Why is investment banking so competitive?

Investment Banking is not competitive. It only seems so from the outside. Peter Thiel once said that investment banking and law firms are like Alcatraz, looks like it's easy to get in but impossible to get out.

Investment-banking doesn't require much skill. Today most of the models are done by computers and analysts spend their time doing research.

The only reason the environment seems competitive is because of the excess supply. Too many people are swayed by money and want to enter the industry. Most Bankers I've met never studied finance or economics. While diversity is great it is important to master the fundamentals as well. This can only be done by studying the basics at an early age.

Now Bankers continue to make it seem like a glamorous career. But we know the industry is dying. First, Technology is recruiting more intelligent people everyday. Second, banking is a boring job. Even today when working virtually there's not much excitement sitting at the desk.