I'm a first year in corporate finance (FP&A) and I just got recruited for an analyst position at a foreign bank. I'm not exactly sure what the position entails since it just said analyst program in the title. I emailed the recruiter back and asked her what I was interviewing for, she said "Financial Institutions Department." I looked it up on their website and this is what it came up with:
Corporate Banking
Financial Institutions Group provides corporate banking services to financial institutions which fall into the following sectors: (a) Banks and Broker-Dealers, (b) Insurance; and (c) Speciality Finance. The group leads the global relationship management effort for financial institutions headquartered in the US and Canada, and provides secondary coverage of the North American subsidiaries of European financial institutions. The team works collaboratively with other relationship managers and product professionals within the SMBC global network to provide the full spectrum of corporate finance and risk mitigation solutions domestically and internationally.
My question is, why is FIG a subset of corporate banking? I thought it was IBD? Is it because it's a foreign bank operating in the US?
In addition, how should I go about preparing for this interview?
Like IBD, Corporate Banks are often split up into industry coverage groups. Prepare for it like you would an IBD interview, learn about the company, the FIG industry, etc.
Read up on correspondent banking. This is not an IBD position. It is a credit and other services position.
In your case, you will be providing loans, treasury and cash management services, and potentially working with the S&T team on IR and/or currency derivatives for other banks, insurers and specialty finance companies (think debt collectors/purchasers, mortgage lenders, cash now providers, etc.
As with FIG in IBD, you may get pigeonholed a bit since correspondent banking services differ from traditional lending and the services are more unique.
Just has to do with the industry coverage and the primary clients that the group works with:
IBD provides M&A and capital raising services to financial institutions ER provides research and analysis on the stock publicly traded financial institutions CB provides loans, Forex, treasury services, etc to financial institutions
I read somewhere that DCFs are not used within FIG, is that true?
Outside of the boilerplate presentations, we don't use DCFs and we aren't a FIG group/shop.
FIG uses different methods for valuation, if that's what you are asking. Depends on the client, but a static pools model (can be linked w/DCF), loan valuation model, etc. could be more useful.
Had my phone interview late Friday. I'm going in sometime next week for my first round. Does anyone have any insight in regards to how to prepare for the technical portion? Read up on WSO guide/practice modelling? Thanks in advance.
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