Corporate banking is a unique segment of the banking sector. This segment exclusively serves large-scale businesses or corporations. It offers products and services that are relevant to corporations that are typically publicly traded.
Today, a mix of investment banks and commercial banks serves corporations. Services offered include cash management, processing of payments, credit products, and business valuation. Banking serving corporations also provided a direct link between corporations and opportunities to engage with the capital markets. The design and delivery of hedging strategies for large corporations is also a key service.
Hence, the stakes of working in corporate banking are significantly high. From our perspective, ambitious professionals wishing to chart a career in corporate banking must equip themselves with key skills. They also need hands-on experience to excel.
Professionals with at least two years of experience can pursue a Financial Services and Capital Markets Course. Further, we explain more about this career path and training opportunities.
Rise of corporate banking
The last 10 years have seen a rising demand for Corporate Banking services. Corporations seek these specialized services to increase profitability and access funding for their growth needs. Per statistics, corporate banking is expected to grow at a rate of 7.5% from 2023 to 2027. Over the next five to ten years, we foresee several factors influencing corporate banking.
Advances in tech-enabled solutions will transform the segment. This shift will make services more efficient and accurate in their delivery.
Another key factor is the growing importance of Environmental, Social, and Governance (ESG) investing. Evolving regulations demand ESG compliance.
Corporations are also looking at superior risk management analysis. They expect corporate banking specialists to offer advice that helps reduce risk.
Working in this sector
Ambitious professionals can explore opportunities with the leaders of the corporate banking world. With the right skill set, they can compete with the best in the business.
Companies hiring corporate bankers include UBS Group, Goldman Sachs Group, Credit Suisse Group, Citigroup Inc, Wells Fargo & Company, Deutsche Bank AG, DBS Bank, JPMorgan Chase & Co, Bank of America Corporation, and Morgan Stanley.
Key skills needed
Corporate bankers must have an in-depth understanding of the financial needs of corporations. Their role is to engage with corporate clients and offer services based on their requirements. These can include investment banking, access to capital markets, and risk management.
Banking is also a highly regulated sector. Hence, corporate banking professionals must be able to predict their impact on client outcomes.
Here is a snapshot of the skills and knowledge base one has to cultivate:
Corporate Finance and Accounting.
IB and Equity Research.
Financial Services and Treasury.
Corporate Banking and Structured Finance.
Financial Risk Management and Compliance.
Here's our recommendation on how ambitious professionals can build the skills to excel.
Pursue IIM-Lucknow certification courses
No doubt, one can explore learning through free resources on the internet. However, corporate banks prioritize credentials, knowledge, and skills when hiring. Pedigree institutions such as the IIMs offer compact, knowledge-rich six-month virtual programs that enable aspiring corporate bankers to upskill.
For instance, IIM Lucknow certificate courses help you learn the ropes of financial services and capital markets in-depth. This exposure enables learners to grow a competitive edge in the continuously evolving banking segment.
Such programs also enable learners to spend quality time on campus and build offline engagement with faculty and co-learners in this journey. This experience is as valuable as the online experience.
Build real-world experience
Corporate banking is a dynamic world. Corporate bankers are responsible for the fate of large amounts of wealth. For instance, in 2022, one of India's largest banks merged with its sister corporation, which offers housing loans. The deal amounted to $ 40 billion. Corporate bankers played a key role in seeing the deal through.
Overseeing transactions of such a huge ticket size is impossible with mere bookish knowledge. This is where superior Financial Services and Capital Markets Courses offer learners an advantage. Learners are nudged to participate in live projects.