The Difference Between Tech Companies and Financial institutions

What are the key differences between financial companies such as banks, and technology companies such as Facebook or Google? On the surface, this seems like a very easy question to ask. Technology companies are techier, pay more, and have awesome benefits, whereas banks are large, boring, and slow. However, it’s not always as clear cut as the stereotypes would have you think. Fundamentally, both industries use technology to solve problems or create new opportunities, but it is the role that technology plays within these companies that is the key difference.

For a technology company like Facebook, their whole business is built around their platform. Their technology is their product, and projects within the company are targeted for the end user of the product, or for supporting the platform as a whole. On the contrary, a major financial institution has a more diverse set of needs than serving the average consumer.

If you’ve ever been inside a financial institution, you may have experienced first hand the large variety of functions a bank needs to fulfill. There’s a large amount of technology inside of a financial institution and billions of lines of code, and plenty of regulations that restrict what you can and can’t do. This code supports many business functions, ranging from very broad like a company intranet, to very specific, such as software that helps gauge the price a company should IPO at.

In this regard, your role as a technologist is to support the business, not the other way around. This is why you won’t see the special treatment that technology companies provide their employees, such as free meals, gyms, and laundry. Although some smaller financial companies like Capital One may be embracing change, in my experience, the vast majority of teams in financial institutions do not support modern software development practices. If you’re just starting off in your career, this may significantly hurt your growth.

On the other hand, many financial institutions have a more balanced work-life schedule. In exchange for this balance, these companies tend to pay less than technology companies. There are a few roles in the financial world that allow for more pay, such as hedge funds, but you’ll have to work more hours for this extra pay. Similarly, technology companies tend to pay more, but require more from their staff. Why else would they offer such great benefits like free food and laundry? In all, the choice is up to the individual. Nonetheless, it’s important to weigh your options and find the best match for you. In the end, if it all goes south, you can just leave for another company in a year or two, no sweat.