Those institutions that have been active in bringing about the globalization of the financial services industry are the most obvious prospective employers of individuals with international-affairs backgrounds. The institutions include the large money-center commercial banks and a number of investment banking firms, most of which are headquartered in New York City. However, as discussed below, there is a great deal more to both entering and being successful in international banking or finance than simply an understanding of "things international."
Most commercial banks hire at the undergraduate level at liberal arts colleges, and some show a preference for majors such as economics or political science. They also recruit graduates with an MBA, a law degree or even an MIA in one of many subjects. Banks recruit at the most prestigious schools, and seek qualities such as common sense and good judgment as well as quantitative and analytic skills.
Most commercial banks and some investment banks have formal training programs. These vary from bank to bank and last from two months to two years. The programs, which are usually very structured in the commercial banks, combine classroom experience (including courses in accounting, corporate finance, credit analysis and international finance) with on-the-job training, in which the trainee is often expected to participate in daily activities from the outset. Training programs are sometimes highly competitive, and as much as 10% of the trainees may not complete the course. In other programs, the entire class is assured permanent employment. Trainees may be placed in one department or rotated among departments.
Virtually all organizations with international capabilities have anywhere from one to dozens of foreign offices. The principal foreign office is usually London, but many firms have other European, Canadian, Far Eastern, Middle Eastern and Australian operations of varying magnitude. Job openings overseas depend on the particular bank and the volume of business it does in a particular region.
The criteria for transferring U.S. personnel to overseas offices vary with the needs of each bank. Consideration is given to the performance of the individual. It must be remembered that headquarters handles many vital functions of a company's overseas work; thus those who hope to work overseas should expect to spend some time at the company's nerve-center.
Securing a position in investment banking tends to be more competitive than in commercial banking. Most firms focus their recruitment at business schools, seeking MBAs with some business experience. In some firms, undergraduates may be recruited for a one- or two-year program, after which they are expected to go to business school for an MBA. They may or may not return to the same firm after completion of their degrees, and there is no commitment on either side to do so.
Most firms in the field are organized along two broad functional lines: investment banking, which includes corporate finance and merger and acquisition activities; and capital markets, which includes securities sales and trading activities. Successful candidates generally have distinguished themselves either academically or in other ways. An MBA degree from a school like Harvard or Wharton is a plus, although it does not guarantee you a job. A less-traditional background is sometimes an advantage. Among the people Morgan Stanley has recently hired for the investment banking program are a former movie producer and an oil-rig operator. The point, of course, is never to write yourself off as a possible investment banker because you have not followed a traditional path.
Relocation abroad and promotion operate in much the same way as in the commercial banks: they vary with each firm's needs as well as with the ability of the individual. (It should also be noted that many commercial banks have significant investment banking activities, particularly overseas.)
A career in investment banking has recently offered the promise of higher compensation over the years, but it is coupled with longer hours, unpredictable demands on time and generally greater stress. However, more and more commercial banks are developing investment banking groups that offer similar monetary rewards with similar demands.
Regardless of whether one's interest lies in commercial or investment banking, both require individuals who possess strong interpersonal skills, a high energy level and a reasonable degree of quantitative fluency.
American Express Bank, Ltd. (AEB)
New York, NY
AEB, a subsidiary within the American Express Corporation, focuses exclusively on international financial services. AEB's profits have contributed to make American Express the second largest financial company in the U.S. Through a network of account officers stationed in 82 offices in 39 countries of Western Europe, the Middle East, Africa, Latin America and Asia, AEB manages a range of services, which include trade finance; private, correspondent and military banking; foreign exchange; asset management; long- and short-term investment; and project finance. Private individuals, banks, corporations, governments and the U.S. Department of Defense make up AEB's clientele. AEB's major private banks are located in Switzer-land, the United Kingdom, Singapore and Hong Kong.
Professional staff
AEB has a domestic professional staff of about 400, including officers and others in management positions. About 200 of the 1,655 overseas staff are Americans.
Qualifications
Typical AEB employees have an undergraduate degree in finance and economics as well as an MBA or MIA with emphasis in finance, economics or accounting. Knowledge of Spanish, Chinese, French or German is valuable for employment; and previous banking or financial experience is usually required. Previous cultural experience, such as overseas travel or living, enhances one's chances of employment.
Training program
AEB offers a year-long training program for those with an undergraduate or graduate degree as well as previous work experience. People from inside and outside the corporation are recruited annually for the program. Trainees learn about AEB's work in financial analysis, credit and communications.
