Becoming a Banker is undoubtedly a prestigious thing to do, but do you have enough knowledge about the banking industry? Do you have enough reasons to become a banker? Are you genuinely interested and about to take your biggest career decision? Then you have come to the right place for sure. If it is your dream to work as a commercial banker, then you should definitely stay glued to this article till the end to find out why it will be worth choosing commercial banking as your ideal career path and what are the things you can expect from this industry.
1. The Concept of Commercial Banking
Before beginning with anything, let’s discuss what commercial banking is. Commercial banking is a type of banking that is specifically designed for businesses, corporations, institutions, etc.; commercial banks are financial institutes that offer business loans, deposit accounts, payment processing, lines of credit, mortgages, and other general banking services mostly to corporate organizations. Well, that doesn’t mean commercial banks are only for businesses and organizations; common people can also deposit their money or grant loans from here. Hence, you can say that commercial banks are much like regular banks, but with special features both for people and businesses.
Some of the main services of commercial banks include loan services, security for large deposits, processing credit card transactions, foreign currency exchange, bill pay services and many others. Commercial banks are scattered across the country, and come into use of common people while depositing money, obtaining loans and cash credits, cash management and treasury management services, payment processing service via cheques, NEFT, RTGS, or transfers, foreign exchange services, accepting tax deposits and so much more. A commercial bank plays a major role in a country’s economy.
2. What Qualities You Require to Become a Commercial Banker
To become a commercial banker, at first, you must have a clear understanding of the banking industry and the concepts of commercial banking, its functions and services and so on. Other than that, you need to have a bachelor’s degree in disciplines related to banking and finance, or even a master’s degree can secure you a higher position.
As a professional, you need to have certain character traits such as analytical skills, inquisitive, friendly behaviour, self-motivated, focus and the ability to blend with the work environment and other clients. Interviewers often look for these abilities in both freshers and experienced candidates, so if you can demonstrate these qualities, the job is yours.
3. Is it Really a Good Career Path?
Now comes the real question of concern, is it really a good idea to choose commercial banking as your ideal career path? To be honest, it is, commercial banking is one of the best career choices you can opt for. If you wish to begin your career in this industry right away, beginning with an entry-level position like Credit Analyst will be the best choice. You can further pursue an MBA degree and climb the ladder to other higher positions such as Loan Officer or an Account Manager and so on. Recent statistics showed that Commercial banks in the U.S. control $15.58 trillion in assets, so it is a very large sector with a plethora of working and growing opportunities.
So, it is definitely worth choosing commercial banking as your career path.
4. Benefits of a Career in Commercial Banking
There are indeed many benefits of working in the commercial banking industry. If your concern is a respectable job with a high salary, then the banking industry is just your type. If your concerns are related to job opportunities, growth and career opportunities, then there is nothing to worry about these matters too because, not only will you come across many career growth opportunities, be able to uncover higher positions in a short time, but also have tons of other career opportunities to choose from. And the best thing amongst all is, you can switch anytime to other job positions in the industry through upgrading your education and skills.
5. How to Prepare for the Interview?
Preparing for the interview is not that tough after all. You just need to have a sound knowledge of the banking industry and be very sure about your future expectations of the industry. But the best way to ace an interview is to be prepared for both technical and behavioural questions that might come along. Technical questions mostly include financial ratios and credit metrics, so you should always prepare about them. The best way to deal with interviews is to conduct online research on the bank you are applying to and answer your questions accordingly. The more you are able to demonstrate your knowledge and interest, the more will be chances of getting the job.
6. How to Ace the Interview?
There are a few things to keep in mind if you want to do really well at the interview and end up with your desirable job. Here are some important points to be noted:
- Be confident about your answers. Even if you are not aware of the topics being asked, never loose your confidence.
- Research a lot before appearing for an interview. Suppose you are applying for the position of a Credit Analyst at ABC Bank, it is very important to research every important details about it including the credit metrics and financial ratios and so on.
- The more knowledge you have about the industry you are applying, your chances of selection increases.
- Clearly demonstrate your interests and reasons of choosing this industry.
7. Different Commercial Banking Career Paths to Choose from
You will be happy to know that there are many interesting job opportunities available in the commercial banking industry. Students who complete their bachelor can directly begin with some initial job positions, whereas, after completing their master’s can opt for higher positions. Here are some of the most interesting job positions:
- Credit Analyst
- Account Manager
- Relationship Manager
- Loan Officer
- Branch Manager
- Quality Assurance Specialist
And many other higher and lower positions that you can apply for.
You may begin your career with lower job positions, but by upgrading your education and gaining work experience, you can easily opt for higher positions in quite a short time. Obtaining a few certifications can help a lot, too as, aspiring commercial bankers can pursue certifications such as the Certified Public Accountant (CPA) and Mortgage Loan Originator (MLO).
8. What Educational Qualification Do You Require?
As discussed earlier, a bachelor’s degree in accounting, finance or other relevant disciplines can fetch you a job in the commercial banking industry. However, a bachelor’s degree will only fetch you some initial jobs that are a great choice for gaining experience and getting familiar with the functions and services of commercial banks. On the other hand, if your sole aim is to reach managerial positions, such as if you want to become a Loan Officer, Branch Manager, Account Manager and so on, you must complete an MBA degree in Banking or Finance.
But, foremost customer service roles, including tellers, mostly a high school diploma is required because there is usually extensive on-the-job training.
9. Growth Opportunities
You might have got to know by now that there are indeed many growth opportunities in the commercial banking industry. Just by upgrading your educational qualifications, skills and gaining a lot of experience, you can always opt for higher positions. The best part about the banking industry is that you don’t have to wait for years to get promoted; your skills and experience can lead you to many promotions in a short period of time.
10. Job Security
This is not even a question of concern. There is 100% job security in the commercial banking industry, and you can expect lifelong services from here, including after retirement facilities and many others.
The commercial banking sector is also a great career choice, especially for women because, in this 21st century, we can still see a very less number of women succeeding in “leadership” hence, commercial banking is an ideal career path for women who want not only to get established but also want to become economically powerful and independent.
11. Financially Rewarding
Landing up with a job in the commercial banking industry is very rewarding. Not only do you get highly paid, but you also receive many other rewarding benefits, including bonuses, health schemes, after retirement schemes, and so much more. When an industry provides you growth opportunities, the highest pay scale, job security and even other financial rewards, what else can you expect?
Summing up, all I can say is the career path in commercial banking is a great way to help individuals reach their financial objectives in life. You must have got all the answers to your doubts by now and made your mind of getting established in the commercial banking industry. To be honest, there are more pros than cons when it comes to the industry of banking, there is no doubt in the fact that every job position you choose is going to be a work full of responsibilities, and you will have to undergo a lot of stress but, the work environment, the reward, the growing and advancing opportunities, the pay scale that you get in return are all worth it.