Is Commercial Banks A Good Career Path?

Is-commercial-banks-a-good-career-path

Is Commercial Banks A Good Career Path? Yes. If you have a thing for numbers, money, and people then working in a commercial bank will certainly be your best bet.

Also, if you’re thinking of a career path in commercial banks, there are many options that range from entry-level customer service jobs to top-level bank manager positions. 

In addition, you can begin your career journey with minimal education and grow to occupy management roles.

However, you’ll need a combination of education or on-the-job training along with experience in the industry to climb the ladder. 

But first, you have to decide if the commercial bank industry is a good career path for you. So, let’s help you answer that question in this article.

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What are Commercial Banks?

A commercial bank is a financial institution that accepts deposits, offers check and savings account services, and gives loans to customers (Investopedia).

Commercial banks are where most people do their banking. It’s probably where you’ve applied for mortgages, auto loans, business loans, or personal loans. And they make money from those services they render you. 

So why look for a career path here? Or rather why not!? Just hold on a bit, You’ll find out yourself.  

But first, check out these top commercial banks in the U.S. In fact, you’ve got to keep an eye on them if you’re serious about a good career path in commercial banks.

Of course, starting out at a smaller commercial bank is not a bad idea. You can get the right experience to qualify you for the top companies, that is if your goal is to work in one of these companies.

The function of Commercial Bank:

Commercial banks’ functions are divided into two categories namely; Primary and secondary functions.

Primary functions 

Accepts deposits: The bank accepts savings, current, and fixed deposits as deposits. Surplus balances obtained from firms and individuals are loaned to meet the short-term needs of commercial activities.

Provides loans and advances: Another key role of this bank is to give loans and advances to entrepreneurs and business people, and collect interest.

It is the principal source of earnings for any bank. In this method, a bank holds a limited number of deposits as a reserve and gives (lends) the remainder to borrowers in the form of demand loans, overdrafts, cash credit, short-term loans, and other products.

Credit cash: When a consumer receives credit or a loan, they do not receive liquid cash. The customer’s bank account is opened first, and then the funds are sent to the account. This procedure enables the bank to generate money.

Secondary functions 

Discounting bills of exchange: A written agreement confirming the amount of money to be paid against items acquired at a future date. The sum can potentially be cleared before the given period by using a commercial bank’s discounting process.

Overdraft facility: An overdraft facility allows a client to overdraw their current account up to a certain limit.

Purchasing and selling securities: The bank provides you with the option of selling and buying securities.

Locker facilities: A bank offers customers lockers in which to store valuables or papers. For this service, banks charge a minimum of an annual fee.

Paying and collecting credit: It employs various instruments such as promissory notes, cheques, and bills of exchange.

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Top 10 Commercial Banks in the U.S. 

1. Bank of America (BoA)

Total Assets: $3.169 Trillion (December 2021)

BoA thrives in digital innovation. It has over 37 million digital clients. And they have accomplished a lot via virtual assistants. 

For example,  BoA has been able to cut costs and appeal to young users by adapting strategies for the digital age. 

So if you’re looking for innovative commercial banks to work with, add BoA to your list!

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2. JPMorgan Chase Co

Total Assets: 4 trillion 

This should have come first on our list, but why rush? Who doesn’t know JP Morgan Chase Co. is ranked as the largest bank in the United States?  

Also, it comes as the seventh-largest bank in the world, based on total assets.

Chase Bank, the operating consumer bank division of this company offers customers access to 16,000 ATMs and more than 4,700 branches. 

Further, Chase bank is targeting digitally-savvy consumers and introducing artificial intelligence to its offerings. This includes voice assistance.

As you can see, Chase bank seems like a place to chase a good career path in commercial banks.

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3. Wells Fargo Co 

Total Assets: approximately $1.94 trillion (2021)

Wells Fargo has long joined other top competitors by targeting millennials through mobile financial services. 

For instance, it introduced its Pay with Wells Fargo mobile service where users can access their most used payment features before signing into the app. 

So, if you’re looking for a career path in commercial banks, you might as well look out for Wells Fargo! 

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4. Citigroup 

Total Assets: 2.26 trillion (as of 2020)

Citibank offers its customers over 700 branches across the United States and 1,800 globally. In addition, Citibank customers can access over 65,000 ATMs.

However, Citi has a physical presence in 95 markets. Some of Citi’s area of strength includes deposit, retirement, and investment accounts, and digital money management tools.

Look out for Citi while looking for a commercial bank career in your city because it occupies a spot as one of the best banks in the US.

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5. U.S. Bancorp

Total Assets: 573.3 billion (2021)

U.S. Bancorp poses as competition to tech giants making their way into the banking industry. They have a good outlook on adopting a competitive banking technology.

U.S. Bancorp boasts over 3,000 branches and closes to 5,000 ATMs, primarily in the Western and Midwestern states.

If you have some tech skills in addition to your financial knowledge, then check out Bancorp career site

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6. Trust Financial Corporation

Total Assets: $544 billion (as of March 31, 2022)

Trust Financial Corporation boasts over 2,000 branches across 15 states. Trust provides financial support and services to 10 million consumer households.

Now operating over 2,000 branches in 15 states and Washington, D.C., the combined bank offers consumer and commercial banking, asset management, securities brokerage, mortgage, and insurance products and financial services.

7. PNC Financial Services – $457.45 Billion

Most recently, PNC rolled hybrid branches called solution centers. These centers house self-serve tools such as video teller machines, ATMs, and mobile workstations while in-person staff assists with more complex needs.

 PNC Bank, its banking subsidiary, operates in 21 states, with 3,000 branches and over 9,000 ATMs across the country.

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8. TD Bank

Total Assets: $1,441.238B (April 30, 2022)

You can find TD Bank  U.S. headquarters outside of Cherry Hill, New Jersey.

Toronto Dominion Bank’s total assets for the quarter ending April 30, 2022, were $1,441.238B, an 8.69% increase year-over-year (Source)

TD Bank serves over 6.5 million customers with over 1,300 branches in the Eastern region of the United States. 

In addition, it has integrated artificial intelligence and digital technology into its services. 

9. Capital One$425.4 billion (September 30, 2021)

Capital One has adopted an ongoing commitment to digital transformation. So, it made the list! 

They specialize in credit cards, auto loans, banking, and saving accounts. Its headquarters are in McLean, Virginia.

10. The Bank of New York Mellon

Total Assets: $349.43 billion (as of 2020)

The Bank of New York Mellon Corporation, more commonly referred to as BNY Mellon, is headquartered in New York City. 

Further, the Bank of New York is one of the oldest banking corporations in the U.S. and among the oldest banks in the world.

BNY Melon had nearly $47 trillion in assets under custody and/or administration (AUC/A) in 2021 (Source)

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Is Commercial Banks A Good Career Path?

Yes, for those who love working with numbers, money, and people. And if you’re a freshman out of college, with a finance degree,  then it is also a very reasonable career choice.

Working in commercial banks will give you enough experience you will need to work with bigger clients and occupy higher financial roles.

Also, commercial banks are a good career path because there will always be a demand for bank accounts and loans. So commercial banks are likely to always exist. However, they’ll thrive more by offering digital products and services. 

 There are different jobs in this field that you can check out. However, checking out these jobs can help you decide if commercial banks are a good career path for you as an individual.

But before that, check out these benefits of working in commercial banks.

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Is Commercial Banks a Good Career Path: Benefits of Working in Commercial Banks

You Develop Professional Skills

A banking career offers you many opportunities for professional growth. It encourages continuing education and community service. More so, you gain a wide range of job experiences.

In addition, you develop a lot of other skills. Examples of such skills are trust, integrity, and responsibility. You also have the opportunity to develop accuracy as a professional.

Gain Refined Social Skills

Another benefit of working a commercial bank job is that it helps you meet people from different social backgrounds. You’ll constantly meet and interact with established entrepreneurs and other professionals.

As a result, it helps you sharpen your social skills.

Understanding of Investment Opportunities

Jobs in commercial banks also help you to improve your personal finance. As you help individuals and organizations save and grow their money, you get access to some of the best financial information.

You also learn a lot about investment opportunities. Consequently, this can help you make rewarding investment decisions.

High Pay

Yes, the pay! Most commercial bank jobs pay higher than average when compared to other occupations. 

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What are the Job Prospects for Commercial Bank Career Path?

We looked through the BLS projection for Business and Financial Occupations and it doesn’t look bad.

According to the U.S. Bureau of Labor Statistics (BLS), the employment outlook for the finance industry is expected to grow at a 9% rate of change every year.

While this appears insignificant, it is a moderate growth percentage when compared with all other industry sectors.

Tips: Skills for a Successful Career in  Banking Industry

The banking industry has been undergoing various changes as technology keeps evolving. To remain employable, here are 5 skills you should grab as detailed by Forbes:

  • Digital Fluency
  • Interpersonal Skills
  • Entrepreneurial Spirit
  • Problem-Solving Abilities
  • Adaptability

Is Commercial Banks a Good Career Path: How Much Can You Make From Commercial Banks?

The median annual wage for business and financial occupations was $76,570 in May 2021 according to the BLS. This was higher than the median annual wage for all occupations of $45,760.

However, in 2022, the salaries of Commercial Bankers in the US range from $20,152 to $541,467, with a median salary of $97,216 according to Comparably.com. Further, the middle 57% of Commercial Bankers make between $97,216 and $244,270, with the top 86% making $541,467. 

If you’re generally interested in bank jobs, check out these 15 Best Paying Jobs in Major Banks | 2022

7 Highly Paid Commercial Banks Career Paths for Graduates

Now let’s show you some of the jobs to look out for in commercial banks. 

1. Equity Analyst

The basic role of an equity analyst is to provide detailed research reports on the stock market industry. Hence you must have in-depth knowledge of the market.

Comparably.com states that the salaries of Commercial Banking Analysts in the US range from $14,353 to $382,737.

However, the typical J.P. Morgan Equity Analyst salary is $51,498 according to Glassdoor.  Equity Analyst salaries at J.P. Morgan can range from $49,038 – $62,943. 

Click to Read More About an Equity Analyst.

2. Investment Banking Analyst

The job of an investment banking analyst usually works across a variety of sectors and with diverse processes. Also, investment banking analysts might build financial models, carry out valuation, design research, and cooperate with financial and commercial counterparties. 

The salaries of Commercial Banking Analysts in the US range from $14,353 to $382,737, with a median salary of $69,236 (Comparably).

Further, the middle 57% of Commercial Banking Analysts make between $69,236 and $173,640, with the top 86% making $382,737.

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3. Equities Trader

Basically, an equity trader helps a firm to sell shares in the equity market. You can work in an equity company or in a bank.

In addition, you sell commodities and derivatives for your clients.

The average salary for a trader is $80,468 per year according to indeed. They also earn an average annual commission of $25,000.

However, your work experience, level of education, and skill set may influence your salary as an equity trader.

4. Asset Manager

The duty of an asset manager is to trade, manage, and invest assets. You can manage capital, bonds, stocks, precious metals, commodities, and real estate for your clients.

The national average salary for a Commercial Asset Manager is $72,612 per year in the United States according to Glassdoor

5. Credit Analyst

A credit analyst is a professional who gathers and reviews financial data about loan applicants. Your duties include analyzing clients’ payment habits and history.

The average salary of a Commercial Banking Credit Analyst is $75,021per year according to Glassdoor.  

However, the estimated total pay is $90,382 per year in 2022.  

Read more about the duties and qualifications of a credit analyst. 

6. Portfolio Manager

A portfolio manager monitors and manages business portfolio loans and determines how to expand those investments.

As a portfolio manager, it is your duty to analyze the markets, and business practices. Then you can then decide how your customers’ money should be shared across many investments.

Portfolio managers are one of the best investment managers in the finance industry.

As of Jun 24, 2022, ZipRecruiter reports that the average annual pay for a Commercial Portfolio Manager in the United States is $96,038 a year. 

Further,  a simple salary calculation works it out to be approximately $46.17 an hour. This is the equivalent of $1,847/week or $8,003/month.

7. Branch Manager

A bank branch manager is among the best-paying jobs in major banks in the US. A bank manager typically oversees the operations of a branch of a bank or financial institution. 

The estimated total pay for a Manager, Commercial Banking is $94,656 per year in the United States area, with an average salary of $78,707 per year according to Glassdoor.

FAQs

Is banking a profitable career?

Yes,

The median annual wage for business and financial occupations was $76,570 in May 2021 according to the BLS.

Which banking career is best?

  • Equity Analyst
  • Investment Banking Analyst
  • Equities Trader
  • Asset Manager
  • Credit Analyst.
  • Portfolio Manager
  • Branch manager

Is banker a good career?

Yes, for those who love working with numbers and people. The median annual wage for business and financial occupations was $76,570 in May 2021 according to the BLS.

What is the best degree for banking?

Bachelor’s degree in business, accounting, information technology, business administration, or Bachelor’s degree in law.

Conclusion

There are many career options in commercial banks. However, the banking industry has been undergoing various changes as technology keeps evolving.

Therefore, because of the lucrative opportunities in the banking industry, it is important you equip yourself with technological knowledge and other soft skills mentioned in this article if pursuing a career in a commercial bank is your goal.

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