How to become a Corporate Banker: Eligibility & Career scope
Career in corporate banking
Small and Medium enterprises (SMEs) are the backbone of any economy. They create the largest employment for the country. In India, the SMEs employ more than 106 million people next only to agricultural sector. About 45% of the total industrial output is generated by the SMEs. There are more than 40 million active SMEs in the country, which generate about 6.11% of the manufacturing GDP and 24.63% of Service sector GDP.
With such staggering presence and due to their sheer size, the SMEs form a very significant and important customer base for any commercial bank.
Corporate Banking is a broad vertical within a commercial bank that takes care of the banking requirements of companies of any size – from micro, small, medium to large multinational conglomerates.Under Corporate banking, there are further verticals specialising in providing banking solutions to micro set ups, small and medium enterprises, so and so forth. As the complexity of organisation increases, which generally comes with the size of the company, the banking needs also differ. Take for example a small mom and pop shop in your neighbourhood, the likely services the business would require would be depositing their daily sales proceeds and making payments to their suppliers. On the other extreme a large global corporate with presence in multiple geographies will have different set of challenges like bidding for projects or requirement for international payments in different currencies.
What does Corporate/Business Banker do?
A bank is matrix organisation. Depending on the role of the banker, this could either be a front office or a back office position. To service a business customer, a front office banker would interact with the customer, understand their needs and then recommend appropriate banking solutions. The back office functions are usually centralised and provide support to the front office staff. For instance, for a very simple transaction like querying for a loan, a business customer will meet the front office staff (Relationship Manager in usual parlance). Relationship Manager will understand the customer’s situation; collect necessary supporting documents (like Profit and Loss statements, Balance sheets etc) and business related information. The Relationship Manager will then be required to take an assessment of the financial documents and recommend the right funding solution for the customer. The back office team will provide necessary support by way of preparing loan documentation, providing approvals etc.
What are the key responsibilities of Corporate/ Business Banker?
The following is elucidated for simplicity sake.
For a front office staff, the key deliverables are:
• Interacting with the business customer, understand their underlying needs and provide them solutions in a timely fashion
• The front office role in corporate/business banking also involves business development and new income generation for the bank by way of deepening existing customer wallet and by winning new customer to the bank
• Be a trouble-shooter for the customer. If and when a customer faces challenges in the bank, they usually contact their designated Relationship Manager and request them to get involved in the situation and resolve it for them.
• Coordinating and communicating with the back office staff so that the customer is serviced as per the committed turnaround times.
For a back office staff, the key deliverables are:
• Providing support to the front office team in a timely fashion and within the committed timescales.
• Working closely with the Relationship Manager and the front office team to deliver the right solution.
• It is imperative that the staff in back office produce high qualities work with utmost accuracy to reduce delays and therefore negative impact on customer service.
• Maintaining strong working relationships with all team members and stakeholders.
Which degree/course is necessary for a career in corporate/ business banking?
Although there is no prescribed specialisation that one must have in order to be a corporate/business banker. However, for few roles the hiring manager may prefer a particular stream or background. For instance, for an Analyst role, a degree in mathematics, statistics or engineering may be desired due to the analytical nature of the job. Similarly, for a front office customer-facing role that involves business development, a specialisation in Sales & Marketing (MBA) or Finance (MBA) may be desired.
What are the prerequisite skills required?
Customer service is at the heart of banking. Good communication skill, a “can do” attitude and an affable personality is what is looked for when selecting a candidate. Technical knowledge in banking can be added bonus for lateral recruitment. For a fresher, it is imperative that the candidate is enthusiastic, keen to learn on the job and can connect well with the customers. Other skills, which can go a long way in a banker’s career are being proactive, attention to details, creative and customer focussed.
What are the biggest challenges of this job?
There is never a dull moment in corporate/business banking. In a B2B situation, there are long lead times, complex sales process, long decision making, however end of the day a banker deals with a person(s) at the other end. Therefore, it boils down to how effectively one communicates, negotiates and closes the request.
The world of banking and finance as such is also being challenged by digitisation and new technological advancements. So, one has to keep up with the pace of change, learn quickly and move on. One also needs to connect and collaborate with other teams in the bank to adapt the core values of the organisation. This also gives customer a sense of satisfaction when the person they deal with is aware of the bank’s services and products/policies.
What is a typical day at work like?
For a customer-facing role, a typical day would involve customer meetings, internal meetings and liaising with the support teams. It is expected that apart from existing customers, the Relationship Manager also meet up with potential new customers. Business development can come from networking with the trade and professional associations or referrals from existing happy customers.
For a back office role, a typical day would involve supporting the front office teams by way of delivering customer requests in prescribed timelines as per bank’s policy.
Why I joined this field
After my MBA, I worked with HDFC Limited for 3 years. When I was looking for my first job change, I wanted to challenge myself and get into B2B sales. I joined the SME vertical of ICICI Bank in 2003 as a Solution Manager (ICICI’s terminology for Relationship Manager). The mandate was to establish ICICI Bank as the SME and Corporate bank of choice for the Indian businesses. Due to it’s expertise in institutional and large corporate banking, SMEs had a quick acceptance of the ICICI offerings.
I worked at the RN Mukherjee Road office in Kolkata, which is one of the most thriving business and trading hub in Eastern India. A customer-facing role in B2B sales taught me many things, some of them are:
1. Business have their own life cycle and a service provider needs to stay with their business customer through thick and thin. This is how long term relationships are built. Businesses are done on trust, which come from enduring relationships.
2. Never underestimate the power of your personal branding. How professional and courteous you are to your customers, associates and colleagues goes a long way as your personal brand long after you have moved out of the organisation.
3. Your happy customers are your biggest advocates. They will refer you new business and can also refer you to new employers.
I had a very rewarding career at ICICI Bank and after spending nearly 4 years across India and in UK (London office), I decided to join HSBC UK plc in the year 2007 as I wanted to work with a global conglomerate. I recently completed ten years with HSBC UK at their London West End office as a Senior Vice President in Corporate Banking.
About the Author:
Piyu Dutta
Piyu Dutta is a career Corporate Banker. She received her Zoology Hons degree from Lady Brabourne College, Kolkata after which she completed a two year MBA from the Army Institute of Management, Kolkata. Piyu has over 17 years experience in banks and financial institutions across India and the UK. She has worked with Indian multinational banks as well global banking giants like HSBC. She is now based in Bengaluru, India and is working as a consultant for start-ups and businesses who require business mentoring, strategic direction and fund raising. She also mentors women who require guidance in navigating their way through their corporate careers.
