Banks are at the core of any financial system and without them, the economy will cease to exist. These are the points of interaction to convert cash into a resource. The careers at such banks are of even greater importance. These are the drivers of funds into the economy which leads to the development of the country.
Career in Banking has been a sought after career for ages and this has not changed. No matter the changes in the technology and the business industry, the only thing that has remained constant is that “Career in Banking” is a good idea and we’ll tell you why.
Let’s Get Into Banking
According to Google, the services or business conducted by a bank is called banking. That means, if you are in a bank, you are going to provide some sort of service. What service do you ask? Don’t worry we will tell you about those services in the later section by drawing out the most suitable map for you.
Is Career in Banking a Good Idea?
We have to first understand what is happening in the world of banking in order to have an idea of how promising a career in banking can be. Banking is just a place where the money is managed. Back then, banking services were limited to the safeguarding of deposits, loans, and cash withdrawal. But now, these services have raised to an exponential level and they provide ATM services, online transfer of funds, brokerage, risk management, advice to corporates, fund management, and insurance, etc.
With such a rapid increment in services, the roles played by banks has intensified. Thus, the demand for skilled professionals is increasing day by day. So yes, it is high time to jump into a career in banking.
What Do You Need for Building a Career in Banking?
1. Choose The Right Degree
For you, the best place to start a career in banking is either economics or a finance degree. Even though Economics is not the degree which is going to help you get a direct job but it will portray you as a serious and professional person.
Never wait to study relevant subjects because you need a job, not the bank. You have to present your best self in front of them. As you know, public bank exams are not easy to crack, the sooner you start preparing, the easier it will be for you to pursue a rewarding career in banking.
3. Be A Market Man
It doesn’t matter whether you are at the most prestigious university or not, if your CV is not shouting out loud that you’re a market man, they are less likely to show interest in you. And yes, it’s not something that you can add at the very last moment in your CV. The consumption of the market through various materials will definitely increase your ability to think and take action on related matters. Warren Buffet once said “Read 500 pages every day. That’s how knowledge works. It builds up like compound interest.”
Networking can be a weapon for you. If you’re against thousands of applicants, you will have to prove that you got something different. And that difference can only show up when you make contacts that are strong enough to influence. A single phone call from someone can help you to take place.
5. Develop Communication Skills
Let suppose the shortlist you, what if you won’t be able to perform well in the interview? They won’t let you get in, that’s for sure.
6. Try To Get An Internship
Those students who get an internship are more likely to get a job in banks. The convertibility rate of getting a job at a bank through an internship is more than 60%.
7. Work On Your Skills
First, analyze what the banks really want? They are going to hire you because they need some sort of skill set. Right? So why don’t you offer them that skillset. This practice will boost your chances of getting a job and making your career in banking a more promising one. Moreover, you should also work on your selling skills because unless you are able to sell yourself, the interview can be tough for you and even though you get in, you will face problems at a later stage in your career in banking.
Pros of Having A Career In Banking
Power to Make Lives Better
A career in banking will provide you with an opportunity to help the public. As a banker, you have to play a responsible role by lending, protecting, and investing money. Moreover, you are will be responsible for consulting clients on efficient investment decisions. Decisions of the clients can vary as per their expectation. However, some of the major decision taken by them are purchasing homes, savings for a college education, planning for business, and retirement needs.
High Salary Careers
Compensations are varied from person to person because it depends on a person’s position in the bank, tenure, and the bank for which he or she is working for. Still, there’s no doubt that bankers are the cream of the industry. U.S Bureau of Labour Statistics has declared that in 2018, loan officers were making $63,040 annually. In addition to this, there are regular annual bonuses, performance incentives, and commissions in a career in banking. BLS reports have shown that high-level investment bankers who work in merger & acquisitions or corporate finance, collect bonuses that exceed their base salaries.
Bankers generally get captivating beneficial packages as banks generally provide vision, dental, and medical insurance to the employees and their families. With such appealing offers, the company also provides disability insurance, life insurance, retirement plans, and flexible spending accounts for child and health care. This is making you take your dream of a career in banking all the more seriously. Right?
Banks offer tuition assistance and educational development programs for the bankers’ welfare. The BLS reports depict that many investment banks apply “up or out” policy where entry-level investment bankers are either promoted or are required to upgrade their skills which they assist in.
Banking is an evergreen sector in the economy. Nobody is going to stop using money and there’s not a single person who doesn’t want to secure money. In hindsight, the role of banks and career in banking is only evolving with the banks adding on their services to develop the economy.
You will be offered leaves on public holidays and will be able to maintain a work-life balance. The banking sector is also closed on alternate Saturdays and the official public dealing time is no more than 3-4 pm in the evening.
Cons of Having A Career in Banking
Long Working Hours
According to the Bureau of Labour Statistics, those who are working in a bank are typically expected to work 40 hours a week. That means you need to spend at least 6 hours a day in a bank.
Some jobs in career in banking have the scenario of one eye on the telephone, one eye on the customers standing in front of you, one eye on the computer, and one eye on the money. Your attention will split into so many parts. Thus, you need to master the art of dealing with everything and not let your career in banking become a reason for stress.
Career in Banking– Career Paths
1. Commercial Banker
Commercial banker focuses on offering financial services to small as well as large businesses. They tend to focus on commercial lending, commercial loan workout, and small business growth. If we look at them closely, we will find positions such as
- Commercial loan officers who build a rapport with businesses to provide them business loans.
- Small business bankers who work particularly with local small business to provide services such as originating small business loans, establishing business checking accounts, and direct deposit for employees.
- Commercial workout department who are responsible for the sale of bank-owned assets and bank-owned real estate properties.
2. Branch Manager
This is the manager who is accountable for regulating the ongoing operations of a commercial bank. These include services related to customer service, safety, procedures, policies, sales, and lending. On the other side, the branch manager keeps an eye on the bank staff. Branch manager must motivate employees, offer training, and form the task of the branch to meet the objectives of the bank. In the end, success and failure of a branch solely depend upon the branch manager.
3. Mortgage Banker
Mortgage Banker or a Mortgage Loan Officer assists applicants secure mortgages through the bank. They perform certain duties such as:
- Obtaining personal information from the applicants.
- Assisting customers
- Work with other mortgage professionals to pass the application through the underwriting process.
Many mortgage bankers are paid on the basis of commission. So as a mortgage banker, the ability to sell will be the main skill that is required. Mortgage bankers are expected to register with the Nationwide Licensing System with the help of banks’ employer sponsorship so that they can work as a licensed officer.
4. Investment Banker
Unlike commercial banking branch, investment banker generally works in the corporate offices of the banks and other types of financial institutions. Depending on their specialty, they can assume various job roles. An investment banker can work as an asset manager for the clients. Moreover, some investment bankers also work with various companies through the process of IPO. Other duties include financial models to consult clients through acquisitions and mergers by analyzing specific types of commodities & securities and monitoring the financial markets.
Top Universities To Start Your Career in Banking
UCLA Anderson School of Management
It’s a graduate business school founded in 1935 at the University of California in Los Angeles. The school provides a degree in MBA, Ph.D., PGPX, and Financial Engineering. According to Businessweek, US News & World Report and other publications, the school has been included among the top tier business schools in California.
ESSEC Business School
This school was formed in Paris in the year 1907. Now it’s an international higher education institution. It’s one of the 76 schools in the world to obtain triple accreditation from AMBA, EQUIS, and AACSB. ESSEC is the 1st European business school that achieved accreditation from AACSB. The Financial Times has ranked for its flagship program, the Master of Science in Management, at the 3rd position in 2016.
Walter A. Haas School of Business
This university was founded in 1898. They locally call it Haas School of Business. It’s one of the 14 schools and colleges at the University of California, Berkely. Bloomberg Businessweek, The Economist and the Financial Times have ranked it in the Global Top Ten Business School. Currently, the school is operational in four buildings which are surrounded by a central courtyard on the southeastern corner of the Berkely campus. Haas School of Business was California’s first Business School at a Public University.
Cambridge Judge Business School
It’s another business school of the University of Cambridge which took birth in 1990. The school provides management education and has been consistently ranked as one of the world’s top business schools. Financial Times, US News & World Report, and Forbes Magazine has ranked it on the top across the globe because of its MBA program.
MIT Sloan School of Management
It’s a business school of the Massachusetts Institute of Technology in Cambridge, which was founded in 1914. For now, MIT Sloan is providing a degree in doctoral, bachelors, masters and also offer executive education. Their MBA program has made a place in the list of the world’s most selective programs. The aim of the school is to bring innovation in research and practice.
Columbia is the oldest institution for higher education in New York. It’s the 5th oldest institution of higher learning in the US and was established in 1754 as a private Ivy League research university in Upper Manhattan. This university was also ranked by various major education publications among the top ten universities throughout the globe.
Dive Into The Money Game
Before diving into the money game i.e start a career in banking, you first need to develop impeccable skills. As you know, banking is all about mathematics and reasoning. Once you master these two skills, your brain’s capacity to handle multiple tasks will magnify. If you have decided to enter into this field then be sure to keep a check on your skills and quality of education because that’s all you need to make a fortune.
Wait! If you still want to ask about something about building a career in banking? You can contact Leverage Edu at +91-8826200293 today and kickstart your career in banking today.