Whats the difference between corporate banking and corporate finance ?

1. Whats the difference between corporate banking and corporate finance ?
2. Are corporate banking hours shorter than investment banking hours ?
3. What is the best way to break into corporate banking from undergrad if you cant secure an internship ?

23 Comments
 

1) Corporate Banking involves providing financial services, usually loans, to companies that generate at least 500MM in revenue. corporate finance, is essentially supporting the business units for large corporations. This may include, accounting, treasury, and financial planning and analysis.

2) Yes.

3) Apply to full time positions.

 

I can sort of help answer your questions. I know that corporate banking is more of a career path than Ibanking, but it still has very high turnover after ~3 years compared to your average job. I'm pretty sure a top F500 rotational finance program such as GE FMP will land you a top MBA. That's all I know sorry I can't be of more help.

 

Depends on what you want to do. An elite CF program (i.e. GE) would get you into a top MBA program easier than a traditional commercial banking position. But, I personally find banking more interesting.

Just be aware that in those rotational programs, you may have to put up with a rotation or two in some real boring position, like controlling (sorry for all of you controllers out there), that are more accounting focused than finance focused.

 

I think what's important is also for you to know what career path you'd like to take and which one you are more interested in, remember at the end of the day you have to do something you are passionate about. otherwise it just becomes a boring job

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You are the one working the position. You need to pick the one you will most enjoy. Like Big Dreams said, pick something your passionate about, or its a boring job.

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I think the loan portfolio analyst sounds like it could have better exit ops. But someone back me up on this.

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Only from what I've heard, and this is from US-based people, is that the base salary likely won't change (or much, at least), but your bonus will go up.

Also, that assumes you stay at the same position (analyst, associate etc). The reason I say that is sometimes you'll get knocked down a level (ie- assoc -> analyst), but I've only heard that happen going from BO to FO.

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I have two questions regarding this bonus figure of 20-45k. First, is this including a signing bonus? I am surprised at the size of this package -- while maybe not GS m&a figures 100k+ for a first year is big. Second, what is the average bonus size you've seen in your BB corp bank -- ie the rule, not the awesome $50k one year exception.

 

Lollbo - No, not incluidng signing bonus. All in compensation for first year (including sign-on which comes a couple months before starting) is between $90K - $125K. As far a bonus, at my bank, you are ranked in buckets. Top bucket is about top 10% of analysts which get the $45K. Second Tier gets about $35K (top 30%), and the rest get about $25K. If you are in 4th tier bucket, you should probably be looking for another job, because you will likely get fired. Not sure what they pay them. I put $20K becaues I've heard other banks that pay lower for a year-end bonus.

 

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