Career in Banking – Opportunity, Challenge and the Future

This article at Career Search Guide is about a Career in Banking. Since the 1980s, career in banking becomes one of the most sought after career choice by high calibre accountants. Choosing a career in banking is now no longer limited to a selected few. Career in the banking and financing industry had come a long way.

Most people choose a career in banking for the following reasons:
Remuneration
Training and Development
Intellectual Challenge
Career Mobility
Global Industry
IT and Infrastructure Support

Salaries for a career in banking and finance sector and other high salary career had narrowed to quite an extent over the past few years. However, in terms of higher earning potential, a career in banking and finance is still an attractive industry given the generous benefits and bonus package. There are also instances where those who has a career in banking had a bonus of 100% of their base salary.

Many join the career in banking and finance sector because of the industry’s commitment to hiring and training staff to acquire and develop professional and business skills. Most major banks will offer training and development in the followings – product training, coaching and presentation skills; in-house technology training; skill set development with senior managers covering topics such as reporting in various area; and strong rotational policies which allow you to have an overview of how the banking industry works. Hence, you hardly get bored with a career in banking.

There are also some banks and financial institution who is willing to pay for staff’s upgrade by attending professional courses and classes which lead to further qualifications to further their career in banking.

For you to have a career in banking, you have to be prepared to work as part of a big team. This entails the development of a culture of sharing ideas and knowledge across international markets and other business units. A career in banking is very challenging as the bank’s commercial success depends on how well it can find practical solutions to very complex problems for its clients. Problem-solving for a career in banking often requires you to think out-of-the-box and to think laterally. You are also expected to have great analytical and numerical skills.

Expect steep learning curve especially during your first year career in banking. Be prepared for inter-department transfer and change of job function.

Unlike many other industries, a career in banking is also exciting due to its global business nature. It is not uncommon for banks to become international and have major operation in overseas country. There is also the need to share highly complex information across and between banks. Information Technology and support is an absolute necessity in today’s banking industry.

There are many areas that you can be involved in your career in banking. Some of these areas include:

Product Analysis
Financial Control
Equity and Fund Analysis
Risk Management
Projects
Operational Risk Review
Corporate Finance

Product Analysis in Banking Career: You are regarded as a key knowledge resource within a bank. You work with traders to analyse and provide daily performance figures for the trader. You need above average academic results and has to demonstrate excellent communication and interpersonal skills. Future career advancement include area in product analysis, risk management, fund management, equity analysis, financial control or trading.

Financial Control in Banking Career: As a financial controller in the bank, great sums of money are transacted daily and information is constantly sought for up-to-minute reporting. You are in a position that provides information that directly influences crucial decisions. All your reporting is also constantly monitored by regulating bodies. To seek a position in financial control in banking, you need to have practical understanding of accounting system and thorough understanding of spreadsheets. Future career advancement include the area of business analysis, product control, risk management, systems development and trade support.

Equity and Fund Analysis in Banking Career: This area of a career in banking is of high profile which involves detailed analysis of economics and business. You provide fund managers or equity trader with incisive recommendations. You need to have detailed knowledge of analysis tools such as key ratio, market trends, etc. The vacancy of equity and fund analysis in the banking career is extremely difficult to secure.

Risk Management in Banking Career: You work very closely with traders in monitoring trade limits and profit and loss data. You are involved in scenario analysis using spreadsheet. You have to be a highly mathematically inclined person, and it is not unusual for banks to seek MBA and PhD graduates for such a post.

Project Manager in Banking Career: Project roles can span across any area of the bank and cover any number of products. This role involves both strategic and tactical issues. Working with deadlines is a norm. To be eligible for this role, you have to demonstrate your management skill and the ability to multi-task, not to mention the ability to work under pressure. Future career advancement includes in the area of business re-engineering and strategy.

Operational Risk Review in Banking Career: This is another high profile role within the banking career, and your role is a broad role. This is an excellent entry point into a career in banking as you chart your own course in the banking career. You have to understand the inherent risk involved in each products which include market risk, reputation risk, regulatory risk and credit risk. A good university degree is expected and you need to have the ability to liase with people of all levels. Future career advancement include in the areas of products, risks, projects, central support and trade support.

Corporate Finance in Banking Career: This is the most prestigious areas of any bank or financial institutions. You are involved in mergers and acquisitions, management buyouts and major financial deal making. You work in a highly pressurised environment and you will find this an extremely business of the banking career. You are expected to hold a highly qualified university degree. Future career advancement include management, fund management or venture capital.

Next, we like to discuss in more specific, a career in commercial bank. Commercial banks are those banks that provide banking services to individuals, small businesses and large organisations. The followings are the position that you can find in commercial banking career:

Credit Analyst: This is a common entry level job into career in commercial banking. You evaluate business and consumer loan application. You also project a company’s future cash flow and analyse its financial health. You visit and interact with financial people and deal with lenders. You need to have knowledge in accounting and communication skills.

Loan Officer: Loan officer is a desirable career in the banking industry which involves making loans to business and consumers. You need good selling skills and the ability to understand a business.

Branch Manager: A branch manager of a bank is responsible for overseeing all activities in your branch. These include opening of accounts, loan, solving customer’s problems, etc. You need to have strong customer service skills and a good grasp of banking.

Trust Officer: As a trust officer in the banking career, you deliver trust services, financial products and advice bank customers.

Mortgage Banker: A mortgage banking career requires that you make mortgage loans to home-buyers and businesses. This involves frequent contact with people from the real estates, credits checks and new buyers.

Skills and Criteria for a Career in Banking

What makes a good candidate for a career in banking? People skills are essential. You will also need broad understanding of business. If you are a credit analyst or a lending officer, then accounting and writing skills are important too.

To make a career in banking, you are also expected to have strong work ethic. Lately, people with good marketing skills are also climbing the career ladder in banking. Corporate investment products are also in high demand, hence if you have the inclination and knowledge in investing, that is helpful for you to get a suitable career in banking. Be expected to put in long hours in your career banking.

The followings are a summary of the levels of requirements for your career in banking:

People Skills – High
Marketing Skills – High
Communication Skills – High
Analytical Skills – Moderate
Creativity – Moderate
Initiative – Moderate
Working Hours – 40 to 60 hours per week.

How much salary do you expect to earn from your career in banking? If you are looking for high salary careers, there are other options. Starting salaries in commercial banking for those with a bachelor’s degree range from $24,000 to $38,000 while those with MBA command a starting salary ranging from $30,000 to $50,000. With 10 years of experience, you can expect $60,000 salary for a career in banking. A Department Manager with 10 years of more of work experience can expect an annual salary of $100,000. If you are lucky enough to make it to the postion of Senior VP, then you can expect a salary exceeding $200,000.

If you think that the figures are not attractive, there are still those who make a salary in excess of $500,000 for a career in banking. There are the manager with a good portfolio.

What are the future and opportunities in the banking career? In 1992, banking career was reported as one of the top most satisfying career in the US. The banking industry is undergoing a period of consolidation, and therefore expect mergers and acquisitions to take place. With the advancement of technology, most people do their banking via ATM or online. Specialised banking are growing and middle management bankers are in great demand.

Typical employers for career in banking include: Merrill Lynch, J.P. Morgan Chase & Co., Dresdner Kleinwort Benson, DLJ, Lehman Brothers, Goldman Sachs, BNP Paribas, NM Rothschild, VISA, Bear Stearns, CIBC World Markets, Deutsche, Close Brothers, Citigroup, WestLB Panmure, Pru-Bache, Abbey, 3i, AMP, AXA, QBE, Lloyds TSB.

We wish you all the best in your Career Search in a career in banking.