Why Investment Bankers Quit Early: Key Causes & Fixes (2025)
Introduction to Why Investment Bankers Quit Early
30–40% attrition. That’s how many employees some Indian private banks are losing annually, according to recent reports. Globally, it’s not much better—junior investment bankers are leaving in droves, often within just 24 months. For a sector once seen as the pinnacle of prestige and pay, this mass exodus signals a deep and systemic issue.
Understanding why so many investment bankers quit isn’t just an HR concern—it’s a strategic necessity. High attrition drains institutional knowledge, inflates recruitment costs, and damages client relationships. But more importantly, it reflects an underlying mismatch between employee expectations and industry realities.
What Are the Current Attrition Rates & Trends?
Global Norms and Comparisons
In major financial hubs like New York, London, and Hong Kong, first-year analysts in investment banks often quit before completing their two-year program. A 2023 Goldman Sachs survey revealed that over 75% of junior bankers reported working more than 80 hours a week—and nearly all said their mental health was suffering.
Meanwhile, global attrition across investment banks hovers around 20–25% annually, with peaks in junior roles.
India-Specific Data
In India, the numbers are even starker. According to Moneycontrol, attrition in some private-sector investment and corporate banks has reached 30–40%, especially in roles tied to sales, loan processing, and credit.
Mid-tier institutions and fintech-aligned banks see higher churn, as employees switch for marginal salary hikes or better work cultures elsewhere.
Which Roles Are Most Affected?
Analysts and associates: Typically face the steepest learning curve, longest hours, and least autonomy.
Sales/frontline staff: High-pressure roles with aggressive targets contribute to stress and burnout.
Credit and operations teams: Often see attrition due to limited growth paths and repetitive workloads.
Root Causes of High Attrition in Investment Banking
Long Work Hours, Burnout & Mental Health
Investment banking is infamous for its “always-on” culture. Whether it’s 100-hour weeks or weekend deal crunches, the mental toll is severe. Junior bankers often cite exhaustion, anxiety, and sleep deprivation as reasons for leaving.
Poor Work-Life Balance
Even when not physically in the office, bankers are expected to respond to emails and work calls late into the night. This “off-hours availability” expectation leaves little room for personal life, leading to long-term disengagement.
Culture Issues: “Up or Out” Mentality
Most investment banks operate under a hyper-competitive, hierarchical structure. Promotions are few, and many are pushed out before they can rise. Office politics, favoritism, and lack of psychological safety compound the problem.
Compensation vs Expectations
Despite the perception of high pay, many junior bankers in India earn less than their global counterparts—often with uncertain bonuses and delayed increments. When salary doesn’t match the sacrifice, dissatisfaction grows.
Better Alternatives: Fintech, Consulting, and Tech
High performers are increasingly moving to tech companies, startups, or consulting firms, drawn by flexible work, flatter hierarchies, and often comparable pay. The allure of building something new—versus grinding through spreadsheets—can be hard to resist.
Lack of Career Path, Recognition, and Mentorship
Without clear progression, feedback, or genuine mentoring, many feel stuck. In one anonymous survey, 60% of Indian investment bankers under 30 said they didn’t see themselves in the industry beyond five years.
Geographic Demands and Personal Sacrifices
Frequent relocation, long commutes, and sacrifices in family life add to dissatisfaction—especially in Indian metros where urban stress is already high.
Unique Factors in Emerging Markets Like India
Salary Differentials vs Global Banks
Many Indian analysts earn only a fraction of what global banks offer, even for similar roles. This leads to resentment, especially when cross-border teams work on shared deals.
Regulatory & Market Pressures
Stringent regulatory oversight, volatile capital markets, and a rapidly changing financial landscape add operational stress to frontline banking teams.
Talent Supply & High Switching Risk
The oversupply of commerce and finance graduates allows banks to replace talent easily, but this also creates a churn-friendly environment—employees feel replaceable and leave at the first better offer.
Target-Driven Sales Culture
Aggressive monthly targets in roles like SME loans or wealth advisory drive burnout, with little room for long-term relationship-building or skill development.
Consequences of High Attrition
Cost to Firms
Recruiting, onboarding, and training each new employee costs banks 30–50% of the employee’s annual salary. Frequent turnover erodes team cohesion and delays project execution.
Damaged Employer Brand
When attrition is rampant, the bank’s reputation suffers. It becomes harder to attract top-tier candidates, especially from elite business schools.
Client Relationship Risks
In investment banking, trust is everything. High turnover disrupts continuity with clients, leading to lost deals or weaker retention.
What Banks & Employees Can Do
For Banks: Structural and Cultural Shifts
Redesign onboarding to set realistic expectations from day one.
Mandate protected time-off, with no work-related communication during leave.
Create mentorship programs that go beyond formalities.
Introduce flexible work options—hybrid models, sabbaticals, or rotation programs.
Transparency in bonuses and appraisals can improve perceived fairness.
For Employees: Smart Navigation
Set clear boundaries early, especially around working hours and personal time.
Invest in skill-building beyond your current role (Excel, Python, CFA, etc.).
Evaluate a bank’s culture during interviews—ask about team turnover, mentorship, or wellness initiatives.
Structural Shifts Worth Considering
Shift from “face time” culture to output-based evaluation.
Tie compensation to wellbeing metrics, not just revenue.
Explore retention bonuses or ESOPs, especially in growth divisions or digital banking units.
Conclusion
Investment banking remains a challenging but rewarding field. Yet, without addressing the root causes of burnout, disillusionment, and cultural mismatch, attrition will continue to rise.
For banks, the solution isn’t just more money—it’s better structures, fairer cultures, and transparent pathways. For individuals, the key lies in aligning personal values with professional roles and knowing when to stay or walk away.