Career Spotlight: Commercial Banking

When finance careers come to mind, most people probably imagine careers in investment banking, but there are plenty of finance positions outside of investment banking. Commercial banking is an excellent example. Commercial banking careers are generally less competitive than other finance careers, which many people may find appealing. There are many different types of positions within commercial banking, with a wide range of potential salaries. Most of these positions require some background in finance and accounting, but one of the other key responsibilities is interacting with customers. This makes commercial banking a great option for people who enjoy working with both people and numbers.

Commercial Banking v. Investment Banking

Commercial banking and investment banking deal with different parts of finance. Investment banking deals with investing money through different vehicles – stocks, bonds, real estate, etc. On the other hand, commercial banking deals with more personal banking, such as checking and savings accounts, loans, etc. Commercial banks make money off of the interest on the loans they provide. Deposits that customers make in the form of savings, checking, money market accounts, etc. give a bank the capital it needs to make these loans.

Commercial Banking Positions

There are many different commercial banking positions, most of which have very different responsibilities and require different skills. Tellers, trust officers, loan officers, branch managers, sales associates, credit analysts, and mortgage bankers all fall within the umbrella of commercial banking. The one thing that all of these positions have in common is that they include a large amount of time spent working with customers.

Commercial Banking Salaries

Commercial banking salaries range dramatically depending on the specific position. According to Glassdoor, the average bank teller makes $27,953 annually, while the average commercial lender makes $86,440 annually. Plenty of other commercial banking positions may fall somewhere in between. Commercial banking provides the potential for career growth and the higher end of the compensation range can be quite lucrative. That being said, in general, commercial banking salaries are not nearly as high as in some other areas of finance, especially those in investment banking. The benefit of commercial banking compared to other finance roles is that the hours in commercial banking are often far more reasonable than they are in other finance fields.

Skills and Education

A career in commercial banking requires excellent people and accounting skills. Since commercial banking is less competitive than other areas of finance, the barrier to entry is not quite as high, but you will still need some background in finance and accounting. Since a commercial bank makes money from the interest it earns on financial products such as loans, a key part of any commercial banking position is selling the bank’s financial products. This means that all positions require an element of sales and marketing.

Is a Career in Commercial Banking Right for You?

Commercial banking is a wide-ranging field, with a variety of different positions. For someone that enjoys accounting and working with customers, a career in commercial banking could be an excellent fit.

Related Courses: Money and Banking

Designed for commercial bankers, financial analysts, and others who wish to have a basic understanding of money and banking. This curriculum provides an overview of the fundamental principles that form the foundation of the money and banking systems around the world. The course covers monetary bases, the main instruments of monetary policy and theory, and concludes with a discussion of the theory and implementation of monetary policies.

 About The New York Institute of Finance

The New York Institute of Finance (NYIF) is a global leader in professional training for financial services and related industries. NYIF courses cover everything from investment banking, asset pricing, insurance, and market structure to financial modeling, treasury operations, and accounting. The New York Institute of Finance has a faculty of industry leaders and offers a range of program delivery options, including self-study, online courses, and in-person classes. Founded by the New York Stock Exchange in 1922, NYIF has trained over 250,000 professionals online and in-class, in over 120 countries.

See all of NYIF’s training and qualifications here.