commercial banker

Commercial banks are authorized financial institutions that are monitored through the Federal Reserve System. They serve the monetary needs of individuals and businesses. Commercial banks are the backbone of our country’s financial world. They:

  • receive deposits
  • safeguard money
  • lend funds
  • maintain savings
  • disburse payments

While tellers handle the day-to-day transactions, commercial bankers typically work in management to provide financial advice to corporate clients and promote the bank’s financial services. Commercial bankers play an important role in building and maintaining relationships with banking customers for creating more accounts. Commercial bankers wear many hats. They manage multiple aspects of banking and coordinate different bank departments to ensure smooth operations that reap profit.

Salary

According to PayScale, the median annual salary for commercial bankers in the United States is $88,940, which could be equated to a mean hourly wage around $42.70. Commercial bankers are nearly always rewarded with:

  • insurance coverage
  • retirement planning
  • bonuses
  • profit sharing

In fact, commissions in commercial banking can also provide up to $15,000 each year for a six-figure total salary.

Beginning Salary

When just starting out as a commercial banker with one to three years of experience, the Robert Half Salary Guide reports that your salary will be between $50,000 and $70,250. Commercial bankers with five or more years of experience make up to $130,750 each year. There’s also the potential to advance as a Vice President or Managing Director to earn over $175,250.

Key Responsibilities

Exact responsibilities for commercial bankers can vary greatly. However, the majority are concerned with using good customer service tactics to acquire new accounts and keep the bank thriving. On a typical day, commercial bankers may be involved in:

  • reviewing loan applications
  • supervising bank staff
  • coordinating personnel
  • meeting with customers
  • offering proper financial advice
  • preparing lease agreements
  • promoting the bank’s services
  • reviewing the status of accounts

Commercial bankers also are responsible for:

  • creating a sound business model
  • analyzing competition
  • presenting new lines to loyal clients

Some commercial bankers in senior positions will oversee the balances and services of an entire chain of banks.

Necessary Skills

To be successful, commercial bankers must be skilled communicators with excellent interpersonal, sales, and customer service skills to manage relationships with clients iincluding:

  • individual
  • corporate
  • industrial

Being adaptable with problem-solving and decision-making skills is essential for commercial banks to quickly settle banking issues. Commercial bankers should be detail-oriented with good organizational abilities. They need to maintain good financial records and create meticulous reports for senior directors. Since commercial bankers are knee deep in figures, mathematical skills are helpful for accurately analyzing the dollar signs. Having solid negotiation skills is also critical for commercial bankers to settle on feasible lending agreements.

Degree and Education Requirements

Before you can jump into the exciting world of commercial banking, you’ll need to journey into post-secondary education to earn at least a four-year bachelor’s degree from an accredited business school. Most aspiring bankers choose to major their undergraduate studies in one of these:

  • finance
  • business administration
  • accounting
  • economics
  • mathematics

For more career preparation, make sure you fill up on course electives related to:

  • commercial lending
  • financial statement analysis
  • legal compliance
  • business math
  • financial planning
  • estate administration
  • securities

Competition in commercial banking is heated, so many bankers choose to receive a Master of Science in Finance (MSF) or Master of Business Administration (MBA). A master’s degree will also help in being promoted to executive-level roles.

Pros and Cons of the Position

As with other careers in the financial services, working in commercial banking comes with a list of advantages and downsides that you should know. First, let’s look at the pluses by pointing out that commercial bankers have the potential for very high salaries that exceed the six-figure mark. There’s a variety of roles commercial bankers take on, so boredom is highly unlikely. Commercial bankers have a sales-oriented job, which is ideal for extroverts who thrive with lots of interaction. Commercial bankers also have plenty of room for advancement into upper-level administration with better pay.

On the other hand, commercial bankers may have difficulty creating a work-life balance with long hours, including some on weekends and evenings. Some commercial bankers will need to travel frequently to meet with prospective or current customers. It can also be challenging for commercial bankers to find job openings in this popular career.

Getting Started

Earning an appropriate education is primary, but you’ll also need to build an impressive resume with practical experience to reach your goal of being a commercial banker.
You should take advantage of internship or co-op opportunities to gain real-world banking experience. Job shadowing is another good option for you to network with commercial bankers and get your foot in the door. Some great banking internships recognized by Forbes magazine are offered at:

  • Wells Fargo
  • CapitalOne
  • Liberty Mutual
  • PNC
  • Bank of America

Before moving into management in commercial banking, you’ll likely need to begin in entry-level jobs like:

  • teller
  • loan officer
  • financial advisor
  • credit analyst

If you’ll be selling securities, make certain you’re licensed through the National Association of Securities Dealers (NASD). Most commercial bankers will also acquire a Financial Industry Regulatory Authority (FINRA) Series 7 license to purchase or sell corporate stocks.

Future Outlook

Choosing a career in commercial banking isn’t for the faint of heart because competition for advancement is especially fierce. Even though America’s economy is recovering from the last financial crisis, the job market for banking is still largely unsettled. It’s predicted that there will be a growing demand for local bank branches to conveniently serve the public. An increasing number of retiring baby boomers will also benefit banks because they’re more likely to visit branches than do online banking. Overall employment growth for commercial bankers is expected to grow slower than average by eight percent by 2018.

Commercial bankers handle a variety of responsibilities with the goal of meeting the financial needs of their customers and their institution. Commercial banking is a fast-paced career path. Bankers form new and develop existing relationships with individual or corporate clients to boost the bank’s transactions. If you want to become a commercial banker, you’ll have the rewarding chance to:

  • support clients in monitoring their finances regularly
  • supervising bank personnel
  • earn a lucrative salary.

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