Going Where the Money Is:
International Banking
by Nina Segal
Summary
| Economic changes have both created and eliminated jobs. |
| Banks are still hiring -- and still paying well. |
| Global banking careers vary greatly. |
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Foreign Banks: A Breakdown
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The Jobs
Typical jobs would be those in private banking, asset management, mergers and acquisitions, corporate and project finance, trading and other areas. For detailed information on the different types of jobs available, check out these books:
The Harvard Business School Guide to Careers in Finance 2000
-Buy it!
International Jobs: Where They Are, How to Get Them
-Buy it!
Careers in International Affairs
-Buy it!
What are Employers Looking For?
According to Rust, "It is not critical to have an MBA, but you must show strong evidence of business or finance focus." Commercial banks have traditionally been more flexible about non-MBAs than investment banks, according to International Jobs: Where They Are and How to Get Them, but "prior work experience is relevant, and often required."
How Important Are Foreign Languages?
This is a big debate among employers and banking professionals. The general consensus is that a foreign language is, as one employer put it, "icing on the cake." Most important are technical skills, appropriate training and relevant expertise. After that, languages are an added plus.
More Information Online:
Institute of International Bankers: An association of over 200 banking organizations that operate in the US and have headquarters abroad.
The Economist: A publication covering international business and economic affairs
The Wall Street Journal: (paid subscription required)
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Banks and financial institutions have long been players in the international marketplace. But the world of international finance has changed dramatically over the years. The Latin American debt crisis of the 1980s, the recent Asian financial crisis, the trend of institutional mergers, technology's rise and the formation of the EEC have all changed the nature of the international banking world, and as a result, the job market within it.
Opportunities can be found in both commercial and investment banks. What's the difference? Traditionally, commercial banks have been in the business of lending, while investment banks provide services -- such as merger and acquisition assistance and the underwriting of equities to corporations. The reason for the differences is due primarily to regulation. The federal government has stipulated what commercial and investment banks in the US can and cannot do. However, these days the lines between commercial and investment banking have become increasingly blurred, and commercial banks have assumed many functions traditionally performed by investment banks.
Job Availability
As banks merge there becomes fewer, but larger, players in the world markets. This has led to increased competition, and as a result, cost-cutting measures. Some of these measures have resulted in layoffs across the banking industry. While one might say this has resulted in fewer jobs, the jobs that exist are well-paid, intellectually stimulating and many are very exciting. International divisions have been replaced by the concept of integrating global interactions throughout the entire organization. The end result, however, is a wider variety of jobs with a global dimension.
What Does This Mean for the Job Seeker Interested in International Banking?
According to Martin Rust, who wrote the chapter on banking for Careers in International Affairs published by Georgetown University, "Banks are still hiring, and they still offer some of the best jobs around." However, Rust notes that most bank jobs are located in the United States and with the larger banks, since there is a trend toward hiring locally for overseas positions. Banks -- and many multinationals -- have found that not only is this less expensive, but there is less risk involved. The exception to this is the mid- to senior-level banker, who is still often an expatriate.
Foreign banks in the United States provide another job option. Many of these institutions have less structured recruitment policies, so job seekers must work hard and be creative to seek out these positions. Keep in mind that the work culture may be quite different than what you are used to -- a plus, or a challenge, depending on your point of view.
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