Commercial Banking Career

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21 Aug, 2024

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List of Top 5 Careers in Commercial Banking

Career List in Commercial Banking: Below mentioned are some of the commercial banking jobs that a person can obtain.

List of Top 5 Careers in Commercial Banking

Overview of Commercial Banking Career

Commercial Banking is also known as business banking; there are two main functions of the commercial banks divided into primary and secondary.

Primary Services:

We are accepting deposits.
Lending money via Loans, OD, Cash Credit, etc.
Cash Management services.
Treasury Management.
Payment processing via Cheques, NEFT, RTGS, or Transfers.

Secondary Services:

Dealing in foreign exchange services.
Payment of expenses of the customers like rent.
Accept tax deposits or refunds.
To act as trustees in a financial transaction.

The loans given by the commercial bank can vary according to the strengths of the bank. e.g., a bank will be more comfortable giving only secured loans rather than unsecured loans. These are considered to be a safe investment by the public since they can easily withdraw their money through atm machines. In recent times, internet banking has completely taken over the operations of the bank, and we see very fewer people in the branches standing in queues.

Due to the risk-free investment, commercial banks tend to offer a low rate of interest on the deposits; however, many private commercial banks, in order to compete with other commercial banks, have started to give a higher rate of interest on the deposits on saving accounts provided minimum balance conditions are fulfilled by the customer.

Let us now look at some of the top Commercial Banking Career Options –

Explanation of Commercial Bank in Video

Career #1 - Credit Analyst

A credit Analyst evaluates the creditworthiness of the borrower and decides whether to disburse the loan or not.

Credit Analyst - Job Description

Responsibilities	Responsible for evaluating the current financial position of the borrower and projecting future cash flows that are sufficient to pay off the debt.
Designation	Credit Analyst
Actual Role	To study the financial liquidity of the borrower and be check all the documents thoroughly before sending the file for disbursement.
Job Statistics	As per the bureau of labor statistics of the US, the number of jobs under this category as of May 2017 was 74,850 and is expected to grow at 10% as per www.bls.gov
Top Companies	JP Morgan, Bank of America, Wells Fargo, Citi, PNC, BNY & State Street are one of the top commercial banking companies in the United States of America.
Salary	The median annual salary for a hedge fund managers was as of 2016 was $ 71,290 at per study.com
Demand & Supply	There will always be a good demand for this role being a risk-free job profile where the candidate will be assured of his job.
Education Requirement	CFA/CPA/MBA from Tier -1 Universities with at least 5-10 yrs of exp.
Recommended Courses	CFA/CPA/MBA
Positives	Extensive knowledge of commercial banking operations across the industry.
Negatives	Desk job and can be a bit tiring analyzing multiple loan proposals.

Career #2 - General Manager

General Manager leads a large team under him in the advances department and is in charge of the portfolio assigned to him.

General Manager - Job Description

Responsibilities	Responsible for maintaining the asset quality of the loans given to SMEs, large corporations, and individuals.
Designation	General Manager
Actual Role	Build a strong credit monitoring system within the organization for the smooth functioning of the business operations.
Top Companies	JP Morgan, Bank of America, Wells Fargo, Citi, PNC, BNY & State Street are one of the top commercial banking companies in the United States of America.
Salary	The median annual salary for a general manager can be anywhere between $ 1,00,000 – $3,00,000.
Demand & Supply	There would be a very high demand for this profile seeing the current financial scenario of rising NPA’s and degradation of the asset quality of the loans.
Education Requirement	CFA/CFP/CPA/MBA from Tier -1 Universities with at least 10-15 yrs of exp.
Recommended Courses	CPA/MBA/CFA/CFP/FRM
Positives	Chance to lead a team of approx 20 people, which will enhance the team management skills and also key personnel within the bank.
Negatives	High risk since the loans sanctioned can always turn into NPA giving a hit on the manager.

Career #3 - Business Development Manager

Business Development Manager leads the business development process for the bank.

Business Development Manager - Job Description

Responsibilities	Sourcing new customers for the bank and retaining the existing customers with the best possible service.
Designation	Business Development Manager
Actual Role	Go out in the market and bring business to the bank in the form of loans, credit cards, etc.
Top Companies	JP Morgan, Bank of America, Wells Fargo, Citi, PNC, BNY & State Street are one of the top commercial banking companies in the United States of America.
Salary	The median annual salary for a business development manager will go anywhere between $1,00,000 – $1,50,000.
Demand & Supply	The demand for business development managers is always on the high since these are the people who bring business to the bank in the form of deposits, advances, and selling other secondary services.
Education Requirement	CFA/CFP/FRM/CPA/MBA from Tier -1 Universities with at least 7-10 yrs of exp.
Recommended Courses	CPA/MBA/CFA/Masters in Banking & Finance
Positives	The sole responsibility for generating business for the organization for the bank involves a huge bonus at the end of the year.
Negatives	Risky profile since the monthly targets need to be achieved.

Career #4 - Branch Manager

The Branch Manager manages the entire operations at the bank branch level.

Branch Manager - Job Description

Responsibilities	Responsible for end-to-end operations of the bank ie. opening new accounts, disbursing loans, and acquiring other ancillary services.
Designation	Branch Manager
Actual Role	Report the branch level performance to the head office on a daily basis.
Top Companies	JP Morgan, Bank of America, Wells Fargo, Citi, PNC, BNY & State Street are one of the top commercial banking companies in the United States of America.
Salary	The median annual salary for a branch manager would be anywhere between $ 2,00,000 – $5,00,000.
Demand & Supply	A high-demanding profile since it requires a management-level person to oversee the branch operations. there is limited supply for this role in the market as compared to the demand.
Education Requirement	CFA/CPA/MBA from Tier -1 Universities with at least 15-20 yrs of exp.
Recommended Courses	CPA/MBA/CFA/ Masters in Banking & Finance
Positives	Sole responsible for managing the bank branch operations and reporting directly to the top management.
Negatives	A branch activity can be on a lower scale in rural areas leaving not much to be done by the manager.

Career #5 - Loan Officers

Loan Officers assess the borrower profile and the mortgage for the same to process his application.

Loan Officers - Job Description

Responsibilities	Meet the borrower, study the financials and mortgage available and decide on the proposal whether to be sent for disbursement or not.
Designation	Loan Officer
Actual Role	Evaluate the borrower profile and disburse him the loan keeping the mortgage safely with the bank.
Job Statistics	As per the bureau of labor statistics of us, the number of jobs under this category as of 2016 was 3,18,600 and is expected to grow at 11% as per www.bls.gov
Top Companies	JP Morgan, Bank of America, Wells Fargo, Citi, PNC, BNY & State Street are one of the top commercial banking companies in the united states of America.
Salary	The median annual salary for a loan officer of the bank was $ 63,040 as per www.bls.gov
Demand & Supply	Highly demanded profile since it is the deciding factor for any loan application.
Education Requirement	CFP/CFA/CPA/MBA from Tier -1 Universities with at least 8-10 yrs of exp.
Recommended Courses	CPA/MBA/CFA
Positives	Sole responsibility to decide on the loan application.
Negatives	The risk of the loan disbursed becoming an NPA.

Final Thoughts

Commercial Banking Job is one of the most exciting careers in the finance domain since it is a dynamic profile with extensive exposure to the loans & advances segment within the bank with a chance to analyze different borrowers and business models for availing loans.