Young bankers are confronted with a fresh set of choices in the rapidly evolving finance landscape.
Traditionally, junior positions on Wall Street have followed a well-trodden path: secure an internship, spend a couple of years in investment banking, and then choose between remaining in banking, transitioning to the buy side, or pursuing an MBA. However, with the rise of artificial intelligence, this career trajectory is undergoing significant disruption, as many emerging financiers are now gravitating towards AI startups associated with financial services.
For instance, Jared Swansen, 27, made the switch to Rogo in January. He fondly recalls the Excel shortcuts he once relied on during his tenure as a banker and investor, which have been replaced by engaging conversations with former colleagues, sharing insights on how to streamline deal-making processes using AI technology.
Once, the ultimate aspiration was to transition to the buy side—a dream shared by many. Swansen, who spent nearly three years at Bank of America before joining a smaller buy-side firm, expressed, “Doing thorough analysis and working on diverse transactions was everything I hoped for in my banking career. But I couldn’t ignore the rapid developments happening in AI.”
Founded in 2021 by a group of young ex-investment bankers from Lazard and JPMorgan, Rogo has achieved a remarkable valuation of $2 billion following its successful Series D funding round earlier this year. The company highlights its unique combination of technological prowess and financial expertise, employing a team of engineers alongside former bankers like Swansen, many of whom previously worked at notable firms like Evercore and Goldman Sachs.
Rogo’s executives are not anticipating an overwhelming shift of bankers and private-market investors to startups, as such a scenario would disrupt their existing client relationships. Though recruiters are not witnessing a significant wave of young professionals leaving finance, AI is becoming increasingly appealing to those with entrepreneurial ambitions. Nonetheless, stepping away from the well-defined, lucrative finance track presents its own set of uncertainties.
Anthony Keizner, co-founder of recruiting firm Odyssey Search Partners, stated, “The challenge lies in gauging how widespread this trend is; it’s difficult to measure precisely.”
With a client list that includes major players like Lazard, Moelis, and Tiger Global, Rogo automates various tedious tasks—such as creating slide presentations, producing research, and developing financial models. Users can interact with their AI agent, Felix, via email, in much the same way as they would communicate with colleagues.
Other companies in the AI finance sector, such as Hebbia and Farsight AI, are also emerging, each aiming to enhance operational efficiency. Meanwhile, industry giants like Anthropic and OpenAI are hiring former bankers to develop financial services.
Rogo embodies a blend of technology and finance—its employees, dressed casually in jeans, enjoy benefits like free lunches and a relaxed office environment complete with board games and an Xbox. When posed with the question of whether they view Rogo as a finance or tech firm, employees, including Elsa McLean, the head of talent, took a moment to ponder before ultimately identifying it as an AI company.
In the first half of this year, McLean noted a substantial increase in interest from potential applicants, leading Rogo to double its workforce to over 150 and setting an ambitious goal to double again within the coming year. The company operates in New York and London, with plans for new offices in San Francisco and Singapore.
Established in 2020, Hebbia serves a diverse clientele across investment, banking, and law, and has rapidly expanded from just under 100 to approximately 200 employees in the past year. According to Tom Navin, the head of people, applications have surged, with an average of 7,000 monthly inquiries—60% of which come from finance professionals.
Swansen first developed an interest in finance during high school and envisioned a conventional career path. He stumbled upon Rogo while investing at Acacia Research, and despite the challenges of leaving his prior roles, the allure of participating in technological change proved irresistible.
Rachel Friedman, 27, also sought opportunities beyond traditional finance. She was Rogo's first female employee, joining the startup in its early stages after over two years as an investment banker at Jefferies. For her, Rogo presented a chance to work in a dynamic environment where she could engage in multiple aspects of the business, all while enjoying a more casual dress code.
Friedman remarked, “The risk appetite of candidates seems to have evolved significantly. Now, there’s a collective understanding that AI adoption is inevitable among financial institutions. The real concern lies in choosing the right company.”
Swansen added that it felt riskier to remain stagnant amidst the industry's transformation. Experiencing Rogo's work environment is similar to that of prestigious firms in the financial sector, with employees noting that while the workload remains intense, they have greater flexibility over their schedules.
“I put in a lot of hours, but I’m never left worrying at 6 p.m. on a Friday about imminent crises ruining my weekend,” Swansen shared. “I could potentially wrap up my day three hours earlier if I chose to, but we’re expanding so swiftly that plenty of exciting opportunities are available.”
Professionals with backgrounds in high finance continue to leverage their networks for client development at Rogo. This includes Jack Maroni, 27, an MBA intern with previous experience at KKR, who has connected Rogo with former colleagues still working on the buy side. Swansen's expertise in banking and private equity proves invaluable in client relations, giving him insights into their operational needs.
Despite similarities in work culture — many employees transitioning from grueling 80-hour weeks bring a strong work ethic to Rogo — the compensation package stands apart. A forward-deployed banker at Rogo can expect a base salary between $115,000 and $180,000, alongside equity and bonuses contingent on experience, as stated in a job posting. In contrast, second-year associates at leading firms can earn total compensation of up to $400,000, particularly during profitable years.
Recruiters have yet to observe a significant number of young bankers departing due to anxieties surrounding AI, as traditional banking remains a stable long-term choice. Brianne Sterling, who leads investment banking recruitment at Selby Jennings, noted the challenge of persuading top talent to leave high-paying positions unless they possess a genuine passion for AI.
Keizner pointed out that the appeal of potential equity and its value plays a crucial role in attracting former bankers to startups like Rogo. Success in equity ownership can be as financially rewarding as a traditional finance career.
Navin of Hebbia acknowledged that companies must frame their compensation packages differently for former finance professionals, who are more accustomed to cash-than equity structures. While Hebbia offers smaller bonuses for banking roles, the inclusion of equity helps align incentives.
Ultimately, Friedman highlighted the struggle many face in leaving the structured environment of finance, where success metrics and promotion pathways are well-defined. She noted that convincing candidates that less structure can be beneficial is sometimes a challenging discussion, as many are apprehensive about navigating new territories in their careers.
