Bored of Commercial Banking
I know a lot of people here will say no shi*t to the forum headline. But I'd like to ask people who have been a commercial banking analyst before (I'm at a 2B bank, but comments from any size bank is fine) what drove them to go to work everyday? I've been an analyst for 4 years and am extremely bored of turning deals each day. What have you guys found to be more exciting in the commercial/corporate banking world? Is working on larger deals at a regional/super regional bank more exciting, or does that just become the new norm after 6 months?
I am looking to move into a lending role here at the bank, but there aren't any openings at my location. I also wouldn't mind a portfolio manager role which would be a good mix of credit and sales. Thanks in advance for serious responses.
I was an analyst for 3 years at a $3B bank, and during that time I was in the same boat as you, I liked the idea of what I was doing, but the financial sophistication (or lack thereof) of the client base eventually drove me to search elsewhere. Additionally the only way to gain exposure to the larger/more complex deals was through syndicated CRE deals that we generally weren't the lead on, there is only so much re-underwriting you can do of someone else's model before you realize you basically have to just take it or leave it. I will say that I literally a direct path to running the entire lending group there within the next 5-7 years if I stuck around (I left on really good terms so who knows, may still happen), had the ear of my department head, and spoke regularly with the CEO, CFO, and COO of the bank, which in your mid 20s is a huge benefit, seeing office politics play out on a grand scale and learning how important that is.
I'm now at the associate level at a BB in an industry vertical, the role is definitely more complex compared to my previous role and I absolutely love what I do, but I can say that once you get over the initial hump of learning new systems/ how credit reacts to your memos/ what your VP expects as far as output, I'd say 60-65% of what I do now is just the new norm. The hours are longer, the products are more complex, and the analysis is more nuanced, but at the end of the day, it's kind of all the same.
I will say the remaining 35%-40% of my remaining job functions are what separate the commercial from corporate. A lot of my time is spent keeping up with my sector, dealing directly with lower touch clients, and working with my VP on the higher touch ones that may involve lawyers (I see a lot of fallen angels and negative EBITDA, and sometimes the only way to wrangle uncooperative sponsor backed companies in is with a swift kick in the legal fee bone), overall general Portfolio Management type activities.
TLDR; I can confirm the grass is greener on the CorpBanking side of things from an intellectual horsepower standpoint, but if you have a chance to knock it out of the park at your commercial bank it might be worth sticking around. Who knows, you may be running the place in 10 years?
Did you move into an associate role after 3 years of exp. at a commercial bank??
I do like following the news and keeping up with industries, but there isn't a lot of information to find online in regards to industries our clients are in. Really the only information to be found on yahoo, google, BI, etc. is interest rate activity. I have some time off here coming up and I am going to use it to reflect on where I have been and what I want going forward.
Do you mind if I ask what your hours are like, and what is the mix of sales/credit in your job?
I did, but my background before banking and degree were in my coverage sector (which I believe ultimately tipped the scale in my favor).
Hours are pretty good usually 50-60hrs, right now during the dog days of summer it's more like 45, live deals bump closer to the 65-70 range at the worst of times (probably 2-3 weeks since I started less than a year ago).
Id say it's about 45% underwriting - 55% portfolio management, I'm not pitching to clients, I'm pitching to our credit group if that makes sense.
Great info. I really appreciate the insight.
I started my career at a $200B bank and had enough job progression that I stayed interested and engaged up until the day I quit. Each role I had though, did become underwhelming and monotonous after ~2 years.
I'm now at a $20B bank and find myself often frustrated at the lack of sophistication and grind of the same analyses over and over again.
What drives me to come to work everyday? The paycheck and freedom. I work ~35 hours a week most of the time, dont have to wear a suit, and can pretty much come and go as I please without reporting to anyone. For what I do, I'm very well compensated and I get my fulfillment outside of work.
Yes, the larger deals are more "exciting" but they have their own routine/grind because they (necessarily) have to be relatively homogeneous. But you'll still get LOTS more exposure to new ideas and more intellectual stimulation working in this space. If you're good at your job, everything will become the new norm after 6-8 months.
THIS is my idea of a perfect job. The W/L balance here, along with (assuming) $150K+ and not reporting to anyone. I know it had to have taken a lot of hard work to get there, but I would take this over anything in a heart beat.
Well played sir,
Can I get an idea of your compensation? Thanks
I applied for a job at a $12B bank for a portfolio manager in a tier III city. Does anyone know what I could expect for hours and pay?
I began my career in commercial banking and hit the same wall you are experiencing. I ultimately decided to make the jump to IB in the hopes that it would provide a more intellectually stimulating and competitive environment. IB has proven to be both of those things (especially when compared to CB), but there is something to be said for predictable hours and W/L balance. I agree with some of the other posts and would recommend you think carefully about your career advancement opportunities within your group/bank as a whole.
The best advice I can give is to remind you to keep a long-term perspective. Whatever decision you make, take the time to think through the long-term implications. I think commercial banking gets unfairly ridiculed and dismissed on this forum, but I know plenty of people who have made very nice careers in the field and were able to do it while working relatively normal and sustainable hours.
Funky,
Why do you suggest sticking around the same company and waiting for positions to open up/be created for me, as opposed to switching banks for an immediate promotion? I do like the idea of staying with the same bank for relationships, the comfort, etc. but am curious why you think staying and waiting is better than moving and getting an "instant promotion"?
There is something to be said for the value of the equity you have established at your current firm through the work you have put in there. I am not necessarily saying stay, just making the point that often times people tend to make decisions based on short-term factors or instant gratification instead of considering the long-term benefits. In your case, maybe sticking around your current firm means you are able to work your way up the ranks. Commercial banking culture and progression are very different from IB, in that tenure at the same institution can carry more weight. Just food for thought
OP, your concern is understandable and fair. there are a few benefits.... good work/life balance (i.e. the reason a lot of IB folks come to the commercial bank when they are starting a family) and great ability to know C-level execs.
if you're a good analyst i doubt you'd have an issue with studying for cfa / mba --> middle market PE fund. you are 4 years into your career.
those on the credit side, if they want to stay in commercial banking but want a change in pace, can def go into the banking side i've seen.
I am approaching 30 years old, so right now I don't think the CFA/MBA/MMPE route is something that makes sense. I think I'd be 35? by the time MMPE came around? Also, I am not terribly excited about the hours that would bring. But I do appreciate the feedback and the fresh idea.
When you say "can def go into the banking side I've seen" which side of banking are you talking about?
bump
Durp
not sure why youre concerned about your age, its just a #.
what I meant by banking is that you could go from the credit side to the banking / relationship side halfway through your career. relationship side better pay obviously. honestly the best relationship managers that i've seen came from the credit / #'s side. would be a refreshing startover to your career if you did it
Strong username OP
Commercial Banking Stuck (Originally Posted: 06/12/2014)
Guys, I'm stuck. I didn't get any of the jobs I had previously posted about so I'm looking for advice now. I work in commercial banking on Long Island and I hate it. I'm 2 years into the job and there's been no modeling whatsoever and no recruiter will even look at me cause I'm on Long Island and not in NYC. I feel like I wasted 2 years of my life. I've been against ibanking because of the hours but I feel I need to start over at an analyst program to get better experience. Only problem is I'm 2 years out and not from college so I doubt I'd be hired for those spots. I could consider MBA programs however my job would put me in the average joe category and I doubt I'd stand out to anyone. I've been networking the whole time I've been working but my contacts either are too lazy on getting me jobs or are getting me jobs that I'm not qualified for or I'm not interested in. I think leveraged finance would be a good transition for me, but don't know where to start looking. Does anyone have a list of boutique lev finance I banks? Does anyone have any experience breaking out of commercial banking into something better and could give me advice? Thanks in advance.
use the search, your situation isn't that unique
don't even know where to start.
your contacts are too lazy on getting you jobs? not their job to do...it's yours.
your contacts are getting you jobs? do you mean interviews? if they are getting you interviews for jobs you are interested but don't have the skills...guess what? learn them.
you think leverage finance will be a good transition for you? why would it be and what skills do you have to justify it? you admit your current job has no modeling...do you even know how to?
your entire post sucks. gain some confidence, do your own work, and don't rely on other people.
WSO has a great database that you can go through. For my current internship, I went through every bank within a 100 mi of Boston and LA and ended up at a firm in NY...if you put in the time and work, it will pay off. Do you have the necessary skills, ie DCFs, comps, lbo models (especially important for LevFi)? A list takes effort, and I personally wouldn't share a list with you if I had one...I'm at a nontarget and my mentor, interning at a BB in IBD this summer, had a list, and had me make my own. Showed him how much I wanted it when he saw me working on it every second between classes for a couple of weeks.
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