Banks are vital financial institutions that allow members to deposit, save, withdraw, and borrow money to afford their monetary needs. The FDIC reports that there are currently more than 5,300 insured banks operating across the United States.
Keeping all operations in a bank branch running smoothly rests on the shoulders of the bank manager. As mid- to upper-level leaders, bank managers supervise the day-to-day tasks completed by:
- tellers
- loan officers
- credit analysts
- other bank specialists
Bank managers typically report to the institution’s corporate officers to determine the overall direction of the branch. Most are general managers, but others could specialize in:
- risk management
- credit management
- treasury management, etc.
Bank managers accept hefty responsibility for the success or failure of their branch.
Salary
According to the BLS, the 654,790 financial managers working in the United States earn an average yearly salary of $147,530, which equals $70.93 per hour. However, bank managers in credit intermediation services earn significantly less at $120,620. The top-paid bank managers work in securities and commodity brokerages for $201,790 on average yearly.
Beginning Salary
When just receiving a promotion, bank managers generally land in the bottom 10th percentile of field earnings with an annual income around $68,370. As bank managers gain experience and assume responsibility in larger branches, it’s possible that they’ll eventually bring home upwards of $208,000 or more.
Key Responsibilities
Bank managers wear many different hats to make certain their branch operates smoothly under their administration. Managers hire, train, and supervise all bank employees to ensure members get superior banking services. Other common duties given to the bank manager include:
- reporting to executives
- analyzing lending data
- securing deposit information
- resolving account errors
- marketing loan products
- keeping the bank environment safe
- ensuring adequate cash supplies
- auditing teller drawers
- preventing fraud
- maintaining a brand image
- reconciling funds in bank vaults
Bank managers must keep meticulous records of branch performance and certify that the institution is meeting FDIC regulations.
Necessary Skills
Working as a bank manager requires you to possess excellent interpersonal skills to effectively communicate with:
- employees
- customers
- corporate officers
Bank managers must have thorough financial knowledge to understand banking products and the industry’s legal regulations. Having strong analytical and mathematical skills is essential for bank managers to carefully review branch performance data. Managers also need these skills:
- problem-solving
- critical thinking
- decision-making
- leadership
With the surge in online banking, good IT and computer abilities are crucial for bank managers. Since bank managers are in control of large sums of money, ethical leadership skills, honesty, and integrity are required.
Degree and Education Requirements
At a minimum, bank managers must have a four-year bachelor’s degree from an accredited college or university. Most aspiring bank managers earn an undergraduate major in one of these:
- business
- finance
- economics
- statistics
- accounting
- management
Due to competition, bank managers typically must attend graduate school for a master’s degree. Pursuing either a Master of Science in Finance (MSF) or Master of Business Administration (MBA) would be ideal. Some universities offer an MBA concentration specifically for banking. Going the extra step to receive a Doctor of Business Administration (DBA) isn’t usually necessary, but it could help land senior executive roles like VP or CEO.
Pros and Cons of the Position
Choosing to become a bank manager will come with both rewards and challenges. On the plus side, bank managers hold a lucrative position with a six-figure earning potential. There’s room for advancement for senior bank managers. Having a four-year bachelor’s degree can be sufficient for many positions. Several specialties are available for bank managers to focus on:
- private banking
- corporate banking
- small business administration, etc.
Bank managers also have the intrinsic reward of helping customers resolve their financial needs. On the other hand, bank managers work incredibly long hours well beyond the traditional 40-hour workweek. Their job provides plenty of stress with the burden of administrative responsibility. Sluggish job growth in banking will make job competition extra fierce. Bank managers must also invest significantly in their own training and experience.
Getting Started
While earning your degree, start building your resume with experience in bank branch operations to get your feet wet. Most universities will have listings for:
- internships
- field practicum
- co-op
- apprenticeship programs
Contact banks in your region to inquire about management trainee schemes offered too. It’s likely that you’ll have to work your way up to bank manager from teller, loan officer, or credit analyst. Taking evening, weekend, or online courses for a master’s degree while working full-time is recommended. Bank managers often must have at least five years of experience in banking operations. Pursuing professional certification can boost your qualifications. For instance, through the American Bankers Association (ABA), you could become a:
- Certified Regulatory Compliance Manager (CRCM)
- Certified AML and Fraud Professional (CAFP)
- Certified Securities Operations Professional (CSOP)
Maintaining certification requires 45 continuing education credits every three years.
Future Outlook
Over the past few years, the banking industry has been on a rollercoaster ride after the recent economic crisis. Banks compete strongly with one another to attract new customers and boost their money-making. Many banks are also facing competition in financial services from non-bank institutions, such as investment firms and insurance companies. Retiring baby boomers will spike a higher demand for banking because they’re most likely to hold accounts and visit branches than younger folks. Today’s bank managers may also be reaching retirement age, thus opening new positions. The BLS predicts a 16 percent job growth for financial managers by 2028. Bank managers can search for jobs in:
- commercial banks
- retail banks
- investment banks
- credit unions
- online banks
Overall, banking is a nearly $18 trillion industry employing over 2 million people nationwide. Bank managers play a pivotal role in making sure that all departments of a branch location are running without a hitch to maintain profitability. It’s their duty to manage a team of bank employees and increase customer sales of financial services. Those interested in financial management could be the perfect fit. If you decide to become a bank manager, you’ll have a lucrative opportunity to plan, direct, coordinate, and supervise the daily operations of America’s financial reserves.
Related Resources:
- 50 Great Small Colleges for an Accounting and Finance Degree
- The 30 Best Master of Finance Degree Programs
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