Operational investment banker
The operations division of an investment bank is often described as the 'engine room' of the organisation.
Operations (also known as 'back office', and sometimes ‘middle office’) provide support to the client facing departments, such as trading, corporate finance, and corporate banking (which are sometimes known as the ‘front office’).
The front office generates business for the bank, and operations ensure that that the business is administered in an efficient, controlled, risk-free and timely manner. They ensure that products, services and money change hands how they are supposed to.
The exact definition of operations is sometimes extended to business services functions such as human resources, IT and public relations.
Operations professionals run and manage day-to-day processes and develop new systems in order to maximise efficiency and profitability for the bank. They deal with incoming queries from their internal clients, resolve incorrect payments and ensure that client details are correct for the payment of funds.
Operations covers a wide range of activities. Following the buying and selling of financial products and services by the bank, operations staff make sure that each transaction is:
The structure of departments varies from bank to bank, but the tasks of operations practitioners typically involve:
Managers of operations teams will:
The entry into operations tends to be either as an administrator, who will need prior administration experience, but no specific educational background, or as a graduate trainee - who are normally known as analysts.
Typically the banks will accept applications from graduates of any discipline. Applicants from non-related disciplines will not be at a disadvantage, but they will need to show an understanding of and keen interest in the business.
The graduate schemes are very competitive, so most of the people they interview will have A grades at A-level plus on track/have achieved at least a 2:1 honours degree. Some employers require a first class degree.
Applications from people with postgraduate degrees are welcomed, though they are not likely to receive any preferential treatment. Those with MBAs and certain other postgraduate degrees plus two to five years of relevant work experience, may be able to apply for a higher level training programme as associates, but it’s worth noting that these programmes are usually aligned to front office roles.
Each bank will be looking for slightly different characteristics, but generally candidates for graduate programmes will need to show evidence of the following:
To be invited to interview the applicant will probably need a very full CV. An internship at an investment bank; positions of responsibility in societies or sport teams; part-time work alongside the degree; and evidence of sustained interest in finance, such as managing a shadow portfolio of investments would all be expected.
Competition for positions on graduate schemes is intense, particularly in periods of economic slowdown. The recruitment process is thorough and demanding, including interviews and assessment centres.
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All employees will be trained on the systems and products that department supports. As these change regularly, all employees will undergo training at least yearly. Sponsorship towards professional qualifications is often offered to those identified with the potential to progress up the ranks.
Employees on a graduate development programme will undergo a structured set of training courses and coaching sessions to develop the knowledge, skills and experience to become a manager, typically over a two-year period. These will often include relevant professional qualifications.
Trainees will also usually start working towards a professional qualification relevant to their area. The Chartered Institute for Securities & Investment (CISI) provides a wide range of qualifications for the financial services industry. For operations, relevant qualifications include the CISI's:
There are various other professional bodies that all offer training and support, such as the British Bankers Association (BBA) , the London Investment Banking Association (LIBA) , ifs School of Finance and the Chartered Banker Institute .
Operational bankers’ careers can progress in a linear way - performing consistently well, leading to promotions that encompass more responsibility, such as people, project and budgetary responsibility.
Continued success can lead to promotion into to senior management roles, although competition for these roles in high, and progression is likely to slow.
It is often possible to move, either temporarily or permanently, into project management or into a specialist role, such as IT or HR. Moving into these areas temporarily can provide a breadth and balance to a career, but may affect career progression in the short term.
Since the financial crisis of 2008 and 2009, movement from operations into client-facing roles has become more commonplace, though still fairly rare as the skills sets required for these roles are very different.
Operations professionals are recruited by investment banks. Graduate schemes run with very early closing dates, many before the end of October, and it is advisable to apply as soon as possible as they often interview before the closing date is reached.
Investment banks come in many shapes and sizes, from large global organisations, such as RBS, Goldman Sachs, HSBC and Credit Suisse, through to smaller niche players, such as Rothschild and Lazard Ltd.
The banking sector is a volatile one and investment banks are affected by economic cycles, which have a knock-on effect on graduate recruitment. The economic downturn (2008-2009) had a significant effect on investment banks many of which reported huge losses which had an impact on employment opportunities. By early 2010, the tide had started to turn, and many institutions were already looking to increase its staff levels again.
London and New York have dominated financial employment in the last few decades, but the crisis and the increased growth in emerging markets, such as Russia and China, have lead to other financial centres growing around the world.,The crisis has also given a boost to the growth of Islamic finance, with Malaysia and Indonesia looking to capitalise on the expansion.
Vacancies in operations are also available through specialist financial/banking recruitment agencies in London, although many of these will require relevant experience.
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