TECH VS FINANCE (Objective Comparison)
Let me start off by saying that I think everyone should study CS (doesn't have to be a major, could be a minor or a couple classes). The value you get from knowing code is insane. You're able to create websites, programs, apps, etc. within hours or days. I know some people in college with side projects that earn them thousands a month.
However, being a SWE as a career is different. Personally, I lean towards finance being a better long term career at the employee level, with tech being a lot better for startups/entrepreneurship if you're into that. My criteria will be: beginning of career, long term prospects for average person, long term prospects for top 1%, WLB, versatility, and difficulty.
STARTING OFF:
In terms of starting comp and WLB, tech wins. With signing bonus, FAANG is around 220k starting and 190 recurring, while IB (BB) is far below that. Hours are also 40 instead of 80. SWE at HFT/Quant with signing bonus are like 400-600k, so objectively SWE is way better starting off. (1 - 0, tech in the lead)
LONG TERM PROSPECTS FOR THE AVERAGE PERSON:
The expected earnings (EV) for finance is most likely higher long term. While most wont make it to partner of MF PE or UMM, the average person that stays in finance long term (IB directors, CFO of small companies, Corp dev, PE principal etc) will make a pretty good living. It may not be millions, but it'll be good. SWE at big tech hasn't really been around long enough to see where people will end up long term, so I give the long term comp edge to finance. Terminal level at FAANG (where the average person will end up) is currently like 400-500k. Not bad for working like 30 hours a week WFH, but the average person will likely make more in finance long term. (1 - 1, tied)
LONG TERM PROSPECTS FOR THE TOP 1% OF BOTH FIELDS (AT THE EMPLOYEE LEVEL):
Not going to count entrepreneurship here because obviously tech would win. At the employee level, finance wins here. If you can make it to MD of IB, partner at UMM/MF PE, or PM at HF, you could make 10 million+. At FAANG, L8 maxes out at around 2 million. Not sure what it is at HFT/Quant, but most likely will be a few million max. (2 - 1, finance in the lead)
VERSATILITY:
Tech wins this. If you know how to code, you can create ventures / side projects that could potentially be worth millions or even billions. If you're a CS major out of a top school, you get VC backed with literally anything. VC is incredibly tech focused, particular in Silicon Valley. Obviously not every venture will be successful, but you have that base skillset to create an Uber/Doordash/Social media app/program. Moreover, with the ascent of AI, tech will make a ton of rich people in the coming decades. (2 - 2, tied)
WLB:
Tech wins and it's not close. (3 - 2, tech in the lead)
DIFFICULTY:
Getting into finance and learning the material, imo, is a lot easier than learning how to code and getting into SWE. CS classes are freaking hard, lol. They take up hours and hours of your time. CS kids are smarter than the business/econ kids on average, so it's easier for the average person to pick up finance. (3 - 3, tied)
Overall, I give the edge to finance long term since I weigh the difficulty criterion slightly more, as I don't think I'd be smart enough to be a good coder.
Bump
Bro, who fucking cares?
All of this supposedly coming from a first year M&A analyst
Stupid comparison. I can do Excel, make PPTs, talk to people, and I like macroeconomics; I can't code, I'm not interested in computer systems and whatever. That's why I'm going into finance/IBD-DCM, not tech. Apples to oranges
Here we fucking go again, if you get into IB or SWE be happy getting into either of one those position is difficult in one way or the other and takes time and hard work. Getting into those means you will earn money majority of the people won’t earn in their lifetime just be happy you got into SWE or IB. Both are exceptionally great jobs.
Why the hell would I want to be an SWE code monkey when I can be a neurosurgeon? Or something cool like a fighter pilot / astronaut?
Anyone have insights into exits into these for a top bucket banking veep? Should I try and lateral to an EB first?
Stop comparing tech and finance. It’s pointless. Just do whatever your gut tells you. Also finance is better than tech.
If it were 3 years ago, I’d advocate for tech, but now tech is seriously declining. Stock crashes, lay-off, mandatory pip quota, more pressure, worse wlb, lower TC, stagnant career growth, all of the above has suddenly exploded in the past 3 months. High-growth can hide problems and tech was high growth, but not any more. The growth period of tech is over, now it’s the doom doom time. Even people in the best of tech company (being Google) are ranting about heavy politics, bureaucracy, dumb meetings, no meaningful work, and most importantly low TC. Job content is boring as we all know, the excitement of start-ups are gone as interest rate hikes, even work life balance isn’t good anymore. Amazonians constantly get depressed for pip, and now even Googlers are joining the Amazon toxicity.
There has been a massive influx of tech workers into finance. Meta and Amazon people are applying to quant at banks. Also the new Chat AI thing just released by openAI have learnt to write codes. So my guess is that SWE are going to be replaced by AIs soon.
As to product managers, they are so overhyped. In many cases PMs are glorified secretary and are babysitters for SWEs especially if you are in a large mature company and have less than 10 YoE.
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