Banking was once a highly sought-after career. Polished suits, towering glass offices and lucrative bonuses projected an image of success and glamour that attracted the brightest young minds. But, after the 2007 banking crisis, the reputation of finance workers took a big hit. Some firms were even accused of betting against clients to boost their own profits.
Unsurprisingly, banks have since become synonymous with society’s ills: greed, immorality and recklessness. The sector has also battled scrutiny of its brutal working hours and perceived toxic culture.
Consequently, this once-coveted career is now struggling to attract and retain younger talent. More than 70% of UK junior bankers polled by Financial News last year said they were likely to quit their jobs due to workload and burnout.
Without a steady pipeline of junior professionals, the sector has no hope
Money can no longer placate the younger workforce, with banking salaries having plateaued in recent years and bonuses not as lucrative as they once were. Indeed, research from Morgan McKinley found that 70% of hiring managers in banking admit their salary offers have remained flat. Meanwhile, news of pay cuts, layoffs, an industry slump and tightened regulations are further dampening the financial prospects of hopeful graduates in this field.
The nature of the job has changed too. Increased regulation means banks must now devote massive resources to compliance, legal and reporting tasks, meaning junior bankers are often saddled with repetitive, risk-averse work, rather than solving problems or building deals.
Conversely, other types of financial companies like hedge funds and fintechs are starting to look like a far better match for younger people seeking high pay and a more intellectually stimulating job.
This is perhaps why young professionals now see banking as a mere stepping stone into other more lucrative and innovative industries, rather than as a long-term commitment. JPMorgan’s CEO, Jamie Dimon, has expressed frustration about the number of graduates accepting analyst roles with the intention to leave within a few years. “I know a lot of you work at JPMorgan, you take a job at a private equity shop before you even start with us,” he told a crowd of undergraduate business school students last year.
As enthusiasm for the profession dwindles, bankers are fleeing the UK. Crucially, they are taking their finance skills with them. Applications for finance jobs in the UAE from London were up 25% in the fourth quarter of 2024 compared to the previous year, according to a report by eFinancialCareers.
This is more than a talent-retention problem. A lack of young people entering the profession is going to have serious repercussions for the future of the UK’s financial system.
A defining moment for banking
This crisis of talent comes at a defining moment for banking. The sector is grappling with mounting challenges, including London’s diminishing appeal as a financial centre, a lack of public trust, weakened competitiveness, economic volatility, geopolitical uncertainty and the rapid pace of technological disruption.
Without a steady pipeline of junior professionals, the sector has no hope of overcoming these issues. It also risks a leadership vacuum in the coming years. The next generation of CFOs, risk managers and regulators are no longer being trained, leaving banks and businesses unprepared for future financial challenges.
The young workforce also bring valuable technology and data skills, without which banks will struggle to modernise and thrive in an age of digital disruption.
Can banking ever be a force for good?
In order to position banking as a sector of choice for future generations, work must be done to shift the narrative and focus on the role of banks as a force for good in society. Indeed, a 2024 Deloitte survey found that 86% of Gen Z are looking for purpose-driven work that aligns with personal values or offers a positive societal mission.
This is no easy feat for such a long-vilified profession. But there were periods when financiers were celebrated for what they did. The very first bankers were merchants of the world who gave grain loans to farmers and traders who carried goods. This early financial class played an important role in society and did a lot of charitable work in terms of getting money to orphanages, churches and public art.
Finance has many compelling features, beyond just earning money: its innovations have helped address societal issues as well as raise funds for businesses. Similarly, banks were there to provide stability when credit markets shut down, as was the case at the onset of the Covid-19 pandemic.
Whether banks can ever provide the purpose younger generations crave remains to be seen. They will need to make radical progress on diversity, equity and inclusion, embrace new ways of working and learn to engage more authentically with society. The alterative, however, is to do nothing – and risk triggering another financial crisis.
Banking was once a highly sought-after career. Polished suits, towering glass offices and lucrative bonuses projected an image of success and glamour that attracted the brightest young minds. But, after the 2007 banking crisis, the reputation of finance workers took a big hit. Some firms were even accused of betting against clients to boost their own profits.
Unsurprisingly, banks have since become synonymous with society's ills: greed, immorality and recklessness. The sector has also battled scrutiny of its brutal working hours and perceived toxic culture.
Consequently, this once-coveted career is now struggling to attract and retain younger talent. More than 70% of UK junior bankers polled by Financial News last year said they were likely to quit their jobs due to workload and burnout.
