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Is Commercial Banks a Good Career Path?
Now We're Talking Money!
Banking is one of the employment alternatives that those who have majored in finance have open to them, and there are many other career opportunities accessible to them as well. Investment banking, retail banking, and commercial banking are the three primary categories that make up the banking industry.
In this article, we will investigate the many facts of working for a commercial bank as a job and determine whether or not working for a commercial bank is a beneficial career path.
So, let’s begin!
Is Commercial Banks a Good Career Path?
Do you think a job in commercial banking would be a good choice? Indeed, that is the case.
A commercial bank is a specialized sort of banking that caters to the financial requirements of commercial customers, including businesses, companies, and other types of organizations. Commercial banking is a specialized form of banking that Banking professionals developed in the United States.
A commercial bank can play a vital role in the economy of a country by making loans available for both consumption and investment.
Commercial banks are essential in the economic wheel that is the banking sector, which is the business that drives an economy forward and keeps it rolling.
Therefore, if you are interested in a career path that will provide you with financially lucrative opportunities, you should think about working in commercial banking.
Is Commercial Banking Competitive?
Yes, but it is lesser competitive than investment banking.
What Are the Jobs Available in Commercial Banking?
Here are some of the jobs available in commercial banking:
Commercial Banking Manager/President
Average Annual Salary: $82,000
The manager of the bank or the president of the bank sits on top and has the highest rung in the realm of commercial banking. You supervise all of the bank’s activities and divisions, the primary focus of which is maintaining communication with the branch or regional managers to ensure that their offices are operating efficiently.
Your work will demand you to sell your organization to huge firms and corporations. After that, you will need to maintain the ties you have with the consumers you already have. This is in addition to the fact that you will be in charge of running the company.
Average Annual Salary: $72,000
The bank account manager is responsible for both new and current clients, responding to inquiries on the goods and services offered by the bank, and directing customers toward the choices that are most appropriate for their circumstances. Because you are required to be familiar with every aspect of the services provided by your bank, this position comes with a significant amount of responsibility.
A good number of account managers get their foot in the door by handling the accounts of individuals and then managing the accounts of organizations or very wealthy people. This employment offers opportunities for advancement in terms of both responsibilities and pay.
Average Annual Salary: $44,000
Individuals, organizations, and corporations may apply for loans, and loan officers will analyze, approve, and authorize such loans. This position calls for an in-depth understanding of the various loan options provided by the bank, the credit reports available, the current market for real estate and cars, as well as the applicable federal and state legislation. There is a lot that goes into this role, and it has the potential to be quite difficult.
The majority of loan officers are required to possess a bachelor’s degree in addition to at least three years of experience working in the banking industry. Because a significant portion of their employment entails adhering to legal norms, they must maintain their education so that they are continually knowledgeable about the most recent developments in the law and the market.
Software or Banking Systems Specialist
Average Annual Salary: $65,000
The technological aspect of the sector, like other professions in the modern world, is where the majority of the money lies. The banking industry is not an exception, as shown by the fact that one of the positions with the highest salaries is that of a software or financial systems expert.
It is their responsibility to install, maintain, troubleshoot, distribute information, and update computer programs inside the bank. In addition, they should be prepared to provide a significant amount of technical help since it is likely to be requested of them.
It is possible to make more money and take on more responsibility by moving from a small bank to a large corporation’s IT department. The corporate headquarters of a larger bank may provide you with more opportunities to learn about this if it’s something you’re interested in.
Average Annual Salary: $37,000
Mortgage bankers are similar to loan officers; however, their exclusive area of expertise is in the field of mortgage lending. Due to the high volume of business generated by the house buying and selling industries, the majority of financial institutions employ at least one and sometimes many people who focus on mortgages. So it’s a challenging business with a lot of regulations and rules to follow.
Mortgages provide financial institutions with a stable source of revenue from borrowers, which is why banks like investing in them. However, financial institutions will only engage in this practice if they are certain that the borrower will be able to repay the loan. Because of this, the role of a mortgage banker is quite vital.
Average Annual Salary: $29,000
It is not required to have any extra education; nevertheless, the majority of receptionists working in commercial banks have at least a high school diploma. Therefore, it is your responsibility to greet customers when they enter the bank and figure out whom they need to speak to. While some of them may be there for scheduled appointments, others will walk in off the street and be curious about the services offered.
Your first obligation is to provide a warm greeting and to put people at ease to increase the likelihood that they will do business with your organization.
Average Annual Salary: $36,000
There are administrative assistants out there with advanced degrees, but employers do not insist on them in every case. These individuals assist management or executives in the management of day-to-day operations, including the preparation of reports, the management of appointments, the maintenance of office supplies, and other responsibilities that ensure the smooth operation of the entire bank or their department.
Average Annual Salary: $30,000
The majority of banks contain a significant amount of assets. However, the contents of safety deposit boxes are not limited to monetary value. They may also include valuable papers, jewelry, heirlooms, and other items of significance.
Whether they are out in the open greeting customers or hidden away monitoring surveillance equipment, security guards are an essential component of almost all banking institutions. In addition to that, they may have to accompany essential individuals on certain off-site responsibilities.
Average Annual Salary: $31,000
Another one of the few occupations that you may be able to acquire in a commercial bank with only a high school certificate a bank teller is one of the few roles that you can get. People will often trust you with managing money as well as sensitive information about the company. Because you’ll be dealing with clients constantly, you’ll also need to be courteous and knowledgeable.
People who are interested in trying out a new field or working part-time while attending college would be well-suited for this position since it provides the opportunity to do both.
Average Annual Salary: $44,000
To be an assistant manager, you’ll need to have a college degree. In most cases, you’ll also need to have previous management experience to qualify for the role. Assisting the manager makes this an entry-level position. Along with that, it has the potential to be an excellent stepping stone for developing your career in finance and management.
Average Annual Salary: $31,000
A personal banker is a kind of banking professional that often has a bachelor’s degree and is just beginning their career. They can assist clients, both current and prospective, who are interested in establishing fundamental checking and savings accounts, money market accounts, retirement accounts, and other financial vehicles.
Average Annual Salary: $61,000
We may find people who work as notaries public in some of the most significant financial institutions. For this particular position, you will need someone who has official government authorization to act as a witness during the signing of official papers. Smaller institutions will be able to distribute this responsibility among a greater number of positions.
There is no minimum education need, but you will be required to pass a test, acquire a surety bond, and satisfy the standards set out by your state.
Average Annual Salary: $36,000
Underwriters evaluate applications for loans. Their major responsibility is to find out if the person or company requesting the loan has adequate financial resources to meet the loan’s obligations and whether they have a track record of being responsible with their payments, sometimes known as positive credit history.
The assistant underwriter is often responsible for handling the necessary documentation and doing the necessary research when it comes to underwriting. This is an excellent opportunity for someone looking to get their foot in the door since it provides valuable insight into what is involved in the underwriting process. However, it also opens doors to future career opportunities.
Customer Service Representative
Average Annual Salary: $30,000
A customer care representative for a commercial bank has to get quite knowledgeable about the goods and services offered by their organization very fast to do their job effectively. Their responsibility is to advise consumers in the direction of financial strategies that are mutually advantageous to the bank and the customer. They could also be responsible for responsibilities such as coordinating exchanges, payments, and refunds, among other things.
The salaries above are from Indeed.
What Skills Do You Need to Work in Commercial Banking?
The following are some essential abilities for entry-level positions:
A Sharp Mind With Analytical Skills
Because of the nature of this position, you will need to be able to wrap your brain around numbers and do a significant amount of figure crunching daily. In addition to that, you will need to be proficient in accounting.
Familiarity With All Basic Products, Markets, And Policies
To be successful in the function of Relationship Manager, you do not need to have exceptional financial acumen. Instead, you need to have a solid working knowledge of the available banking products, fundamental banking rules, a basic understanding of taxes, and some familiarity with financial markets.
Good Selling and Persuasion Skills
When recruiting a relationship manager (RM), banks place a big emphasis on having this talent. People can get training on banking products, but sales abilities are somewhat more intrinsic. Officials will examine them in more depth during interviews. In addition, people can receive training on banking products. Besides having comprehensive knowledge of banking products, he should also be able to advise customers on which product is most suitable for their needs.
Strong Interpersonal & Conversational Skills
A major responsibility of this position will be to find new customers, engage in continuous conversation with them, and assist them with any business they may need assistance with. Therefore, having strong interpersonal and presenting skills is quite crucial. In addition to this, you need to have the ability to clearly and concisely explain complicated products to customers, some of whom may be unfamiliar with financial jargon. Finally, because their customers come from a wide variety of backgrounds, they need to cultivate skill sets that enable them to work effectively with a diverse range of customers.
Ability to Handle Stressful Situations
They sometimes extend the working hours in commercial banks due to urgent situations, customer needs, and other factors. In addition, even if the demand could change depending on the situation, there are always requirements.
What Are the Pros and Cons of Working in Commercial Banking?
Now that we are aware of the many different career paths that are open to us in commercial banking, it is time to consider the benefits of working in this industry.
Commercial banks have been operating for quite some time, and they anticipate that things will go on in the same manner. However, this remains the case as various changes have taken place in the environment, for example, the introduction of e-banking and digital wallets.
On the other hand, it is reasonable to anticipate that a person will be flexible enough to adjust to the constantly shifting needs.
If you are seeking work that offers generous compensation, you might think about pursuing a career in commercial banking. The salary is already great when you first start, and it will only become better as you advance in the company.
Numerous Advancement Opportunities
The majority of individuals begin their careers in finance as loan officers or credit analyzers. And as time, effort, and performance progress, they advance to opportunities that are both greater and better.
It does not matter whether you like responsibilities that involve interacting directly with customers or those that are more administrative since the commercial banking industry offers a wide variety of positions to choose from.
Building a successful career in commercial banking does come with a few drawbacks, however. First, in addition to this, it is essential to be informed of them before one decides to go in headfirst. In the following paragraphs, we are going to take a look at a few of these downsides.
Clients of other banks face increased competition because additional banks are opening relatively frequently, increasing their level of competition. As a result, there is a risk that officials may persuade financial institutions to provide loans and provide other financial products without first conducting a consumer assessment.
In addition, the absence of pre-qualification poses a risk when clients fail to make their loan payments, which puts additional strain on the financial system. Besides this, it may provide significant legal difficulties for the institutions involved as well as the people concerned.
Because of the frequent transactions and the long hours, a job in commercial banking may be highly stressful for one’s physical and mental health. Because of this, a significant number of individuals do not remain employed in the banking industry for an extended period.
Facing Rejections And Dealing With Bad Customers
Being prepared is important when dealing with potentially hostile or impolite clients. This is very logical given that everyone views money as a touchy subject. When working in banking, it is essential always to have a polite and professional demeanor.
Is it a smart idea to pursue a commercial banking career? If statistics, economics, and human behavior fascinate you. If this is the case, the response is an unequivocal yes. However, it is possible that you should not place too much emphasis on the drawbacks, given that each potential line of work has both positives and negatives associated with it.
In addition, if you have the expertise and experience, a job in commercial banking may be very rewarding as you go up the corporate ladder. Therefore, do not wait. Instead, get started on your investigation right now.
Also, since you’re already browsing which career paths are good and which are not, you may as well check out “Is Transportation a Good Career Path?“