Transaction Banking vs. Investment Banking
I have been researching this topic since days now and I have yet to understand the difference. I just received a call for Santander SCIB Graduate Program for Transaction Banking. What are the tasks for this role, it is part of the Corporate & Invesment Banking Division at Santander however I seriously don't understand the difference between Investment Banking and Transaction Banking.
TLDR: Explain me like 5 the difference between Transaction Banking vs. Investment Banking
short version: investment banking is advisory and deal work. M&A, IPOs, bond and equity raises, one-off deals with big fees. transaction banking is the plumbing for companies: cash management, payments, liquidity, trade finance, working capital. it's a recurring-fee business tied to a client's day-to-day money flows, not a deal business. so in a transaction banking grad role you're more likely working with product, sales and relationship teams on things like payment and treasury solutions, and not building merger models or pitch books. Barclays describes its GTB grad programme as covering payments, liquidity and daily financial operations. one caveat, some banks sit transaction banking inside the corporate & investment bank division like Santander does, so the label overlaps, but the day job is different. worth asking them what the rotations look like, and what people from that class usually move into after.
Hello, thank you for your feedback. I just had the initial interview with them, and man, I still don't know exactly what they do. Sure I understand they manage the cash, liq and risk. The rotational teams are I) Cash Management II) Trade Finance and III) Export Finance. My question is, my ultimate goal would be to move to the buyside, hedge funds or PE (not sure yet I'm quite young and inexperienced), would Transaction Banking be a good start for that? I assume not, right? Since I won't have any direct experience.
Unsure about other offices in Europe, but at least in Spain theres a lot of internal mobility in Santander, have seen ppl who moved from Transaction Banking -> CB Lending -> Levfin/M&A in a span of 3-5 years.
IMO it depends on what other options u have and wether u think u can manage to stand out and network enough to move teams.
Thing is I already have an IB internship lined up (at a DACH boutique), and potentially a second one. I will do a master at a target school and don't think I would want to start in transaction banking. I don't know. From where I stand, it seems like an unnecessary 3-5 years. This is a graduate role so if I take it I will cancel my master's plans, and I'm not sure if that's worth it.
I wouldn't think too much about it then, plus, if u r graduating this year i believe u r still eligible for next year's graduate programme (I went thorugh a few rounds when I was starting my masters)
Yeah, to be honest the only reason I interviewed was to learn more about what they were doing, which didn't help a lot -_-. Thanks for your input :)
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