agent
U.S. Bureau of Labor Statistics: Financial Managers

Bank financial sales consultant duties, what are the qualifications to become a relationship banker, code of ethics for bankers, how much money do bankers make, what is the difference between a loan officer & a banker, how to apply for bank jobs, how much does a cfa earn, the disadvantages of being a banker, the average salary with a bachelor's degree in first-year banking, most popular.

1 Bank Financial Sales Consultant Duties
2 What Are the Qualifications to Become a Relationship Banker?
3 Code of Ethics for Bankers
4 How Much Money Do Bankers Make?

[email protected]
Login / Register

Exploring a Career as a Banker: Skills, Growth Opportunities & Advantages

Career 07 Jun 2023 978 0

Exploring a Career as a Banker: Skills, Growth Opportunities & Advantages

The banking industry plays a vital role in the global economy, serving as the backbone of financial systems. A career in banking offers diverse opportunities, job stability, and the chance to make a significant impact on individuals and businesses. Whether you are a student considering your future career path or a professional seeking a change, exploring a career as a banker can be an exciting and rewarding choice. In this comprehensive guide, we will delve into the skills required, job responsibilities, growth prospects, advantages, and challenges associated with working in the banking industry. Let's embark on this journey to uncover the world of banking and discover what it takes to succeed as a banker.

Overview of the Banking Industry:

The banking industry encompasses a wide range of financial institutions that provide various services, including deposits, loans, investments, and payment systems. Banks act as intermediaries between individuals, businesses, and the government, facilitating economic growth and stability. They play a crucial role in capital allocation, risk management, and the overall functioning of the economy.

Educational Requirements and Qualifications:

To pursue a career in banking, obtaining a relevant educational background is essential. While specific requirements may vary depending on the position and institution, a bachelor's degree in finance, economics, business administration, or a related field is generally preferred. Some banks may also require a master's degree or an MBA for higher-level positions, such as investment banking.

Essential Skills for a Successful Banking Career:

Financial Literacy: A strong understanding of financial concepts, such as accounting principles, financial analysis, and risk assessment, is crucial in the banking industry. Bankers need to analyze financial statements, evaluate creditworthiness, and make informed decisions to mitigate risks.

Analytical Abilities: Banking professionals must possess excellent analytical skills to interpret complex financial data, assess market trends, and identify investment opportunities. Analytical thinking allows bankers to evaluate risk-return trade-offs and make informed recommendations to clients or stakeholders.

Communication Skills: Effective communication is vital in the banking sector, as bankers interact with clients, colleagues, and stakeholders on a daily basis. Strong verbal and written communication skills enable bankers to explain complex financial concepts, build relationships, and negotiate deals.

Ethical Conduct: Upholding ethical standards is paramount in banking. Bankers handle sensitive financial information and make decisions that impact individuals and organizations. Maintaining integrity, honesty, and ethical behavior is essential to build trust and foster long-term relationships.

Adaptability and Resilience: The banking industry is dynamic and subject to frequent regulatory changes, technological advancements, and market fluctuations. Bankers must be adaptable and resilient, embracing innovation and staying updated with industry trends to thrive in this ever-evolving environment.

Job Responsibilities of Bankers:

Bankers perform a wide range of tasks and responsibilities depending on their specialization and level within the organization. Here are some common job responsibilities of bankers:

Customer Service: Interacting with clients, understanding their financial needs, and providing personalized solutions is a fundamental part of a banker's role. This includes opening new accounts, assisting with transactions, addressing inquiries, and resolving issues promptly.

Financial Transactions: Bankers handle various financial transactions, such as deposits, withdrawals, loan disbursements, and fund transfers. They ensure accuracy, adherence to regulatory requirements, and maintain the security of financial transactions.

Risk Management: Assessing and managing risks is a critical aspect of banking. Bankers evaluate credit risks, market risks, and operational risks to protect the bank's assets and ensure regulatory compliance. They work closely with risk management teams to implement effective risk mitigation strategies.

Relationship Management: Building and nurturing relationships with clients is essential for bankers. They provide financial advice, recommend suitable products or services, and help clients achieve their financial goals. Building trust and maintaining long-term relationships is crucial for client retention and business growth.

Career Paths and Specializations within the Banking Sector:

The banking industry offers a plethora of career paths and specializations, allowing individuals to tailor their careers to their interests and strengths. Here are some common specializations within the banking sector:

Retail Banking: Retail bankers work directly with individuals and small businesses, providing a wide range of banking services, such as savings accounts, loans, mortgages, and credit cards. They focus on building customer relationships and meeting the financial needs of retail clients.

Investment Banking: Investment bankers specialize in providing financial advisory services and facilitating capital raising activities for corporations, institutions, and governments. They assist in mergers and acquisitions, initial public offerings (IPOs), debt and equity offerings, and other complex financial transactions.

Corporate Banking: Corporate bankers serve large corporations and multinational companies, managing their banking relationships, credit facilities, cash management, and treasury services. They work closely with corporate clients to understand their financial needs and provide tailored banking solutions.

Risk Management: Risk management professionals in banking assess and mitigate various risks, including credit risk, market risk, operational risk, and compliance risk. They develop risk management frameworks, implement risk mitigation strategies, and ensure regulatory compliance.

Wealth Management: Wealth managers cater to high-net-worth individuals and provide comprehensive financial advisory services. They help clients manage their investments, plan for retirement, minimize tax liabilities, and achieve long-term financial goals.

Advantages of Pursuing a Career in Banking:

Job Stability: The banking industry is considered stable and resilient, even during economic downturns. Banks provide essential financial services, and there will always be a demand for banking professionals.

Competitive Salaries: Banking careers are known for their competitive salaries and attractive compensation packages. As you progress in your career and gain experience, your earning potential increases significantly.

Growth Opportunities: The banking sector offers abundant growth opportunities for talented individuals. With dedication and continuous learning, you can climb the corporate ladder, take on leadership roles, and expand your responsibilities.

Networking Opportunities: Banking professionals have ample opportunities to network and build relationships with clients, industry experts, and influential individuals. These connections can open doors to new opportunities and accelerate your career progression.

Exposure to Diverse Industries: Working in banking exposes you to various industries and sectors, allowing you to gain insights into different business models, economic trends, and market dynamics.

Potential Challenges and Disadvantages of Working in the Banking Industry:

Long Working Hours: The banking industry is notorious for long working hours, especially in roles that require client-facing responsibilities or deal with time-sensitive transactions. Be prepared for demanding schedules and occasional work on weekends or public holidays.

High Stress Levels: The fast-paced and high-pressure environment in banking can lead to significant stress levels. Meeting targets, managing client expectations, and navigating market volatility can be mentally and emotionally challenging.

Regulatory Compliance: Banks operate in a heavily regulated environment. Staying updated with regulatory changes, ensuring compliance, and managing associated paperwork can be time-consuming and require meticulous attention to detail.

Intense Competition: The banking industry is highly competitive, and securing top positions or lucrative deals often involves fierce competition. You must continuously enhance your skills, knowledge, and network to stay ahead.

Job Prospects and Growth Opportunities in the Banking Industry:

Despite technological advancements and automation impacting certain job roles within the industry, the banking sector continues to offer promising job prospects and growth opportunities. While some traditional roles may evolve or become obsolete, new roles are emerging in response to technological advancements. Here are some factors to consider regarding job prospects and growth opportunities in the banking industry:

Technological Advancements: The advent of digitalization, artificial intelligence, and automation has transformed the banking industry. While some routine tasks may be automated, this technological shift also creates new opportunities for professionals skilled in data analysis, cybersecurity, digital banking, and fintech.

Emphasis on Customer Experience: Banks are increasingly focusing on enhancing the customer experience through personalized services and digital solutions. Professionals who can leverage technology to deliver exceptional customer experiences will be in high demand.

Sustainable Finance: The rising emphasis on environmental, social, and governance (ESG) factors has led to the growth of sustainable finance. Banking professionals with expertise in sustainable investing, green banking, and ESG risk assessment will find promising opportunities.

International Markets: With globalization, banking professionals with cross-border expertise and knowledge of international markets are highly sought after. Multinational banks and financial institutions offer opportunities for professionals willing to work in different regions or serve diverse client bases.

The Future of Banking Careers:

The future of banking careers is shaped by technological advancements, changing customer expectations, and regulatory developments. While automation and digitization may impact certain roles, they also create opportunities for individuals who can adapt to new technologies and leverage them to drive innovation. Here are some emerging roles and trends in the future of banking:

Digital Banking Specialists: With the rise of digital banking, professionals who specialize in developing and managing digital platforms, mobile banking apps, and innovative payment solutions will be in demand.

Data Scientists and Analysts: As banks generate vast amounts of data, skilled professionals who can analyze and derive insights from this data will play a crucial role in making data-driven decisions, identifying customer trends, and managing risks.

Cybersecurity Experts: With the increasing threat of cybercrime, banks require professionals who can safeguard customer data, develop robust security protocols, and mitigate cybersecurity risks.

Fintech Collaborations: Collaboration between banks and fintech companies is becoming more prevalent. Professionals with knowledge of fintech trends, open banking, and strategic partnerships will be valuable in navigating these collaborations.

Case Studies and Success Stories:

To gain further inspiration and insights, let's explore a few real-life case studies and success stories of individuals who have built successful careers in banking:

Case Study: Sarah Johnson

Sarah Johnson started her career as a customer service representative at a local bank after completing her bachelor's degree in finance. Over the years, she demonstrated exceptional customer service skills, financial acumen, and leadership abilities. Sarah took advantage of the bank's internal training programs and earned her MBA while working full-time. With determination and dedication, she climbed the ranks and eventually became the Vice President of Retail Banking. Sarah's success story highlights the importance of continuous learning, seizing growth opportunities, and building strong relationships with clients and colleagues.

Success Story: John Anderson

John Anderson had a background in technology and always had an interest in the intersection of finance and technology. He joined a leading investment bank as a technology analyst and quickly identified the potential of fintech in transforming the banking industry. John immersed himself in learning about emerging technologies and their applications in banking. With his expertise in fintech and a deep understanding of the banking sector, he co-founded a successful fintech startup that revolutionized the payment industry. John's success story showcases the importance of combining domain knowledge with technological expertise to create impactful changes in the banking industry.

Conclusion:

A career in banking offers a wide range of opportunities for individuals seeking a challenging and dynamic profession in the financial services sector. By acquiring the necessary skills, qualifications, and expertise, you can embark on a fulfilling journey as a banker. Despite the challenges and evolving nature of the industry, the banking sector continues to provide job stability, competitive salaries, and growth prospects. Stay updated with industry trends, embrace technological advancements, and cultivate the essential skills to navigate the ever-changing landscape of banking. Remember, success in banking stems from a commitment to lifelong learning, building strong relationships, and making a positive impact on the financial well-being of individuals and businesses.

Latest Careers

Google Career Certificate Scholarship Program Launches in Nepal

National youth council's youth enterprise program: call for proposals, top 10 challenges faced by employees in the workplace, top challenges faced by employees in wrongful termination cases, how to become a mechanical technician: an 8-step guide, what is the career growth in banking sector, how work life in the banking sector shapes careers, why do people want to join banking sector, build a professional portfolio: a step-by-step guide, apply online.

Find Detailed information on:

Top Colleges & Universities
Popular Courses
Exam Preparation
Admissions & Eligibility
College Rankings

Sign Up or Login

Not a Member Yet! Join Us it's Free.

Already have account Please Login

A Day in the Life of an Investment Banker: Expectations & Reality

Discover the truth behind the glamorous facade of an investment banker's life.

Posted May 11, 2023

Featuring Margaret J.

Ask Me Anything: SAT / How I Got into Harvard / Goldman Sachs!

Thursday, may 16.

11:00 PM UTC · 60 minutes

If you are considering a career in investment banking, it is crucial to understand what the job entails. Investment banking is a highly competitive field that involves helping companies raise capital and advising them on financial transactions. The role of an investment banker is multi-faceted and requires a range of skills and expertise.

What is Investment Banking?

Investment banking is a division of banking that specializes in providing financial services to corporations, governments, and other institutions. It involves underwriting, trading securities, providing financial advice, and managing assets. Investment bankers help companies raise money by issuing and selling securities such as stocks and bonds.

Additionally, investment bankers also play a crucial role in mergers and acquisitions. They advise companies on potential mergers or acquisitions, help negotiate deals, and provide financial analysis to determine the value of the companies involved. Investment bankers also assist in restructuring and reorganizing companies to improve their financial performance and maximize shareholder value.

The Role of an Investment Banker

The role of an investment banker varies depending on the specific job. However, the primary functions of investment bankers include advising clients on financial matters, managing and raising capital, underwriting securities, and facilitating mergers and acquisitions. Investment bankers are also responsible for conducting market research, analyzing data, and developing financial models.

Additionally, investment bankers play a crucial role in the initial public offering (IPO) process. They help companies prepare for going public by providing guidance on regulatory requirements, pricing, and timing. Investment bankers also work with the company to create a prospectus, which is a legal document that outlines the company's financial information and business operations. During the IPO, investment bankers act as intermediaries between the company and potential investors, helping to market the offering and allocate shares.

The Importance of Networking in Investment Banking

Networking is incredibly important in investment banking as it is a highly competitive field. Building relationships with potential clients, colleagues, and industry leaders can help establish trust and foster long-term business relationships. Investment bankers must constantly network with others to generate new business opportunities and stay ahead of market trends.

One of the key benefits of networking in investment banking is the ability to gain access to exclusive information and insights. By building relationships with industry leaders and experts, investment bankers can gain valuable insights into market trends, emerging technologies, and potential investment opportunities. This information can help them make more informed investment decisions and stay ahead of the competition.

Another important aspect of networking in investment banking is the ability to build a strong personal brand. By attending industry events, speaking at conferences, and engaging with others on social media, investment bankers can establish themselves as thought leaders in their field. This can help them attract new clients, build their reputation, and ultimately, grow their business.

The Education and Skills Required for a Career in Investment Banking

Investment banking is a highly specialized field that requires specific education and skills. Most investment bankers have a bachelor's degree in finance, economics, accounting, or a related field. It is also common for investment bankers to pursue a master's degree in business administration (MBA). The job requires strong analytical, communication, and leadership skills. Attention to detail, problem-solving, and decision-making skills are also essential.

In addition to formal education, investment bankers must also possess a deep understanding of financial markets and economic trends. They must be able to analyze and interpret complex financial data, as well as stay up-to-date on industry news and developments. Investment bankers must also have a strong network of contacts and be able to build and maintain relationships with clients and other professionals in the field.

Furthermore, investment banking is a demanding and fast-paced career that requires long hours and a high level of dedication. Successful investment bankers must be able to work well under pressure and meet tight deadlines. They must also be able to adapt quickly to changing market conditions and client needs. Overall, a career in investment banking can be highly rewarding for those who are willing to put in the time and effort to develop the necessary skills and expertise.

What to Expect as an Investment Banker: A Typical Day

A typical day for an investment banker can vary depending on the specific job. However, it often involves conducting market research, analyzing financial data, developing financial models, and meeting with clients. Investment bankers may also attend industry events and meetings, network with potential clients, and participate in training and development sessions.

In addition to these tasks, investment bankers may also spend a significant amount of time on the phone or in meetings with colleagues to discuss potential deals and strategies. They may also work long hours, especially during busy periods such as mergers and acquisitions. It is important for investment bankers to be able to work well under pressure and manage their time effectively in order to meet deadlines and deliver high-quality work.

The Reality of Working Long Hours as an Investment Banker

Investment banking is known for its long hours. It is not uncommon for investment bankers to work 80-hour weeks or more. The job requires a significant amount of dedication and focus. Long hours can be challenging, but it is essential to stay focused and committed to achieving the desired results.

However, working long hours can also have negative effects on an investment banker's health and personal life. The stress and pressure of the job can lead to burnout, anxiety, and other mental health issues. Additionally, long hours can make it difficult to maintain a work-life balance, which can strain personal relationships and lead to feelings of isolation.

Balancing Work and Personal Life as an Investment Banker

Investment banking can be demanding, and it is not always easy to balance work and personal life. However, it is important to prioritize self-care and maintain a healthy work-life balance. Investment bankers can achieve this by setting realistic goals, delegating tasks, and taking breaks throughout the day. Taking care of oneself physically, emotionally, and mentally can lead to greater success in both personal and professional life.

One effective way to balance work and personal life as an investment banker is to establish clear boundaries between the two. This can involve setting specific times for work and leisure activities, and avoiding the temptation to check work emails or take calls during personal time. By creating a clear separation between work and personal life, investment bankers can reduce stress and improve their overall well-being.

Another important aspect of achieving work-life balance as an investment banker is to cultivate a strong support network. This can include family, friends, and colleagues who can provide emotional support and practical assistance when needed. By building a strong support system, investment bankers can better manage the demands of their job while still maintaining meaningful relationships and pursuing personal interests.

The Pros and Cons of a Career in Investment Banking

There are several pros and cons associated with a career in investment banking. The pros include high salaries, bonuses, and opportunities for growth. Investment bankers also gain valuable experience in finance, communication, and leadership. However, cons include long hours, a highly competitive work environment, and the risk of burnout.

Another advantage of a career in investment banking is the opportunity to work with high-profile clients and companies. Investment bankers often work with large corporations, governments, and wealthy individuals, providing them with financial advice and helping them to make strategic decisions. This exposure to high-level business operations can be a valuable learning experience for those interested in pursuing a career in finance or business.

On the other hand, one of the major drawbacks of investment banking is the high level of stress and pressure that comes with the job. Investment bankers are often required to work long hours, sometimes up to 100 hours per week, and are expected to meet tight deadlines and deliver results under intense scrutiny. This can lead to burnout and mental health issues, which is a growing concern in the industry.

Salary Expectations for Entry-Level and Senior-Level Investment Bankers

Investment bankers typically earn a high salary and receive bonuses for their work. The salary depends on the specific job, location, and level of experience. Entry-level investment bankers can expect to earn between $70,000 and $100,000 per year, while senior-level investment bankers can earn over $300,000 per year.

Future Trends in the Investment Banking Industry

Technology is rapidly changing the investment banking industry. The use of artificial intelligence, automation, and machine learning is becoming more prevalent in investment banking. The industry is also becoming more focused on sustainable investing, social responsibility, and environmental impact. Staying up to date with these trends is crucial for investment bankers to remain competitive and relevant in the field.

How to Break into the Competitive World of Investment Banking

The investment banking industry is highly competitive, and breaking in can be challenging. However, networking, gaining relevant skills and experience, and pursuing advanced education can increase one's chances of success. It is also essential to prepare for the recruitment process, which often involves completing a series of challenging and competitive tests and interviews.

Common Misconceptions about Working in Investment Banking

There are several common misconceptions about working in investment banking. One misconception is that it is primarily a male-dominated field. While this may have been true several years ago, the industry is becoming more diverse and inclusive. Another misconception is that investment bankers only care about making money and do not have a social conscience. Most investment bankers are committed to social responsibility and making a positive impact in the world.

The Impact of Technology on the Future of Investment Banking

Technology is revolutionizing the investment banking industry. The use of advanced algorithms, artificial intelligence, and automation is becoming more prevalent in the field. Technology is also changing how investment bankers work, collaborate, and communicate with clients. Staying up to date with these technological advancements is crucial for investment bankers to remain competitive and relevant.

Top Skills and Traits for Success as an Investment Banker

There are several skills and traits that are essential for success as an investment banker. These include strong analytical and problem-solving skills, excellent communication and interpersonal skills, leadership qualities, and attention to detail. Critical thinking, adaptability, and resilience are also crucial for success in this highly competitive field.

In conclusion, investment banking is a challenging and highly competitive field that requires a range of skills, expertise, and dedication. While the job can be demanding, it also offers high salaries, bonuses, and opportunities for growth. Staying up to date with industry trends and continually improving one's skills can lead to success in the field. It is essential to prioritize self-care and maintain a healthy work-life balance to avoid burnout and achieve long-term success in both personal and professional life.

Browse hundreds of expert coaches

Leland coaches have helped thousands of people achieve their goals. A dedicated mentor can make all the difference.

Browse Related Articles

May 11, 2023

Investment Banking Verticals: Exploring the Diverse Industry Segments

Discover the various segments within the investment banking industry with our comprehensive guide.

March 12, 2024

How to Break Into Investment Banking–What to Do From Freshman to Senior Year

Discover how to kickstart your finance career with our beginner's guide to investment banking. Get expert tips and insights on navigating this career path from day one to set yourself up for success.

May 23, 2023

What Are the Different Types of PE Firms?

Discover the various types of private equity firms and their unique investment strategies.

May 19, 2023

Top Investment Banking Firms: A Competitive Landscape Analysis

Discover the top investment banking firms in the industry with our comprehensive competitive landscape analysis.

Investment Banking Exit Opportunities: Exploring the Next Steps

Are you looking to explore your options after a career in investment banking? Our article delves into the various exit opportunities available to you, providing valuable insights and guidance for your next steps.

Exploring Boutique Investment Banks: Opportunities & Challenges

Discover the world of boutique investment banks and the unique opportunities and challenges they present in this insightful article.

TBV Explained: Understanding Tangible Book Value and Its Importance

If you're looking to understand the concept of Tangible Book Value (TBV) and its significance, this article is for you.

Investment Banking Analyst Salaries: A Comprehensive Guide

Discover everything you need to know about investment banking analyst salaries in our comprehensive guide.

From Associate to Vice President: Skills Required to Progress in Investment Banking

Are you an associate in investment banking looking to climb the corporate ladder? This article outlines the essential skills required to progress to the coveted position of vice president.

Project Management Skills and Investment Banking: A Perfect Match

Discover how project management skills can be the perfect match for a career in investment banking.

Restructuring Your Career: Best Firms for All Levels in Restructuring

Looking to restructure your career? Check out our comprehensive guide to the best firms for all levels in restructuring.

Investment Banking Case Studies: Preparation & Strategies for Success

Discover the key strategies and preparation techniques required for success in investment banking case studies.

Professional Ethics in Banking and the Logic of “Integrated Situations”: Aligning Responsibilities, Recognition, and Incentives

Original Paper
Published: 12 May 2017
Volume 156 , pages 531–543, ( 2019 )

Cite this article

Lisa Herzog 1

2199 Accesses

28 Citations

7 Altmetric

Explore all metrics

The paper develops a responsibility-based account of professional ethics in banking. From this perspective, bankers have duties not only toward clients—the traditional focus of professional ethics—but also regarding the prevention of systemic harms to whole societies. When trying to fulfill these duties, bankers have to meet three challenges: epistemic challenges, motivational challenges, and a coordination challenge. These challenges can best be met by a combination of regulation and ethics that aligns responsibilities, recognition, and incentives and creates what Parsons has called “integrated situations”. Professional associations play an important role for this purpose, especially as spaces in which peer recognition is earned. But financial incentives equally need to be brought in line, for example, through deferred bonuses or claw backs. Such measures can create a new culture of accountability in banking.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price includes VAT (Russian Federation)

Instant access to the full article PDF.

Rent this article via DeepDyve

Institutional subscriptions

Buyers' trust and mistrust in e-commerce platforms: a synthesizing literature review

E-Commerce and Consumer Protection in India: The Emerging Trend

Financial technology and the future of banking

See, for example, Cohan ( 2015 ) and Santoro and Strauss ( 2013 ) for discussions of the crisis of “ethics and values” in banking (ibid., pos. 277). See Group of Thirty ( 2015 ) for a general discussion of how to bring about a change of culture in banking.

In business ethics, there has been some debate about professional ethics in banking. Many commentators argued that banking lacks essential features of a profession, for example, because its tasks are too diverse and the profit motive is too strong (e.g. Boatright 2013 , 2014 ; de Bruin 2014 ). Some therefore reject the idea of strengthening professionalism and professional ethics in banking (e.g. UK Parliament 2013 –14). Others, in contrast, have suggested that doing so is crucial for rebuilding trust in banking (e.g. Jaffer et al. 2014 a; O’Neill 2014 ). But these proposals have remained unspecific with regard to the challenges that professional ethics in banking should respond to and the structures that would have to be created for developing a credible and reliable professional ethics among bankers.

In general, responsibilities of groups other than companies are rarely discussed. One exception is Wempe’s ( 2009 ) article that discusses the responsibility of “limited organized collectives” such as sectors. A discussion of industry associations is provided by Noll ( 2008 ); his account, however, focuses on problems internal to associations. An argument for companies being partly responsible for developments in their industry is developed in Herzog ( 2015 ).

My account is normative and functional, in the sense that I ask what functions professional associations should play. For that reason, I put aside other explanations sociologists have provided for professionalization, such as status seeking or attempts to create monopolies (cf. e.g. Abbott 1983 ).

This proposal is in line with the call for “industry-led response[s] in key areas” (Group of Thirty 2015 , p. 6, see also 56).

For an “ethics of expertise,” see also Hardwig ( 1994 ).

Cf., for example, the steps taken by the UK’s Financial Conduct Authority with regard to the fair treatment of customers, see https://www.fca.org.uk/firms/fair-treatment-customers (last accessed May 9, 2017).

The term “systemic harms” is also used by Armour and Gordon ( 2014 ) in a discussion of how shareholder value maximization imposes harm on others. Their line of argument is to internalize these costs as far as possible. Their focus is on corporate governance, while mine is on professional associations (for reasons discussed below), but the approaches are similar in spirit and complementary in practice.

One can distinguish a “narrow” from a “broad” notion of systemic harm. The “narrow” notion focusses on the prevention of harm compared to the status quo; the “broad” notion also includes failures to make positive contributions. I here focus on a “narrow” notion of harm, but the argument becomes even stronger if one uses a broad notion of systemic harm. The latter is also more controversial, however, because it presupposes positive in addition to negative duties. While I think such positive professional duties can be defended, this is a task for another paper.

I here bracket the problem of whether growth would have helped those in direst need; to do so, redistributive measures would probably also have been needed.

Systemic harms are thus more likely to occur in investment banking than in retail or wholesale banking. But the activities of retail and wholesale bankers can both form links in the causal chains that lead to systemic harms. In what follows, I focus on functions of banking rather than on the forms of companies; hence, the group of bankers working in specific fields is the relevant unit of analysis.

Commentators have also discussed whether regulators might be at a disadvantage because banks can attract the brightest employees with high wages, whereas regulating authorities can only pay civil service wages (see e.g. Luyendijk 2013 , entry of May 10, 2012). If this is the case, it makes this problem even more intricate.

Small and Loewenstein ( 2003 ), quoted in Bazerman and Tenbrunsel ( 2011 , p. 98). Cf. also Rose ( 2011 , chap. 6) on the “empathy problem”: “in large groups many acts of opportunism will simply not feel wrong because there is no harmed person to empathize with” (ibid., 96).

On “moral salience,” see Jones ( 1991 ), quoted in Awrey et al. ( 2013 ) and de Bruin ( 2014 , p. 256f.).

Even if one does not think that the imposition of systemic harms amounts to a form of structural injustice, however, one can take over Young’s notion of forward-looking responsibility—as long as one thinks that there is some kind of moral imperative to prevent such harms. A duty to prevent such harm can be justified from the perspective of different moral theories. It can be captured by a consequentialist perspective, but also by Kantian (Scharding 2015 ) or contractualist (Baradaran 2014 ; Claassen 2015 ) perspectives. Hence, from all these perspectives one also has to ask how this duty could be fulfilled in practice. It is here that an ethics of responsibility comes in.

Although Young delineates her approach from Kutz’s ( 2005 ) notion of complicity ( 2011 , p. 101f.), there are many similarities which, arguably, outweigh the differences.

This does not mean that these are the only addressees of responsibility according to Young. In the conclusion, I briefly mention how other bearers of responsibility can be identified.

See also Young 2011 , chap. 3 on the distinction between guilt and political responsibility.

For an approach that also combines Young and Collins, in the context of the fight against global poverty, see Kahn 2016 .

It might be said that ethics reduces the operating risks of banks; therefore, if ethics were strengthened, there might be less need for the proposal to create “integrated situations” (I thank an anonymous reviewer for raising this point). But for the reasons given above, systemic harms present specific challenges, and it is therefore crucial to find the right form of ethics for reducing operating risks. In an ideal scenario, establishing “integrated situations” will strengthen ethics and thereby reduce risk, and with reduced risk, it becomes easier to create “integrated situations”—a positive, self-reinforcing cycle.

I focus on associations that have individuals rather than companies as members (the latter is the case, for example, for the American Bankers Association (ABA)). The latter kind of associations may, however, sometimes play an analogous role as spaces of social recognition; they would then also be relevant for creating “integrated situations”.

On defining features of professions, see, for example, Cowton ( 2009 , 178) and the literature summarized there or Franssen et al. ( 2013 ). For a discussion from a philosophical perspective, see, for example, Miller ( 2010 , chap. 6).

The CFA Institute has over 135,000 members worldwide (see https://en.wikipedia.org/wiki/CFA_Institute , last accessed May 9, 2017). There is a plethora of other institutions; for example, the European Association of Financial Analyst Societies has 27 member societies with more than 14,000 members (see https://en.wikipedia.org/wiki/European_Federation_of_Financial_Analysts_Societies , last accessed May 9, 2017). For the US, Ragatz and Dutzka ( 2010 ) list (without a claim to completeness): the American Academy of Actuaries, the Institute of Certified Bankers, the American Institute of Certified Public Accountants, the CFA, the Financial Planning Association, the Million Dollar Roundtable, the National Association of Insurance and Financial Advisors, the American College Code of Ethics, the National Association of Personal Financial Advisers, and the Society of Financial Service Professionals.

Historically, the professions often had extensive responsibilities; see e.g. Abbott ( 1983 , 860f.), referring especially to pre-revolutionary France and the Prussian system of professions. As he argues, modern individualism has led to a downgrading of collective responsibilities among professionals.

Such a structure would provide a response to the point, raised by some commentators, that banking, in contrast to traditional professions, includes many different kinds of activities and therefore lacks a clear focus (e.g. Boatright 2011 , p. 483; Boatright 2013 ; p. 154 de Bruin 2014 , p. 270; Cowton 2010 , p. 326). This means that there cannot be a single professional ethics in banking; rather, one needs a number of different professional ethics.

As Awrey and Kershaw ( 2014 , 283f.) report, the CFA Institute had 2.42 suspensions and 0.92 expulsions per year from 2000–2011, for tens of thousands of members. This suggests that enforcement mechanisms have not been very strong in the past.

This is a worry sometimes raised with regard to professional associations. Professional associations have, after all, been described as “successful conspiracy[ies] against society” (Cowton 2009 , 187). But the best response, I take is, is not to completely reject the idea of professional associations, but to carefully delineate the space they should occupy, including its legal dimensions, and the tasks they should take on. Pragmatically speaking, personal networks between bankers working in the same fields exist anyway—so the best way to prevent misconduct is not to wish them away, but to formalize them and to hold individuals accountable for them. Professional ethics and its organization in professional associations have to take place in complete transparency to, and collaboration with, regulating authorities. The model to be followed should not be one in which external regulation would be replaced by self-regulation, but one in which professional associations take on a role in “co-regulation” (see e.g. Gunningham and Rees 1997 , quoted in Jaffer et al. 2014 b).

Professionalization as a response to the vulnerability of clients can be understood as a solution to the collective action problem of creating binding standards for how customers should be treated. It would be difficult, and maybe even impossible, for individual professionals to create such standards on their own and to credibly commit to them. But professional associations can develop, monitor, and sanction such standards, thereby making the commitment credible.

Cf. similarly, in the contexts of accountants, Gill ( 2009 , p. 118).

In part, this is already happening. For example, Sagato ( 2015 ) reports on repo markets in Europe, on which information is provided by the International Capital Market Association (ICMA).

Associations could also organize the dialogue with other parts of society: they could invite speakers from other professions, from NGOs, or from public organizations in order to get a better sense of how financial processes interact with other social processes. De Bruin ( 2014 ) suggests using “deliberative polling ® ” (Fishkin 1988 ); this could also be done in professional associations.

One might object that the liability of individuals is not large enough to cover the harm done by an event such as a major financial crisis (cf. similarly on corporations Coffee 1981 ). But for liability to have an effect on behavior, it need to be as high as the harm that can be done.

For reflections on such “process oriented” regulation, see also Awrey et al. ( 2013 ).

They would also constitute a partial return to a “liability” model of responsibility, in the sense that Young contrasts to the understanding of responsibility as forward-looking. But here, the same point applies: responsibility as liability and forward-looking responsibility should not be understood as mutually exclusive.

Some banking associations have indeed started ethics initiatives and are in dialogue with regulators about new forms of training. For example, the German Association of Investment Professionals (DVFA), together with academics working on ethics in finance, has developed a paper on the virtues needed in finance and aims at implementing it through training and awareness raising. Empirical research on such initiatives would be very helpful to throw further light on professional ethics in banking.

Abbott, A. (1983). Professional ethics. American Journal of Sociology, 88 (5), 855–885.

Article Google Scholar

Admati, A., & Hellwig, M. (2013). The bankers’ new clothes: What’s wrong with banking and what do about it . Princeton and Oxford: Princeton University Press.

Google Scholar

Angeli, M., & Gitay, S. (2015). Bonus regulation: aligning reward with risk in the banking sector. Quarterly Bulletin, Q4, 322–333.

Armour, J., & Gordon, J. N. (2014). Capital failure. rebuilding trust in financial services. In N. Morris & D. Vines (Eds.), Systemic harms and the limits of shareholder value (pp. 234–252). Oxford: Oxford University Press.

Awrey, D., Blair, W., & Kershaw, D. (2013). Between law and the market: Is there a role for culture and ethics in financial regulation? Delaware Journal of Corporate Law, 38 (1), 191–246.

Awrey, D., & Kershaw, D. (2014). Toward a more ethical culture in finance. Regulatory and governance strategies. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 277–304). Oxford: Oxford University Press.

Chapter Google Scholar

Baradaran, M. (2014). Banking and the social contract. Notre Dame Law Review, 89, 1283–1342.

Bazerman, M. H., & Tenbrunsel, A. E. (2011). Blind spots. Why we fail to do what’s right and what to do about it . Princeton/Oxford: Princeton University Press.

Bitner, R. (2008). Confessions of a subprime lender: An insider’s tale of greed, fraud, and ignorance . Hoboken, NJ: Wiley.

Boatright, J. R. (2011). Trust and integrity in banking. Ethical Perspectives, 18 (4), 473–489.

Boatright, J. R. (2013). Swearing to be virtuous: The prospect of a banker’s oath. Review of Social Economy, 71 (2), 140–165.

Boatright, J. R. (2014). Ethics in finance (3rd ed.). Chichester: Wiley Blackwell.

Brenkert, G. G. (2009). Whistle-blowing, moral integrity, and organizational ethics. In T. Beauch & G. G. Brenkert (Eds.), The Oxford handbook of business ethics (pp. 563–601). Oxford: Oxford University Press.

Brennan, G., & Pettit, P. (2004). The economy of esteem: An essay on civil and political society . Oxford: Oxford University Press.

Book Google Scholar

Burton, E., & Shah, S. N. (2013). Behavioral finance: Understanding the social, cognitive, and economic debates . Hoboken, NJ: Wiley.

Claassen, R. (2015). Financial crisis and the ethics of moral hazard. Social Theory and Practice, 41 (3), 527–551.

Coffee, J. C., Jr. (1981). “No soul to damn: no body to kick”: An unscandalized inquiry into the problem of corporate punishment. Michigan Law Review, 79 (3), 386–459.

Cohan, W. D. (2015). Can bankers behave? The Atlantic. Available at https://www.theatlantic.com/magazine/archive/2015/05/can-bankers-behave/389558/ . Accessed 9 May 2017.

Cohn, A., Fehr, E., & Maréchal, M. A. (2014). Business culture and dishonesty in the banking industry. Nature, 516 (4), 86–89.

Collins, S. (2013). Collectives’ duties and collectivization duties. Australasian Journal of Philosophy, 91 (2), 231–248.

Cowton, C. J. (2009). Accounting and the ethics challenge: re-membering the professional body. Accounting and Business Research, 39 (3), 177–189.

Cowton, C. J. (2010). Banking. In J. R. Boatright (Ed.), Financial ethics: Critical issues in theory and practice (pp. 325–337). Hoboken, NJ: Wiley.

de Bruin, B. (2014). Ethics management in banking and finance. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 255–275). Oxford: Oxford University Press.

de Bruin, B. (2015). Ethics and the global financial crisis. Why incompetence is worse than greed . Cambridge: Cambridge University Press.

Eriksen, A. (2015). The authority of professional roles. Journal of Social Philosophy, 46 (3), 373–391.

Fishkin, J. S. (1988). Washington: The case for a national caucus. Atlantic Monthly, 8, 16–17.

Foodwatch. (2014). 75 per cent of stock exchange practitioners think speculation does influence food prices. 03-07-2014, http://www.foodwatch.org/en/what-we-do/news/75-per-cent-of-stock-exchange-practitioners-think-speculation-does-influence-food-prices/ . Accessed 9 May 2017.

Franssen, M., Lokhorst, G.-J., van de Poel, I. 2013. “Philosophy of Technology”, The Stanford Encyclopedia of Philosophy (Winter 2013 Edition) , Edward N. Zalta (ed.), URL = < http://plato.stanford.edu/archives/win2013/entries/technology/ >.

Frey, B. (1997). Not just for the money. An economic theory of personal motivation . Cheltenham: Edward Elgar.

Getzler, J. (2014). Financial crisis and the decline of fiduciary law. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 193–208). Oxford: Oxford University Press.

Gill, M. (2009). Accountants’ truth. Knowledge and ethics in the financial world . Oxford: Oxford University Press.

Gold, N. (2014). Trustworthiness and motivation. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 129–153). Oxford: Oxford University Press.

Group of Thirty. (2015). Banking conduct and culture. A call for sustained and comprehensive reform. Washington. http://group30.org/images/uploads/publications/G30_BankingConductandCulture.pdf . Accessed 9 May 2017.

Gunningham, N., & Rees, J. (1997). Industry self-regulation: An institutional perspective. Law & Policy, 19 (4), 365–414.

Hardwig, J. (1994). Toward an ethics of expertise. In D. Wueste (Ed.), Professional ethics and social responsibility (pp. 83–101). London: Rowman & Littlefield.

Herzog, L. (2015). No company is an island. Industry-related responsibilities as elements of corporate social responsibility. Journal of Business Ethics . doi: 10.1007/s10551-015-2923-7

Hughes, E. C. (1988). Professions. In J. C. Callahan (Ed.), Ethical issues in professional life (pp. 31–34). New York and Oxford: Oxford University Press.

Jaffer, S., Morris, N., & Vines, D. (2014a). Why trustworthiness is important. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 3–31). Oxford: Oxford University Press.

Jaffer, S., Morris, N., & Vines, D. (2014b). Restoring trust. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 350–386). Oxford: Oxford University Press.

Jones, T. M. (1991). Ethical decision-making by individuals in organizations: An issue-contingent model. Academy of Management Review, 16 (2), 366–395.

Kahn, E. (2016). Poverty, injustice and obligations to take political action. In H. P. Gaisbauer, G. Schweiger, & C. Sedmak (Eds.), Ethical issues in poverty alleviation (pp. 209–224). Cham: Springer International Publishing Switzerland.

Kleymenova, A., & Tuna, I. (2016). Regulation of compensation . The University of Chicago Booth School of Business Working Paper No. 16-07. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2755621 . Accessed 9 May 2017.

Kutz, C. (2005). Complicity. Ethics and law for a collective age . Cambridge: Cambridge University Press.

Lounsbury, M. (2002). Institutional transformation and status mobility: The professionalization of the field of finance. Academy of Management Journal, 45 (1), 255–266.

Luyendijk, J. (2013). The banking blog . http://www.theguardian.com/commentisfree/joris-luyendijk-banking-blog . Accesssed 9 May 2017.

MacIntyre, A. (1984). After virtue. A study in moral theory (2nd ed.). Notre Dame: Notre Dame University Press.

May, L. (1996). The socially responsible self. Social theory and professional ethics . Chicago and London: The University of Chicago Press.

Miller, S. (2010). The moral foundations of social institutions. A philosophical study . New York: Cambridge University Press.

Noe, T., & Peyton Young, H. (2014). The limits to compensation in the financial sector. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 65–78). Oxford: Oxford University Press.

Noll, B. (2008). Verbändeethik im Spannungsfeld von Individual-, Unternehmens- und Ordnungsethik. In L. Heidbrink & A. Hirsch (Eds.), Verantwortung als marktwirtschaftliches Prinzip. Zum Verhältnis von Moral und Ökonomie (pp. 231–259). Frankfurt/New York: Campus.

Oakley, J., & Cocking, D. (2001). Virtue ethics and professional roles . Cambridge: Cambridge University Press.

O’Neill, O. (2014). Trust, trustworthiness, and accountability. In N. Morris & D. Vines (Eds.), Capital failure. Rebuilding trust in financial services (pp. 173–190). Oxford: Oxford University Press.

Parsons, T. (1939). The professions and social structure (pp. 34–49)., Reprinted in: Essays in sociological theory New York: The Free Press.

Ragatz, J. A., & Dutzka, R. F. (2010). Financial codes of ethics. In J. R. Boatright (Ed.), Financial ethics: Critical issues in theory and practice (pp. 297–323). Hoboken, NJ: Wiley.

Reichert, W.-G. (2009). Das Ethos des Investmentbanking. Implikationen für eine prudentielle Regulierung. Ethik und Gesellschaft 2/2009: 1–25.

Reichert, W. G. 2010. “Das Berufsethos des Investmentbanking und seine Bedeutung für die Finanzmarktregulierung.“ Frankfurter Arbeitspapiere zur gesellschaftsethischen und sozialwissenschaftlichen Forschung 58.

Rose, D. C. (2011). The moral foundation of economic behavior . New York: Oxford University Press.

Sagato, P. 2015. “The liquidity dilemma and the repo market: A two-step policy option to address the regulatory void.” LSE Law, Society and Economy Working Papers 21/2015. http://ssrn.com/abstract=2692288 .

Santoro, M. A., & Strauss, R. J. (2013). Wall street values. Business ethics and the global financial crisis . Cambridge: Cambridge University Press.

Scharding, T. K. (2015). Imprudence and immorality: A kantian approach to the ethics of financial risk. Business Ethics Quarterly, 25 (2), 243–265.

Small, D. A., & Loewenstein, G. (2003). Helping a victim or helping the victim: Altruism and identifiability. Journal of Risk and Uncertainty, 26 (1), 5–16.

Turner, A. (2016). Between debt and the devil. Money, credit, and fixing global finance . Princeton and Oxford: Princeton University Press.

UK Parliament. 2013–14. Changing banking for good. Report of the Parliamentary Commission on Banking. Volume I: Summary, and Conclusions and recommendations. London: The Stationery Office.

van de Ven, B. (2011). Banking after the crisis. Towards an understanding of banking as a professional practice. Ethical Perspectives, 18 (4), 541–568.

von Weltzien Hoivik, H. (2002). Professional ethics—a managerial opportunity in emerging organizations. Journal of Business Ethics, 39, 3–11.

Wempe, J. (2009). Industry and chain responsibilities and integrative social contracts theory. Journal of Business Ethics, 88, 751–764.

Wilensky, H. L. (1964). The professionalization of everyone? American Journal of Sociology, 70 (2), 137–158.

Young, I. M. (2011). Responsibility for justice . Oxford: Oxford University Press.

Download references

Acknowledgements

I would like to thank audiences at the Ausschuss "Wirtschaftswissenschaften und Ethik" of the Verein für Socialpolitik and at two workshops at Goethe University Frankfurt, as well as friends and colleagues in personal conversations, and last but not least several reviewers for their helpful comments and suggestions.

Author information

Authors and affiliations.

Bavarian School of Public Policy at the Technical University of Munich, Richard-Wagner-Str. 1, 80333, Munich, Germany

Lisa Herzog

You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Lisa Herzog .

Rights and permissions

Reprints and permissions

About this article

Herzog, L. Professional Ethics in Banking and the Logic of “Integrated Situations”: Aligning Responsibilities, Recognition, and Incentives. J Bus Ethics 156 , 531–543 (2019). https://doi.org/10.1007/s10551-017-3562-y

Download citation

Received : 12 September 2016

Accepted : 26 April 2017

Published : 12 May 2017

Issue Date : 15 May 2019

DOI : https://doi.org/10.1007/s10551-017-3562-y

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

Ethics of responsibility
Professional ethics
Professional associations
Systemic harms
Find a journal
Publish with us
Track your research

Home / Essay Samples / Life / Ambition / My Ambition To Become A Professional Financial Investment Banker

My Ambition To Become A Professional Financial Investment Banker

Category: Life
Topic: Ambition , Inspiration , Personal Goals

Pages: 1 (664 words)

Downloads: -->

--> ⚠️ Remember: This essay was written and uploaded by an--> click here.

Found a great essay sample but want a unique one?

are ready to help you with your essay

You won’t be charged yet!

Humanity Essays

Adversity Essays

Hope Essays

Empathy Essays

Inspiration Essays

Related Essays

We are glad that you like it, but you cannot copy from our website. Just insert your email and this sample will be sent to you.

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Your essay sample has been sent.

In fact, there is a way to get an original essay! Turn to our writers and order a plagiarism-free paper.

samplius.com uses cookies to offer you the best service possible.By continuing we’ll assume you board with our cookie policy .--> -->

Why Becoming A Banker Instead Of A Lawyer Was The Best Life Choice I Ever Made

What Exactly Is an Investment Banker? Essay

7 Reasons Why a Banking Career Should Be on Your Radar

Wanted: Non-Finance Graduates

2. Bigger is Better

3. It’s Happening Real-Time

4. It’s a Global, Not a Parochial World

5. Dynamic Training

6. The Choice is Yours

7. You are an Investment

Get Your Career Started At Morgan Stanley

The Emotional Quotient of Investment Banking

Questions Interns Are Dying to Ask But Don’t

For Millennials It's Not Just the Money that Counts

The Advantages of Being a Banker

How Much Money Do Bank Managers Earn?

Fulfilling Career

Flexible Schedule

Attractive Compensation

Generous Benefit Packages

Advancement Opportunities

Related Articles

Exploring a Career as a Banker: Skills, Growth Opportunities & Advantages

Exploring a Career as a Banker: Skills, Growth Opportunities & Advantages

Overview of the Banking Industry:

Educational Requirements and Qualifications:

Essential Skills for a Successful Banking Career:

Job Responsibilities of Bankers:

Career Paths and Specializations within the Banking Sector:

Advantages of Pursuing a Career in Banking:

Potential Challenges and Disadvantages of Working in the Banking Industry:

Job Prospects and Growth Opportunities in the Banking Industry:

The Future of Banking Careers:

Case Studies and Success Stories:

Conclusion:

Google Career Certificate Scholarship Program Launches in Nepal

Sign Up or Login

A Day in the Life of an Investment Banker: Expectations & Reality

Ask Me Anything: SAT / How I Got into Harvard / Goldman Sachs!

Table of Contents

What is Investment Banking?

The Role of an Investment Banker

The Importance of Networking in Investment Banking

The Education and Skills Required for a Career in Investment Banking

What to Expect as an Investment Banker: A Typical Day

The Reality of Working Long Hours as an Investment Banker

Balancing Work and Personal Life as an Investment Banker

The Pros and Cons of a Career in Investment Banking

Salary Expectations for Entry-Level and Senior-Level Investment Bankers

Future Trends in the Investment Banking Industry

How to Break into the Competitive World of Investment Banking

Common Misconceptions about Working in Investment Banking

The Impact of Technology on the Future of Investment Banking

Top Skills and Traits for Success as an Investment Banker

Browse hundreds of expert coaches

Browse Related Articles

Investment Banking Verticals: Exploring the Diverse Industry Segments

How to Break Into Investment Banking–What to Do From Freshman to Senior Year

What Are the Different Types of PE Firms?

Top Investment Banking Firms: A Competitive Landscape Analysis

Investment Banking Exit Opportunities: Exploring the Next Steps

Exploring Boutique Investment Banks: Opportunities & Challenges

TBV Explained: Understanding Tangible Book Value and Its Importance

Investment Banking Analyst Salaries: A Comprehensive Guide

From Associate to Vice President: Skills Required to Progress in Investment Banking

Project Management Skills and Investment Banking: A Perfect Match

Restructuring Your Career: Best Firms for All Levels in Restructuring

Investment Banking Case Studies: Preparation & Strategies for Success

Professional Ethics in Banking and the Logic of “Integrated Situations”: Aligning Responsibilities, Recognition, and Incentives

Cite this article

Access this article

Similar content being viewed by others

Buyers' trust and mistrust in e-commerce platforms: a synthesizing literature review

E-Commerce and Consumer Protection in India: The Emerging Trend

Financial technology and the future of banking

Acknowledgements

Author information

Corresponding author

Rights and permissions

About this article