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GUEST COMMENT: I am a front office banker who wants to work in the back office

In my 15 years as a front office banker, I saw a lot of (often acrimonious) desk moves. However, while we happily kicked compliance off to the sixth floor, one small team of middle office/support staff were never moved far away from the credit traders they supported.

This was because they were seen by all the traders they worked with, and especially by the head of desk, as vital to the running of his business. Yes, there were squabbles and there was lots of finger pointing, but the closeness and resulting efficiency, mutual respect and dependency came down to having support staff sitting on the floor, getting to know the business, the clients and the people they were supporting.

It is entirely with this in mind that I am considering moving into a back office role. Having had a few conversations with recruiters, it seems I may have something to offer. I know, for example, of the ways in which the front office subvert the back by running their own budget spreadsheets, managing headcount in access databases, or resisting and pushing back on back office management information requirements.

A friend of mine has just made the front to back move and says it has its ups and downs.

She feels that her front office experience helps enormously, but that the number of, what she describes as, 'circular conversations' (I have removed the expletives) within the back office teams, especially within management, is very frustrating.

She also says, and I have heard the same point made by others, that it is easier to hide in the back office but it is also easier to shine.

There is clearly significant room for change in both the front and back office. It's a shame that the most significant difference, as illustrated by the ongoing 'us and them' nature of any discussion, is pay. Bonuses, and bonus expectations continue to be based entirely on whether you are in the front or back office, and not on your impact on the business overall.

While the front office breathe a small sigh of relief, uncertainty also seems to be ongoing in the back office, with offshoring to cheaper (ie. non-London) locations still a real threat. In the worst case scenario, I would therefore end up both poorer and less secure in the back office, which makes it seem less appealing after all.

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AUTHORAnonymous Insider Comment
  • ml
    ml0105
    27 September 2009

    I am striving to move from MO to FO, but with 40 years, loads of operations and "no" FO experience, it seems nearly impossible.
    So why does nobody consider this move. So far to the us and them.

  • To
    ToNYC
    24 September 2009

    Nothing will change the fact that the business gets paid on what is hunted and killed. You won't be rewarded in kind, and will be a considered a cost involved. When you find peace with that, you can deal with the normal back-stabbing and insecurity if you want to change something for the better. Or even better, find something to do with your life where you can be involved in helping people rather than parsing off their funds.

  • Fr
    FronttoMiddle
    24 September 2009

    I spend a couple of years in investment banking before downsizing forced me to consider alternatives last year. I chose a middle office role within the same bank and was initially very positively surprised. Middle Office gives you a much broader set of business and personal skills that you can utilise if you are looking for instance to run a company. if you enjoy working with people, care about your personal development, coming up with creative solutions; try out middle office (maybe back office but you will feel more secluded). Front office is much more about the revenue you generate and much less about the process. If you enjoy making money, talking to clients about markets and selling you should definitely stay there.

    A few key points below on middle office:
    Plus: great exposure to all parts of the business, better managers who cares a lot more about personal development, better teams and a great chance to practice project management skills. Much better work-life balance
    Minus: lower pay (although you get to keep your base, bonus will be more than halved), no daily client contact and no market talk, repetive daily procedures (if you are inventive you can reduce that)

  • Ch
    Chrisitne
    23 September 2009

    I have a team of Market Risk people who work in the dealing room and I actually ask for ex traders when I recruit as I find they make the best risk managers. I think you will find the pay gap is now less than it used to be as well

  • fr
    frontofficeguy
    23 September 2009

    "Front-office people spend all days long communicating with clients, and they like other people. Back-office people hate other people because they work mostly with systems. "

    WHAT A SILLY GENERALIZATION!

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