A Complete Guide for Entering the World of Corporate Banking

A Complete Guide for Entering the World of Corporate Banking

If you are into a career in the business field, then you probably thought about banking careers. Financial institutions are the heart and soul of the business world. The work in such a dynamic environment will boost your business skills more than you imagine. Moreover, financial compensation is always rewarding. And what makes a banking career more attractive to job seekers is the diversity of the roles and level of experience available; whether you are looking for an entry-level job or a job in management, you will find what you are searching for. Furthermore, various types of banks offer a variety of jobs in different fields. For instance, there are investment banking, corporate banking, retail banking, and more.

So, you don’t need to have a degree in business administration to get a job at a bank. Banks provide jobs for people who have a law, computer science, economics degree, and many other degrees. In this article, we will dig into the details of corporate banking. Corporate banking is one of the most vital sectors of banking. If you have no idea what corporate banking is, do not worry; we got your back. We will introduce you to the basic concepts in corporate banking. Then we will walk you through all the available careers, secure a job offer, and all the necessary information. 

What is banking?

Before we get into corporate banking, let us talk about banking in general. Banks are financial institutions that handle several types of financial transactions. Banks are the safest place for individuals, businesses, and governments to save their money and get paid interest on their deposits. Banks take these deposits to invest them in projects or to grant loans to money demanders. Usually, individuals save more than in banks, and government and businesses demand more. In other words, individuals are the net suppliers, and businesses are the net demanders. Keep in mind that the banking system is more complex than this, but this is just the basic concept of what banks are and how they work.

Types of Banks

There are different types of banks based on the function they do and their targeted audience. Here are some of the most important types of banks:  

  • Central banks: The central bank is the head of banks in a specific country from its name. It supervises other banks and determines many things in the money market, such as interest rates. The government is responsible for the central bank and uses it to implement its monetary policies. Monetary policies are the government’s procedures to compact inflation and deflation by controlling the interest rate and the money supply. 
  • Commercial banks: These are one of the most popular types of banks. They deal with both individuals and businesses by providing them with many financial services. They offer opening saving accounts, loans, and more. 
  • Retail banks: As commercial banks, retail banks are also very popular. People know them well because they serve the general public. The difference between retail banks and commercial banks is that commercial banks serve consumers and businesses, but retail banks only serve consumers. Retail bank branches can be found in large numbers in different areas and cities.    
  • Investment banks: These banks target large corporations and the government. They help them gather funds and issue securities to consumers. They also work as financial advisors for those large businesses. 

Corporate Banking

Corporate banking is a division of banking that deals with businesses. They cover a large area of businesses from small to billion-dollar companies and provide them with special services. 

Jeff Bezos Career Advice
Jeff Bezos Career Advice

 Corporate banking services: some of the services corporate banking provides:

  • Financing: Corporate banks finance the needs of corporates for short- and long-term plans
  • Overdrafts: They allow the customers to lend money for short-term needs when their accounts face a deficit. 
  • Fixed assets financing: Corporate banks help their customers purchase equipment, machinery, land, and more through customized loans.
  • Employers’ services: Also, these banks help corporations in managing healthcare plans, retirement plans, and other things related to their employees. 

A Career in Corporate Banking

A career in corporate banking opens you a wide gate of opportunities in terms of the roles and the skills you can get. If you are willing to have a career in this sector, you should be aware that you have to work very hard. Banks are looking for experienced and knowledgeable people to hire because of the great responsibility they will have to carry on their shoulders. You should keep yourself informed about the trends and latest news in the field. You also need to take training and courses and enhance your financial literacy. All of this might seem very overwhelming, but the results you will get are worthwhile. And remember, there is no need to worry because we will put you on the right track to start your endeavor.

Reasons to Choose a Career in Corporate Banking:

Whether you are making up your mind to choose a career in corporate banking or a career in banking in general, the decision will not be simple. Thus, we have prepared you a list of some of the advantages of this career, and it is your turn to decide if they are appealing enough for you to take such a decision. Here some reason why you choose a career in corporate banking: 

  • Variety of job opportunities: Getting a job in corporate banking is not easy, as it requires specific exceptional qualifications and skills. However, banks always open job opportunities in different roles. So, you will always find a job role that fits your skills and level of experience.   

  • Fulfilling compensation: Salaries vary based on various factors such as your job role, the banks you work at, your level of experience, how many years you have been working for the bank, and more. However, generally speaking, corporate banking compensations are very fulfilling compared to other careers in the business field. Moreover, most corporate bankers get commissions and incentives in addition to their base salary. 

  • Outstanding knowledge and skills: Your work in corporate banking will provide you with intense knowledge of the business world. It will introduce you to different business industries and how things work in them. Furthermore, it will keep you updated with the latest news in the money market. Besides, the numerous technical and interpersonal skills you will gain.  

  • International mindset: Working in corporate banking will provide you with the necessary skills to work in an international work environment. It will open your mind to international financial situations and introduce you to the global economy. This is because some of the services you will be providing will be related to the global market. 

  • Professional networking opportunities: Working in corporate banking allows you to meet professionals from the corporate world. This is a good chance to build a wide professional network with powerful people in different industries. All of these networks will help you in your long-term career plans. For instance, these networks could help you get promoted or find a better job.        

Available job roles in corporate banking:

We have prepared a list of some of the jobs you can have in corporate banking to help you choose the job that suits you best. 

  • Corporate Banking Analyst: 
    • About the job: Corporate analysts perform various critical tasks inside the bank. They analyze trends and financial data and prepare written analyses and reports. Their work plays a vital role in enhancing the performance of the bank and helping customers.

    • Job duties and responsibilities:
      • Analyzing financial data and financial statements
      • Conducting comparisons between the loans for different companies in the same fields. 
      • Reviewing certificates and convenient ratios
      • ensuring compliance
      • Research the trends and the newest updates in markets and the economy. 
      • Conducting Credit Risk Modeling Case Study for potential loans. 

    • Qualifications and educational background:
      • Bachelor’s degree preferably in finance or any related field
      • Experience in financial analysis or any finance or analytics field.
      • Good background in finance, economics, math, accounting, and general awareness of corporate banking systems.  

    • Skills preferred:
      • Attention to detail: You will be responsible for dealing with a large amount of data and will take part in important decisions. Therefore, you need to have an eye for detail not to miss important things and notice any deficit.  
      • Strong verbal and written communication skills: As a corporate banking analyst, you will be responsible for delivering important information to your managers and clients. Hence, you should have the ability to communicate this information properly. 
      • Proficiency in Microsoft Office software: You will need a Microsoft application to perform your tasks, such as Excel for data entry and analysis. For that, you have to be very proficient and quick in using them.  
      • Salaries: Salaries differ from bank to bank, and they also depend on the strength of the employees’ resume. However, the average base pay for corporate analysts makes about 73,463 dollars per year in the United States.   
  •  Relationship Management: The relationship management team is the main contact point with the customers. Sometimes they are known as the sales team. 
    • About the Job: As a part of the relationship management team, you will directly contact the customers. Your duties will include communicating all the necessary information for them, helping them make the right decisions, and solving any issues they might face. Your goal is to maintain strong long-term relationships with your client. One of your duties is also to look for new customers and conduct meetings with them.

    • What you need to have to be a relationship manager:
      • Skills:
        • Interpersonal skills: since you will be dealing with many clients, you need to have strong interpersonal skills to provide them a satisfying service and understand their needs. 
        • Ability to work under pressure: You will have to deal with many fluctuations and solve many issues in this job. Hence, you should have the ability to endure this pressure to make the right decisions.
        • Strong mathematical and financial skills: The core of your job is to provide clients with information and advice regarding financial decisions. Therefore, of course, you need to be very knowledgeable in these matters.   

      • Educational background and certificates: A degree in finance or any related field will increase your chance of getting this job. Also, a professional certificate in a related field will make your CV more appealing to recruiters. Some of the suggested certificates are Certificate in Financial Planning (CII) and Certificate for Financial Advisers (IFS)

      • Salary: Of course, compensations vary based on various factors such as the working hours, the employee’s experience, and many more factors. Yet, the average base pay of a corporate banking relationship manager makes about 103,430 dollars per year in the United States. 
  • Corporate Banking Associate: Associates are the managers of analysts; they supervise their work and ensure top performance. They also work closely with top management in the bank and help relationship managers in building customer relationships. 
    • Duties and responsibilities: Corporate banking associates have many roles that might be similar to analysts, and sometimes they even conduct some of their tasks in some banks. They also have contact with clients and senior management. Some of their duties include:
      • Build and monitor financial models.
      • Overseeing the analyst team and help them in writing detailed reports.
      • Help in preparing sales pitches for potential clients.

    • What you need to be a corporate banking associate:
      • Qualifications and educational background:
        • Bachelor’s degree
        • A Master’s degree is highly preferred.
        • Prior experience as a banking associate or in any related job
        • Strong background knowledge in corporate banking systems.
        • Preferably have experience in finance, dealing with large corporations, cash management, and other related matters.  

      • Skills needed:
        • Great negotiation skills: Since associates deal with clients and take part in pitching sales to them, they need to have the ability to convince new customers.
        • Analytical skills and attention to details
        • High proficiency in Microsoft Office software: Just like analysts, associates need Microsoft Office all the time.

      • Salaries: As mentioned before, the types of tasks corporate banking associates do change from bank to bank and from associate to associate. For that, there is no one fixed salary for all associates. However, the average base salary for corporate banking associates makes about 106,055 dollars per year in the united states.    
  • Corporate Banking Vice President:
    • About the job: This is one of the most important jobs in corporate banking; with hard work and enough experience in this position, vice presidents are promoted to the director role. Vice presidents work as the middle management in corporate banking. They also have a great responsibility in building client relationships and expanding the activities of the bank. They have to ensure that there is high quality in the services the banks offer to the clients. 

    • Duties and responsibilities:
      • Create a portfolio for new potential customers.
      • Oversee and lead relationship manager.
      • Managing associates and analysts and taking part in their hiring process.
      • Support top-level management and deliver updates and reports to them.
      • Conduct market and competition research.
      • Supervise many projects related to corporate banking.

    • What you need to be a corporate banking associate:
      • Qualifications and educational background:
        • Bachelor’s degree 
        • MBA highly preferred
        • About five years of work experience in corporate or banking fields. 
        • Advanced background knowledge in capital markets, economics, management, and more related matters.

      • Skills and personality traits needed:
        • Strong leadership skills: As a vice president, you will be leading a team of analysts, associates, and highly qualified professionals. So, you will need to have enough charisma to lead them to the right path.
        • Advanced Microsoft Office skills
        • High sense of responsibility: Corporate banking work is highly serious and dynamic. For that, you should be aware of the great responsibility you will have to carry.
        • Strong interpersonal skills: Since you will be dealing with your subordinates and clients constantly, the nature of your job requires you to have very strong interpersonal skills.

      • Salaries: Since it is a management role, the corporate banking vice president’s job makes a lot of money. Salaries could reach more than 260,00 dollars per year and even more. However, the average base salary for a vice president in corporate banking makes about 162,527 dollars per year in the United States. 
  • Corporate Banking Managing Director
    • About the job: Managing directors manage a team of corporate associates, analysts, relationship managers, and more. Their goal is to deliver the best financial services for corporations.   

    • Roles and responsibilities: Being a part of the top management, managing directors have a diverse set of roles. Here are some of their roles: 
      • General supervision over the corporate banking team.
      • Provide coaching and support for team members.  
      • Guarantee the corporate banking operations comply with policies and procedures.
      • Set goals and create plans for all the corporate banking activities.

    • What you need to be a corporate banking associate:
      • Qualifications and educational background:
        • Bachelor’s degree in finance or any related field
        • MBA is preferred.
        • More than eight years of corporate banking work experience
        • Advance knowledge in finance, capital markets, corporate banking system, and many related matters

      • Skills and personality traits:
        • Strong leadership skills
        • Strong interpersonal and communication skills
        • Advance technical and financial skills
        • Ability to work under pressure.
        • Open to new ideas and experiences
        • Highly motivated and passionate about corporate banking 

      • Salaries: Such a tedious and crucial job, of course, has to be rewarding in the monetary term. For that, Corporate banking managing director salaries could reach more than 560,000 dollars per year and even more. However, the average base salary for managing directors makes about 245,316 dollars per year in the United States.

How to build a career in corporate banking?

  • Bachelor’s Degree: No specific degree guarantees that you will get a job in corporate banking. However, having some degrees will boost your chances. Some of these degrees are:
    • Finance
    • Business Administration
    • Accounting
    • Economics

If you don’t have any of these degrees, do not worry, you still can get a job in corporate banking. It all depends on the roles you are applying to and the skills and experience after college. 

  • MBA: Master of business administration is one of the most prestigious degrees you can take in the world of business, and it will certainly increase your chances to secure a job.

  • Professional Certificates: If you are not taking an MBA, maybe you should consider taking a professional certificate in any related field. These certificates prove that you are serious about the field. Some of the certificates that could help incorporate banking:
    • Chartered Financial Analyst (CFA): The American-based CFA Institute offers CFA to investment and financial professionals. This certificate has a high reputation globally, which means that it can secure you a job in any place in the world.   
    • Certified Financial Planner (CFP): The Certified Financial Planner Board of Standards grants the CFP certification. It requires finishing a course of study consisting of several finance topics such as bonds, stocks, and more.

  • Training and Internships: As you try to emerge in the field, you should seize every possible chance to get training or an internship in banking. Internships will teach you all the basic concepts and terms of the field. Also, they are a great chance to secure a full-time job if you have proved yourself as a top performance intern.   

  • Application Process and Interviews: During this stage, banks will test both your technical and soft skills through various ways such as personal interviews, tests, case studies, projects, and more. So, you will need to be fully prepared for any questions regarding finance or banking. The most important thing is that you show self-confidence and great communication skills. You also should show recruiters that you are open to learning new things. 

Conclusion

In conclusion, corporate banking is a large world. It is rich with opportunities, skills, and knowledge that will develop you as an individual. However, you will have to work hard to succeed in it.   

Also read Is Banking Career A Good Option For You?

A Complete Guide for Entering the World of Corporate Banking

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