The generational culture war tearing investment banking apart

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The brutal conditions ingrained in the job are proving to be a big turn-off for Gen Z.

Banking has never been an industry for the faint-hearted. Working 120-hour weeks over at least six days is common. But for members of Generation Z, infamously protective of their wellbeing and mental health, the brutal conditions ingrained in the job are proving to be a big turn-off.

Elizabeth adds: “If your goal would be to have a good work-life balance and go out, and go on holidays and enjoy your holidays, I don’t think you’d get the result you were working for.” She had a more specific short-term goal, though: to buy property. By the time she quit the industry earlier this year, she had bought a house in cash, along with a luxury flat in Johannesburg, almost a decade before the average UK buyer completes on their first home.

Of her work peers, Kallenburg says: “They are definitely different from prior generations of bankers, but they’re also very different from most of the Gen Z demographic more broadly, at least in my experience. Investment banking specifically is a challenging path, and it can be tough to maintain a robust social life and prioritise mental health,” things that remain highly important to younger employees.There is a big divide between the youngest bankers and their higher-ups.

The industry itself hasn’t changed, he says, even if expectations have. Then as now, “you have to have a lot of strength mentally to survive”.Money is no longer enough to keep workers put off by working conditions, says Nishma Gosrani, who leads financial services at consultancy Bain & Company. That – plus the competition from tech firms for the brightest recruits – is radically altering who enters the industry in the first place.

 

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