This paper provides a workplace assessment of corporate banking, examining the field's defining characteristics, educational requirements, and core competencies. It outlines the knowledge, skills, and personality traits that contribute to success in corporate banking roles, and reproduces a representative job description. The paper then evaluates two psychological assessment tools — the Myers-Briggs Type Indicator and the Five Factor Model of personality — considering their utility and limitations for identifying suitable candidates for corporate banking careers. The paper concludes that while personality tests offer useful insights, they are imperfect predictors of professional success in the field.
Corporate banking, also called commercial banking, generally refers to a bank or a division of a bank that focuses primarily on loans and deposits belonging to large businesses and corporations (Banker, 2014). This differs from the retail banking sector, which is focused on small businesses and individuals (Kumar, 2013). Corporate banks provide many different kinds of services, including lending, investing, clearing deposits, and organizing financial products tailored for specific clients (Kumar, 2013). These products are generally specialized, designed for particular clients rather than for a general audience. Major companies and financial institutions use these types of banking services because they are more appropriate for larger organizations than for smaller ones or individuals.
In order to work as a corporate banker, a person needs education and training, though the education does not have to be in a single specific discipline. The most relevant degrees are those in accounting, commerce, business, economics, law, mathematics, and finance (Banker, 2014). A person does not have to hold one of these degrees, but having a background focused on business or financial matters makes it considerably more likely that he or she will secure a position in corporate banking (Banker, 2014).
The job involves working with clients who manage large companies and corporations. These clients have specific needs and goals that must be met through investments and other types of financial vehicles. Because not all financial products will work for every client, it is important for the corporate banker to determine what each individual client needs. A proper assessment of the client's financial situation must be conducted, and this requires specific skills and knowledge in order to achieve a high level of success (Oliveira & Hippel, 2012).
There are specific skills and areas of knowledge that a corporate banker must possess. These include:
People who work as corporate bankers are generally client-focused. They are analytical and enjoy solving problems (Oliveira & Hippel, 2012). They tend to have can-do attitudes and enjoy teamwork (Banker, 2014). Additionally, many are Type A personalities who are highly work-oriented and able to remain focused even when distractions arise. Multi-tasking is also important, as corporate bankers must manage several different client relationships simultaneously while ensuring that each client receives accurate and relevant information (Oliveira & Hippel, 2012). While it is not possible to be everything to everyone, many corporate bankers come close to meeting that standard.
The job description for a corporate banker can vary from position to position, but most are very similar. The following is reproduced from the GradIreland website (Banker, 2014):
Assessing someone's suitability for corporate banking can be approached in several ways. Two commonly used methods are the Myers-Briggs Type Indicator and the Five Factor Model of personality.
The Myers-Briggs Type Indicator is a personality assessment tool. Through a series of questions, the test identifies commonalities and provides a person with an assessment of his or her personality type (Matthews, Deary, & Whiteman, 2003). It examines how people make decisions about various matters while also considering how they perceive the world (Matthews, Deary, & Whiteman, 2003). By addressing both of these dimensions, it becomes easier to gauge whether a person may be well suited to the role of corporate banker.
"Sample duties from a published job listing"
"Myers-Briggs and Big Five tools reviewed"
Matthews, G., Deary, I. J., & Whiteman, M. C. (2003). Personality traits. New York, NY: Cambridge University Press.
Oliveira, P., & Hippel, E. V. (2012). Users as service innovators: The case of banking services. Research Policy, 40(6), 806–818.
You’re 51% through this paper. Sign up to read the remaining 2 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.