The term “corporate banker” is a blanket term for many different banking jobs. In recent years, it has come to refer primarily to people who work in investment banking. This job entails managing capital, advising companies on mergers and other transactions, and performing market analysis. It’s not an easy job by any means, but it pays well enough that you can’t argue with success. This article will cover some of the corporate banker career path options available to you and, hopefully, give you an idea of how much money you can expect to make.
1. What Is Corporate Banking?
The term “corporate banking” refers to many different banking jobs that mainly deal with helping companies through their financial needs. This includes everything from arranging financing to providing financial analysis. It also includes merger and acquisition advice, financial analysis, and mergers & acquisitions.
The most common corporate banking job is the “corporate banker.” Corporate bankers provide a wide range of services to small and medium-sized businesses (SMBs) and large corporations. They work with all types of companies, providing credit information and advising on loans. Corporate bankers are responsible for business development, which entails building relationships with new companies and existing customers.
2. What Does a Corporate Banker Do?
A corporate banker typically does the following
- Establishes relationships with new companies, who then become clients of their bank.
- Gathers financial information about the client company to help determine its creditworthiness.
- Researches various financing options, including loans and other types of financing such as asset-based financing or real estate financing.
- Recommends an appropriate financial package and helps the company apply for it.
- Advises the client on mergers, acquisitions, or other types of transactions with other companies.
- Serves as a liaison between clients and various divisions of their bank such as commercial loans, international finance, treasury management, payments, etc.
- May work with the commercial loan department to help arrange loans for clients.
- May work with the international finance department to help arrange to finance for companies outside their home country.
- May provide advice on mergers or acquisitions, especially when a company is looking at a competitor as a potential acquisition target.
- Advises clients on strategies they can use to cut costs and increase profits.
3. How to Become a Corporate Banker?
Education Requirements
The path to becoming a corporate banker is not an easy one. Most employers will require at least a bachelor‘s degree, though some companies may be willing to hire someone with just two years of experience out of college if they have an MBA. The lack of formal education doesn’t mean that you can’t become a corporate banker, however. It just means that you will need to have a lot of related experience before employers consider hiring you.
Experience Requirements
In addition to requiring formal education, most companies also require a significant amount of experience to hire someone for a corporate banking job. Most banks will not hire entry-level candidates without at least three to five years of experience in the industry. Some banks may require even more than that, perhaps as many as 10 to 15 years of banking-related experience. It would help if you were prepared to work at multiple jobs over several years before you ever become a corporate banker.
4. How Much Does a Corporate Banker Earn?
Corporate bankers typically earn a base salary, which is the same for all corporate bankers. Most corporate banker positions have a base salary between $40K and $80K. Corporate bankers can also receive variable compensation in bonuses or commissions, often based on how much revenue they bring in for their bank. This bonus can be anywhere from $0.5K to $20K or more, depending on the size and success of their particular division within a bank and how well they perform as corporate bankers.
5. What Skills Are Required for Corporate Banking?
Good Company knowledge: Corporate bankers need to understand various types of loans, credit policies, and interest rates. They need to know what different banks offer and why they should be selected over their competitors.
Good Financial Skills: Corporate bankers should be able to analyze data and come up with conclusions that will help their customers make better decisions.
Excellent Communication Skills: The ability to communicate well is essential for building rapport with customers, understanding what each customer needs, and finding ways to help each customer meet their specific goals.
Attention to Detail: Corporate bankers are responsible for reviewing all the information given to them by their customers. They need to make sure that all of the information they receive is accurate to be sure to provide their clients with accurate advice.
People Skills: Corporate bankers need to know how to work closely with all types of customers, ranging from individuals to entire companies. They must put clients at ease even if the clients are upset about some issue.
6. Is Investment Banking Different than Corporate Banking?
Yes. Investment bankers help companies raise money for projects or investments. They also help companies in financial distress find investors to buy out their company or parts of it. Investment bankers are therefore focused on the specific needs of individual clients, while corporate bankers are more concerned with helping many types of customers.
Although corporate and investment bankers work in the same field, they do very different things. Corporate banking is more focused on helping companies with their short-term concerns. Investment banking, on the other hand, is all about raising money for large projects or investments.
7. What Is the Job Outlook for a Corporate Banker?
The job outlook for corporate banking is excellent. As the world economy has struggled in recent years, banks have found it more important than ever to help individuals and companies determine ways to get their debt under control. Because of this, there is not expected to be a shortage of jobs for corporate bankers in the immediate future.
8. What Does a Typical Day Look Like for a Corporate Banker?
Corporate banking can vary depending on what company you work for and what you do, but many corporate bankers have a reasonably typical routine. They come into the office between 8:00 and 9:00 in the morning. In some positions, they may arrive even earlier to review data from overnight transactions or news from other countries. Once they arrive and settle in, they usually check and respond to e-mails. Around 9:00, the banks open for business, and corporate bankers will start taking calls from their customers. They may take these calls throughout the rest of the day or only between certain hours, depending on how busy it is.
9. What Are the Top Recruiting Banks for a Corporate Banker?
Top recruiting banks for a corporate banker include Goldman Sachs, J.P. Morgan, and Morgan Stanley. These companies are considered to be among the best in the country for entry-level corporate banking opportunities, as well as for providing excellent training programs and mentor ship opportunities as employees earn their way up the corporate ladder.
10. Best Colleges to Study Corporate Banking
Some of the best colleges to study corporate banking include
Yale University
The school offers a joint MBA and MA-cc program for students who wish to pursue careers in corporate banking. It prepares students for positions such as business analyst, financial analyst, and portfolio manager.
Harvard University
Students at this Ivy League school can earn an MBA concentrating in finance or choose from multiple finance-related courses to supplement their degree.
Stanford University
Stanford offers a variety of undergraduate degrees in business, economics, and engineering well suited for students who wish to pursue careers in corporate banking. An MBA is also available with several specializations.
Massachusetts Institute of Technology (MIT)
MIT offers multiple undergraduate degrees that are vital for students who wish to pursue careers in corporate banking. An MBA is also available at this school, which has a reputation for excellence in finance and technology.
University of Pennsylvania
The Wharton School at the University of Pennsylvania offers undergraduate degrees with multiple concentrations suitable for preparation for financial careers, including an emphasis on finance.
Columbia University
A potent combination of business and economics courses is offered by this Ivy League school, along with a variety of finance-related concentrations for students who wish to pursue careers in corporate banking. An MBA in finance is also offered at this university.
11. Online Courses to Study Corporate Banking
For students who cannot afford to quit their job to take courses in person, there are various options available. Many websites offer online courses in corporate banking. Some of the most popular and highly recommended courses for corporate banking include:
Relationship Management in Corporate Banking by Udemy: This course will help you learn about the essentials of relationship management. You will also learn to manage relationships with different stakeholders efficiently.
Intensive Course on Banking & Finance by Udemy- This course will give you a good understanding of banking and finance terms. It will also introduce you to concepts of corporate and investment banking.
Corporate Finance by Edx: This course will give you a thorough understanding of corporate finance. You will learn about valuation, capital budgeting, and dividend policy.
Introduction to Corporate Finance by Edx: This course will introduce you to corporate finance. You will learn about topics such as equity and debt financing, capital budgeting, financial modeling, and valuation.
Conclusion
A corporate banker career path can be a lucrative and rewarding one. Corporate bankers are responsible for providing financial advice to businesses and helping them secure loans. They may also work with investment firms and offer guidance on stock purchases. To pursue a career in corporate banking, you will need to have strong math skills and knowledge of financial markets. You should also build relationships with clients and provide sound financial advice. If you are interested in pursuing a career as a corporate banker, start by researching the job market and networking with professionals in the industry. With hard work and dedication, you can achieve your goal of becoming a successful corporate banker.
