Is Commercial Banking a Good Career Path? (FAQs) | 202211 min read

Is commercial banking a good career path? Yes, it is.

A commercial bank is a specialized form of banking that caters to the financial needs of commercial clients such as firms, corporations, and other types of institutions.

Commercial banks play a very significant role in a country’s economy by providing loans for consumption and investment.

The banking industry is the engine that keeps an economy moving, and commercial banks are a key part of that engine.

Therefore, if you are interested in a financially rewarding career path, you should consider working in commercial banking.

Is Commercial banking a good career path?

Yes, it is. There are, in fact, numerous viable career options available in commercial banking.

One of the reasons it is such a good option is its many career and job opportunities.

The majority of individuals who decide to pursue a profession in commercial banking do so because they take pleasure in dealing with numbers and, more specifically, with money.

Moreover, there is a high level of job stability for those who want to pursue a career in commercial banking, which is one of the many advantages of doing so.

There is also a little doubt that throughout time, people’s interactions with money and the growing usage of credit or even cryptocurrencies will alter.

Still, despite these shifts, there will always be a demand for those who work in the banking and finance sector.

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Best Paying jobs in commercial banks:

1. Financial services reps: 

A financial service representative is a person employed by an investment bank or other financial institution to provide customer assistance.

As a financial service professional, your responsibilities include selling a wide range of financial goods and services.

For instance, a customer opening a savings account with a significant value may be encouraged by a financial service representative (FSR) to open a certificate of deposit (CD) with some of the money.

The annual salary for financial services representatives working in commercial banks is $42,000.

2. Loans Officer: 

People and businesses turn to loan officers for help when they need money.

Commercial banks, credit unions, mortgage companies, and other financial organizations employ the majority of loan officers.

Commercial banks hire loan officers to interact with customers interested in borrowing money from the bank for various purchases, including consolidating debt or financing a car or a large purchase.

Some people are in the business of helping customers get mortgage loans.

The National Mortgage Licensing System (NMLS) mandates that anybody working in the mortgage industry has a license.

As one of the best paying jobs in commercial banks, loan officers make close to $64,000 per year on average for their work.

3. Credit analysts:

A credit analyst is a person employed by a company to assess the creditworthiness of customers and potential customers, and to aid in the continuing management and modeling of credit risk.

Algebra and simple rules such as the order of operations are all that most financial professionals need to be successful in their careers.

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The most important thing is to be quick with basic math and to have a critical mind to understand the three financial statements and financial instruments like debt.

Credit analysts are tasked with evaluating loan applications in light of lending criteria, deciding whether or not each loan may be accepted and under what terms and conditions.

To arrive at well-informed judgments, they consider a variety of aspects, including the applicant’s credit score, payment history, debt ratio, the value of any collateral involved with the loan, and other specifics.

As one of the best paying jobs in commercial banks, credit analysts make close to $53,000 per year on average for their work.

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4. Personal Financial Adviser:

A personal financial advisor (PFA) is a trained professional who specializes in providing financial guidance and services to individuals and small businesses.

With regards to financial advisors, they are experts in financial concerns, such as personal finances and investments.

It is possible for financial advisors to work on their own or be engaged by a larger financial company.

Individuals sometimes seek the assistance of personal financial counselors to manage their finances and achieve both their immediate and long-term objectives.

Whether it’s working out how to save for retirement or pay for college, financial advisers help clients identify various possibilities and figure out how to get the most of their money, such as by taking advantage of certain tax exemptions or incentives.

At least a bachelor’s degree is required, and it would be an advantage if applicants had prior experience in economics, accounting, and finance.

As one of the best paying jobs in commercial banks, personal financial advisers make close to $87,850 per year on average for their work.

Once again, is commercial banking a good career path? Yes, it is.

5. Treasurer: 

A treasurer is the person in charge of running an organization’s money.

Cash and liquidity management, risk management, and corporate finance are some of the most important core duties of a corporate treasurer.

A Treasurer may be in charge of or oversee how the organization’s money is handled.

This often includes basic tasks like choosing a bank, balancing bank statements, and managing cash flow. In some groups, the Treasurer may also be in charge of investing money in a way that is legal.

More so, treasurers are responsible for managing an organization’s money and its goals and objectives.

They are responsible for keeping the organization’s budget up to date and monitoring significant expenditures and investment initiatives.

The majority of roles for treasurers call for advanced degrees, such as a master’s degree. Additionally, having additional degrees in banking and finance can be beneficial.

The average annual pay of a treasurer is $86,955.

6. Accountants:

Accountants are among the most well-known financial professionals since they are responsible for analyzing, planning, and evaluating a company’s income and expenses.

Even though a master’s degree is not required to work as an accountant, most of those who work in the field only have a bachelor’s degree.

You might also need to take the Certified Public Accountant (CPA) exam, particularly if you want to work for a public accounting firm.

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According to the Bureau of Labor Statistics (BLS), the average annual salary for accountants is $71,550.

7. Auditors:

An auditor is a person or a company that a business hires to do an audit.

To be an auditor, a person needs to be certified by the accounting and auditing regulatory authority or meet certain qualifications.

Also, an auditor is a member of staff who is authorized to check the accuracy of financial records and make sure that businesses follow tax rules.

Their main goal is to protect businesses from fraud and point out any problems with how accounting is done.

Obtaining a bachelor’s degree is typically required for entry into auditing. However, some individuals may opt to become Certified Bank Auditors (CBA) by passing a four-part multiple-choice exam.

8. Customer care:

Customer service is when people are helped before, during, and after they make a purchase.

Because of this, it is an important part of the client’s value chain. Different industries need different levels of customer service, but in the end, good service is one that makes more money.

Customers of most financial institutions can call a customer service call center rather than visiting a physical bank office to obtain basic account information or ask questions about their accounts.

Bank customer service reps are the people that answer calls at these contact centers.

In contrast, others are directly engaged by the banks for which they provide customer care and are therefore considered bank employees.

The annual salary for bank customer service agents is often close to $32,000 on average.

Once again, is commercial banking a good career path? Yes, it is.

9. Trust officer:

A trust officer works in the banking industry and gives advice about trusts and estates.

In this job, one of your responsibilities is to talk to clients, agencies, advisors, and other bank employees about trusts and estates laws and options.

Trust officers work for a trust company, bank, or investment management firm and help clients with trust-related services.

They are often the main point of contact for trust clients and their advisors.

Sometimes, they are in charge of large or corporate trusts and have to do things like figure out payments or fill out tax forms. They may also help make decisions about investments and run trusts.

More so, the management of investments is the major focus of trust officers. Individual retirement plans, certificates of deposit, estates, and wills are all possible examples of these types of securities.

When working with pension funds, large firms collaborate with trust officers.

Trust officers may be asked to take part in recommending products to both current investors and people who want to become investors.

10. Teller:

Tellers at commercial banks engage in conversation with clients who visit the financial institution to handle banking-related transactions.

They are responsible for processing bank deposits and account withdrawals, cashing checks, accepting payments for loans, and providing customers with information regarding other services offered at the bank.

They are also responsible for accurately maintaining and balancing cash drawers using their mathematical skills and reconciling any discrepancies that may arise.

As one of the best paying jobs in commercial banks, tellers make close to $32,000 per year on average for their work.

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Benefits of working in a commercial bank:

1. Good pay:

Salary varies based on a person’s position, working experience, educational qualifications, and the bank they choose to work for.

Many bankers receive commissions, performance incentives, annual bonuses, and their regular pay. 

2. Benefits package:

The majority of commercial bank workers have generous benefits packages. Large banks routinely provide medical, dental, and vision insurance to their bankers and families.

3. Opportunities for Advancement:

Commercial banks frequently provide educational development and tuition support programs. In the banking sector, getting a degree or continuing education is not a waste of time.

According to the BLS, many investment banks have an “up or out” policy in which entry-level investment bankers are promoted or terminated after two or three years, ensuring that newcomers have opportunities.

4. Flexible schedule:

Most bankers’ schedules allow them to work during the day on weekends and holidays.

On the other hand, banks are opening more branches in more diversified places, such as within grocery stores and big-box shops, providing an opportunity for those who want to work flexible hours.

For example, TD Bank actively provides workers with a choice of job opportunities to meet their diverse needs.

Bank of America has programs to help its employees live healthy, balanced lives and keep their health in good shape.

Frequently Asked Questions on Commercial banking as a good career path:

What is the role of a commercial bank?

The primary function of commercial banks is to provide financial services to the general public and businesses, hence promoting economic and social stability and sustaining economic progress. In this regard, the most important job of commercial banks is credit generation.

What is the difference between commercial banking and retail banking?

Retail banks work with individual customers, while commercial banks work with businesses and corporations. Most banks, however, have both a retail and a commercial division.

Is Commercial banking a good career path?

Yes, it is.

What are deposit money banks?

Deposit money banks are resident banking corporations with liabilities in the form of deposits payable on demand, transferable by check, or otherwise useful for payment purposes.

What are the kinds of cheques?

Crossed cheque
Open cheque
Post-dated cheque
Stale cheque

Conclusion:

The commercial banking sector is already a sizable market, and expansion is anticipated for the foreseeable future.

The commercial banking business in the United States alone generated more than $848 billion in revenue in 2021.

Commercial banking is an option that should be seriously considered if you find any of the positions above intriguing and if you want to be a part of an important industry that is likely to be strong regardless of what happens in the economy.

A significant number of people enter the workforce by beginning their careers as tellers or representatives in call centers and then going to other types of jobs.

If you want to start your career at a higher level or move quickly, you might find it helpful to get a degree in finance, business administration, or another closely related field.

Awesome one; I hope this article answered your question.

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