What is the difference between merchant bank and commercial bank

As these banks offer various investment functions, in the US, these are called typically as the investment banks. Having a degree in finance, mathematics or accounting would help lay down a solid foundation for someone looking to enter this field. Top merchant banks regularly hire from the pool of graduates and undergraduates in finance, engineering, and even law. It is true that banking has seen positive developments as an industry but there are several reasons why banking jobs have been impacted in the last decade.

Some of the reasons for this state of affairs include industry consolidation and an increasing reliance on technology with a sudden spurt in online banking services. This has affected the demand for bank tellers and similar job roles typically involving personal interaction with the customers. However, at the same time, there has been a rise in the demand for financial analysts, financial advisors, marketing professionals and techies who understand an entire suite of financial products offered by commercial banks and can help sell them effectively.

This has also contributed to a slowdown in the demand for traditional banking jobs as the industry is undergoing a major transformation both in terms of the nature of services banks offer and the way they operate. As far as merchant banking jobs are concerned, it would be relevant to add here that although theoretically defined as separate forms of banking, few merchant banks and investment banks function purely within their technically defined limits.

Some of these factors include the industry consolidation we have already discussed above along with the credit crunch of To sum it up, those planning to build a career in commercial or merchant banking need to acquire the competencies for emerging job roles in the banking industry to be able to make the most of it. It must be realized that as industry changes are forcing a fundamental shift in the nature of banking careers, they continue to become ever more challenging and competitive.

Though hit hard by industry consolidation and advent of online banking services, commercial banking continues to be a major attraction for those planning to enter the banking industry. The remuneration can vary depending on the job roles and typically, roles requiring technical and people skills attract a better pay package.

Sales are one of the few roles which continue to be of great relevance and can offer some of the best opportunities for building a career in banking and finance. This excludes any commissions and bonuses earned. Traditionally, merchant banking has been considered one of the most rewarding careers in finance. However, several factors discussed above have impacted job growth negatively to an extent. This is why a number of individuals might look for work opportunities in certain locations with relatively better prospects.

Credit Risk and Underwriting Prodegree. PG in Banking and Wealth Management. Education required Commercial banking An accounting, finance, or mathematics degree could help you if you are looking forward to working in the commercial banking industry. Why should one opt for a distance MBA?

Conclusion Both commercial banking and merchant banking seem to be profitable paths to take for any MBA student. Thank you for the Interest. We will get back to you shortly.

Something went wrong. Please fill again. Field will not be visible to web visitor. I accept Imarticus Terms and conditions. For Online Course Enquiries. About Imarticus. Placement Assistance. Course duration Months. Upcoming batches. They typically offer checking and savings accounts and can provide loans to individuals and small businesses. This type of bank raises funds by collecting deposits from these same groups of people, as well as from interest charged on loans. It also purchases bonds from governments and corporate entities.

This form of banking is also sometimes defined as the provision of banking services such as checking and loans to large businesses, as distinguished from individual citizens. In this case, banking provided to individuals is referred to as retail banking to differentiate it from the second definition of commercial banking. Commercial banks, sometimes referred to as retail banks, tend to focus on the community, i. Merchant banks, also called investment banks, tend to focus on the needs of large corporations.

When one thinks of a commercial bank, one thinks of such services as checking and savings accounts, loans, credit cards, and lines of credit to businesses and individuals. Commercial banks sell investments, such as certificates of deposit, and provide brokerage services to individuals for buying and selling stocks. Retirement plans, college savings programs and financial planning services are also offered by commercial banks.

Merchant banks act as financial consultants to large companies.