Banking is a great field if you enjoy talking to people. If that’s you, then working in banking might be right for you. Banking is also a great field if you like math and statistics. There are many different roles where you can work your way up from personal banker to vice president of lending or vice president of risk management. However, there are also some negatives about working at a bank as well. Read on to find out more about the pros and cons of working at a bank.
What you’ll learn in banking
Banking is a wonderful opportunity to learn a lot about the financial sector. You’ll learn about the behind-the-scenes “how it works” of money and banking. You’ll also learn a lot about how the government and the public sector affects the financial sector. What you’ll learn in banking will prepare you for a career in any type of financial sector.
Banking Career Paths
Once you’ve completed your degree in banking or business administration, you’re ready to find a job. Different types of banks and financial institutions have different career paths you can follow. Bankers can work their way up from assistant manager to assistant vice president to vice president. Or, they can start at the bottom and work their way up to customer service representative. Retail bankers can start their career as a teller and work their way up to a cashier or assistant manager. Or, they can work in the back office and become a financial analyst. Investment bankers can work their way up from trainee to associate to vice president. They can also work their way up from the back office to become an equity research analyst or a portfolio manager. Credit officers can work their way up from a loan processor to a loan officer to a senior loan officer.
Financial Domains for a Banking Career
When deciding what type of banking career is right for you, you’ll want to think about the financial domains you’ll be working in. These are areas of focus in the financial sector that affect people’s lives.
– Financial Institutions: In this domain, you’ll work with banks, credit unions, and non-profit foundations. You’ll help these institutions grow their business by providing loans and mortgages.
– Financial Markets: In this domain, you’ll work with investment banks and other investment companies. You’ll help these institutions invest money. You’ll also help companies buy and sell products to help them manage their finances.
– Financial Intermediaries: In this domain, you’ll work with insurance companies, brokerages, and other intermediaries. You’ll help these organizations invest and manage their risks. You’ll also help insurance companies manage the risks of paying out-of-pocket medical expenses.
– Financial Services: This domain includes insurance, banking, and investing. You’ll help individuals manage their finances through insurance such as health and life insurance. You’ll help corporations manage their finances through banking and investing.
– Global Operations: This domain includes international financial services. You’ll help your banking institution expand into foreign markets. You’ll help your financial institution expand by building a presence in other countries.
The Pros of Working in Banking
If you love people and getting to know them, then you might enjoy working at a bank. Many banks offer team environments where you get to interact with customers every day. Some banks might also offer roles like being a Relationship Banker. This means you get to build stronger relationships with customers based on trust and respect rather than transactional tasks like opening accounts and transfers. Team environments also mean you have a chance to learn from many different people within the organization. This shows that banking is a field where people learn from each other and work together to solve problems for customers. Another advantage of working in banking is the potential for great growth. Depending on your area of focus, you can look to potentially move into investment banking, private equity, or retail banking. Investment banking is in a league of its own. Instead of just helping customers with their money, you can research and analyze financial products like stocks, bonds, and commodities. The growth potential here is very high. This is some of pros to choose major banks as career path:
– Great Salary – Depending on your title and employer, banking salaries are among the highest in the country. And, since these jobs are always in demand, you can expect your salary to increase every year. Banks pay a great starting salary. Low-end entry-level roles start at $40,000 per year and some mid-level roles pay even more. While you can certainly earn more at other fields, banks offer some of the highest salaries in the industry. There are also many different ways you can earn at a bank. That means that if you choose a specific area of interest, you can work your way up and potentially earn even more.
– Career Advancement – You can work your way up from teller to vice president. This is a great way to get better and earn more over time. Depending on your area of focus and the stage of your career, you can look to move into investment banking or private equity. Investment banking is considered to be “the fast lane” in banking. It’s a fast-paced environment where you get to research and analyze companies and markets. Investment banking also pays well. Private equity is the next step up. Instead of looking to make money through investing in companies, you partner with other businesses to buy and sell them. This can be a good way to make significant money if you know how and when to do it.
– Work-Life Balance – Banking is a great job for people who like interacting with people and who like crunching numbers. You’ll work with clients, coworkers, and regulators — so you’ll need to be open-minded and friendly.
– Job Security – Banks are extremely stable businesses. If you work hard and are willing to put in long hours, there’s a good chance you can work at the same place for your entire career.
– Travel Benefits – Some banks offer paid travel and other benefits. You may also be able to get those benefits through your employee benefits provider.
The Cons of Working in Banking
– Long Hours – Banking is a demanding career, so expect to work long hours. You may have to work weekends, nights, and holidays. And, because many banks are so stable, you may have to work during stressful times.
– Crisis Risk– Banks face competition from technology companies and financial firms, so they’re always at risk of going out of business. This can make banking job security less than certain other careers.
– Intensity – Banking is a high-pressure career. While there are certainly exceptions, most bankers don’t make a lot of money. On the flip side, it’s also a great way to learn about the financial sector and advance your career. Another downside of working in banking is that it can get repetitive after a while. You might feel like you’re just repeating the same tasks over and over. That’s why it’s important to take breaks. When you’re feeling overwhelmed, take a break and give yourself a mental health break. That way, you can come back to it with fresh eyes and a new perspective.
– Downside to the Job Security Argument – While job security is undoubtedly a positive for many banking careers, some argue that the job security argument is a bit of a fallacy. Instead of banking being a great career path, it could be a sign that society is relying too much on banks.
– Intensive Training – Some banking careers require extensive training. These may include becoming a certified financial analyst or obtaining a certain amount of financial sector experience. Most banks are required to provide a certain number of hours of training to new employees. That way, you can learn about the industry and your role in it. Some banks also offer training for customers and how to use the products that you offer them. All of that need many times and maybe make you difficult to manage your time.
– Competition for Ranks – In some financial sectors, there’s a high competition for jobs at banks. This may include the investment banking or commercial banking sectors.
Preparation of Choose Major Banks As Career Path
Other than degree needed, you at least had good communication skills. Working in banking requires good communication skills. You have to have good listening skills. You have to be open-minded and listen to customers. That way, you can build trust with them and help them solve their problems. It also helps if you know how to communicate with people in other fields. For example, you might have to communicate with IT or HR teams. When you have to communicate with multiple people, it helps if you can communicate with people from different fields.
Final Words
Banking is a great field to work in if you enjoy talking with clients, crunching numbers, and helping people manage their finances. However, it’s also a high-pressure career with long hours and job security that isn’t certain. If you’re considering working in banking, make sure you consider the positives and negatives before you are decide is major banks a good career path for you or not.
