Overview
Commercial banks are in the business of providing banking services to individuals, small businesses and large organizations. While the banking sector has been consolidating, it is worth noting that far more people are employed in the commercial banking sector than any other part of the financial services industry. Jobs in banking can be exciting and offer excellent opportunities to learn about business interact with people and build up a clientele. Today's commercial banks are more diverse than ever. You'll find a tremendous range of opportunities in commercial banking, starting at the branch level where you might start out1 as a teller to a wide variety of other services such as leasing, credit card banking, international finance and trade credit. If you are well-prepared and enthusiastic about entering the field, you are likely to find a wide variety of opportunities open to you. Carefully, read through the material below as you decide whether you have been ready to pursue a career in commercial banking.
Broad Business Understanding and People Skills Needed To be good in banking you need a broad understanding of business because your job will most likely involve interacting with businesses. People skills are essential because you will be helping people get the loans and investments that they want.
Accounting and Writing Skills are Crucial
The most common jobs in commercial banking are as a credit analyst and as a lending officer. These jobs require a strong understanding of accounting. Because banking often requires that you document loans and justify credit analysis which you have written, written skills are extremely important.
High Grades Less Important than Work Ethic
Banking attracts a diverse group of people. You don't have to be a superstar student with a phenomenal GPA to make it. You do have to be detail oriented, unafraid to sell and conscientious.
International Talent Is in High Demand at Money-center Banks According to Hoyle Jones, head of recruiting at Citicorp2, the firm is"aggressively in the hiring market." We're looking for U.S.-educated Asians and Latin Americans to go back home and grow businesses.
Marketing Types Wanted
A new business model which is spreading into banking is that of the marketing-oriented consumer products company. Banks are trying to build valuable brand images with consumer-oriented advertising and distinct product lines. According to Richard Kovacevich, CEO3 of Norwest:"I believe we all must be salespeople; and we should be proud of it... We can no longer be order takers, which is still the characteristic of the old banking industry. In fact, we must be great as salespeople. We must be customer-oriented, we must be needs-based and we must be aggressive." In light of this demand, if you have good marketing skills and have taken a number of marketing courses, you will be well-suited to this new environment. Because of the increasing marketing orientation, many banks have also been paying big bucks to lure product managers away from consumer products companies. People with skills in product design and market segmentation are wanted.
Wall Street Types Will Find a Home
Because commercial banks remain profitable and are more involved than ever in the financial markets, they are competing with Wall Street for"high-tech finance jocks" involved in foreign exchange derivatives and financial engineering.
Corporate Investment Products in High Demand
There is also high demand for finance professionals who can develop products for the corporate market. According to Windle Priem of Korn/Ferry International, a top recruiter in banking:"Half of the ［recruiting activity in banking］ has been in the capital markets and corporate finance arena of these banks. The other part of the commercial banking practice that's booming is investment products and mutual funds. That's been very, very strong. ...Most of those people have been hired from other investment firms, other mutual fund companies. The traditional corporate lending people continue to be downsized and terminated."
MBA Optional
It is generally not necessary to get an MBA in commercial banking although it wouldn't hurt you. Many of the executives at the very top do have MBAs from prestigious schools. And others have attended summertime master programs at places like the Southwestern Graduate School of Banking （Dallas, TX） or the Stonier School of Banking.
Days of Easy Hours Long Gone
Banking is reputed to be a low hours/workload position. This is possible, especially in smaller markets, but increasingly bankers are working longer hours as their jobs become more oriented towards general marketing of financial services. Consumers are increasingly banking from home using online services and the Internet. If you are Internet savvy and familiar with computers you will have an edge in banking."Banks are at the point now where they have to seriously start moving into an online environment, or risk losing some of their best customers, potentially forever. It's a very crucial and very perilous time for banks，" said David Taylor, executive vice president at the Bank Administration Institute, in December 1995. A typical job in banking in the lending or branch management area would require the following skills:
Key Skill AreaRequirement
People Skills: High
Sales Skills: High
Communication Skills: High
Analytical Skills: Medium
Creative Ability: Medium
Initiative: Medium
Work Hours: 4060h/week
Job Options: Credit Analyst
This is a common entry level job which requires that you evaluate business and consumer loan applications made to your bank. Your duties include projecting a company's future cash flow, evaluating its current financial soundness, visiting and interacting with financial people at businesses and dealing with lenders. You will learn a lot about business in this job. Your success in this job will depend on how detail-oriented you are, your knowledge of accounting and your ability to communicate.
Loan Officer
This is a highly desirable job in banking which involves making loans to businesses and consumers. Being a loan officer requires that you have good selling skills, an ability to understand a business and a solid understanding of how banking works. Most people in upper management at banks were once loan officers.
Branch Manager
You would be responsible for overseeing all activities at your branch including opening new accounts, loan origination, solving customer problems, foreign exchange and safe deposit boxes. Most importantly, you are responsible for establishing relations with customers. This job can be very satisfying, which is never boring and requires you to be hands-on. Many bank managers start as tellers or customer service representatives. Key things for this position are customer service skills, empathy, quantitative ability, strong work ethic, organization and a solid understanding of banking.
Trust Officer4
In this job you would deliver trust services, financial products and advice to bank customers （often more upscale ones）. This work will give you knowledge of business, investing, estate planning, taxes, probate law and will involve a lot of counselling.
Mortgage Banker5
Your job will be to make mortgage loans to homebuyers and businesses. This involves heavy contact with real estate professionals, credit checks, and dealing with new buyers. Today, many loans are sold to other investors in the mortgage backed securities market. This job has a good future because an increasing fraction of the population is likely to buy a house in the future. Other jobs in banking involve accounting, marketing and advertising, commercial card operations, securities transfer, wire operations, private banking, cash management services, installment loans, loan servicing, correspondent banking, personnel, operations and communications.
Facts and Trends
Banking is Satisfying. In 1992, Money magazine surveyed 100 jobs in the United States. The job of banker was listed as the second most satisfying. Bankers love their jobs！
Banking Is in a Period of Consolidation
Banking is going through a period of tremendous consolidation with frequent mergers and layoffs. Mergers abound such as those of Citibank and Travelers into Citigroup or Nations Bank and Bank America. Customers don't always go to branches. They increasingly rely on ATM's and electronic transactions. And many now direct their savings into mutual funds like Vanguard and Fidelity. At the same time business increasingly raise money using commercial paper and medium-term notes instead of bank loans, this means jobs are getting tighter. Fortune, writes on Oct. 30, 1995:"Few industries has experienced as intense a spasm of consolidation and corporate restructuring as has banking in the past decade. New mergers and job cuts are announced practically every week..."