Why is Consulting better than Banking?
Why Consulting > Banking. Why does it lead to better exit opps and pay? My friends tell me that banking is what people fall into when they can’t get into consulting.
You are highly mistaken if you think consulting pays as much as banking. A first-year consultant will make at most 105k (more like 95k). A first-year analyst at an investment bank will make roughly 135k to upwards of 175k at EBs. The gap increases as you rise up the ranks.
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Weird, people usually tell me consulting is for if you don’t have what it takes to make it in banking and for women. I don’t agree with that statement at all since they are two fundamentally different industries. But objectively, IB has way better pay than consulting at every level and way better exits into PE and HF (however keep in mind that you also work more in IB in terms of hours regardless of consulting travel). But go with the one you like in terms of work, they are two very different career paths and both offer very different things. You can never truly say one is better than the other because it completely depends on the person.
Consulting and banking lead to the same exit opps in the corporate world but banking has better exits into PE and HF. Consulting does prepare you better for management roles at companies (and for startups) due to its exposure to operations, while banking prepares you better for internal M&A roles and other CFO-path roles at companies. Banking pays better at the junior and especially the senior level.
That said, one is not better than the others. I've heard a few people say what your friends said, but I've also heard a lot say the exact opposite. Consulting tends to draw quantitative people who enjoy thinking creatively while banking attracts quantitative people who want to stick to numbers-driven analysis. Both work you to the bone and ultimately force you to become a salesman, so pick your poison
To each their own. I was split 50/50 as to whether I wanted to go into Consulting or Banking, both equally attractive providing challenging and engaging work, solid comp, great career prospects long term, etc.
>engaging work
It's not necessarily
All these threads are so annoying. Do what you want to do and live with the benefits and consequences of your decision
Totally different experiences and skillsets. Banking is about numbers / financing - or how to fund a company. Consulting is about corporate strategy and operations - or how to run a company. Hard to imagine one would like both to the same degree.
Both pay well, are prestigious, and lead to top MBAs and/or positions in industry. Don't be consumed by the comp for a partner in PE or a HF. Very few will ever get there. If you could get there, you probably have the stones to be an MBB partner and that guy makes well into 7 figures as well. Alternatively, if you exit from consulting to industry and become a senior leader, you also will get paid quite well (well into 7 figures).
Decide what you want to be when you grow up and position yourself to that end. You can always redirect with a top MBA should it not be to your liking.
This "which is better" conversation is just plain stupid!
Pretty sure this is a troll post
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