Corporate & Institutional Banking Relationship Manager- Need Advice
Hey all. So, of course I drop down to the WSO gods and humbly ask for a line or two of advice. I am being recruited for a MM Corporate Banking Relationship Manager position for a large bank. This position would be working with general funding issues, capital injections, M&A advisory, etc etc. I am currently a commercial credit analyst at a tiny bank in the Midwest. I like the analytical aspect of my current position, but when I say I work for a tiny CB, I mean my credit dept. is 3 people, including me.
My question is, for those with first hand knowledge, is what can I expect out of this position? Is this a schmooze and sales only type roll, or will there be a fair amount of actual analysis? What would this position translate to on the IB side? Any and all help will be greatly appreciated.
Also interested
Yes. Relationship managers are "rainmakers" for the bank. Expect a lot less analysis and a lot more schmoozing, business development, and plenty of free dinners, lunches, etc. When I call up a bank and say, I'm trying to piece together a growth capital financing package, you would direct me to the proper person (i.e. ABL or CFL, industry coverage leader, etc.)
The good: -Expense account -Membership with local organizations (if MM, definitely ACG, TMA, etc.) -Expect some travel, depending on the group and setup -Better hours -More time out of the office (I, at least, view that as a positive -Great networking ability for the future (whether you move up at the same bank or need/want to switch) -Involved with more transaction discussions (helps you with creativity)
Negatives: -Lacks analysis -Won't develop modeling skills -Hard to differentiate yourself (every decent sized bank has several of these guys around) -Incentive-based comp. (varies by bank) -Not going to be easy to move to IB (then again, won't be that easy from your current role either)
The good news is, if you did this for a few years, it may be a good resume builder and then you go to business school. When you graduate, you should get some looks for IB b/c you have transaction experience and understanding.
Thanks PE, that was a very informative post. Most of that I was expecting. I am not super focused on IB, just was wondering what the translation may be if I decided to try and move over.
I hate asking, because I dont want to sound like I am considering A to get to B, but what kind of exit opps do these roles typically provide? F500 Corp. Fi? I also should mention that I am in the process of getting my CFA.
Thanks again
That is always good. I think the move from commercial/corporate banking to PE (particularly Mezz) is easier or just as easy as moving to IB from there. As I said, going back to school would give you the easiest avenue to switch.
But, I know several former commercial bankers that moved down the capital structure to sub and mezz funds. Although buyout funds get more publicity, notoriety and earn higher returns, I think Mezz or "one stop" shops are incredibly interesting.
Point being, it sounds like a good opp IMO. Can you classify the bank into a group of peers without giving away the specifics?
I think it would be a great opp, and am very interested. Looks good when they call me out of the blue as well. I didn't even apply. It is one of the top 10 Commercial banks on Fortunes 500 list.
Definitely would be a good gig. You get to build relationships with corporations, I-bankers, mezz funds, PE funds, etc. IMO, Wells & US Bank are the two best in the MM. JPMC has been building out that focus area though and they have ABL and CFL with some good flexibility.
BAC, Cap One and PNC are pretty good as well.
Commercial Banking Relationship Manager (Originally Posted: 10/06/2016)
(1) Does anyone know what a career in commercial banking as a relationship manager would entail? (2) How would the hours be and the compensation/trajectory? (3) Do you know how one would break into such a role? Would some time as a credit analyst do the trick? (4) What would it be like working at a regional bank vs. a larger super regional?
Thanks!
Both my brothers work in commercial banking and one works for a major bank and one works for a regional. Do become a RM or move up in commercial banking in general, you need to get on board with a banks credit analyst program and then move your way up.
It's a great great lifestyle (esp the regional) with great pay for the hours. Lots of people hate on commercial on this forum, but at the end of the day you can raise a family, see that family (work 40 hours if you just want to get by) and truly enjoy the work you do.
Don't ask about commercial banking on WSO... Everyone will tell you its a horrible position just because it is doesn't come with the prestige of working IB.
But you actually have a life and make amazing money for the amount of hours a week you put in.
Usually you go through the banks credit analyst program than either move up into a rm or go into underwriting its a two way path so its up to you to decide.
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