Although the common career path for people who earn an MBA is to take their talents to the world of banking or consulting, a growing number of people leaving business school are being lured away by fintech startups, spurring the promise of a higher salary in order to be at the center of innovation in financial services, the Financial Times reports.
One of the biggest draws of working at a fintech startup for MBA graduates, according to the FT, is that its allows them to immediately be on the front lines of building and running a company. There is also the allure of the startup pace, where you're more apt to see planning and strategy turned into much quicker results than you would at an established corporate entity.
The FT notes that many fintech startup founders have MBAs themselves - and they're now going back to business schools in order to hire talent.
A 2015 Goldman Sachs report estimated $4.7tn of financial services revenue was at risk of displacement from fintech groups. Graduates are drawn to these fast-growing young ventures where their decisions count and mark them out as a vital member of the team, says Irina Zilbergleyt, IE’s director of talent and careers.
The trend presents investment banks and consultancy firms with competition. “One of the biggest talent acquisition concerns of big banks is losing top talent to fintech and other technology companies,” Ms Zilbergleyt says.
And while the lower salary at a startup could be a deterrent for some MBA graduates, the FT points out that many are happy playing the long game. This means putting a premium on equity, rather than salary.
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