Corporate Strategy at Banks vs Investment Banking

Hi all,

Recently I have observed a going trend of banks having their or internal strategy groups (can be either in their consumer or institutional banking). From what I have heard, these internal strategy groups provide a good exposure to senior management and huge mobilities to progress within the bank while doing corporate strategy work. It is similar to consulting except you have extremely good hours (compared with IB) and minimum travel. However, you do not make the huge paychecks that people in IB make at a junior position.

My question is, how are these "corporate strategy" roles at banks seen for exit opportunities in the future and also internal progression? Assuming that offers are both from BB, is it more recommended for people right out of school whose interested in banking/finance to just stick with IBD and explore buy-side exits or is corporate strategy at a bank actually very sexy?

 

Are you thinking groups such as MS FSE? I know a handful of people doing that. One doesn't seem to like it, but I can't speak for the others. The work is a combination of M&A and corporate strategy, so you'd have exit ops similar to people focusing in those areas. I've also heard (incorrect or correct) that you need ~3.8 from a top target to break in.

 

Yes, banks that have similar positions that pop in my mind is MS, Citi, JP... etc, all who have "strategy" roles for their financial services. It looks very attractive considering the impact your work might potentially create and also the great hours.

 

It will be way easier to move from an IBD role to a bank's strategy group than vice versa. If you absolutely crush it in strategy the opportunity will be there, but in terms of general career flexibility I would go with IBD. Definitely a cool job and the exit options will not be bad by any means, but buy side right away could be a bit challenging unless you want to go to a FIG-focused shop.

If you look at related posts below you'll find more info on this subject, it's been discussed a bit before.

 

Update in case anyone becomes interested in strategy within IBD.

The work is split between developing business strategy for the IB and serving as an internal management consultancy for leadership.

The entire team I interviewed for came from the IB. The hiring manager was looking for someone with a strategy consulting background to round the team out. Career progression mirrors the pace and titles of the IB.

 

What's the likelihood of moving back to Ibanking after a stint in strategy? Or, what/where are the exits from strategy in BB.?

Global buyer of highly distressed industrial companies. Pays Finder Fees Criteria = $50 - $500M revenues. Highly distressed industrial. Limited Reps and Warranties. Can close in 1-2 weeks.
 

I never interviewed for a Corp. Dev./strategy role at a BB, but I did for another international asset mgmt firm, and the job description was similar. This was for an analyst role. The job entailed working with the CFO office, other execs and developing the long term strategy, looking at potential mergers, etc. The interview was mostly fit, except one guy asked me to go through an income statement. They also wanted to know my take on data and ways to manipulate it. I think what you really need to focus on, is knowing the overall strategy of the BB, and how it may differ (since it's a bank) than traditional companies (non-banks). But, I'm sure you already know that. If you want further info on my interview, PM me or just ask a question here. But, I think what you are doing right now in order to prep for the interview is the appropriate approach.

 

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