Someone recently asked me why so many of my country(wo)men are in the finance industry, why my community seems so materialistic and money-obsessed.
I could go into the reasons why my community is has a more practical and pragmatic attitude towards money and careers. In Asia, unlike in fortunate North American and European countries, the concept of a welfare state doesn't exist. In Asia, taxes are lower, which is great. But it also means that Arts, Voluntary Unemployment, and other general kinds of impracticality aren't funded. The vast majority of the people I know therefore tend to be more practical-minded with regard to money. Artistic careers or pursuits are generally frowned upon by our families.
Another defence I offer is that London is The Financial Centre of Europe. London contributes 17% to UK GDP
1, and 73.7% of UK's GDP comprises of Services
2, the main contributors of which are banking and insurance, which employ 70% of the UK working population
3. Therefore, it follows that those who do stay on to work in London work in the financial services industry. Yes, if you look hard enough, there Are other jobs in London, but the overwhelming number of jobs are in the financial services industry. There might be some of my brethren who are in London but not in banking/accountancy/insurance - I just don't happen to know them. After all, London is a city of 7 million people, and by selection bias, we tend to hang around with people with similar interests (especially having gone to certain universities), and I've never been an especially sociable person who has a wide circle of friends.
Given the Economic and Employment statistics of London, I strongly disagree that my country(wo)men are particularly grasping and mercenary. After all, we do not constitute a big proportion of people employed by my firm and firms around the City. There are far many more Continental Europeans, and British and Indians (British or otherwise).
And for the assertion that people who opt to work in the financial services industry are money-addicts, I have this to say:
- I won't lie and say that the compensation isn't a factor. It is. We won't be working crazy hours without at least above-average compensation. No sane person would, no matter how much they loved finance.
- BUT: money isn't the only factor. It may not even be the most important factor.
An aside: Banking isn't even a monolithic entity. In an investment bank alone, there are several functions, with very approximate working hours in parenthesis:
- Investment Banking/Corporate Finance (insane hours: 9am-12am are pretty decent hours)
- Sales/Trading/Structuring (7.30am-6pm)
- Research (7am- 8/9pm)
But there are other reasons why people choose to enter the industry, such as the experience, the training, the leverage it gives you for furthering your career.
I know someone who wants to work in the public sector doing Development work. From what I understand, the Development arena is extremely competitive and difficult to break into. They almost never take inexperienced people. Presumably one can slog away doing community service for several years, or do a Masters and PhD in order to enter the field. Alternatively, one can enter banking, get paid well in the meanwhile, and get the requisite experience.
Others want to move into Hedge Funds and Private Equity. Hedge Funds have better hours and very good compensation. But again, don't usually take fresh grads. I also know many Asians who intend to go back to Asia (some want to remain in the finance industry, others want to enter other fields). They choose to work in London, and in this industry because they want working experience in a big corporation in a major financial centre. And banking has a really solid training programme at a junior level.
Working in banking also seems to be a good launchpad for a variety of careers. Ex-bankers (all functions) are everywhere: politicians (Michael Bloomberg), writers (the most famous of which is probably Michael Lewis)... I can't name the rest offhand, but I've heard of ex-bankers being CEOs, working in World Bank, opening resorts off the coast of Brazil (which is totally removed from banking)... For a person like me, who still has several longer-term career and life options that I have not yet decided on, banking seems to be a great place to start.
Not having started work proper, I can't say much about what I will be doing - I can offer more insight in a month, 6 months, and a year's time. Most people have said that a lot of the work is pretty inane. But they also talk about a very steep learning curve in the first few months. I think that learning curve is worth it. Even before starting work, I have experienced a little bit of a learning curve over the past month or so. I've learnt and grown, mainly socially, and in cultural exposure, more in the past 6 weeks, than I probably have in the prior 3 years. For example, 8 nationalities will be represented among the new graduates on my floor alone. And the learning process, the freshness of my experience, makes me happy. It's probably why I feel almost as happy as I did in my old relationship. And my relationship was probably the happiest period in my life.
Finally, it could be that some of us actually are interested in, dare I say love? Finance. One boy I know has wanted to be in banking for as long as he can remember. He wants to open his own firm some day, or run the World Bank. A more senior guy has also told us that he became interested in banking while trying to raise finance for his start-up firm (his MBA-debt might have a part to play in his choice of industry too). My housemate went through a rather labourous process to get a job in a particular niche that he was specifically interested in. And myself, I can't think of another job, which pays the bills (let's face it... working as a ranger in a safari park in the African outback won't cut it. Nor will working in Oxfam while hoping that the UN might discover my hidden, under-appreciated talent), that will excite me as much the prospect of this job did to me during the application process. I might eventually find that I was deluded, that this job isn't what I thought it would be. For now, I can only expect the worst (inane, mindless robot-work) but hope for the best, not having experienced it myself.
I have a co-worker who, having interned before, doesn't like the job but chose to stick with it, despite his interest in Equity Sales. I asked him: "Why didn't you apply for Equity Sales instead?" His reply to that was: "I don't know what it was about." Unlike him though, my attitude towards the unknown is an exuberant embracing of it. I don't know first-hand what Corporate Finance is about, but I have spoken to people. Despite many negative ratings, I have perhaps a rather starry-eyed view that it might be worth it, that it will present an amazing learning opportunity, and so I had turned down my solid job offer to pursue the unknown. And I chose that because I was interested in the possibility, even though I may come to rue my choice in a few months. It isn't because of the money. Were it to be solely for the money, I would have taken my cushier, safe first job offer, which has far better hours, and identical compensation for the first year at least. But I know I would have regretted it if I hadn't gone for my current job, even if it turns out to be far worse than my worst nightmares. I'd rather embrace the unknown than spend forever wondering: "What if?"
I don't even know why I'm justifying what I choose to do. Maybe it's because I'm more sensitive to criticism (implied or otherwise). Also, because I think it's really strange how everyone I know (for now) refer to non-banking people as "normal" people. We'd say: "Oh I went out with some friends. With normal people, not in banking." And of course how this male co-worker of mine said he wouldn't want to date a girl in banking because she would be over-ambitious or intense - but that's another story for another time.
But the thing is, I think we're all normal people. We just happen to be maybe a little bit more impatient, and want to take the quickest and most intense route to get to where we want to go.
sources:
[1]
London Facts
[2]
CIA World Factbook
[3]
UK Statistics