Commercial banking is among the fastest-growing career opportunities that offer handsome pay. As an employee at a commercial bank, you can accomplish various customer-oriented tasks focusing on sales enhancement and data analysis. In addition, a job position in commercial banking can deliver you the stability you’re looking for.
However, all the positions in the commercial banking sector don’t have that much growth. Is commercial banking a promising career choice for you? Let’s find out what commercial banking is, what types of employment are available, the pros and cons, and how you can prepare yourself for this.
Definition of Commercial Banking
A commercial bank usually serves government agencies, businesses, and educational institutes. So, lines of credit, loans, and checking accounts are some of the exemplary services commercial banks offer. So, what is Commercial Banking?
Commercial banking refers to the services offered by commercial banks to businesses, educational institutes, and government agencies. Meanwhile, you can interpret that commercial banks serve large-scale and small-scale business customers.
Is Commercial Banking a great career path? You can apply for commercial bank jobs if you have a bachelor’s degree in business or finance. On the other hand, commercial banking is a perfect fit if you are passionate about managing finance and working at a commercial bank.
Remember, employees at commercial banks have to be versatile. Additionally, a wide range of roles and responsibilities are available at commercial banks, and they are mostly public-facing and analysis-based. If you are good to go with such responsibilities, then commercial banking is a suitable career for you.
Payment Outlook at Commercial Banking
As an ambitious candidate, you might be curious about how much a job in the commercial banking industry can pay you off. According to PayScale, the average commercial banker’s salary in the U.S. is around $88,506 per annum.
On the other hand, another source named Comparably confirms that a commercial banker can earn around $104,981 on average per annum. However, the top salary of an experienced commercial banker can go as high as $541,000 per year.
As you can see, commercial banking jobs can pay you extremely well. Still, only some commercial banking positions can offer you such attractive remuneration. For instance, the median salary for a bank teller in May 2021 was $36,310, and it’s still much below the average wage of $45,760 for all occupations in the U.S.
On a contrary note, some positions in the commercial banking industry are shrinking. The U.S. Bureau of Labour Statistics has forecasted that the teller industry will experience a 17% decline by the end of this decade (2020 – 2030).
Pros and Cons of Pursuing a Career in Commercial Banking
Is commercial banking a good choice for you? Before you prepare yourself as an ideal candidate for commercial banking, it’s important to shed light on the pros and cons of this career choice. After all, every career choice can offer you something to learn from, enjoy, and grow with.
On the other hand, commercial banking can throw challenges at you. Let’s start by reviewing the pros of a career in commercial banking:
- Job positions at commercial banks are numbers-focused or customer-facing, depending on your comfort zone or expertise.
- Commercial banking, indeed, is a multi-billion dollar industry.
- Your job position can deliver you a good work-life balance.
- Commercial banking offers lots of job opportunities that require different education qualifications.
- You can extend your knowledge about finance and banking by pursuing a career at commercial banks.
- Commercial banking jobs tend to grow and change positions.
- On the other hand, the banking sector always has a decent level of demand.
- Managing your finances becomes easier with your knowledge of the industry.
Commercial bankers have admitted that stress is an all-time con in the industry. Here are the rest of the disadvantages of working in commercial banks:
- Employees may have to depend on sales commissions rather than the actual salary.
- Depending on the responsibility and time, you may have to work comparatively longer hours.
- The commercial banking job may force you to do the same task repeatedly.
- Working with too many customers and serving clients can be daunting for introverts.
- Opportunities in commercial banks can contract during recessions.
- In addition, dealing with rude customers can drain your energy and well-being.
Therefore, pay attention to all these advantages and disadvantages before deciding to pursue a commercial banking career.
Types of Employment Available in Commercial Banking
Fortunately, you can secure various job positions and responsibilities with a bachelor’s in banking or finance. Commercial banking offers the following job positions, and they are versatile and skill-enriched:
- Business development manager
- Branch manager
- Loan Officer
- Sales coach
- Portfolio manager
- Credit analyst
- Marketing Officer
- M&A analyst
- Compliance manager
- Commercial banking manager
- Relationship manager
- Quality assurance specialist
- Customer service representative
- Commercial banking president
On the other hand, aspirants can crack entry-level positions in commercial banking too. Here are some commercial banking jobs that are ideal for freshers:
- Receptionist
- Loan coordinator
- Assistant Manager
- Teller
- Business development associate
- Administrative assistant
- Underwriting assistant
Let’s check out some high-paying commercial banking job opportunities briefly:
Credit Analyst
As a credit analyst, you need to evaluate financial details like credit reports and payment history to decide on the fiscal responsibility of a credit or loan extension. So, a credit analyst is responsible for compiling and analyzing the financial reports of the corresponding candidate.
In addition, a credit analyst can also suggest how the candidate can pay off the borrowed money. Moreover, a credit analyst earns $59,380 on average per annum.
Customer Service Representative
The prime mission of a Customer Service Representative is to address customers’ needs on behalf of the company. So, you need to work on brand loyalty and sales boost by maintaining good communication with customers.
On the other hand, this particular role should answer customers’ queries, educate them on different products and services, and resolve customers’ issues. In addition, the representative must maintain records of customer interactions. You can expect an average annual salary of $55,650 as a customer service representative.
Branch Manager
A branch manager is a prosperous commercial banking job position. Moreover, a branch manager manages daily operations at a commercial bank. Additionally, a branch manager tackles the overall hiring process. The national average salary of a branch manager is about $63,605 per annum.
Furthermore, branch managers are responsible for supervising training programs. Thus, newly recruited members can contribute to the workflow of the organization. Moreover, a branch manager has to set sales goals, evaluate employees’ performance, devise new strategies to enhance customer satisfaction and take the lead in the competition.
How to Turn Yourself into a Commercial Banker?
Being new to the commercial banking sector is itself a challenge for you. Is commercial banking a good career? You can try cracking a suitable job in commercial banking if you have a bachelor’s degree in business or finance. However, you must learn about how commercial bank operates, what functions they have to maintain, and understand the job requirements.
Afterward, you must learn specific skills through training programs and internships. Develop computer and technology skills, ethics, marketing, and sales skills to secure a job in commercial banking. Make sure you figure out the bank’s rules, clients, and position in the industry before you appear for the interview. Best of luck for your career!
