Career Advice In Singapore

What is investment banking?
Commercial banks and investment banks perform primarily different functions. When Mr Tan in Yishun needed a loan to buy a car, he visited a commercial bank. When Nokia needed to raise cash to fund an acquisition or to build more factories, it made a phone call to its investment bank.
Investment banking is not one specific function or service but rather an umbrella term for a range of activities. Investment banks, or I-banks, issue securities (underwriting), manage portfolios of financial assets, trade securities (stocks and bonds), help investors purchase securities and provide financial advice and support services. I-banks offer these services to governments, companies, non-profit institutions and individuals. They also engage in numerous proprietary activities in the financial markets – activities where they are their own clients.

The investment banking universe still revolves primarily around New York City with Hong Kong and Singapore centering the hub of Asian activities. The leading banks of today include Merrill Lynch, Morgan Stanley Dean Witter, Goldman Sachs, Citigroup’s Corporate and Investment Bank (Salomon Smith Barney till recent), Credit Suisse First Boston and JPMorgan Chase. These firms, also known as Bulge Bracket firms, provide a full range of services to their clients and operate on a global basis.Regional i-banks, as the name implies, concentrate their operations on a particular region. Local banks like DBS and UOB have historically had a more South-East Asian focused clientele though plans have been made to reach markets as far as China and India. Then there are the Boutique i-banks that specialize in a particular product (Mergers & Acquisitions Advisory, Program Trading) or industry (Medical, Media & Telecommunications). Examples of boutique firms include Toronto-Dominion Securities and Enron. Boutiques have much smaller operations and possess a wealth of knowledge and network in their fields of expertise.

"The analyst program"
Freshly hired analysts are put through the Analyst program - a two year employment contract with a few favored individuals selected to stay on for a third. Graduates of this program are expected to move on to other careers or return back to school for an MBA. Most firms help to ease this transition process by providing help in the form of reimbursement for GMAT/GRE preparatory courses and counselling sessions with human resources.

The program kicks off with 4-8 weeks of classroom sessions that often takes place at company headquarters in New York. The best lecturers and trainers are hired to bring analysts up to speed on subjects varying from principles of accounting to the fundamentals of team work. Do pay attention and take notes as these classes are examined and recruits have been known to be “fired” for not making the pass mark!




There will also be presentations made by the various departments in the bank and this is a great opportunity to learn more about the organization. This training period is an invaluable time for analysts to socialize and bond with peers from all over the world as well as get a feel of the organization as an entity.

Apart from the classroom training, recruits will be expected to aggressively learn on-the-job as well. Analysts will be required to study for and obtain licenses to practice as determined by the local governing authorities – the MAS in Singapore.

Getting hired
Generally, banks operate on a fall/spring recruitment season, with the fall semester concentrating on analyst recruitment and spring on internships. This coincides with Semester 1 for the former and Semester 2 for the latter in Singapore. If you are an undergraduate, it is highly advisable to try to get an internship as this is the best way to secure an offer for a permanent position eventually.

Investment banks, especially bulge bracket firms, generally favor a high grade point average, a superior academic reputation and an outstanding extra curricular activity record. It doesn’t hurt to graduate from the Ivy-Leagues or top junior colleges either. A consistent track record is advantageous, else be prepared to explain the B grade that you got in O Levels. A business related degree is helpful but more banks have recently taken to graduates from fields like engineering and the arts to better appeal to an expanding clientele base.

Recruiters from prestigious investment banks are sent around during recruiting season to pick the best students. Do note however, that smaller, specialized boutiques often don’t, hence it is advisable to discern the type of bank that you are best suited and conduct your own independent research.

If recruiters have not been beating down your door yet, you will need to spend extra effort to research and network your way into an interview. Approach your school’s alumni and tap on your relatives and acquaintances to get in touch with someone from an i-bank that you are interested in. If you are a good student with a genuine interest, it is worth the shot.

Candidates can expect multiple rounds of gruelling interviews with the entire team from Analysts right up to the Managing Directors. One banker attests to having gone through 12 simultaneous rounds in one day! This is a good opportunity for the team to get a feel of you and also for you to meet the people who you may be spending the next 2 years with.

There may also be wine-and-dine meals at fancy restaurants. Don’t let your guard down here as interviewers are actually taking this opportunity to observe a candidate’s ability to socialize and make conversation with clients as many deals are negotiated over meals.

Recruiters are looking for high-energy, hardworking and bright candidates who are willing to commit the time and effort to the job. An outstanding personality and the ability to work independently and in teams are critical.Interview questions can range from the generic ‘why banking?’ to the specific finance-related questions. Be prepared to explain and reaffirm your commitment to this industry.

On the job
The few privileged ones who make it through can look forward to an experience of a lifetime and one that no other careers can provide. The learning curve is unusually steep and analysts are heaped with responsibilities from Day One. Be prepared to put a hold on your social life but off the bat you’ll be given more duties and recognized more for your work than the average working person.

Work is expected to be immaculate with zero tolerance levels for errors and the hours are brutally long - think 130 hour weeks. Analysts are expected to be punctual, diligent and take initiative in all tasks. The upside to it all is that you’ll get to wine and dine and be on first name basis with the makers and movers of the industry and be a part of multi million dollar deals.
Compensations are generous with current first year analyst annual base salaries ranging from S$ 75,000-100,000, signing bonuses of S$ 5,000-10,000 and annual bonuses of anywhere from 30-100% of base salary based on performance levels. Vacation days are a generous one month and meal and transportation allowances are provided as well. Analysts recruited into Singapore offices are often given choices to receive compensation in either US$ or SG$ at a fixed rate. The SG$ package will include CPF on top of the standard benefits. Local banks tend to be more cautious paymasters but provide invaluable banking experiences as well.

Life after
In general, the investment banking career is a chance of a lifetime. Investment bankers are highly respected and well-looked upon as having gone through a rigorous and challenging career and emerging with valuable analytical and formidable business knowledge.

Life after investment banking provides a wealth of opportunities. Bankers have been known to make their mark in the private sector, become successful entrepreneurs or even accomplished academics – the world is your oyster!

Quotes from bankers...
“A professor said that it is one of the toughest jobs to land right out of school. So I thought to give it a try. And it has turned out to be a great experience! As a 21 year old, I got to meet with CEO and CFOs of MNCs and private firms, no where else can my opinion as a fresh graduate be heard and taken so seriously…” – An Ex- Banker

“I did my math, no where else can I earn as much as I can in Investment Banking,, and no where else except in Investment Banking I can make my first million before I’m 30…My eventual goal is to retire at 35 as a wine trader and this is a means to the end” – A Senior Associate in M&A