Commercial Banking vs Investment Banking
Ladies & Gentlemen,
do you understand why are we so crazy about IB? Why don't we dream about goin' to Commercial Banking? Maybe we're just impressed with all this IB stuff, like: good suites, white shirts, nice collar buttons, English shoes, damodaran books... (anything else?). Or maybe its about the money? If so, why do we think we will get much more in IB?
Let's compare.
An average IB analyst makes appr. 70K per year + 20-40K bonus. Let's take upside: 110K per year. But he works about 70-80 hours per week, so 110000/(80*4*12)= $28,65 per hour.
One of my friends works in a commercial bank as a credit analyst for large corporates and gets 36K per year + 25K bonus (even now!!), but his working day finishes at 6pm and he goes home, so he works 40 hours per week. Thus, he gets 61000/40*4*12=$31,77 per hour.
So why are we so crazy about IB? Why can't we invest our time more wisely?
commercial vs investment banking
While the OP's post originally centered around the per hour salary of IB vs. commercial banking, our users shared an explanation of why they favored investment banking over commercial banking that may pay more per hour.
Why are you only comparing entry-level positions?We do it for post-entry-level opportunities, and because the work is more interesting than credit analysis. Not to say that excel modeling is interesting, but the determinants and expectations for your client's M&A deal certainly are more interesting than Wal-Marts new credit line with your bank.
Plus, to criticize your comparison further, past entry level, our salaries shoot way up relative to com-banking. Our exit opportunities have even higher relative salaries, and are even more interesting.
Interned at a good commercial bank & Barcap I would say both analysts/associates work equally as hard, just the commercial bankers quit at 6 like you said. I liked commercial banking because the teams where much more relaxed for the above mentioned reasons, everyone in SF with Barcap where much better educated and 10x more intense & sometimes harder to get a long with. But I learned at Barcap & at the CB bs'd all my underwriting assignments & got recognized for it. CM is EXTREMELY monotonous, it only really gets "intense' if you work on distressed loans; I think sitting through a loan committee was the most boring thing I've ever done.
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$31,77 per hour eh? damn...
besides money he gets a lot of free time which he can spend with his family (in fact, he spends it in pubs and nightclubs..) Or he can make additional money with own business as he has enough time for that.
Why are you only comparing entry-level positions?
We do it for post-entry-level opportunities, and because the work is more interesting than credit analysis. Not to say that excel modeling is interesting, but the determinants and expectations for your client's M&A deal certainly are more interesting than Wal-Marts new credit line with your bank.
Plus, to criticize your comparison further, past entry level, our salaries shoot way up relative to com-banking. Our exit opportunities have even higher relative salaries, and are even more interesting.
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as for senior positions: comm bank board member makes about $2mio per year + bonus of $1-2mio. $3-4mio is not enough? Moreover, you have much better health as you sleep 7-8 hours per night (not 3-4 like in IB), you have enough time to eat healthy food and so on.
So, here is the question: What is your health's price? Are you ok with getting a couple millions more at 40 and spend it for medicine?..
do you have time to spend this 110K, working 12 hours a day?
Im personally a saver more than a spender.
ok, i see. its all about money. I'm crazy about IB too, but just trying to understand the reason. That's why I'm asking you. My opinion is that IB stuf is about steady personal development. you need to study all your life, need to be perfect etc If fact, if I would be paid lower than in McDonalds I'd still work within finance But that's just my personal thoughts.
"complicated financial stuffs"
how many comm bank board members are there? 12?
there's your answer. simply put, your probability of getting to the 3-4 mn dollar range is a lot higher going into IB than it is going into commercial banking.
how many comm bank board members are there? 12?
there's your answer. simply put, your probability of getting to the 3-4 mn dollar range is a lot higher going into IB than it is going into commercial banking.
Interned at a good commercial bank & Barcap I would say both analysts/associates work equally as hard, just the commercial bankers quit at 6 like you said. I liked commercial banking because the teams where much more relaxed for the above mentioned reasons, everyone in SF with Barcap where much better educated and 10x more intense & sometimes harder to get a long with. But I learned at Barcap & at the CB bs'd all my underwriting assignments & got recognized for it. CM is EXTREMELY monotonous, it only really gets "intense' if you work on distressed loans; I think sitting through a loan committee was the most boring thing I've ever done.
the situation gets more depression when you do the analysis on an after tax basis and look at the marginal income for each additional hour work. Yes 110 > 61k, but the 50k difference is only 25k in your pocket. Divide that by 50 weeks (assuming you get 2 week vaca) and you have $500 in your pocket extra for working twice as many hours each week. On an hourly basis, tutoring or bartending pay more.
For anyone that just got cut, think about your marginal income difference if you collected unemployment insurance for the rest of the year versus working. the first 2k or so is not taxed federally, you get an extra $25 a week now (about $430 total). For me, the math worked out to be around $6.50 hour after tax difference between working and sitting on my couch.
But why doesn't everyone leave? They could really like what they do, or they are staying for hopes of better pay down the road.
Isn't 38K pretty low for commercial banking? I always thought commercial banking analysts over the past few years were getting something like 60K base and 30K bonus.
Correct me if I'm wrong, but given how easy people claim commercial banking is, I highly doubt you'd get 90k in overall comp AND have non-crazy hours. If it was that easy to make that much money, commercial banking would not be an easy field to get into. My guess is that analysts would top out at 60k in total comp (but again correct me if I'm wrong because I honestly don't know shit, however, it doesn't seem to make much sense logically speaking).
You are very wrong... you also may be a dumbass.
Citi Commercial banker= 60k salary (maybe 70 now with the bump not sure)+Bonus this year was 25k (not sure what tier this was). This info was verified by my cousin who is just about to finish up his first year with them.
You'd be making 200k in PE after just 2 years of banking comparing to the exit opps from commercial banking (I don't even know what they would be).. IB is the way to go on a long-term basis if you wanna climb the ladder. You can also start a business while working on the buyside making more money while having more time to run your own project.
Just my perspective, but I don't think corporate credit is going to be a sustainable career especially with a wave of commercial real estate and credit/auto loan defaults emerging this year as we speak.
Chill out e-thug. At the very least appreciate the fact that I put a disclaimer saying that I don't know this for sure, unlike many people here who post wrong information without stating that they don't know what they're saying.
But again, it begs the question, if commercial banking pays so well (yes, IMO 90k is very good compensation for just starting out), why isn't it more popular then? Are the exit opportunities terrible? Do the salaries reach a ceiling quickly? Because, when I asked this in another thread, people said even non-targets have a shot at a good commercial banking gig, so if the compensation is so decent, why don't people pursue this career path?
Commercial banking is as put in another thread "a poor mans investment banking", there are for the most part no bonuses (that I know of, and I worked for a reputable middle market one), and the exits are equally as narrow. The "credit" skill set just isn't really useful in capital markets category of finance, which includes all the types of positions which are talked about on this site. Pay bases usually start in a similar ballpark, but from there IB blows past in about one rung up the ladder (at a comparable sized firm). Commercial banking is mutually inclusive, in that once your in (unless you can go to a top MBA program to re-position) your stuck, relatively. Your skill set is underwriting and extending loans, where else are you going to use that? At the CB I worked for, the senior people seemed perpetually frustrated since the bank's client's where exclusively successful silicon valley entrepreneurs, VC's, & PE firms. Basically its like watching everyone around become more successful & get way better educations. However, if you just wanted a "job" (ie go in sit down, shut up, do your work, go home) CB is a dope job. The bank I interned for treated their employees great: 4 weeks paid vacation right of the bat, flexible expense accounts, plush offices, gym memberships, great benefits, etc. Nice people, everyone there is in for the long haul so low competition, very comfortable finance position relatively. Just make sure you like sitting through loan committees for the next 20 years.
Hi,
thanks for your guys' opinions so far. But is the pay in commercial banking really that bad? I'm interested in this area, corporate finance, and operations, so obviously, I'm not looking to get filthy rich like most people here, but I am looking to be in the 150-200k range eventually, so are commercial banking and corporate finance really that bad of fields to get into if that's the compensation range you'd like to get into eventually? I am more attracted to these fields because of the balance between work and life that they offer, but I would really like to get in that range eventually (correct me if I'm wrong, but I don't think that this is being extremely unreasonable if you are willing to put some work in), so is that possible in these fields?
While I agree with a good amount of your post, I think you may be overlooking a possibility. Given a good understanding of credit, is it not possible to leverage that knowledge and work in a Debt Capital Markets role, whether that be underwriting corporate/muni debt, sales of those products, or syndications?
"I'm not sure what the four 9's do, but the ace, I think, is pretty high."
You can gain a pretty good skillset at a commercial bank. Look at some of the folks at these credit / distressed debt funds, and you'll find that a lot of them got a start doing commercial banking. Not only do you extend a loan you have to monitor and restructure it. You may not develop a modeling skillset but your finance skills will be just as good.
(disclosure: didn't work at a commercial bank, but worked with some folks that have)
So I take it that it would be fairly unlikely that one could work at a commercial bank as a credit analyst to ride this recession out and then make the jump to IB?
You would probably have to network pretty hard. If you had super solid school GPA it should be possible, but it wouldn't be a simple switch. Remember IB isn't banking, Commercial Banking is.
Credit analyst would be a tough jump. If you were involved with some of the market-focused ancillary activities (ie: syndications), I think that this jump, while challenging, would be entirely possible.
"I'm not sure what the four 9's do, but the ace, I think, is pretty high."
I know this is an old thread, but I feel that I'd bump it in case more people have opinions on this.
IBD --> Commercial Banking is relatively a much easier move than Commercial Banking --> IBD. I think that sums up how the market values the skill sets and experiences developed for each.
what about us non target kids, is it a good idea to do it.
What are the exit opps in CM? Everybody here says they suck, but what are they specifically?
I've done both and let me tell you, IBD > cm by a MILE. Do not do commercial banking if u want any exit ops or even a long term career.
I did my internship in CB, they treat their employees great. After like two years, another credit analyst was getting like 36 PAID days off per year. But the starting salary for credit analyst is only 45K plus one week bonus at the end of the year. Depending on your office, you can eventually move into a Relationship Manager role making 120K plus 10K bonus ( I heard some banks do 60K base and 50-100K bonus for RMs). That can take 5-10 years to happen tho, so you must really like to read tax returns (since thats what you'll be doin for the next ten years). The job is fine but the exit ops are non-existent and the salary is so-so. The credit manager (comparable to MD in ibanking) in my office was 65ish, working in commercial banking for over 40 years, and still driving a ford. I would doubt that he ever made over 200K per year in CB. Overall, I would say CB is middle of the road between retail banking (perhaps the worst job in the world) and ibanking.
Driving a Ford doesn't necessarily mean he isn't well off. The intelligent wealthy people I know actually don't wear flashy Armani clothes or drive sporty Mercedes, but rather just buy well-made classic clothes (such as Ralph Lauren or Lacoste) and drive fully-loaded Hondas or entry level Mercedes and stuff like that. He is an old guy, so I'd especially be weary of using material possessions as an indicator of wealth.
Couple thoughts. I worked for WF as a mid market commercial banker. Did their analyst program then became an associate. I made $70k plus 40% bonus after two years. I then left to go to bschool and now work for mid market PE firm. Why did I leave CB? It's boring and the pay hits a ceiling around $150k. That said I would argue the training is very applicable to IB and PE. Building accurate pro-formas, credit analysis/risk analysis, structuring/ risk mitigation. These things are all very relevant in PE.
so you're saying exit opps for CB aren't as bad as other people have claimed to be?
at least that sounds like a good idea for a kid from a non target school like myself
I'm just like everyone else on here crazy about IB, but you just gotta accept the current situations. If you cannot get in, gotta figure out something else to do. If CB will eventually lead the route to IB through networks and business opportunities, I might consider doing it
btw, how long have you been with WF?
I can only speak for Chicago and Milwaukee, but I've met a lot of people in MM PE that came from commercial banking. Hell, in Milwaukee, the majority of the senior PE guys came from CB backgrounds. I don't think this is the case for other regions, though (especially NYC).
firstly, no idea why u did 80 hours * 4 * 12, because wince u said bankers are working 70-80 hours a week, u could have just multiplied it by 52, seems like you lost 4 weeks in your year... lol
secondly, the amount of things you learn in those 2 yrs is equivalent to many many yrs in commercial banking... u have a whole new appreciation and mastery of finance, which is why so many ambitious young ppl choose banking. u learn more, make money, and have a world of opportunities after those 2 yrs.
slim,
The above comment is true. You learn a lot more in IB, make more money, and will have more opportunities compared to CB. However, to answer your question, you exit CB at the same points you exit IB (for the most part) --at the analyst level, and at the most senior levels. During my internship last summer, I did a lot of networking for full-time, and all of the MDs in MM PE said the same thing: do an analyst program. If not in IB, then CB. In CB you will still get the experience and training to model, analyze, and work with fin statements. Not his exact words, but he also mentioned being in an environment where you learn how to get your money back (which is pretty much the only thing in common with CB and PE).
They said they would consider graduated CB analysts who could showcase their interest in PE. They themselves were heads of CBs that were sold off to big dogs, and then they formed a PE together (I'm talking about ~6 firms here). I have a confident feeling that this is a regional sentiment. I don't think you'll find this in NYC. Additionally, this might be a generational thing. The route to PE now is more defined than it was for the baby boomers.
truth is, while the MDs h.e.pennypacker met said that they would consider ppl from CB, you have to understand that in PE, the work is really pretty similar to IBD, hours are roughly the same (if not worse) and u still do modeling. The training that reputable IBD firms provide are unparalleled such that even the best CB experience cannot match.
Truth is, if a PE had a choice between a BB analyst whom they know have worked 100 hour weeks, is ambitious, with modeling like 2nd nature, vs a CB analyst who worked 40 hours weeks, essentially learning only a third to half of what the IB analyst worked (after all, he only worked 1/3 to 1/2 the hours), who's he gonna choose? It goes down to becoming more "hire-able"
I agree with ZIRH fully.
Going the CB route isn't impossible, obviously, but it isn't a gamble I'd feeling comfortable taking. If I were you, I would approach opportunities in this way: any IB > the best CB. Even at smaller MM boutiques, your work will be more relevant, and more importantly, you will be working with some PEs (which simplifies the transition).
How useful is CB, if you want to transition into fixed income investment management?
CB seems good too if you want free time.
Is there any M&A analysis in CB?
What careers is CB good preparation for (in other words, what are potential exit opps)? To be clear, I'm not talking about IB and PE exit opps, since those have been pretty well discussed already. I'm asking more about investment/asset management (but feel free to offer up any other stuff as well).
On another note, what's the pay like if you start rising the corporate ladder (so, instead of getting promoted within a branch, I'm talking about someone who's moving up at the headquarters)? Somebody mentioned $150K earlier, but is that really it? I would think people who make VP or C-level execs would make some serious bank at a CB.
CB into DCM???
The fact that people haven't really answered this question, makes me think that you guys don't really know what the exit opps are like. It sounds like you just know they're bad for IB (and related careers), but are unsure what they're like aside from that. Does that sound about right? I realize I can't go from CB to IB very easily, but I'm wondering how easy it is to transition to other jobs within the bank? How easy is it to move up and become a VP or C-level exec? What are the exit opps like outside of high finance, like some sort of consulting, insurance, etc?
Some of my friends in CB have moved to CLO funds.
commercial banking at a BB vs investment banking at small boutique (Originally Posted: 10/20/2015)
what do you guys think? would it be easier to lateral from the smaller bank?
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Commercial banking is different than retail banking. CB is basically corporate banking for MM companies. That being said, it will probably be easier to lateral from a boutique.
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This is a bit cringe-worthy
If IB is what you want to do then go for the smaller bank/boutique. Atleast you'll be happier and satisfied with the field.
It is hard to make blanket statements. So if you can clarify a couple of points it might be easier to help.
Is the BB and or the small boutique in NYC (If it is NYC HQ then it will be easier)
Is the BB known for internal mobility (In general JPM has better mobility than say Barclays)
Does the BB have a strong IB and CB presence (JPM/Citi/Bac/Barclays strong in both WF more in CB and obviously MS/GS only IB)
Is the CB in an industry group where you would want to do IB, for example if you are doing Energy CB it will be much easier to move to Energy IB, especially since you have a lot of contact
Try and see where the analysts from the boutique have ended up and talk to the BB to see how they feel about their analysts wanting to switch (Like I said at some banks its much more open while others not)
If you could clarify a couple of those points it would be much easier to help, PM if you are not comfortable divulging the info, but ideally which BB it is and location and group are a large factor.
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Another thread with college students giving advice they are not qualified to be giving?
Commercial banking or Investment banking? (Originally Posted: 06/23/2015)
Little background for those that are not familiar with me. I have been with a Big 4 Transaction Services group for a few years now in a southeastern market. I have enjoyed the work but am looking to get out and into a more finance related role with more compensation. I have been interviewing quite a bit with boutique IBs in the southeast and have had many inquiries about boutique IB jobs from recruiters. However, I am not positive I want to start all over in IB and have to work the 80-100 weeks every week of the year. If the work is enjoyable I may be able to get over the time commitment. Also, I probably would not be traveling as much as I was in TS (correct me if im wrong) which would be a plus. This brings me to my questions:
If not IB, would I be better suited to go into commercial banking? Can someone provide a general overview of the work and lifestyle?
Does my background translate well to a career in commercial banking? If so, what level would I be coming in as?
What avenues should I go about looking for commercial banking jobs? What companies?
I look forward to hearing from everyone! Thanks.
Anyone have any experience or light they can shed on it?
gregt14 can shed more light on this. I haven't seen the transition but it seems possible. You wouldn't come in as an analyst as pay/ job complexity would drop off - Underwriter (if you're interested in that track) or associate relationship manager (if interested in sales side).
Thanks OutrightOptions
Do you or anyone else have any idea what compensation is like? Also, can someone list some good banks in the SE to work for? BB&T, WF, etc.? Any smaller ones or is that getting too small?
BB Commercial banking internship or Regional boutique ibanking internship? (Originally Posted: 05/07/2013)
Hi everyone, I'm a junior at a semi-target, rejected from all BB IBD SAs for this summer. Currently I'm contemplating between a BB commercial banking internship and a Regional boutique IBD internship. The commercial banking internship will be in the city where I wish to work long-term, while the regional boutique internship is not.
Reading some previous posts, it seems that the boutique internship will be more helpful if I were to pursue FT BB IBD positions next year. However, since it is still extremely difficult to make it to a FT BB position without a BB IBD or similarly prestigious summer internship, I'm thinking that it won't make much of a difference anyway. The commercial banking internship, on the other hand, may be more stable and give me a 'big name' recognition.
Thoughts on this?
it is also nice that the commercial one will allow you to network in person, but idk best pick for you
If you want IB, you take the IB position. If you want comfort (i.e. living at home), go commercial banking.
I don't see why you are so negative about a decent regional IB shot, assuming it is on par with a RayJay, Sun Trust, etc.
If you want to do IB go with the boutique, if you're going for the name take BB, but commercial banking gives you a different skill set than IB.
I do want IB but at this point it seems that my chances at a BB FT position is extremely low even if I take the regional boutique internship. Because of this, I am strongly considering the field that I'm second-most-interested-in, commercial banking, which is much more realistic. Also, come full time, I would rather work at the BB for commercial banking than work at the boutique for IB.
In making my decision, I need to know the following things: 1. Do I still have a realistic shot at BB IBD if I network a lot and take the boutique IB internship? 2. Will I be worse off for FT commercial banking recruitment if I intern at the boutique instead of commercial banking?
If anyone could give advice, it would be much appreciated.
Why not elite boutiques and top MM? it increases your realm of possibilities and gets you more ibanking experience which could lead to BB in the future
Seems like you're sort of pigeon holing yourself with your "BB IBD or bust" mentality. Why not an MM IBD or elite boutique over commercial banking?
I was rejected from all the elite boutiques that I applied to for SA, and am not eligible to apply for MM firms because they don't sponsor work visas.
fairly certain MMs sponsor work visas. At least the top ones do.
A user with the handle crazi4ib now doesn't live up to his name in this thread.
Commercial Banking - Wondering how good commercial banking is as a career (Originally Posted: 06/03/2009)
I was wondering how good commercial banking is as a career (I couldn't think of anywhere else to post this). How are salaries starting and with experience? I've realized that I'm not cut out for investment banking, but I still want to work in the banking industry (accounting is too dry for me), so is commercial banking a good way to go? Can you get into it from a non-target/how easy is it to break into?
sorry for all the questions, but any help would be great.
Hey,
I've worked for two big4 audit firms and will be starting with a big4 commercial bank as a grad next year.
In terms of how 'easy' it is to get in, it all depends on the person and whether or not they are fit out for a banking career (albeit commercial). GPA has to be at least 65%, and roles usually provide very good insight into the working dynamics of banks. I would definitely say it is more difficult to get into when compared to big4 audit firms, from past experience. Having said that, the selection process is more rigorous and there are very few places on offer, which adds to the prestige factor.
In AU, the salaries are regarded highly competitive (55-65k mark incl. super), which is very good. IB here is around 70-85k. Big4 auditing is 45-50k. From what i've heard, the progression can be very good but it depends on individual effort, etc.
Keep in mind that if you're passionate about banking then working for a bank seems like the obvious choice. However, auditing also provides opportunities to work with clients in the investment banking, commercial banking, insurance, Asset Management, etc (FS) industries..... which can prove to be very rewarding in terms of exposure and experience.
Hope this helps...
Bjay you are pretty much right about the commercial banking salary maybe 5 to 10 of the top range. But your ib salary figures for Australia are off. 85 is as far as i know the lowest.
Look into JPM, heard good things about their Chicago Commercial Banking office. I'm pretty sure they outline the program for interns and new grads on their site.
well, what I mean in terms of hard to break in is whether they only recruit at targets like banks do for investment banking. Although I have pretty bad grades this year (I have only now gotten the hang of how to study for college, so my grades have unfortunately taken a hit), I am very confident that I can turn that around. So while I'm only marginally worried about GPA, I'm more worried about whether or not the banks have the stigma about only hiring from the top schools.
Also, how are the hours compared to investment banking, and how do upper level positions look like in terms of salary? A quick note, I'm not looking to become absolutely loaded like most people here. I'm looking to eventually reach 150k-200k in my lifetime. If I can reach this, I'd be happy, so is that possible in commercial banking?
EDIT: Also, I'm still a freshman (about to become a sophomore though), so I'm not looking at getting an internship just yet
bump
Have you ever considered commercial banking? (Originally Posted: 12/06/2006)
So, this is meant as an honest discussion, not to flame anything. I, myself, will be doing ibanking next year, so I have obviously chosen my path. However, I was just having a conversation tonight and I just thought - wow, being a branch manager for a commercial bank really wouldn't be that bad. A lot of commercial banks recruit at my school for branch managers and I ve looked at their brochures. As a branch manager, you can clear 6 digits pretty quickly and work 9-5. Obviously there is a ladder as well, such as regional manager etc. I am sure that top commercial banking managers clear close to MD's at ibanks. Have any of you ever considered this route even for a sec? In terms of prestige, the two are not comparable. But I think that you also learn a very useful set of skills in commercial banking, the hours are really good, there is obviously a lot of challenge and responsibility, and finally, you make really good money
sounds good except you might end up getting shot during a bank robbery
Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...
as usual.
In response to the original post, I have thought of commercial banking, although not as a branch manager. Comm. banking seems to be a way to apply the skill set I have developed in my (almost) two years as an analyst and provide me with the lifestyle upgrade I need. I have not yet looked into it that thoroughly though, so can not speak intellegently as to the dynamics of the industry / job market.
i have a friend that did the BofA management in training program. they start you out with a really low salary but you can move up if your good. its been two years now since he has had the job and he loves it. he has been kicking ass and i think is around/above 6 figures and has become the head manager at a branch in a very wealthy beach community along the california coast. at a job like this you will clearly learn a completely different skill set and you might not make as much as banking but you have an amazing lifestyle compaired to a banker. i don't think he would trade his job for mine, so that says something. just goes to show that there are plenty of other options outthere for those that don't make the banking cut.
bum p
I work for a small bank in the southeast and can assure you bm's make no where near 6 figures. And the hours, while not as bad as ib, are horrible due to non traditional banking hours (some braches close at midnight.) I guess being at a BB makes a big difference on the consumer side too.
being the branch manager of a small bank in the south east is different than being the branch manager in malibu
...because there are too many variables in considering compensation and quality of life.
If you want to go into commercial banking you can get there rather easily if you already have an IB analyst background, they will jump on you quickly. Most likely they might send you into one of their lending programs, pretty much a selling/relationship management type of program.
Some smaller banks will give you more opportunities to move up quicker because they are growing so fast. Others like BofA expect a certain quota from you on a monthly, quarterly and yearly basis from which your compensation especially your bonus structure is derived right from the start.
There are some places, just like in any industry, that you could do well and clean up while there are a bunch of sweatshops out there (like mine). In mine they throw you to the wolves and then try to screw with your loans because they want to charge more interest than what the next bank does for the same stupid BS. Most customers aren't that stupid and the ones that are you can expect repeat business from them until they run out of cash or their stupidity catches up with them.
The hours are also different for every bank: some do 9-3, other 9-5 and some have moved to a 12-hour-a-day-7-days-a-week type of situation. It's really up to you and some of the bonuses can get up to 25-50% of your base, not as much as Wall Street but that's life. You can make 6 figures rather quickly, 3 to 5 years, depending on where you go and how they treat you. You do sacrifice ridiculous bonuses and a fast-paced life for a more stable and slower environment where you end up with as much responsibility as an MD but with less pay and more handholding, in general.
I am not in IB but from what I have read from other people's posts the above is in general truthful.
Hawtness is a state of being, not how you look like... I'm pretty, so pretty...
Commercial Banking is pure retail, nothing more. Customers are only as loyal to the place which gives them the highest rate.
If you are located in a good zip code which has high wealth, and are on the sales side, in time you can probably pull in some good money.
If you don't mind dealing with, "Where are my checks, they never arrived' or "How come I got this fee on my account," then you should be alright.
Moving up in commercial banking can really pay however in the long run. Becomming a regional bank direct or a regional service director pays very well.
To each his own I guess......
If you want to impress the ladies.....go IB
Just to give you some input, i'm working as an analyst at a top bank and they pay from 65k + 8k bonus to 70k +10k bonus depending on what city you are in. It is not that much less than IB, you learn tangible technical skills and the hours don't make you hate your life.
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