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Why is investment banking fundamentally a service business?

Why investment banking is fundamentally a service business: what bankers actually sell, why clients pay for it, and what that means for your career.

Michael Neal·3 min read·updated August 2026
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Banking is a service business

Investment banking is like being a butler at a very expensive restaurant. Your job is to make sure the silverware is perfectly polished. Is it critically important that the silverware is perfectly polished? Probably not. But if it is wrong, it will be very obvious that it is wrong.

That is the whole trade. Partners at M&A advisory firms serve clients paying for one of the most expensive services in the economy, and at that price the standards stop being about function.

Kazuo Ishiguro's The Remains of the Day runs the same idea through an English butler.

A butler was travelling with his employer to India when a tiger appeared beneath the dinner table. The butler whispers to the employer, asking to borrow his shotgun. Three shots go off. He returns: "There will be no discernible traces left of the recent occurrence at dinner time."

Servitude is the business model. Butlers have been refining this craft for centuries. Bankers are butlers.

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