What would you choose: IB vs SWE @ FAANG?
I'm in a pretty unique position now where I am graduating in a few weeks and was originally planning on going into IB- I had a IB SA position last summer, got the return, and accepted. However, I applied on a whim to a software engineering job at one of FAANG, and, after a few interviews, landed a job. I'm at a target and double majored in CS and math, so I think I have the skill set for either job. Also, I know this is a pretty unique scenario so I don't want to give too much info, but the bank I'm working at is not an ultra top tier (ie not JPM/GS/PJT/EVR/etc) but is pretty good.
Here's my thought process-
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Pay is a little better at the SWE job, and hours are a lot better. Both are in the same city.
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In the long run, people generally say IB has a higher earnings ceiling (especially if you make the jump to PE), but it is also a much riskier path. SWE is super stable, pretty hard to get fired, etc.
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I've never worked in SWE before. I've done an IB internship and a non-IB finance internship. I sort of enjoyed them I guess (as much as anyone can enjoy working 80 hours weeks?), but I honestly have no idea if I would prefer to be writing code all day.
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The tech company is unequivocally the best in its field, whereas the bank name is a lot less impressive. I think if I was choosing between GS and this tech co I would be pretty confident choosing GS, but I'm worried that the tech co will look a lot better on my resume vs the bank.
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I actually made it clear to the FAANG recruiter that I already signed for a FT job in finance, but she said it was totally fine that I would be reneging for this job offer so I don't need to worry about that. I would obviously be pissing off the bank, but I think this is less of a slap in the face than if I was reneging to another bank.
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I always envisioned myself as the standard IB -> PE -> MBA -> PE partner, and I honestly don't know much about career progression as a software engineer. Sounds like the ones who make a lot of money end up going big tech co -> startup -> stock options -> IPO -> shit load of money? Seems like a risky path to me, but I guess it's no risker than trying to make partner at a PE firm.
I know whenever this usually comes up on here people say tech vs IB is apples and oranges, but I'm in a position where I need to compare them. So, which would you choose, tech or IB? At the end of the day, I probably care the most about payouts- will I have more money in 15 years if I go IB or SWE?
To be honest, FAANG SWE is probably the move IMO, unless the FAANG is Amazon in which case it's solid but I've heard from a few people that they overhire and then put a ton of people on PIP. Still would be a solid gig.
You can also pivot to PM eventually if you're more interested in the business side of things. IB in this market is also not going to pay as much as you'd expect, and especially if it's only a two year gig for you so don't really focus on that too much.
I would go with the SWE gig. Higher pay with less than half the hours. I also feel like it’s more possible to switch from SWE to IB (most likely with an MBA), than vice versa.
gdamn you're a weapon
I was in the exact same shoes as you, and I chose IB. I don't think there's a wrong choice, but it really depends on what you're more interested in.
In school, I really didn't like coding. I still ended up with a Comp Sci degree, but I knew that I wasn't really interested in coding as a career.
The comment above is right to say that you should consider optionality, but IMO, finance provides a lot more optionality. The truth is that it's much easier to break into the world of tech/startups (maybe not as a SWE, but there are a ton of other important jobs) than it is to break into the world of high finance. Tech bankers routinely get senior jobs at FAANG companies, but it's literally impossible for senior PMs to get a job in high finance.
Would you say the same about optionality in regards more quantitative roles in high finance that tend to be more limited in exit opps such as S&T or quant, or is your statement directed towards just banking roles?
Yeah, I meant more traditional high finance jobs (PE/HF/GE/VC). Quant finance is open as a SWE exit. I'm also a graduating senior, so I understand what you're deciding between. It's tough, and I could be wrong.
For me, it came down to my interests. In my spare time, I enjoy reading about history and the markets more than I do about technology and coding. I enjoy the people/culture of finance more (as weird as that sounds) than I do the culture of tech (the people going into it just aren't my cup of tea). I am massively generalizing, but I think you need to decide based on where your interests lie and where you enjoy yourself. I don't code for fun, and I don't like building side projects for fun; SWE wouldn't make sense for me. Every time I have a Comp Sci. homework, I want to kill myself.
*I will caveat this slightly and say that I was deciding between a top IB group (GS/MS/PJT/EVR) and FAANG. It did make the decision a bit easier because I knew I wanted to recruit for PE, but the truth is that group matters less now than it used to because of how early recruiting is. You seem to come from a strong background, so you will recruit well regardless.
Just my 2 cents having done a bit of VC and now in IB: you’ll see people from both IB/Consulting & SWE doing startups.
If you got a SWE offer at a FAANG, you definitely have what it takes to understand the ops/code should you want to create a startup you will benefit from having the financial perspective from IB.
So imo from IB/PE/MBA. you could go down the Startup way, but from SWE you’d have to go to a top MBA and recruit for PE or IB and then move to PE to be on a partner track. Imo IB gives you more optionality for what you want to do.
Second this strongly.
I would go SWE. If it’s not for you it will be the easiest story in the world to go MBA to top bank.
I would also consider what you enjoy the most. I chose my consulting firm (MBB) over SWE at a top N company (Lyft, Airbnb) because I had done an SWE internship, and hated it - most of the job wasn't actually even coding.
Not the OP, if you're willing to speak to this -- did you try to accelerate at MBB if your SWE return offer was exploding, and did you find case prep to be difficult in comparison to prepping for coding interviews? In a somewhat similar situation this summer but am not sure whether even attempting to switch industries is a good idea given the uncertain hiring landscape for consulting in the fall.
No, casing is much easier than grinding LC *as long as you have a business sense already. *As long as you keep in touch with general business concepts you can case prep ~1 month before interviews. MBB (at least M + Bain, not sure about BCG) is willing to accelerate
Wish I was this much Chad; bro I cannot code for my fucking life. From what I've seen (and yes I'm an intern but this does not require professional expertise, just need to have your eyes open), SWE to IB is probably 1000x easier than IB to SWE. Robert Smith comes to mind in this situation, even though he was more engineering.
Have you considered trying to become a quant at a hedge fund?
You majored in CS and Math. Considering you landed both of these jobs means you've got quite the adaptable skillset.
Might be the blend of work that you're looking for. Also, pretty sure quant money can stomp on IB and FANG SWE.
You should not accept either, get a job at RenTech, and get into the medallion fund. There's your earning potential :)
If you have both options and you consider them the same, I would go with SWE. A growing industry over high finance. You could always transition from SWE --> IB easily, whilst the opposite would obviously result in a discount in experience.
SWE -> MBA -> High Finance
While IB/PE has a higher income ceiling, remember they are very cyclical. Also, it has an up or out culture in which very few survive and make to the top.
Those who leave the high finance industry typically get a very lame career (corp dev position that pays less than your SWE all-in after working 6 years in IB, etc.). Remember those who make to partner/MD/successful startups are few.
Life is a marathon and not a sprint. You don't just make MD at 30s and retire from there. Imagine the difficulty making MD and surviving for at least 10 more years. How many economic cycles, politics and company restructuring will you experience during your career?
On the other hand, you are in FAANG which is relatively safer than financial institutions. While you may not be able to make it to the top there, the industry is so much wider. You can switch internally to other positions, move to smaller tech companies and take up more senior positions or even start a business with your co-workers when you have saved some money in your late 30s.
Also, you can always go from FAANG to MBA business schools">M7 and to IBD but not the other way round. Going to FAANG means no MF for you if you later want to switch to finance. But take it easy, even you start in banking, few make it to MF anyway (especially you mentioned your bank is less impressive).
Hard to go wrong either way. But I would say ibanking has a more limited intake window. You can only really get in after undergrad or MBA. So what I would do, if you want to explore both worlds, is do 2 years as an analyst and build up some finance chops, then go the SWE route thereafter. You can then really have 2 killer skillsets down. In 2 years if you feel you need a refresh on coding to get back to SWE you can do an advanced coding bootcamp like Hackreactor.
It's crazy to see the number of people on here with a "grass is greener" mentality. My older brother is in SWE @ FAANG, and he strongly regrets not having gone into finance.
Yes, high finance is cutthroat and brutal. Yes, it is incredibly hard to rise up. The same logic, however, applies in a FAANG company where class sizes are 25x the size of even the largest banking classes.
Nothing is easy in this world. Becoming a partner at a PE firm is as difficult as making CTO at a Series C+ unicorn. Do what you are good at, and do what you enjoy. There is no easy path. What's hot today won't be hot tomorrow. If you don't do it for the right reasons, you're going to be left behind.
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