Technology
Wall Street banks juniorization – Business Insider
As Wall Street banks spend billions to upgrade technology and automate tasks, the mundane and tedious work that used to define the early years of a career at an investment bank is increasingly disappearing, with bots and algorithms springing into action to take over.
JPMorgan Chase, for instance, is digitizing dealmaking, using machine learning for elements of underwriting stocks and bonds and saving hundreds of thousands of hours of work in the process. Goldman Sachs is automating initial public offerings, stripping out half the roughly 130 steps in the process and delegating them to computers.
But despite the elimination of analyst-level grunt work, banks aren’t cutting back on their crops of recent college grads.
If anything, Wall Street is increasingly relying on their most junior employees. They’re just filling their 80-hour work weeks with more substantive responsibilities.
Finra records show that at some top banks more than 20% of registered employees have one year of experience or less, according to analysis by efinancialcareers.
Using the Finra database, efinancialcareers looked at all the employees at top New York banks with initial Finra registration dates of 2018 or earlier. They then compared that figure to the banks’ total New York headcount, according to FINRA’s count.
They found that nearly one-fifth of FINRA-licensed employees at the big banks are brand new to the business.
Barclays, Credit Suisse, and Goldman Sachs lead the way, each with a proportion of first years exceeding 21%. Bank of America and Morgan Stanley rely the least on fresh grads — 15.7% and 16.2%, respectively.
Here’s the full ranking:
-
Business7 days ago
TikTok Shop expands its secondhand luxury fashion offering to the UK
-
Business6 days ago
UnitedHealth says Change hackers stole health data on ‘substantial proportion of people in America’
-
Business5 days ago
Tesla’s new growth plan is centered around mysterious cheaper models
-
Business6 days ago
Mood.camera is an iOS app that feels like using a retro analog camera
-
Business4 days ago
Xaira, an AI drug discovery startup, launches with a massive $1B, says it’s ‘ready’ to start developing drugs
-
Business4 days ago
UK probes Amazon and Microsoft over AI partnerships with Mistral, Anthropic, and Inflection
-
Entertainment6 days ago
Furious Watcher fans are blasting it as ‘greedy’ over paid subscription service
-
Business5 days ago
Two widow founders launch DayNew, a social platform for people dealing with grief and trauma