Types of jobs in investment Banking
Considering what careers in banking might be right for you? Which is the right path for you — commercial banking or investment banking? This seems to be the million-dollar question for many financial professionals in the career planning phase. As you consider various careers in banking, it’s important to understand the key differences between these two sectors, which sometimes seem worlds apart.
Here are a few factors — types of employers, work duties and salary — that distinguish between careers in investment and commercial banking:
Types of employers and work
If you choose a career in commercial banking, you’ll likely work for a bank branch or a bank’s corporate headquarters. Commercial banks offer customers and businesses an array of financial services, including checking and savings accounts, mortgage loans, auto loans, credit cards, IRAs and more for consumers. And for commercial businesses, banks will offer commercial loans, equipment financing, cash management, real estate financing and more.
At the branch level, financial professionals can choose from a variety of career options ranging from bank teller and retail loan officer to sales professional, operations specialist, trust officer, branch manager, commercial credit analyst and commercial banker. The most skilled financial professionals often land positions at the bank’s corporate headquarters, where they can expand into more complex areas, such as international trade finance, risk management, credit administration and investment management.
In comparison, investment banks act as intermediaries between corporations and investors. Because these companies often include a number of different divisions with varying responsibilities, there is a wide variety of career options within the investment banking sector.
Investment bankers facilitate the issuance of securities and make these securities available for investors to purchase. These professionals also offer investment advice to corporations and individual investors, handle mergers and acquisitions, and trade stocks, bonds and other securities.
Investment banking salaries
For some professionals, compensation is the primary driver behind their career planning. For the most part, professionals in investment banking careers negotiate a higher salary than those in commercial banking.
Expanding business for investment banking firms is prompting more hiring in that sector, according to Robert Half's latest Salary Guide. In-demand specialties include private equity accounting, hedge fund accounting, fund administration, trade clearance and settlement operations, asset management, and collateral and derivatives expertise.