Banks and credit unions sell and service a myriad of financial products, and collectively hold billions of dollars in assets, commercial and personal accounts, and policies. The people who are employed in various banking positions manage all manner of money transactions made by banks and credit unions every day.
Banks can be small, locally owned banks in rural areas, with local customers who are loyal to the bank owners and managers who are their neighbors. Careers at these banks tend to be very stable, longstanding jobs, with close relationships among the local residents and customers.
Banks can also be huge multi-national financial institutions that handle millions of transactions daily. Large financial institutions and credit unions offer various options for the person seeking a position in a financial institution, with vast opportunities for advancement and promotion within the large departments of the company.
In the United States, most banking business has been derived from English common law regarding banks, with significant changes over the centuries, particularly those that have become law after directives from Congress and other federal institutions.
The same business model applies to credit unions and savings and loan institutions, with some exceptions for market focus in these firms. Banking for centuries was conducted entirely by the various staff employed by the banks, and accounts were recorded by the hand of a bank employee. Since the advent of computers, the Internet, and EFTPOS electronic funds transfer at point of sale it may seem that computers might someday replace nearly all the jobs in banking in the past.
Nothing could be further from the truth, as banks are bigger than ever, employ more people than ever in the past, and many jobs and duties must still be handled or overseen by a person.
At the core of a bank are bank tellers, bank or branch managers, loan and mortgage officers, credit analysts, and office or administrative staff.
Additionally, larger banks also employ other company staff, such as human resources, personnel, payroll, information technology computers and software , and marketing staff, similar to what would be found at any large company.
People who choose to go into banking should be very well organized, enjoy numbers and money, and must have excellent math and computer skills.
They should also have good communication skills, be good at dealing with people and be service-oriented. Someone desiring to go into the banking industry must be good with detail and numbers. Financial institutions need to hire people who are trustworthy and honest as well as people who are able to read and calculate or balance numbers correctly.
As the federal government regulates many aspects of the banking industry, individuals looking for careers in the financial industry should be able to adhere to all the rules and regulations that banks must follow.
Working with people in a banking setting requires patience and acceptance of people from all walks of life and in all kinds of financial shape. He or she will need to focus on the details of the transactions while making the customer feel satisfied and confident that the banking employee has successfully aided the customer with their service need. If the employee is a trainee or a newly-hired person without that skill set, he or she must at least able to learn.
This is not a career for a dyslexic person or someone who does not enjoy accounting, mathematical details, or adhering closely to many rules and regulations. A bank sells services and products that relate to money and interest, and these fields follow numerous and stringent rules. Add that to the many and various regulations, procedural rules, fair trade practices and consumer protections, and one can see that those who choose a career in banking should be comfortable with both the vagaries of the public as well as following many rules and regulations.
Banks offer many job opportunities, schedules, duties, and career path options for people today, for those with a high school education as well as those with secondary degrees. Most banking firms offer excellent benefits, including medical insurance and disability insurance, sick leave and vacation, and retirement options.
Banking firms are highly regulated and supervised financial operations, making them excellent environments for a safe, pleasant, and rewarding places to work. These careers offer integrity and stability. There are many advantages to these careers. A position in banking is a good fit for a person who enjoys working with both numbers and the public.
Working directly with the public can be both stimulating and exciting — but it takes a special person with a patient temperament. Working with the public can be difficult at times, but it can also be very rewarding. Usually, credit unions and banks are rarely open on holidays, but some call centers and retail banks, particularly those located inside a grocery store or department store, are frequently open on weekends and some evenings.
The advantage for professionals who choose banking is that they can frequently choose to go to work for a bank with a schedule that will fit the needs of their personal life. Offices are always clean and pleasant, heated or air-conditioned, since personal comfort, both for the employee as well as for the customer, is of utmost importance.
Banks are required to be regularly examined and audited and must follow many regulations and procedural rules and fair trade practices, making a bank or a regulatory agency a highly supervised and safe environment for all employees. Banks and banking regulatory agencies offer many opportunities for advancement for ambitious professionals.
Banking is an industry that is not projected to go away in the near or far future—far from it. With the growing economy in many developing countries as well as our own, and with the continuous growth in population, there will continue to be a growing need for banks to hold and loan money, to make monetary transactions, and to keep hiring people. One of the biggest disadvantages of bank careers is that serving the public can often be extremely stressful.
Money issues are sensitive topics for most people, and customers can be quite rude and may become irate if the transaction is not correct or not handled perfectly to their satisfaction. The professional must be willing to take the responsibility of large amounts of money and must be able to carefully account for all the monies under his or her care. To be successful, the banking employee must enjoy wearing professional dress such as a suit, dress shirt and tie for men, or a pantsuit, dress, or skirt suit for women, and dress shoes.
A person who prefers the casual dress of jeans and t-shirts or a uniform shirt and khaki pants may feel out of place dressing to impress in a bank setting. The practice of a professional dress code for the banking industry came from the need to portray both an attitude of wealth and strength along with a conservative and professional attitude toward the money that the bank holds on behalf of its customers. Some positions require that employees stand on their feet all day, such as a bank teller.
Others demand that the employee stays at a desk, hunched over the computer screen, crunching numbers or formulating reports. A person would be well advised to determine all the negatives and weigh them against the benefits before deciding on a career in the banking field.
Banking careers are some of the most highly regulated jobs in the United States. Many different but related regulatory bodies and agencies oversee the banking and thrift industry in the US. Of course, things are always changing in the banking industry, as there are always new rules and regulations being promulgated, such as the Homeowners Protection Act, which regulates mortgage insurance. The Federal Reserve Bank is a uniquely structured central bank, with some private and some public aspects.
Established by Congressional law, the Federal Reserve Bank was set up to both conduct national monetary policy and regulate banks, along with offering various financial services to the U. Through these roles, the Federal Reserve Bank works to maintain the stability of the United States financial system, and ultimately, its economy. The Federal Reserve Bank, as a central bank, is also unique in that it regulates and monitors the currency, which is created by a totally separate entity, namely, the United States Treasury.
The Federal Reserve Bank the Fed is made up of 12 district banks across the country. The districts were formed when the Federal Reserve Bank was created in with the enactment of the Federal Reserve Act. The Federal Reserve Board and Banks are not funded by congressional monies or taxes. Treasury securities held in their reserves portfolio.
The balance comes from charges earned from financial services offered to their member banks. Nevertheless, the Fed authority to operate was given to it by Congress and the Fed can be subject to the laws ratified by Congress and also the vagaries of political appointees. During the second half of the 19th century and the first few years of the 20th century, the U. While national banks did exist, a true central bank structure did not exist, nor was there much government oversight. The bank panics of , , and forced the U.
The result was the Federal Reserve Bank system set up by the Federal Reserve Act of , primarily a centralized bank, created to reform the banking system and control currency fluctuations. The U. Treasury holds an account with the Fed and all monies paid to the Treasury and all payments made by the Treasury are cleared by the Fed bank. The Federal Reserve Bank provides financial services as a clearinghouse to depository institutions, foreign institutions, and the U.
The main purpose of the Fed is to strengthen the standing of the global financial position of the United States. Therefore the Federal Reserve Bank strives to keep a regulatory balance between private banks and the responsibility of the U.
This regulatory balance helps to limit systemic financial risk within the various markets in the U. In addition, the Federal Reserve Bank supervises approximately state member banks and over bank holding companies, or company-controlled banks, which are institutions that are not supervised by other federal regulatory entities overseeing national banks, credit unions, and savings and loans, or thrift banks.
Treasury, to stave off U. Certain economists studying the Wall Street collapse of , and the ensuing Depression, stated that the refusal of the Federal Reserve Bank at the time to transfer funds to the U. Treasury, or to loan funds to collapsing banks, caused the subsequent Depression. Since that time, Congress has acted swiftly to make certain that another similar collapse and loss of banking stability will never happen again.
The FDIC employs many highly educated and experienced banking professionals. Careers include compliance and bank examiners, financial analysts and economists, and various information technology experts. These audits will also analyze the policies and procedures of the insured bank, its management, and its general financial stability. In the case of a serious deficiency or imminent failure, the FDIC will mandate and oversee the closure of the bank.
FDIC economists and financial analysts research and study all aspects of the banking industry, including regulations, statutes, and deposit insurance. They also publish reports on the economic impact of various banking practices, legislation, capital risk management, and the financial markets. These types of banking careers at the FDIC can also include analysts, fraud and compliance investigators, administrative and management positions. Information technology has become an extremely important aspect of banking, particularly since the advent of Automated Teller Machines ATMs and global banking.
Today, banking is almost fully automated. The FDIC technology experts focus on both security and anti-fraud systems for the automated activities of banks, as well as the development of better automation applications and practices. The FDIC has many employment and intern opportunities for both academicians and college students, undergraduate and as well as graduate, particularly law school graduates. Law school students can apply to the Summer Legal Intern Program.
All programs were developed in order to attract high performing students and graduates to the FDIC before and after graduation and to offer the student and graduate experience working within a government regulatory arm before deciding on a permanent career.
Professors or academicians can be appointed to the FDIC as Visiting Academic Fellows VAF for a specific time period and for a specific research subject relating to the banking industry, or to proposed or existing legislation. Visiting Academic Fellows offer the FDIC highly educated and knowledgeable research resources outside of the government. While the OCC is a federal regulatory arm, the agency is not funded by Congress or by the federal government. The OCC is funded by assessments made on all the U.
Treasury securities. The Comptroller is appointed by the President of the United States with approval of the Senate, for a five-year term. As such, the OCC can revoke a charter, remove an officer or director, or issue a cease-and-desist order to a bank that has been found to be in noncompliance, and even order civil monetary penalties.
Not all banks are created equal, or for the same purposes. Some of them cater to individuals on a local basis, others are geared toward investors, some are for employees of a certain company or industry, and others focus on serving the banking needs of businesses, etc. Here are the most common kinds of banks found in the United States. A local or community bank is a brick-and-mortar retail bank that services the banking needs of the local community.
A local bank operates as a consumer and a wholesale or commercial bank. The bank manager is generally known to the community and is usually active in civic activities and even local government. This type of bank handles all aspects of banking activities for the community, including bank accounts, bill payment, money transfers, consumer and commercial loans, insurance and insurance services, and retirement and investment services.
Banking careers found in a local bank are tellers, bank managers, loan officers, credit analysts, and often, retirement and financial advisers. If the customer is a business owner, he or she may also have a credit line arrangement with the bank to operate the business. Local banks are typically chartered by the state of residence but can be supervised and insured by the Federal Deposit Insurance Corporation and the Federal Reserve Bank.
Many local banks are managed not only by a local resident who is the bank manager but is family-owned banks that have supported the local populace for a number of generations — with many relationship ties to the community. This can both help and hurt a local bank. Large banks with credit analysts and loan packaging services can help any commercial business owner find the lowest rate with the best terms. These innovations in banking, while making banking functions easier and faster for some, have helped to stymie the profitability of many local banks, and have forced many local community banks to close.
A national bank is one that is federally chartered by the United States of America and is an investing member of its district division of the Federal Reserve System. A national bank is also insured by the Federal Deposit Insurance Corporation. National banks, due to their size, offer any and all types of banking careers found in any other bank, including tellers, bank managers and officers, credit and loan officers and analysts, fraud prevention specialists, information technology professionals, financial analysts, and salespeople.
Banking careers in each of these departments will also offer many levels of management positions. The system of national banks evolved out of the National Banking Acts of and , during the presidency of Abraham Lincoln, at a time when a bank could charter either as a state or a federal bank. The two systems were not coordinated and banks had to follow very few regulations. Some state banks issued their own currencies, most notably, the Confederate dollar. After the acts became law, banks that chose to operate in more than one state were required to charter with the Federal government and the U.
The act also strove to secure the national currency based on the securities in the U. Treasury, and to severely tax the state currencies in order to discourage any other currency than the U.
While the primary concern for these acts appeared to be to ensure a stable and growing national currency, the true reason was the need to finance the Civil War for the Union army.
This was done by selling government bonds backed by the U. Treasury that were offered by the newly chartered national banks. National banks in the United States today provide all manner of financial services and loans available, including checking and savings accounts; credit, debit and smart card services; money market funds; mortgage loans and mortgage services; small and large commercial loans and lines of credit; insurance products; investment products and services; stock and bond trading; and global banking services, including foreign cash services and international transfers and payments.
Positions for banking careers in national banks can range from front office tellers to loan officers and credit analysts to bank officers and securities traders. National banks work with the Federal Reserve Bank as investment banks to ensure stabilization and currency control for both the U.
Depositors must be members of a designated group of people, such as military personnel active or retired ; employees of a school district or a city or county; members of a labor union or employees of a large company; or members of a religious group. Family members of such depositors can also be considered as members of a credit union.
Credit unions are governed by a board of directors, and the directors are voted onto the board by the members or shareholders of the credit union. Credit unions can incorporate under state or federal law, except in Wyoming, Delaware, and South Dakota, where credit unions cannot incorporate under state law and must be federally incorporated. Credit unions offer similar services to their members, or shareholders, as do banks, but the services are usually titled a bit differently: savings accounts are share accounts, checking accounts are share draft accounts, and so on.
Credit unions also offer loans, credit cards, debit cards, ATM services, online banking, and bill paying services. As credit unions are member services institutions, they are not regulated by any of the banking oversight regulators.
However, this does not mean in any way that they are not as large nor as well-financed as many national banks. Also, credit unions typically have a higher equity capital ratio than most U. Credit unions often advertise that their interest charged on loans is lower than banks and that their service charges for share or draft accounts are also lower, due to their not-for-profit status and their member focus.
Most credit unions are comparable to local banks, offering services to the individual consumer, either for personal or commercial needs. Another type of credit union is a commercial credit union, which provides operational and clearinghouse funds support only to credit unions on a commercial basis. An investment bank is a financial institution that generates revenue by handling securities transactions for clients.
Transactions can involve derivatives trades, market making, mergers and acquisitions, foreign money transactions, commodities, equity securities, and fixed-income products and instruments.
Careers available in an investment bank include financial sales and financial analysts, credit analysts, traders, bank officers, fraud analysts, and many information technology positions. Clients of an investment bank can be individuals, commercial corporations or businesses, pension funds, or governments.
Prior to the Glass-Steagal Act of , after the banking collapse of and the Great Depression, banks could mingle both their investment and commercial activities. The Glass-Steagal Act effectively separated the two financial services, and until , all banks in the United States, unlike European banks, where required by law to choose which type of service to offer consumers. This Act effectively tore down any barriers in the United States between commercial and investment banking financial services and operations, allowing banks not only to purchase or form insurance agencies, but also allowing for the consolidating of the two different financial entities into giant behemoth banks that now offer all manner of banking, investment, insurance, and financial services.
An investment bank operates with three different distinct divisions: front office, middle office, and back office, meaning that investment banking careers can be quite varied. The front office is where all transactions, such as purchases, sales, and services of the financial products and instruments, are conducted. This can include investment management, global currency trades, merchant and commercial banking, mergers and acquisitions, capital finance and capital raising, derivatives and commodities trading, and proprietary and customer trading.
The front office also includes a research division not to be confused with research analysis for risk assessment, which is discussed below in the middle office. Getting a BCom degree opens up several opportunities that one need not worry about what should I do after BCom? Here are a few career ideas for such graduates. Money management of companies and businesses is done with the help of portfolio managers, mutual fund analysts, or hedge fund managers. Retail banking requires accountants, tellers, finance officers, auditors, and leasing agents.
Investment banking opens opportunities to be a financial analyst, investors, asset managers, traders, etc. Corporate finance job opportunities are in the form of treasurer, controller, investor relations officer, etc. Stockbroking helps with trading through finance managers, investment planners, stockbrokers, etc.
Insurance - The financial requirement for any loss in the future requires the assistance of insurance agents, actuaries, investment managers, underwriters, etc to have a proper plan and investment. The transformation into a technological era has eased over the years. Nowadays people are more comfortable with the digitization that has changed their banking processes. They are more accepting of different investment ideas, finance management opportunities, insurance, etc.
All these requirements would need someone who can properly guide them and this is exactly what the new age banking can offer for professionals. They have these multiple choices to choose the best field where they are comfortable and can excel. With the backup of a stable job and a fixed time frame for work, this career is prospering and is more productive than other high-class jobs in the market.
Disclaimer: This is a company press release. Lets discuss the scope and good reasons behind chosing banking as a career. Salary is best reason to join any industry. Its true that banking industry offers good remuneration to the employees. Banks also offer added benefits to their employees like minimum Rate of Interest on loans, Medical benefits, Pension benefits and so on. Banking Industry has job safety as well as job stability. Banking is international in nature and some roles can offer excellent opportunities for travelling and working in other countries.
Banks offer some of the best internship programmes around, which are paid and give you an opportunity to hone your skills before graduating. Check out the Inside Careers website to learn a little more about different banks and their ethos, available jobs and entry requirements.
A career in banking offers both a competitive salary and excellent benefits. Private health insurance can sometimes be included in the overall remuneration package too.
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