Middle and back office in Investment Banks
Discussion
You've described three quite different areas there.
IT and business analysis often overlaps. Most banks will have business analysts on both the business side and the IT side, often working together on any given project. Salaries in banks typically have ridiculous ranges, a business analyst salary would range from about £40k at the entry level to about £100k at the top end. Slightly more if you lead a team. You could also expect to get up to about £700 per day in the contract market.
It also depends which area you're working in. For example a BA working on front office eTrading platforms would earn quite a bit more than a BA working on a settlements platform.
Not sure about product control salaries, from memory it's similar to BA salaries although not quite as high at the top end. I believe most product controllers are qualified accountants too.
I'd expect bonuses to be around the 15%-20% mark for these kinds of roles.
After 5 years you would most likely be an Associate/AVP, although possibly you might be a VP. The range at those levels would be something like £60k-£100k. The problem is it's easy to get stuck on a poor salary unless you move around between banks.
What is your background and skillset?
IT and business analysis often overlaps. Most banks will have business analysts on both the business side and the IT side, often working together on any given project. Salaries in banks typically have ridiculous ranges, a business analyst salary would range from about £40k at the entry level to about £100k at the top end. Slightly more if you lead a team. You could also expect to get up to about £700 per day in the contract market.
It also depends which area you're working in. For example a BA working on front office eTrading platforms would earn quite a bit more than a BA working on a settlements platform.
Not sure about product control salaries, from memory it's similar to BA salaries although not quite as high at the top end. I believe most product controllers are qualified accountants too.
I'd expect bonuses to be around the 15%-20% mark for these kinds of roles.
After 5 years you would most likely be an Associate/AVP, although possibly you might be a VP. The range at those levels would be something like £60k-£100k. The problem is it's easy to get stuck on a poor salary unless you move around between banks.
What is your background and skillset?
Edited by XJ75 on Monday 21st May 10:28
^very good post above.
Most lucrative option is to go contracting, tax benefits aren't as good as they used to be but £400-750 per day still beats a permie salary and you don't have to bother with the politics or performance review BS.
You need some sort of background or qualification though, e.g. ACA/ACCA for product control, Prince II for BA as well as knowledge of systems/processes in banks, and obviously knowledge of whatever IT system for IT.
Most lucrative option is to go contracting, tax benefits aren't as good as they used to be but £400-750 per day still beats a permie salary and you don't have to bother with the politics or performance review BS.
You need some sort of background or qualification though, e.g. ACA/ACCA for product control, Prince II for BA as well as knowledge of systems/processes in banks, and obviously knowledge of whatever IT system for IT.
Shaoxter said:
Prince II for BA
The ISEB/BCS diploma is the de facto standard for a BA, however these days you'd probably be looking for some Agile experience too as this is the direction the banks seem to be heading towards. As for the OP, it's entirely dependent on background and capability as to which role they'd excel in. It's doubtful they'd employ with zero relevant experience unless through a grad scheme of some sort.
Thanks for the info!
So I reckon in top banks you get 100k max in 5 years. While in front office, I know it's 180k.
It's quite considerable difference.
Is there anything in BO/MO that would go as closer as possible to FO salaries/bonuses?
Strategy/Change maybe?
I wouldn't count on contract work as I cannot stand the instability.
Something else, specialising in some jobs like Operations, Product Control, even Compliance, wouldn't it be very limiting in case you want to work in another sector? While, if you specialise in Treasury for example, it has better exit opportunities to work in any industry?
So I reckon in top banks you get 100k max in 5 years. While in front office, I know it's 180k.
It's quite considerable difference.
Is there anything in BO/MO that would go as closer as possible to FO salaries/bonuses?
Strategy/Change maybe?
I wouldn't count on contract work as I cannot stand the instability.
Something else, specialising in some jobs like Operations, Product Control, even Compliance, wouldn't it be very limiting in case you want to work in another sector? While, if you specialise in Treasury for example, it has better exit opportunities to work in any industry?
Edited by greeer on Monday 21st May 22:27
FO and MO/BO salaries are largely similar, it's the bonuses that make the biggest difference.
Also it depends what you're talking about when you say FO, are you referring to sales and trading or investment banking/corporate finance?
In MO/BO after 5 years I would expect a total package of about £75k (salary and bonus).
I would look at an area like market risk, but you need to be pretty quantitative. Making any suggestions is pretty useless without knowing what your background is.
The whole industry is also very competitive and tough to get into, so you might not be able to just pick an area that takes your fancy.
Also it depends what you're talking about when you say FO, are you referring to sales and trading or investment banking/corporate finance?
In MO/BO after 5 years I would expect a total package of about £75k (salary and bonus).
I would look at an area like market risk, but you need to be pretty quantitative. Making any suggestions is pretty useless without knowing what your background is.
The whole industry is also very competitive and tough to get into, so you might not be able to just pick an area that takes your fancy.
I'd also consider how dull some of these jobs are.
In my opinion, market and credit risk are pretty interesting and in market risk you get to understand the markets fairly well. Product control is fairly interesting, depending on the asset class, but you usually need accounting qualifications. Operational risk is boring, you are basically making sure all process have adequate controls in place. Settlements and documentation/confirms is pretty boring. Compliance is mostly complying with the new regulations that keep coming in and is therefore pretty boring, although there are probably some interesting aspects like investigating rogue traders etc. Operations/trade control is OK, but I would imagine it gets a bit repetitive.
In my opinion, market and credit risk are pretty interesting and in market risk you get to understand the markets fairly well. Product control is fairly interesting, depending on the asset class, but you usually need accounting qualifications. Operational risk is boring, you are basically making sure all process have adequate controls in place. Settlements and documentation/confirms is pretty boring. Compliance is mostly complying with the new regulations that keep coming in and is therefore pretty boring, although there are probably some interesting aspects like investigating rogue traders etc. Operations/trade control is OK, but I would imagine it gets a bit repetitive.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff