Corporate Banking vs Corporate Finance

Covfefe_1's picture
Rank: Monkey | banana points 48

Hello, I'm looking at entry-level jobs and I was wondering which of these fields would better suit my long-term career goals. I am currently majoring in Economics at a non-target state school (3.7 expected GPA).

I'm aiming to get into a top MBA later down the line, so would Corporate Banking or corporate finance (FP&A) give me better leverage?

My ultimate career goal is in Asset Management (perhaps portfolio management?), so which of these jobs would provide me with more relevant/transferable skills?

Finally, from what I understand Corp Fin is very accounting-based, but I have no idea what kind of work Corp Banking entails. Would Corp Banking be more finance-oriented than Corp Fin?

Thanks!

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Comments (24)

Jul 21, 2017

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Best Response
Jul 23, 2017

Corporate banking is a much more financially focused space than corporate finance. You'll be doing credit, underwriting/portfolio management or relationship management. In credit you'll be doing spreads, a lot of places offer credit training which is a huge plus. In underwriting and portfolio management you'll be modeling, spreading numbers, structuring and following your credits on an annual or more frequent basis (e.g. semi-annual for weak collateral credits, quarterly for special mentions and monthly for distressed). In relationship management you'll be in charge of the relationship with a company, you will pitch ideas (as an analyst you'll do the pitchbook) and for credit memos you may draft the relationship section (what tier are you in the bank group, relationship with management, ROE, LTM pre-tax, pre-provision profitability, strategy whether to up tier, down tier or remain the same).

It can lead to exits to credit focused AM (corporate bonds, loans, especially TLB, munis, CLOs) depends on what your focused on. For corporate bonds and loans either portfolio management/underwriting or relationship management will likely get you there, credit is the middle office of corporate banking, but it's not a bad place as an analyst if they let you have credit training. For munis you want to be in a government coverage group with either PM or RM as your function.

    • 3
Jul 23, 2017

I would take the leadership program but that's just me.

Jul 23, 2017
Raptor.45:

I would take the leadership program but that's just me.

may I ask why? :)

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Jul 23, 2017

Corporate Banking for sure . . .if your looking for banking net year.

Jul 23, 2017
chi312:

Corporate Banking for sure . . .if your looking for banking net year.

thanks for your feedback. again may i ask why?

Jul 23, 2017

lol, no one says why...which is all that really matters.

If the glove don't fit, you must acquit!

Jul 23, 2017

It depends on the shop. If its PNC, they are small. They almost never do anything besides participate in syndications. They never get right lead. They almost never get left lead, unless they are dealing with small regional companies. It will be the equivalent of working for a commercial bank in the middle of alabama.

At bigger shops, you will get left lead mandates for F500 companies - which is very good transaction exposure, and you learn how credit deals are structured. Its pretty cool shit, and you will learn a TON about the clients you underwrite.

In sum, the big banks do the real work on syndications; the small banks look at which big banks are in on the deal, and they follow.

Jul 23, 2017
Cries:

It depends on the shop. If its PNC, they are small. They almost never do anything besides participate in syndications. They never get right lead. They almost never get left lead, unless they are dealing with small regional companies. It will be the equivalent of working for a commercial bank in the middle of alabama.

At bigger shops, you will get left lead mandates for F500 companies - which is very good transaction exposure, and you learn how credit deals are structured. Its pretty cool shit, and you will learn a TON about the clients you underwrite.

In sum, the big banks do the real work on syndications; the small banks look at which big banks are in on the deal, and they follow.

thank you so much for this insight! it's actually not pnc, a little bigger but pretty similar. ill pm you the name!

Jul 23, 2017

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Jul 23, 2017

The corporate banking internship will definitely set you up better for IBD/MBB next summer. Corporate banking is pretty much IBD with half the hours, and now with IBD bonuses getting slashed, the comp is getting closer to closer to par. This is a second-hand experience, but a good number of folks on the buy-side definitely respect the credit training you get in corporate banking.

Jul 23, 2017

^thanks super helpful! I think im going to pick corporate banking :)

Jul 23, 2017

it depends

if its citi/jpm corporate banking then its a no brainer, same salary package as ibd (less bonuses obviously but same base 70k and much less hours)

exit opps are also great

Jul 23, 2017

no its not citi or jpm, as i mentioned in my first post it's a non bulge-bracket but top 10 commercial bank! :)

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Jul 23, 2017

I'm not positive on this one, but I would say F500.

Jul 23, 2017

Corpfin, without a doubt.

Jul 23, 2017

That's actually a toss up, I'd be tempted to go with the bank for the brand name.

Jul 23, 2017

Corpfin would be great...but I think you cant go wrong either way its all about how you spin your experience when you hit the interview

Jul 23, 2017

may i ask, why corporate finance instead of corporate banking?

from what i heard/read, the corporate banking day to day responsibilities are pretty similar to ibanking- working on pitches, deals, doing valuation etc. of course the deals are not M&A deals, its mostly debt financing but still...kinda sounds more applicable

Jul 23, 2017

bump

Jul 23, 2017
Jan 9, 2019