The commercial banking industry provides one of the most extensive opportunities for career seekers in the financial services industry. Commercial banking can be a great option whether you are good with numbers and people or want to get your foot in the door with a great company.
For recent graduates or career changers, this article will thoroughly examine commercial banking, opportunities for people looking for a new career, and answer the question, “Is commercial banking a good career choice?“
What is Commercial Banking?
Commercial banks are financial institutions that offer products and services to businesses and corporations, including bank accounts, various loan types, lines of credit, brokerage or investment accounts, and even some insurance products.
Some banks have different departments for their business’s commercial and retail branches, and some only offer their services to businesses.
If you have a passion for jobs in finance, there is an enormous amount of banking jobs in these banks since every company, from large to small, must establish a relationship with at least one commercial bank. In addition, many companies do business with several of these banks.
Best Paying Jobs in Commercial Banks
As with most institutions, there are many different job types available. Depending on your experience level, education, skillset, or your personality, you may be a better fit at some over others. We’ll take a look at some of the more common types of jobs available at commercial banks.
A credit analyst’s job is to make sure that the banks make money when it loans money to their customers. In addition, these analysts evaluate past and subsequent customers’ creditworthiness and try to predict how often borrowers will fail to make their required payments on time.
Credit analysts will look at dozens of different data points to do this. First, they may look at the prospective borrower’s financials and business plans. This job includes how much cash they have, past tax returns, company profits, and their outlook for future profits.
For the analytical-minded, there are jobs available for financial and credit analysts. While the job may be similar, the investment analyst has a different goal than the credit analyst.
The credit analyst is trying to determine if the bank’s borrowers will repay their loans, and the investment analysts are trying to determine the valuation of a business.
A loan officer is an employee who works directly with the bank’s customers to find and service loans. Much of the bank’s revenue will come from lending money to their business customers and earning a profit when the customers repay the loans with interest.
A loan officer must establish a relationship with the customer, be knowledgeable about the bank’s loan types, and then educate the customer on the best type of loan that suits their needs.
You are probably familiar with the bank teller jobs in your local retail bank, and a commercial bank has tellers who do the same thing. A commercial bank teller will usually be the face of the bank when a customer comes in to conduct whatever business they need to complete. That may be making a deposit or processing other transactions.
Is Commercial Banking and Business Services a Good Career For You?
Commercial banking is a great industry for many people and has many opportunities. However, before diving in, it only makes sense to ensure it is the right fit for you, your skills, and your future goals.
Before applying, consider the job description and make sure you would be a good fit. For example, some jobs, such as tellers, may require you to stand for long periods or work face-to-face with customers. Introverts may find that draining, and extroverts may find that exhilarating. It’s essential to find a good work-life balance that fits your lifestyle.
Other jobs may require long, irregular hours or even some travel. So, again, it’s a good fit for some and not for others.
Commercial banking jobs are plentiful, well paying, offer great benefits, and have an excellent work-life balance. However, one negative to working at a commercial bank is that commercial banking might downsize in economic hardship or recession, so it may not be the best choice for those who want excellent job security.
Commercial banks are good places to work and offer good jobs to everyone willing to work regardless of their personality, skillset, or education level.
Photo Credit: Deposit Photos.
This article originally appeared on Parent Portfolio.