The official blog of Abacus Group — a place to share our knowledge and thoughts on trends in recruiting

May 08, 2018

Key Takeaways from J.B. Maverick’s Career Advice

Investopedia released an article on the differences between working in investment banking and working in private banking. Maverick’s sound advice resonated so much so that it warranted a summary of takeaways.

Private Banking

Private banking sees professionals provide high net worth individual clients with the services and advice required for them to make smarter decisions with their access to a large variety of conventional and alternative investments; more so than the average person. As Maverick puts it, “private banking is the more personal of the two careers.” As a personal private banker, you become a trusted and respected boon to your clients. As such, forging and sustaining relationships are a large part of the job; the ability to do so is crucial to your success and that of your clients.

As a private banker, you are expected to be more flexible and better-versed in the multifaceted landscape that is banking. You may be called upon to provide advice on anything from “buying individual stocks to trading exchange-traded funds (ETFs), to futures, to options and even currencies”. You may also need “to be able to clearly discern [your] clients’ individual goals, preferences, risk tolerances and any other personal aspects that can assist in giving appropriate, personal financial advice.”

Because of the spectrum of required knowledge needed to perform well as a private banking professional, transferring from the field into something else within financial services, like investment banking, is easier.

Investment Banking

Investment banking professionals concentrate their work towards offering advice and services to corporations. “Investment banking typically involves putting together debt and equity financing deals, handling M&As, managing stock splits, and share buybacks, restructuring debt and conducting initial public offerings (IPOs).”

Investment banking employs more of a business mindset and negotiation skills that can feed the high-adrenaline experience of completing dealings with larger dollar figures. Industry knowledge is crucial to investment banking as you deal with money concentrated to specific factions of the economy. According to Maverick, “investment banking may hold a slight edge over private banking in terms of the opportunity to obtain recognition as a star and secure rapid advancement in position and compensation.” However, it is worth noting that there is still a large amount of earning potential in private banking if work is consistent and fruitful. Whereas, investment banking can be met with prolonged periods of downtime before a large spike in activity and therefore a big payday.

The two fields are vastly different however do share their similarities, for more on the topic and J.B. Maverick’s piece, click here.

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