Banking is Satisfying

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 NationsBank and BankAmerica. Customers don’t go to branches like they used to and 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: “Few industries have 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…”

 

The Bad Economy of 2009 is Impacting Banking

Certain banks like Citigroup have been profoundly impacted by the most recent financial crisis. And, of course, numerous banks in the mortgage area have taken losses and have applied for TARP funding. But more broadly profitability has been hit in many places. This has caused the industry to engage in significant cost cutting and “penny pinching”. Interestingly, numerous banks remain profitable and continue to “hire at all levels.”

 

Don’t Forget Government Job Opportunities in Banking

State governments and the U.S. government actively recruit banking regulators. Interesting places to look include The Office of Thrift Supervision, the Federal Financial Institutions Examination Council and the Federal Reserve Banking System.

 

Branch Out

Jobs in bank branches could be risky. According to a study by Deloitte & Touche about 30% of bank employees (850,000 people) work in branches. However, productivity improvements were expected to replace 151,200 of them, and electronic delivery of services was projected to eliminate an additional 344,400 jobs. When new jobs created by electronic delivery services were factored in, the study showed a net loss of 450,000. This could continue going forward.

 

 

 

Banking is Shrinking

The business of banking is changing dramatically as traditional demand deposit and CD business shrinks. The U.S. banking system’s share of financial assets in the economy has sunk to 25%, the lowest in the last 130 years.

 

Specialized Banks are Doing Best

Banks which specialize in a niche such a retail lending, credit card operations, cash management or global retail appear to be doing better than more diversified banks. Expect focused banks to continue to succeed and create more jobs.

 

You May be Traveling

Regulations now permit interstate banking. Historically, you might not have been asked to travel much as a banker or deal with businesses in other states. That has changed.

 

Middle-Managers Are In Demand

The shake-up in banking has left a shortage of good middle-managers, especially at smaller banks which find it more difficult to hire well-trained managers away from well-staffed larger banks. Other hot areas include loan review officers, technology specialists and auditors.

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 analyses you’ve written communication 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 Citicorp: 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, CEO of Norwest: “I believe we all must be salespeople; and we should be proud of it… We can no longer be ordertakers, 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. Pros with skills in product design and market segmentation 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.” (American Banker).

 

MBA Optional

It is generally not necessary to get an MBA in commercial banking although it wouldn’t hurt you. Many of the execs at the very top do have MBAs from prestigious schools. And others have attended summertime masters 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 on line 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.

A typical job in banking in the lending or branch management area would require the following skills:

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, is never boring and requires you to be hands-on. Many bank managers start as tellers or customer service representatives. Key things go have for this position are customer service skills, empathy, quantitative ability, strong work ethic, organization and and a solid understanding of banking. Can move up to be a market manager and oversee branches in a market.

 

Trust Officer

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 counseling.

 

Mortgage Banker

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.

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, corresponent banking, personnel, operations and commmunications.