Commercial Banking Career

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.

  1. Credit Analyst
  2. General Manager
  3. Business Development Manager
  4. Branch Manager
  5. Loan Officers
Commercial Banking Career

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Overview of Commercial Banking Career

Commercial Banking is also known as business banking; there are two main functions of the commercial banksFunctions Of The Commercial BanksA commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. It facilitates bank deposits, locker service, loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits.read more divided into primary and secondary.

Primary Services:

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 ques.

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  –

Career #1 – Credit Analyst

Who is the Credit Analyst?

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

Credit Analyst – Job Description
ResponsibilitiesResponsible for evaluating the current financial position of the borrower and projecting future cash flows that are sufficient to pay off the debt.
DesignationCredit Analyst
Actual RoleTo study the financial liquidity of the borrower and be check all the documents thoroughly before sending the file for disbursement.
Job StatisticsAs 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 CompaniesJP 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.
SalaryThe median annual salary for a hedge fund managers was as of 2016 was $ 71,290 at per study.com
Demand & SupplyThere 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 RequirementCFA/CPA / MBA from Tier -1 Universities with at least 5-10 yrs of exp.
Recommended CoursesCFA/CPA/ MBA
PositivesExtensive knowledge of commercial banking operations across the industry.
NegativesDesk job and can be a bit tiring analyzing multiple loan proposals.

Career #2 – General Manager

Who is the 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
ResponsibilitiesResponsible for maintaining the asset quality of the loans given to SMEs, large corporations, and individuals.
DesignationGeneral Manager
Actual RoleBuild a strong credit monitoring system within the organization for the smooth functioning of the business operations.
Top CompaniesJP 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.
SalaryThe median annual salary for a general manager can be anywhere between $ 1,00,000 – $3,00,000.
Demand & SupplyThere 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 RequirementCFA/CFP/CPA / MBA from Tier -1 Universities with at least 10-15 yrs of exp.
Recommended CoursesCPA/ MBA/CFA/CFP/FRM
PositivesChance to lead a team of approx 20 people which will enhance the team management skills and also key personnel within the bank.
NegativesHigh risk since the loans sanctioned can always turn into NPA giving a hit on the manager.

Career #3 – Business Development Manager

Who is the Business Development Manager?

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

Business Development Manager – Job Description
ResponsibilitiesSourcing new customers for the bank and retain the existing customers with the best possible service.
DesignationBusiness Development Manager
Actual RoleGo out in the market and bring business to the bank in the form of loans, credit cards, etc.
Top CompaniesJP 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.
SalaryThe median annual salary for a business development manager will go anywhere between $1,00,000 – $1,50,000.
Demand & SupplyThe 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 RequirementCFA/CFP/FRM/CPA / MBA from Tier -1 Universities with at least 7-10 yrs of exp.
Recommended CoursesCPA/ MBA/CFA/Masters in Banking & Finance
PositivesThe sole responsibility for generating business for the organization for the bank involves a huge bonus at the end of the year.
NegativesRisky profile since the monthly targets need to be achieved.

Career #4 – Branch Manager

Who is the Branch Manager?

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

Branch Manager – Job Description
ResponsibilitiesResponsible for end-to-end operations of the bank ie. opening new accounts, disbursing loans, and acquiring other ancillary services.
DesignationBranch Manager
Actual RoleReport the branch level performance to the head office on a daily basis.
Top CompaniesJP 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.
SalaryThe median annual salary for a branch manager would be anywhere between $ 2,00,000 – $5,00,000.
Demand & SupplyA 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 RequirementCFA/CPA / MBA from Tier -1 Universities with at least 15-20 yrs of exp.
Recommended CoursesCPA/ MBA/ CFA/ Masters in Banking & Finance
PositivesSole responsible for managing the bank branch operations and reporting directly to the top management.
NegativesA branch activity can be on a lower scale in rural areas leaving not much to be done by the manager.

Career #5 – Loan Officers

Who is the Loan Officers?

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

Loan Officers – Job Description
ResponsibilitiesMeet the borrower, study the financials and mortgage available and decide on the proposal whether to be sent for disbursement or not.
DesignationLoan Officer
Actual RoleEvaluate the borrower profile and disburse him the loan keeping the mortgage safely with the bank.
Job StatisticsAs 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 CompaniesJP 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.
SalaryThe median annual salary for a loan officer of the bank was $ 63,040 as per www.bls.gov
Demand & SupplyHighly demanded profile since it is the deciding factor for any loan application.
Education RequirementCFP/CFA/CPA / MBA from Tier -1 Universities with at least 8-10 yrs of exp.
Recommended CoursesCPA/MBA/CFA
PositivesSole responsibility to decide on the loan application.
NegativesThe 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.

Recommended Articles

This has been a guide to Commercial Banking Career. Here we provide the list of top 5 commercial banking career options, including Credit Analyst, General Manager, Loan Officers, etc. You may also have a look at these career articles below.

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