What should a banker know

Becoming a personal banker requires more than just helping customers make deposits and withdrawals. Instead, you would learn to arrive at mutually beneficial solutions that truly help customers while bringing in profitable business. Commercial banks focus on business needs. For example, you can help businesses accept credit cards and process other types of payments from customers.

Companies also need guidance on managing their assets while limiting risk. You might even help organizations do business overseas or borrow money to expand operations. A business degree is helpful, and an MBA might be even better.

You also need to understand the mechanics of loans and when it makes sense for a business to take on debt. Sales skills are increasingly important for business bankers.

Banks and credit unions need revenue from active businesses, and it may be your job to grow and retain business clients. Investment banks help businesses raise money in financial markets, and they may help coordinate mergers and acquisitions. These banks typically hire high achievers who thrive in high-pressure environments. Investment banks are traditionally most common in major metropolitan areas New York City, for example where potential clients are nearby. To work for the largest investment banks, plan to devote much of your waking life to your career.

You need to arrange financing deals and complicated transactions with sophisticated counterparts. And you may need to get everything done quickly. You need to have strong spreadsheet and analytical skills, and to advance at most firms, you may need graduate degrees and designations. Some of the titles a graduate of this type of program may assume include portfolio manager, investment banker, global financial services consultant, or risk management director.

Students learn about common electronic commerce techniques and procedures, such as e-payments, financial security, and how different industries engage with e-commerce. Many banking professionals elect to focus their careers in the ever expanding world of mergers and acquisitions, and this course introduces them to processes related to takeovers, bidding procedures, valuation, and buyouts.

Whether working with individual clients or corporations, investment portfolio managers must have an exhaustive knowledge of securities, investment options, and portfolio optimization techniques. This course provides students with a thorough knowledge of the field and offers many case studies and simulated investment projects. While the majority of careers in the field of banking can be gained without a PhD, individuals who wish to conduct high-level research — at a financial or academic institution — are often required to hold this highest degree of education.

Students who wish to dig into financial and market research and help shape the industry can do so after gaining the skills and expertise needed to develop and conduct research studies and analyze how data gathered informs the field.

With a large focus on the theory, students in this course learn about the frameworks that inform decisions about corporate finance. Classical theories are examined to understand what did and did not work before moving into a survey of modern procedures.

Many PhD students plan to pursue roles in teaching at the postsecondary level, and this course provides them with the tools to do so. In addition to reviewing common teaching methods and curriculum development, students also have the opportunity to teach undergraduate level courses. The banking and financial sectors can be researched via countless models, but many institutions, be they academic or financial, are looking for research that fits into one of these models.

Students learn about different approaches to research, problem-solving, and industry analysis through hands-on work and case studies. Banking jobs are always in demand for one simple reason: people are interested in money.

When the economy is booming, people want to know how to spend their money. When it is in hibernation, people want to save and make the most of their investments.

This constant interest creates a number of diverse career paths for bankers, with many showing projected growths of nine percent or greater between and A few of these include:.

Auditors also use their insight into these records to recommend more efficient ways of working. Their deep knowledge serves not only a legal purpose by helping an organization remain tax compliant, but also an advisory function by helping it plan for the future. Brokers work for investment firms to find clients and sell them securities and commodities, including stocks, bonds and gold.

They must also maintain an extensive and up-to-date knowledge of how these items perform and match investments to client needs. Once all departments are complete, these professionals consolidate the budgets and run cost-benefit analyses to see whether the organization should seek alternative ways of meeting its financial goals.

Financial analysts look at the performance of various investing tools, including stocks and bonds, to guide investors on where to place their money. Most analysts have expertise in a particular sector, product or region. For example, an analyst may understand the business environment in Japan and how a devaluation of the yen would affect investors. Others may know the ins and outs of the pharmaceutical industry and have a handle on how new government regulations would influence stock prices.

Examiners are essentially compliance officers. Although they may be hired directly by financial institutions, the largest single employer is the federal government. In this setting, examiners fall into one of two broad roles: consumer compliance or risk scoping. Those in the former role ensure banks follow legal practices for loans, while those in the latter make sure banks keep adequate cash reserves to cover losses.

Managers ensure an organization is financially stable by monitoring finances and creating strategies to protect revenue and limit expenses. They are often responsible for forecasting, budgeting, engaging in cost reduction analysis and reviewing overall performance.

These bankers link businesses with financiers. For instance, a startup tech company may turn to an investment banker to handle its initial public offering and look for investors to scale up operations and turn a profit. More established companies may rely on an investment banker to handle a merger or acquire a smaller company.

Officers look through financial documents and apply a formula to assess the likelihood of loan repayment. Underwriters are increasingly reliant on software to automate the process, but loan officers are still needed to provide customer service and sell loans to businesses and private citizens who might want to buy a house or attend university.

Top professionals need all the same communication skills — both written and oral — to make the world of finance accessible to clients who may or may not have financial backgrounds themselves.

Critical thinking is a must, both because banking is fraught with risk and because profits vacillate based on the regulatory environment, seasonal trends and consumer confidence — all of which must be taken into account when making decisions.

From a successful teller to the investment banker, they must be able to sell products and services offered by the company. Many financial positions also require certification or licensure, but these mandates are dependent on the role and, often, the employer.

I would calmly walk the customer through what to do in case this happens the next time, and provide a special number to call for direct customer service — while assuring her that I will personally take calls, should this happen again. Bankers are responsible for overseeing a client's investment decisions and major financial transactions to ensure they make smart decisions for their businesses. This question allows interviewers to gauge a candidate's ability to identify risk factors and communicate with clients to avoid future financial problems.

A candidate's answer should emphasize:. Instead of investing, the founder had received an offer from a large corporation proposing a buyout. After making sure they wanted to be bought out, I checked on the corporation's offer.

It was considerably lower than a typical offer from a corporation of that size. Their stock price was also low, and it seemed like they had some financial troubles. When they wouldn't renegotiate the buy-out figure, I spoke with my client and voiced my concerns.

It was enough to make them realize they could receive even better offers from more stable companies. Please note that we are not your career or legal advisor, and none of the information provided herein guarantees a job offer. Post a job. Find resumes. Help Center. Find Jobs. Post a Job. No-hassle virtual interviewing free on Indeed There's no software to download or meeting links for you to manage.

Here's how it works. It holds no equity, doesn't attend board meetings, and isn't there to sweep up or turn out the lights at the end of the day. But your bank, and an account manager who knows you, can be as important as any investor to your business health. If your banker knows your company, your industry and your community, your banker can be an important financial advisor and a critical component of any growth plan.

If you're leery of banks these days, join the club. Mergers and declining service levels make it tempting to write off banks in their traditional role as silent partner.

But that doesn't have to be the case. In this quick read, we'll show you:. The time to foster a good relationship with a banker is when you don't need one. That's early in your company's life when a credit line, letters of credit or international banking are future issues.

The relationship is even more important than the institution itself. It's like picking an attorney or an accountant, or PR firm. The fit matters. Beyond that, look at the experience the bank has providing products and services you might need. Rely on the credibility of the marketplace. A bank's financial soundness should be a primary criterion for your choice. Also, if your bank folds and your loan is passed on to another lender, the loan to a proprietorship may be more likely to get called in.

Compare the financial strength of banks in reference books at your local library. Be sure to ask at the reference desk to see bank listings in the "Book of Lists" that most local business news journals publish annually. Your account manager should be an advocate for you and your company, and should understand who you are and what you do.