Skills Gap / Transaction banking: a substantial talent shortfall

The appeal of the transaction services industry for new talent has never been higher, as high-impact, pejoratively dubbed ‘casino’ investment banking job opportunities vanish. Technologic nous and an ability to navigate new client demands – amid market and regulatory shifts – are key skills that budding transaction bankers must develop to make their names in the industry.

Transaction banking was seen as the poor relation of more exciting careers in investment banking. All this changed during the financial crisis: with the reputation of “casino” bankers seriously damaged, the more vanilla route of transaction banking started to look more attractive.

Meanwhile, as the role of the corporate treasurer has become more strategic and visible, the importance and profile of transaction banking has likewise grown. “Skilled candidates are attracted to the diverse opportunities offered in cash management, trade, securities and fund services,” says Rajesh Mehta, EMEA head of treasury and trade solutions at Citi.

Deutsche Bank points out that transaction banking is stable, sustainable and relevant to the real economy. “It is also a growth area that is becoming increasingly profitable and actively encouraging entrepreneurship,” it states.

However, despite a growing awareness of transaction banking as a career path, some believe there is a substantial talent shortfall in this area. “The corporate treasury function has evolved and grown in recent years, taking more importance in the corporate organization,” says Carole Berndt, head of global transaction services, EMEA at Bank of America Merrill Lynch (BAML). “This evolution has created increased demand for expertise and experience, and today this outstrips the available supply.”

Choosen excerpts by Job Market Monitor from

via Skills gap blights transaction banking as industry’s allure jumps /Euromoney magazine.