Choosing between Consulting and Investment Banking is a crossroads many candidates face. If you’re weighing both options and wondering which path might suit you better, I hope this article helps bring more clarity. Both industries offer fast-paced environments, high pressure, and big rewards—but the culture, skill sets, and daily work can be quite different. Drawing from my own experience in consulting, along with insights from consulting colleagues who transitioned from investment banking, I’ll share a candid comparison to help you make a more informed decision.
Before we dive into the comparison, it's worth taking a closer look at what consulting and investment banking are all about. While the two fields share some similarities, they differ significantly in their focus, work environment, and the types of tasks you’ll deal with on a daily basis.
Investment banking primarily revolves around finance and capital markets. Professionals in this field advise companies on mergers and acquisitions (M&A), raise capital through debt or equity offerings, and manage complex financial transactions. The work is analytical, transaction-driven, and often involves high-pressure situations, where accuracy and speed are crucial.
Consulting firms, like MBB (McKinsey, BCG, Bain), provide strategic advice to a wide range of clients across different industries. Consultants help solve business problems, drive operational improvements, and facilitate strategic transformations. Their work is project-based, highly collaborative, and requires a blend of analytical and interpersonal skills.
Let’s take a closer look at the most important factors that really matter when deciding between a career in Consulting and Investment Banking.
| Category | Consulting | Investment Banking | Takeaway |
| Teaming | More collaborative involving team input – 1 team lead managing | More hierarchical: 1+1+1 model – 1 MD manages 1 VP / ED who manages 1 Associate (who manages 1 Analyst) | Consulting is more team based |
| Client engagement | 2–4 juniors, each running their own module or workstream. Depth of engagement depends on project, client type, and seniority mix | Standard across most projects – typically CFO and transaction team, financial advisors (e.g., Big4), and legal advisors | Consulting has more variety in types and depth |
| Analytical activities | Wide variety: primary & secondary research, modelling, stakeholder interviews, site visits; credit for creativity and efficiency | Mainly financial modelling – DCF, comps, leverage analysis, DDM | Consulting broader and more varied set of activities |
| Variety of topics | Large variety from project to project – e.g., strategy, operations, transformation | Mostly focused on M&A, debt or security issuances
| Consulting covers more industries and functions |
| Category | Consulting | Investment Banking | Takeaway |
| Hours | Project dependent; average 50–70 hours; greatly influenced by project type | Typically on the upper bound, especially during deals; weekend work is common | IB overall longer hours; consulting also long but more variable |
| Travel | Project and office dependent; often co-located at client site | Travel only during due diligence or key phases; a few selected days | Consulting involves significantly more travel |
| Category | Consulting | Investment Banking | Takeaway |
| Base & variable | Bonus is more formulaic and less variable at junior levels | Higher base, higher bonus; more bonus variance depending on firm/market performance | IB has higher variable component; IB higher from junior to senior ranks |
| Category | Consulting | Investment Banking | Takeaway |
| Internal progression | Structured with clear performance metrics and promotion path | Structured with clear metrics; lower longevity – sales at senior levels more difficult | Both up or out but consulting more stable |
| Exit opportunities | Corporate strategy, tech, startups, public sector. Less likely to go to PE (typically value creation roles) | Private Equity is common exit (typically by associate); staying VP+ often seen as low value | Consulting more varied and broad than IB |
Both investment banking and consulting come with their own set of challenges and opportunities. The right choice really depends on your strengths, interests, and where you see your career heading in the long run. Whichever path you choose, preparing for interviews means developing a solid understanding of what the industry demands – and showing you have the skills and qualities firms are looking for. One thing both fields have in common: they’re highly competitive, and breaking in won’t be easy. Having a clear, strategic preparation plan is crucial to putting your best foot forward in your applications and interviews.
Benjamin has >8 years of consulting experience, starting off at Kearney SEA and he joined BCG as an experienced hire, where left as a Principal. At BCG, Benjamin was fast promoted twice (Consultant to PL; PL to Principal) and was also selected to be a CEO Ambassador (internal secondment). Benjamin has a wealth of case experience across multiple functions (Strategy, Operations, Transformation, Due diligence) and industries (PE, TMT, Public Sector, Consumer, Tech). While focused on SEA, Benjamin has also done cases in the Middle East, North Asia as well as South Asia.
At BCG, Benjamin had ~5 years of experience as an interviewer. Having come from a non-traditional background himself, Benjamin can offer practical tips for experienced hires and non-traditional candidates.
Benjamin graduated with a B.A. (First Class Honours) in History from the National University of Singapore.
