Is commercial banking a good career path? (2024)

FAQs

Is commercial banking a good career path? ›

Commercial banking can be a good career path, with many roles offering opportunities for career advancement and attractive pay. But some positions in the industry (such as underwriters and credit analysts) aren't expected to experience much growth, if any, in this decade.

“Commercial bankers get a bad reputation sometimes,” he says (perhaps an understatement). But “it's a great career, you can have a life, you can retire well, you can do all those things, which they're interested in.

With job security and stability, competitive salaries, and the chance to develop essential industry expertise, banking is an excellent choice for those seeking a rewarding and fulfilling career.

Commercial banks are an important part of the economy. They not only provide consumers with an essential service but also help create capital and liquidity in the market. Commercial banks ensure liquidity by taking the funds that their customers deposit in their accounts and lending them out to others.

Advantages and Disadvantages of Commercial Banking

While you can positively impact your clients and the economy, this career path may also require stressful and high-pressure client relationships and work environments. “Banks tend to be complex, siloed institutions,” says Shirley.

How much does a Commercial Banker make? As of May 20, 2024, the average annual pay for a Commercial Banker in the United States is $149,428 a year.

The bank had an acceptance rate of 0.33% for all applicants last year. Luckily, the internship was slightly easier to get into – 1.27%. Every little helps, we suppose. If you want to get into banking, you need to work very hard, exhaust every opportunity you have, and really, genuinely, be a little bit lucky.

Bank Tellers often face a fast-paced environment, managing financial transactions with precision while providing excellent customer service. Stress can arise from handling large sums of money, adhering to strict security protocols, and dealing with diverse customer needs.

What are the disadvantages of commercial banking? ›

A commercial bank is an easy and flexible source of accepting and withdrawing money. These are the economical source of funds as it manages deposits and withdrawals at a low cost and involves no hidden cost. It generally provides the loan against some security.

Attractive Compensation: A key answer to "Why do you want to join a bank?" lies in the sector's competitive salaries and benefits. In addition to base pay, many banking roles include performance-based bonuses and incentives, making it a financially rewarding career choice.

Commercial Banking Qualifications and Experience

Employers seek candidates that have completed post-secondary education in areas like business administration, accounting, or finance, with at least 3-5 years of work experience within the banking or finance industries.

Another benefit of working at a commercial bank is meeting and interacting with people. In a customer-facing role, for example, you can communicate with patrons when they visit the bank to make deposits or open new accounts. Knowing that you're helping people can make your banking role more fulfilling.

at commercial banking and savings institutions is expected to grow by 16 percent through 2026, according to the DOL, or much faster than the average for all careers.

It typically takes 5-6 years to become a commercial banker: Years 1-4: Obtaining a Bachelor's degree in a relevant field, such as finance, accounting, or economics. During this time, you will learn about financial markets, investment strategies, and banking regulations.