For students considering banking vs consulting

Some reflection on banking vs consulting 7 years in for students who are considering both. Hope it helps

TDLR: In my opinion Covid has changed the consulting industry for the better where my view is that consulting is now a much more sustainable career and something potentially long term for a normal person, I don’t believe banking is the same…

Background:  I did my undergrad internship in a mid-tier BB before pivoting to T2 consulting full time however, stayed friends with other interns I met who re-joined the BB and I have lived with a banker for the last 8 years so have a fairly good idea about the lifestyle.

Speed of progression: (minor pro for consulting)

• Overall – Both progress at lightning speed compared to industry and you will be mid-career level before you’re 30, overall consulting edges it but the difference is relatively small.
• Consulting – My path is fairly typical and I am hopefully becoming pre partner level this year, I made manager in 5 years and expect to spend 4 – 6 years at the pre partner level.
• Banking – Almost all of my friends did 3 + 4 and are about the VP level. All expect to spend atleast 6 - 8 years between VP and Director before MD.

Work life balance: (Big pro for consulting)

• Overall: Consulting trounces banking for WLB, true before covid and more true after. Anyone saying different is coping hard
• Consulting:
  • Prior to Covid I worked 60 – 70-hour weeks including travel. Since Covid I work 50-hour weeks mostly from home. I have had maybe 6 weeks total in my career over 80.
  • I am west coast based My typical day is 7am – 7pm with 1.5 hours taken to workout and another 30 min break to walk my dog.
  • Travel requirements are client dependent and typically are now 1 – 2 weeks a month for 2-3 days instead of 4 weeks 4 days.
  • Overall people are amenable to your life, hobbies are known and it’s encouraged to manage “team norms” in all teams you work in encouraging WLB.
  • In the post covid world I truly believe consulting has become a much more friendly industry where people work less, clients demand less and I see partners have real lives at home.
• Banking:
  • Prior to covid my friends and roommates typically pulled 70 – 90-hour weeks with some over 90/100. Since covid and as they have got more senior I believe the typical is 60 – 80 hour weeks still.
  • My roommate as a VP when WFH day is 8:30pm – 8pm with some weekend work thrown in maybe another 8 hours across both days. He typically works out before 8:30
  • Travel is pretty light, I imagine as he gets more senior this will increase
  • Team norms are nonexistent
  • The banking industry is changing, people are becoming friendlier and more WLB focused, especially with the new generation becoming more senior. However, for now it seems the old guard are still very much in charge with their desire for misery

Money: (Big pro for Banking)

• Overall: Banking trounces consulting for Money. Anyone saying different is coping hard, my friend and I are both fairly frugal guys living within our means, his means is a Porsche 718, mine is a BMW 3 series both nice cars but there is a clear difference…
• Consulting:
  • Early career I made c.$100k - $200k
  • Now I make c.$300k, I expect the pre partner years to be around $350k – $500k
  • Partner starts at 600k going up to $1 – $1.5mm  for your average partner
• Banking:
  • Plenty of material on banking comp here but assume materially higher at all levels i.e. 1.5 – 2x  

Exit Opps: (Minor pro for Banking)

• Overall:
  • Both careers have huge optionality within the first few years but banking gives you a finance edge which allows you to enter worlds consulting can’t i.e. PE.
  • If you stay in either career more than 5 years you’ll find it hard to exit to roles not directly related to your role i.e. Corp dev vs Corp strategy or transformation roles

Happy to try answer any other questions for those considering between the two careers