When the United States slowly recovered from the recent recession, many new federal and state regulations were created to govern monetary transactions. Financial examiners are hired by various government agencies and financial institutions to ensure accurate compliance with these laws. Financial examiners typically specialize in risk scoping. This is a way to maintain the health of banks and other financial institutions or consumer compliance to ensure loan borrowers are being treated fairly. Financial examiners have a finance background and a passion for numbers. They spend their days:
- reviewing balance sheets
- evaluating banking practices
- assessing risks
Financial examiners play a crucial role in the financial services industry to help keep our monetary system stable and protect our country from another recession.
Salary
According to the Bureau of Labor Statistics, the 30,680 financial examiners employed in America are earning an average annual salary of $86,980. This is equivalent to a mean hourly wage of $41.82. Financial examiners who work directly for banks tend to make below average at $77,040. Those employed by the federal government bring home the highest mean salary at $112,850 each year.
Beginning Salary
When first becoming a financial examiner, individuals can expect to earn a yearly salary in the bottom 10 percent of the profession at around $44,970. However, it’s important to remember that financial examiners in senior positions with years of work experience can eventually break through the six-figure salary mark to make over $146,020 annually.
Key Responsibilities
Financial examiners are given the hefty responsibility of carefully reviewing the activities of:
- banks
- financial institutions
- companies
They verify that their operations are complying with relevant regulations. In order to confirm that the organization they’re investigating is financially solvent, financial examiners will pore over:
- balance sheets
- income records
- expense accounts
- loan documentation
- tax returns
- other relevant documents
On a typical day, financial examiners can be found:
- monitoring financial performance
- preparing reports
- establishing compliance guidelines
- analyzing new regulations
- making recommendations to improve internal processes
- verifying the accuracy of financial records
Senior-level financial examiners may train new professionals in the best financial examination procedures too.
Necessary Skills
As one might expect, becoming a financial examiner requires a strong aptitude for math to monitor balance sheets and find warning signs of compliance issues. Financial examiners should be equipped with strong analytical skills to determine whether banks are handling financial risks properly. Having a detail-oriented mind with good organizational skills is a must because financial examiners must sort through loads of financial documents to narrow in on risky assets. Most financial examiners are required to craft reports on the soundness and stability of financial institutions. Writing skills are important. Financial examiners should also possess good communication abilities to explain complex financial data simply and clearly.
Degree and Education Requirements
For entry into the financial examination world, you’ll need to earn at least a four-year bachelor’s degree from an accredited institution. Most aspiring financial examiners decide to pursue an undergraduate major in:
- accounting
- finance
- economics
- business administration
- statistics
- another closely related field
If you’re aiming to work for any Federal Deposit Insurance Corporation (FDIC) institution, you’ll need to complete a minimum of six credit hours in undergraduate-level accounting coursework. Earning a master’s degree isn’t typically required. However, you could advance quickly into senior examiner positions and other careers with one of these:
- MBA
- Master of Science in Finance (MSF)
- Master of Accountancy (MAcc) Pros and Cons of the Position
Becoming a financial examiner can be a rewarding choice for individuals who enjoy math and thrive when working independently. Financial examiners spend most of their day in a comfortable office setting, but can frequently travel to inspect banks firsthand. Most financial examiners work full-time hours with a lucrative salary and excellent job benefits. Financial examiners can work in their own chosen area of expertise with their ability to specialize in examining:
- trusts
- capital markets
- loans
- electronic processing
- other financial activities
On the flip side, working as a financial examiner does have its downsides. Financial examiners must stay up-to-date on regulations that are constantly changing. Most will work long hours reviewing balance sheets with the pressure to meet tight deadlines and find all errors that can cost money. Plus, the top-paying jobs for financial examiners in federal government are declining steadily.
Getting Started
While earning your bachelor’s degree, you begin building your resume with finance-related work experience through internships or part-time jobs. Smaller organizations and agencies may even accept full-time candidates with an associate’s degree in finance or accounting. Having hands-on learning experience in the financial examination process will help improve your job prospects. With some experience under your belt, you can then start applying for financial examiner positions with confidence. You may also want to consider pursuing professional certification through the Society of Financial Examiners (SOFE) to show your competency in the field. Depending on your qualifications, you could become a:
- Certified Financial Examiner (CFE)
- Accredited Financial Examiner (AFE)
- Automated Examination Specialist (AES)
All three of these credentials must be maintained every two years with continuing education in financial examination.
Future Outlook
Job growth for financial examiners will be slower than average thanks to declining employment in the federal government. As we enter more normal economic times, the need for financial examiners may stagnate with little job growth. That being said, more financial institutions are being placed under the FDIC’s supervision. More financial examiners will be needed to monitor these institutions’ activity to ensure compliance with new regulations. According to the BLS, employment of financial examiners will grow at a projected rate of six percent, thus creating around 1,800 new jobs in the coming years. Most of these openings will be in:
- banks
- private corporations
- investment firms
- other financial institutions
The highest employment rates are predicted to remain in:
- Texas
- Pennsylvania
- California
- New York
- Illinois
Conclusion
Overall, financial examiners are important professionals. They perform risk-focused investigations to determine whether financial institutions are complying with the latest statutes. Does the idea of working in finance to maintain the health of our banking system appeal to you? Then you may want to consider becoming a financial examiner and dive into these critical investigations.
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