Consulting giants and major financial institutions now compete with fintech startups for top talent
Graduation is often an exciting time when finishing an MBA. Historically, one of the rights of passage for such graduates would be offers from consulting firms. Major financial institutions, likewise, would also be recruiting from this pool. Within recent years, however, a new industry is eagerly hiring business school graduates. The financial technology industry, also known as “fintech,” is sending representatives to networking events. These representatives, often from small startups, are standing shoulder-to-shoulder with recruiters from established consulting firms and well-known banks, and all three have a respectable chance to secure talented new employees. Increasingly, hungry fintechs are the ones luring MBAs away from larger organizations.
Fintechs Actively Recruiting MBA Students
Traditionally, new MBA holders might have wanted to enter banking or consulting careers, but the excitement of fintech and the freedom of working at a small startup have great appeal. An article in Financial Times quoted a consultant that left her consulting firm for a fintech, explaining that the “freedom and scrappiness” of the industry was a persuasive motivator. The consultant further stated that she was attracted to work in fintech “because it provided fast-moving innovation with dramatic and fast results.” At Nutmeg, one fintech company mentioned in the article, eight of their 78 employees have MBAs.
The London School of Business & Finance blog likewise reports the same phenomenon of MBAs being lured down the fintech career path. Part of the influence is that many fintech founders are graduate school alumni themselves. One of the most powerful stated reasons for choosing to work at a fintech is because their employees feel that their insights and skills are valued, whereas a consultancy or bank may not appreciate the abilities of the newest graduates.
BusinessBecause actually calls fintech the “hottest career path” within the entire financial industry. NYU Stern Business School has also seen increased recruiting efforts for fintech roles within larger brands like Mastercard and American Express. These large organizations require technology innovation from highly skilled people and business schools often provide that talent. Regina Resnick from Columbia Business School stated, “Students are so interested in this intersection of finance and technology that a new club specifically focused on fintech was launched this past year.”
In the people and companies working in the fintech sector, flexibility is required, according to Silicon Republic. The fast-paced environment of the industry demands people who are bright and can pivot with ease. Blockchain, payments technologies and the burgeoning alternative currencies segment are some of the strongest drivers of fintech success. The article contends that if companies are not allowing their employees to be innovative and creative, they may lose those employees.
Conclusion
Having extra options for employment is a welcome opportunity for business school graduates. When choosing among a consulting giant, a major financial institution and fintech, each option has its own appeal. While many graduates may see the fintech sector as the industry that is burgeoning with innovation, consultancies and financial institutions are also increasingly investing in new technologies. Youthful enthusiasm and freshly acquired business acumen are likely to make new MBAs thrive in any chosen environment.
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