Banking careers

BANKING CAREERS CLERICAL PROFESSIONAL MANAGERIAL

Institute Research Number 31 ISBN 1-58511-031-0

BANKING CAREERS CLERICAL PROFESSIONAL MANAGERIAL From the Neighborhood Community Branch to Global Finance to Internet Banking – Growing Employment Opportunities EVERYONE WANTS TO BE A MILLIONAIRE! TRY A GAME SHOW. WIN A LOTTERY. MAKE

a killing in the stock market. Discover a product that the whole world needs. Develop an easier and better way to do anything. Of course, you could always work hard, save your money, invest wisely, spend prudently and still wind up with money and have a good life. You are probably not too concerned about all of this in high school, but you should be. Money, or the lack of it, will become an important part of your life – starting right now as you contemplate what you want to do for the rest of your life. From your very first job until your retirement, money, or the lack of it, will determine what kind of a life you will lead. How you will provide for yourself and maybe a family. 2

Money, or the lack of it, follows our every pursuit. We love our possessions and do not hesitate to flash our credit cards to charge them. And then the monthly bill – the reality – that we have to come up with the money to pay for all those purchases. We stretch our budgets to the max. We extend our credit, take out loans, refinance our homes, and hope that we can keep our heads above water. We ask our financial institutions to be our partner in money matters as we try not to overextend our limits and maintain good credit ratings. Banking and finance fields are hot careers for the 21st century. Not only is retail banking an important element of our daily personal lives, but commercial banking is responding to the globalization of business and the advancement of technology. The scope of banking has widened and financial institutions now can offer an array of services from checking and savings, to stocks, bonds, insurance and more. Bank mergers and takeovers have intensified the need for a quality and qualified workforce to keep up with the fast-paced, ongoing changes in this technological age that are having an impact on banking. This report will concentrate on the professional, managerial and clerical positions necessary to banking. Most jobs require college and training, while some can be started with a high school diploma along with a proficiency in math and computers, and training. Many paths can and do take professionals to the upper levels of banking, including executive management. Your success will depend upon your ambition, motivation, experience and ability.

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THE BANKING FIELD TODAY BANKS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS – THE KEEPERS OF

our money – allow us to pay our bills; lend us money and give us credit; mortgage our homes; save for a trip or other pleasures; buy cars on installment; invest in US Savings Bonds, Treasury Bonds, Certificates of Deposits (CDs), and Individual Retirement Accounts (IRAs); set up and handle trusts and more. These institutions come in all sizes and types and can be found in every city and town in every state in America. There are neighborhood banks, community banks, commercial banks, investment banks and banks that have branches from coast to coast, like Bank of America or Citibank. We have a Federal Reserve banking system and international banking. Internet banking has been around for some years, and the technology is improving rapidly so that in this new millennium not only can you pay bills online, check your account balance and apply for a loan, but you can also trade stocks, exchange American dollars for foreign currency before you leave the country, buy postage, and tickets to events, with new features being added every day, thanks to the Automated Teller Machines (ATMs). Many banking professionals believe that eventually we will become a cashless society. As more and more households acquire computers, and more and more services are offered online, actual paper and coin money may become obsolete. Many people already have cards or passes that are paid for in advance and allow them to use busses, trains, pay for tolls, and other services. This technology is being tested in other markets. The need for real cash could soon become history. Technology will continue to change banking and its financial services, and this in turn will have a great impact on the professionals who work in this field. Prior to the 1980s, banks and brokerage institutions were separate entities. Then the United States Congress removed many of the regulations that separated banking and finance, opening up competition for financial services. Today’s banking professionals need mathematical competency, computer know-how and analytical skills as well as people and communication skills to be able to advance and have a successful career. You can get a job with only a high school diploma, but an entry-level candidate must possess talents and interests that can be developed with training and eventually more education. Even at the clerical level, technological advances are ongoing, and your work can depend upon 4

how much you now know and how much more you are able to absorb in the future.

A Competitive Field Banking is a service business and as such it must continually create new revenue by competing for new retail and commercial customers, making sound investments and loans, having a positive presence in the city or community with just the right mix of service and image. A small town may have only one bank, but most consumers have a choice even if it is in the next town or online. And big city customers have the luxury of going to the bank that gives them the best deal and service. There is enough stress in today’s world and banks want to keep customers smiling and coming back. Banks must be able to handle problems, manage time, maintain good relations within their cities and communities, and be compliant with all new banking practices and regulations. The two main reasons that banks exist are (1) to provide a safe place to keep and invest money, and (2) to provide a source for borrowing money that is sound and legal. Customers who are kept waiting unnecessarily, whether it is in a line at the bank or on a telephone line, will take their business elsewhere. The basis of regulating banking was the Glass-Steagall bill enacted in 1933 in response to the excesses of the Depression years. By the late 1990s, large banks and other sizable financial service firms found ways to avoid these restrictions leading to the repeal of the Glass-Steagall Act in 1999. This situation has permitted mergers and consolidations that have spawned mega financial institutions offering banking, insurance and securities services. The long term impact of this will be debated for some time. All this makes banking highly competitive with the right personnel invaluable to the particular institution. The competition is not only fierce to attract customers, but also to employ capable professionals to handle the work and add to the bottom line.

A People Field Banking is a people field because banking is a service field and this means daily contact with customers. Every banking position relates to the public. From the security force, to the clerical, managerial and professional staff, and all the way up to the executive levels, people come first. Banks exist for customers.

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For the foreseeable future, the majority of customers will do most of their banking in person. A still small percentage of customers use the Internet for their banking needs. And a growing number of depositors have their pay, pension, dividend and Social Security checks deposited directly to a designated financial institution account. But when it comes to a mortgage for your home or condo, a loan for school or a car, extending your credit on a charge card, acquiring an insurance policy, brokerage account advice, and other services most people like to sit with a real person and discuss the matters face-to-face, or at the very least talk with someone on the telephone. Whether it is a teller that answers questions about your checking or savings account, or a loan officer that needs more information before a loan can be approved, or a manager of a branch bank answering questions about their fee structure, banking professionals make the difference between your being satisfied or taking your business elsewhere. Men and women who go into banking at any level must be prepared to deal with all kinds of people and different situations every day. Mistakes can be made and customers can become angry. It becomes incumbent upon the banking professional, beginning at the teller level, to handle the situation so it does not get out of control and result in lost business. An unsatisfied customer spreads that word and can cause image problems especially for smaller institutions. So people skills and communication skills are high on the list of assets needed for banking jobs. A ready smile. Tactful actions. Unruffled demeanor. A strong, well-modulated speaking voice. A command of the English language in speaking and writing. In essence, if you like to work with numbers, are comfortable with computers, can adjust to people spouting off and function calmly in a sometime hectic atmosphere, then a career in banking might be in your future.

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BANKING BEGINNINGS THE WORD BANK COMES FROM THE ITALIAN WORD BANCA, MEANING BENCH. WHILE

historians have documented banking in some form dating even before the Babylonian empire in 2500 BC, modern banking started in the 16th century, when Italians conducted their business from benches. In England, goldsmiths were the bankers of their day as wealthy people stored their gold and silver in a goldsmith’s vault. These goldsmiths gave receipts to the owners of the gold and silver which they then used to get credit to buy things. The receipts proved that they could pay for the merchandise they bought. The goldsmiths began lending out the gold and silver and charged a fee – or interest – to the people who borrowed it. The goldsmiths would give a portion of the fee back to the depositor. In this way they could attract more wealthy people to deposit in their vaults and eventually were functioning as bankers in the modern sense.

Banking in America

In American history, it was the merchants who were the sources of money and credit in Colonial times from the early 1600s to the late 1700s. It was only after the War of Independence that the first commercial bank, the Bank of North America, received a charter of incorporation, in 1781. British banking houses stretched across the American frontier giving out short-term credits of less than a year to American merchants who in turn extended credit to wholesalers who passed them on to both urban and rural retailers. By 1789 when the Constitution went into effect, two state banks in New York and Massachusetts joined the Bank of North America as the start of our banking system. The main function of these early banks was to make short-term loans and open accounts for individual credit. Banks issued their own bank notes (used like our paper money), and had to maintain enough reserves to cover their loans. Because the system was new, many banks failed and went into bankruptcy because they had overextended themselves. Banking was going to be a conservative industry from the beginning. From The Reader’s Companion to American History, “The overriding fears of political leaders was that excessive numbers of banks or loans too much in excess of specie (money in coin) reserves would hobble the taxing and spending functions of government by swamping the economy in depreciated paper. Political leaders also recalled very well the wild inflation resulting from unrestrained governmental issues of continental and state

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bills of credit (paper money) during the Revolution, and in the Constitution they barred the states from issuing them. “The management of the first Bank of the United States (BUS), chartered by Congress in 1791, reflected these concerns. Although the BUS was a large commercial bank providing loans to the private sector as well as to government, its board of directors managed the institution in a highly conservative manner. Balance sheets for the years 1792 - 1800 reveal a generally high degree of success in maintaining the Bank’s specie reserves.” A growing American population and burgeoning trade created a need for comparable growth in the volume of money and credit. By 1811, the number of banks chartered by the states increased in number from 5 to 117, and their combined capital stock rose from $4.6 million to almost $66.3 million. Throughout the decades of the 1800s as the state banking system grew and faced one crisis after another, especially during and after the Civil War years, it became time for the federal government to act. The states wanted autonomy, but this all began to change in 1863 when the federal government invited state banks to take out federal charters, thereby becoming known as national banks. The growth of the new banking system was slow and by 1870, it covered about three-fourths of the nation’s banking resources. Through the end of the century there were still great problems in banking and specifically the inability to do anything about sudden shortages of cash and credit. Because the entire system was based on cash reserves, the total amount of cash could not be quickly altered to accommodate a shortage. It became obvious that a central institution was needed that could hold the reserves of the commercial banks as well as increase those reserves. In 1913, Congress passed the Federal Reserve Act that divided the nation into 12 districts and established a regional central bank in each district. Each district had a nine-member board of directors who reported to a seven-member Board of Governors in Washington, DC. But banking problems were far from over. The Great Depression and the inability of the banking system to prevent the widespread failure of banks prompted Congress to pass the Glass-Steagall Banking Act of 1933, establishing the Federal Deposit Insurance Corporation (FDIC) and requiring all members of the Federal Reserve System to insure their deposits. In addition, this act increased the

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authority of the 12 Federal Reserve district banks to better control the amounts of credit extended and other financial shenanigans. For more than 50 years the system secured bank depositors from loss. But trouble came in the 1980s when fraud and mismanagement caused massive failures in savings and loan institutions that required a huge federal bailout of more than $150 billion and structural changes in the system. Today’s banking system in the United States is as good as it gets anywhere in the world. That does not mean that failures cannot occur, but there are no widespread abuses and fraud, and the safety features in the system assure depositors that everything possible is being done to protect their money and investments. As the saying goes, What is past is prologue. Now read on to find out what those in banking think about their job and profession.

EMPLOYMENT OPTIONS THERE IS A WIDE VARIETY OF POSITIONS IN THE BANKING INDUSTRY. MOST REQUIRE

talent in mathematics and in handling numbers, as well as the use of computers. What banks mainly look for in entry-level positions are candidates who are motivated to learn and who can adapt to ongoing changes in technology and other business systems. As a candidate gains experience and advances in the bank, then more is expected in career objectives and the education and training necessary to keep progressing. Banks expect their personnel to stay on the cutting edge of modern business practices. The following positions help make banking a major career field for the 21st century. These titles are general in nature as not every bank calls each job by the same title. Larger banks will obviously have more people performing different jobs, while smaller banks may combine some of their duties and even give them new titles. As you investigate various financial institutions, you will be able to tell the difference.

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Tellers With more than a half-million teller positions in banks across the

country, there are always opportunities to get into this field. This is the position that most customers regularly come in contact with. It is one of the most visible positions in the bank. Teller duties include:

Cashing checks Taking deposits Processing withdrawals Accepting payments on utility bills, charge cards, loans, and other oblig ations Selling US savings bonds and traveler’s checks Processing the paperwork for certificates of deposit Taking deposits from businesses and balancing the money deposited with their deposit slips Making up the bags of coins and small bills that businesses buy for making change for their customers Some tellers service ATMs that receive deposits, issue withdrawals and take payments by computer. Other tellers service drive-up banking facilities. A teller handles a lot of money and must be good with numbers and able to use computers and other office equipment such as adding machines. Accuracy is the teller’s number one concern. Many customers come to the bank with multiple transactions and each one must be handled with extreme care. At the end of each day the teller has to settle the money in the drawer with the computer records. Just one penny off can mean staying late to find the error. Tellers must be vigilant when it comes to accepting checks for cashing to ensure that the correct date, written and numerical amounts agree and verifying that the person cashing the check is the person to whom it is written. Counterfeiting and false identification cards are also a problem and the teller must check bank records or call a supervisor if there is an unresolved discrepancy. Most customers accept the need for showing proper identification when cashing checks, but some become irritated and that is when the teller becomes the “master of customer service” as one teller explained. Soothing ruffled feelings goes with this particular job.

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This job carries a good deal of pressure. Tellers are at work before the bank opens as they must set up their station and count the money they will have to work with that day. After the bank has closed is when the tellers justify the money against the transactions. Patience and precision are a must. Tellers represent the bank and may be the only personnel some customers ever see. This is a people position and requires a comfort level with large amounts of cash, good math and clerical skills, computer skills, excellent spoken communications, patience and a courteous, smiling personality. Because this position lends itself to part-time hours, college students frequently work in banks to get their start in the financial world. A high school diploma is a must. Tellers take classes and learn on the job, most often paired with experienced tellers.

Account Representatives

In small banks this position may be combined with the duties of a teller. But in mid-size and larger banks, these are two specialized positions due to the volume of business. With additional training, a teller can move up to become an account representative with more responsibility and earning more money. The account representative’s main job is selling all services to new customers, and selling new services to current customers. They set up checking and savings accounts. They sell certificates of deposits, where the customer agrees to deposit a certain amount of money and not withdraw it for three, six, twelve or more months depending upon the terms of the CD. The bank then has use of the funds and pays the customer interest at an established rate. Usually, the longer the money stays in the bank the better the interest rate, a good selling point. Representatives also set up money market accounts which are similar to checking accounts except that the funds are invested in mutual funds and stocks. The bank retains a portion of the money earned with the remainder going to the customer. They also arrange for security or safe-deposit boxes where a customer can keep important papers and other valuables such as jewelry. The account representative, in conjunction with other departments such as marketing, will send mailings to current customers about any new or updated services the bank is offering and invite them to talk it over either by telephone or on their next visit to the bank. Banks acquire mailing lists for potential new customers and will send prospects letters informing them of the advantages of their banking services. 11

The account representative must be thoroughly familiar with all bank services at all times, and be able to sell them. This requires excellent communication skills, both written and oral, as well as knowing everything the teller knows about banking procedures. This is one of the most competitive areas in banking and as such attracts the candidate who has a good command of English, Spanish or other languages, and is aggressive in selling the bank’s services.

Loan Officers and Credit Analysts You probably have not had much experience with credit ratings and loans as yet, but you will. When a customer asks a financial institution for a loan, the credit-worthiness of the individual or the business must be established. In larger banks the credit analyst receives the order from the loan officer who has taken the information from the customer. The analyst will then research the credit and other financial history of the customer. The analyst will report the credit findings to the loan officer and based on the findings, and in concert with the loan officer, will recommend that the request move on to the next stage, or reject the request, usually for bad credit reports. Lending money is very serious business. Throughout the 1970s and 1980s, banks and savings and loan institutions went through bleak periods of unsecured and risky loans leading to closings, job losses and most troublesome, loss of depositors’ monies. It was the worst financial disaster since the Great Depression. Some very big banks failed. Many savings and loan institutions closed. Depositors lost money and the federal government had to provide funds to cover some of these losses. Some executives were prosecuted and went to jail. Financial institutions do not like to write off bad loans, so they are careful and vigilant as to whom they lend their money. Where a credit history is lacking, then a loan co-signer and/or collateral of some kind is necessary. Most loans in retail banking are given to individuals who want to buy a new home or improve an old one; small businesses like neighborhood cleaners, restaurants, and clothing shops; for the purchase of new and used cars, and boats; and to help finance a college education. While loan policies vary from bank to bank, many loan officers, with a proper credit check, can approve a modest loan on the spot. Banks have lending committees to oversee their larger loans, usually made up of their top executives, and they discuss and recommend or reject the particular loan, taking into consideration the recommendation of the loan officer. This committee will also expand loan policies and deal with problem loans. Many banks require you to have at least a bachelor’s degree to be considered as a loan officer. Also an aptitude in math and excellent 12

communication skills. Credit analysts also need a bachelor’s degree plus good math skills and a proficiency with the computer and relevant software programs.

Clerical Supervisors and Managers Large financial institutions

have file clerks, mail clerks, and a variety of other clerks and assistants who handle the large amounts of paper work associated with banking. Electronic and computer banking is on the rise but this form of operation still generates a paper trail. Clerical support is the backbone of a bank and their supervisors and managers must know and understand all their strengths and weaknesses. Keeping the work flowing and the problems to a minimum are the responsibilities of the supervisors, depending upon the particular institution. Bank work never stops even though most banks are open to the public during certain business hours. Electronic banking can and does go on 24 hours-a-day, and that means that there is always clerical help at work and the personnel necessary to keep it under control. The supervisors must be familiar with all the duties of all the people who report to them. They may hire their own clerical workers or be part of the hiring process. They handle the orientation of new people and oversee their training by other employees. They make assignments to keep the work up-to-date, and when some days the work is heavier or when workers are on vacation or on sick leave, they juggle assignments to spread the work around and ensure that what needs to get done every day – does. Supervisors/managers make sure that deadlines are met, problems are identified and resolved promptly, evaluate their personnel and recommend promotions, salary increases, merit awards, transfers and firings. They must maintain good relations with their workers and hold regular meetings so that everyone is working as a unit with a common goal. They, in turn, report to the next higher level of management. These are not entry-level positions but can be attained through promotions from within the individual financial institution. Most managers have had some college or business courses. Some large banks have in-house developmental classes or reimburse the cost for outside classes. These supervisory positions are good stepping stones to the executive levels of banking.

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Computer Operator & Data Entry Keyer

Computers became the second hand of businesses in the last decades of the 20th century. Just imagine the hundreds of millions of transactions of financial institutions and stock exchanges done by hand, adding machines, calculators and other non-electronic equipment. Today, transactions can be made and verified in minutes as opposed to hours and even days. Computers allow financial institutions to store and work with millions of pieces of information and documents online. It was the computer that made international banking a reality as people separated by thousands of miles can conduct very complex transactions without ever leaving their offices. Computers are used in financial institutions to keep track of and itemize accounts; create research reports on financial transactions, customer profiles, the economy, etc.; quote the prices of securities worldwide, and project investment strategies and results based on a number of conditions. There is always a need for trained computer operators as well as operators of peripheral equipment such as printers and storage disk drives. Because larger banks and a growing number of mid-size ones operate their computers 24-hoursa-day, seven days a week, they need three shifts to handle the steady flow of work. Computer runs can last for hours, even a day, as when a bank generates the bills for its credit card customers, or a large company’s payroll checks must be printed out. Today, with banks able to handle brokerage transactions, customers can use the bank’s computer services day and night to handle investments in foreign markets in different time zones. Computer operators handle all of these functions plus monitor the equipment, handle problems as they come up and respond to error messages, as it is their responsibility to locate the problem and solve it. While small banks may take a high school graduate with a good knowledge of computers and train in house, large financial institutions want computer operators with either a degree in computer science or experience. Large financial institutions will train computer operators to run their specific software programs. A growing number of vocational, technical, and business schools, as well as community colleges, offer courses and degree programs in computer operations. The data entry keyer enters each and every transaction in a financial institution. Make a deposit. Write a check. Buy or sell stock. Purchase traveler’s checks, and on and on. All this information is entered daily, and at the larger banks it is done and updated hourly by many hands working at many terminals. Accuracy is the obvious key to this position. The 14

information must be checked and entered correctly, as well as kept current. Because of the volume of business in larger banks, speed is almost as essential as accuracy.

Branch Manager This is an executive level position, as the branch

manager is like the president or chief executive of the particular branch banking facility. The branch can be located in the same city as the main bank, or located in another state as multinational banks have branches in many states. While the branch is part of the main bank and must adhere to its policies and procedures, branch managers can be flexible enough to respond to the particular community and constituency. The branch may be small with 15 to 20 employees located in a neighborhood, or it may be large with up to 100 workers located in a main business or financial area. In either case, the manager ensures that the operation runs smoothly and that customers are taken care of in a courteous and efficient fashion. The manager must hire all the professional and clerical staff necessary to get the job done. While personnel in large banking facilities can sometimes be faceless and very business-like individuals, branch banking personnel are well-known by their customers and their encounters usually are friendly and more casual. The branch manager wants to create this type of atmosphere so that customers look forward to their banking business and spread the word to their family and friends. The branch manager may report to a vice president of the region, or an executive vice president, or president of the main bank. When branch managers increase business, keep problems to a minimum and have contented and productive employees, they can and do move up the executive ladder.

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WHERE THE JOBS ARE THERE ARE MANY KINDS OF FINANCIAL INSTITUTIONS. THE MAIN OPTIONS FOR

careers are banks, savings and loan associations (S&Ls) and credit unions. Consumer/Retail/ Community Banks are the financial institutions that primarily serve individuals and small businesses. They are located in small towns and large cities from coast to coast. They may be the biggest business in a small town or a small business in a large city. They cater to the customers and the “mom and pop” businesses who are not comfortable with large financial institutions and prefer the friendlier one-on-one service of a smaller bank. They offer a full-range of services and so have need for many types of banking professionals. Commercial/Corporate Banks specialize in serving larger businesses and institutions, but also have individuals and small business customers who only trust large financial institutions with their money. These banks have much larger departments and therefore many more specialized career opportunities. They offer all the standard basic services, but are also heavily into investment banking and planning, stocks and bonds brokerage, insurance, and other financial areas that require large amounts of capital and that most smaller banks do not compete in. These institutions are mainly found in large cities and usually have many good job opportunities. Savings & Loan Associations were originally organized to handle home mortgage loans in neighborhoods and make it easier for individuals to buy homes. While they still specialize in home loans for buying or renovating, S&Ls have added some of the services – like checking and savings accounts – of the consumer banks. Generally, they are smaller in size but have some of the same career opportunities as the banks, especially in areas like loans and credit. They are generally found in larger cities and their surrounding suburbs. Credit Unions function like banks and S&Ls, but are different because they are not-for-profit cooperatives and are literally owned by their depositors. These financial institutions typically are established to serve the employees of a particular company, government agency or community. They generally offer savings accounts, share drafts (similar to checking accounts), credit cards, and home, auto and educational loans. Teller and basic bookkeeping, accounting, loan officer, data processing and other computer systems positions are common in credit unions. While salaries tend to be lower in credit unions, job satisfaction runs higher for their more than 160,000 employees, who make up a growing segment of the financial services industry. 16

BANKING PROFESSIONALS TELL ABOUT THEIR CAREERS I’m a Loan Assistant With a Mid-Size Bank “This is my first job out of college

where my majors were accounting and computers. During my summer breaks I worked in various companies including a bank, and liked the banking atmosphere and the opportunities. My research indicated that the loan department was a good place to get to know the business of banking and learn about a particular bank. I applied to a number of banks in the city that I wanted to work in and had two offers. I chose this one.

While I’ve been on the job less than a year, I am learning a lot. My boss is the chief loan officer as well as an executive vice president of the bank. I’m in a work and in-house training program, and my days are so filled that I hardly realize when it is time to go home. Since learning the procedures of granting loans and reviewing files of completed and pending loan transactions, I have started to assist my boss in the preparation of loan applications. Depending upon the size and purpose of the loan, there is a good deal of work involved in getting all the information necessary to make a judgment. You have to examine past credit history, including outstanding debts, business or job association, salary and so on. It’s sort of like putting a puzzle together; you can’t see the whole picture until all the pieces are in place. Banks do not lend frivolously. All the documentation must be in place with every i dotted and every t crossed. I sit in on the meetings between my boss and the customer who is seeking the loan and afterward proceed to gather and verify the information on the loan application. I work with our credit department to determine the customer’s credit rating and other pertinent financial information. While a once-bad credit rating does not preclude one from getting a loan, the circumstances that led to the bad credit rating have to be analyzed for any patterns that could arise again. I also keep loan files current and at hand when needed. 17

I have a computer at my desk and spend a good part of my day on it. My duties generate a lot of reports which I work on with my boss and others. Also, I prepare a variety of letters of either commitment or an adverse action for my boss to sign. When a decision has been made, I sit in on those meetings. Approving a loan is obviously much easier than saying no. People don’t always understand why they were denied their loan and one must always be respectful of the customer’s hurtful reaction. I assume more responsibility each week, and my boss is pleased with my progress. My desire to succeed is very great. I like the banking industry and especially the good opportunities to move onward and upward. I am considering starting an MBA program in the not-too-distant future as having my master’s degree would give me added dimensions for other banking options, especially at the executive level. At this early stage in my career I am pleased with my choice of industry and look forward to becoming a full-fledged loan officer and moving on from there.”

I’m the Head Teller for a Credit Union “I just celebrated my 16th year at the

credit union where I started out in the mail department right out of high school. Ours is a large credit union serving many thousands of members and their families. Because I was not focused on much of anything careerwise in high school, I did not have many options as far as work was concerned when I graduated. I got into the mail room of this union because my father was a union member in good standing and a one-time union officer. It took me almost two years to find my head and realize that I did not want to sort and deliver mail for the rest of my life. The union promotes educational opportunities for the kids of members and I was able to get into a night-time program in math and computers at a nearby community college. It was a two-year program and I did very well in it earning an associate’s degree.

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I went from the mail department to accounting where I put my new math skills to work, and then on to the teller cage. I was now an eight-year veteran of the credit union and responsible for handling large sums of money while using my computer skills. Over the next five years I went from teller-trainee to full teller, then assistant head teller to the head teller spot. I have been in this position for more than two years. We operate just like a bank except that we’re nonprofit. The days are hectic; so much work has to be done on a daily basis and it must be accurate to the penny. I supervise 14 full-time tellers and six part-time tellers. I participate in their training and maintain open communications so we work well together and can catch a problem before it becomes major. We are open five-and-a-half days a week. For the past year I have been taking night classes at a local college in business and financial management. I am only in my mid thirties, starting a family, and I want to move up if I can. This credit union is large enough for me to progress to other positions. I will also keep my eyes open for any other opportunities that may come along. My best advice is don’t waste any time while you’re in school. I was fortunate in having a father who I didn’t listen to in high school, but who helped me just the same when I got out and realized I was going nowhere fast. School is important; I know that now. But anyone can succeed if you put your head to it. I like working. I like earning money. And I like my career.”

I’m an Account Representative for a Major Bank “I have a bachelor’s degree in liberal

arts, but my work in the eight years since I graduated from college has been in marketing and public relations. I like working with people and being out front in whatever I do. My first job out of college was in the public relations department of a national chain specializing in casual clothes for both men and women. For almost five years I learned the ins and outs of marketing and public relations and did some traveling in the job.

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I left because promotions were few, I felt stagnant. I then went to work in the public relations department of a large department store, but they were bought out by another department store chain and lots of us lost our jobs. Two years ago, while living off my severance, I noticed an employment ad in the newspaper touting training programs and new opportunities for a new large branch of an international bank. I applied and was taken into a program for account representatives. You may wonder why someone with a retail clothing background would fit in a banking career. I have an outgoing personality, I’m well-dressed, and I have excellent communication skills. They said I was just what they were looking for to handle the public on a daily basis. I love my job. Every day is different and every day is interesting. I am one of four account reps for this branch and have an open office space on the bank’s main floor. Our job is to make sure that bank customers and prospects know about all the services and advantages offered by the bank. People either just stop at the information desk, ask questions and are then referred to our area, or they are referred from tellers and other bank departments. I am now familiar with every part of our bank and can discuss each and every service in detail. When there is a question I can’t answer, then I can go immediately to the right source for accurate information. I work with our marketing department in preparing brochures and other information pieces to attract new business. I also handle correspondence, answering questions about our services and why we are a leader in the banking field. Banking is a very competitive industry and we are charged with making our bank services stand above the competition. After all, banks are profitable institutions and they grow by marketing more services, expanding their customer base and becoming more profitable. We identify our target constituencies and match them up with the products and services they may need. I find this easy to do because our banks from coast to coast have a wonderful reputation for service. Even though our branch is relatively new, it has already enjoyed good success in the city because of our special care in taking care of those who do business with us. 20

I work hard and I make good money. There are also good benefits. This is a large enough company that I can move up to a managerial position in any number of departments. I would like to make my career at this bank and hope that it works out. Fortunately, I have enough experience to make it elsewhere if that should be necessary. I’m positive about my future in banking.”

I’m a Computer Operator on the Third Shift “I work on the third shift of a large

bank, sometimes called the ‘graveyard shift.’ I have a bachelor’s degree in mathematics, and now I am back in school during the day to get my master’s degree in computer science. It’s a heavy schedule but I am almost through it. I’ve been working on computers since I was in high school. I’m good at it and am able to master new programs that I have been given. As you probably know, many banks now operate round the clock, seven days a week. My shift picks up on the runs that were started on earlier shifts. We record and review every transaction made by the bank for that day. We respond to any error messages and must find their source. We also monitor our branch banking transactions. It’s very precise work, and I must be alert to any changes in the run. There are always maintenance people on all shifts who can address any electrical or technical problems. Because the work is heavy and concentrated, the shift hours go by fast. I want to design computer programs for financial institutions like the bank I work for, and that is why I am getting my graduate degree in computer science. Technology is moving almost faster than we can keep up with, and it will be the computer programmers and designers who will lead the technology effort throughout this millennium. I want to be a part of the effort. In the meantime I am getting good experience in the computer programs now in use and am able to see what works and what doesn’t. I feel I have a good future in this area.”

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ARE YOU QUALIFIED FOR BANKING? BANKING HAS CHANGED GREATLY OVER THE LAST DECADE THANKS TO TECHNOLOGY

and a realignment of regulations. Banks can now operate 24 hours, seven days a week. Transferring funds and clearing checks takes a fraction of the time it used to. International banking from anywhere in the world is prevalent. The repeal of the 1933 Glass-Steagall Act now allows banks to sell stocks, bonds and insurance. Banking is global and local at once. You will need two talents and/or interests to succeed in banking at any level. Math and computers. Banking revolves around both these areas and that will not change but only intensify. Mathematics Every department in a bank exists because of money which comes in many forms: cash, coins, checks, bank drafts, etc. Every aspect of handling the money involves counting it, recording it and reporting it. Tellers still hand count when they service customers at their windows, but use computers and other machines to balance their daily receipts. Loan officers need to calculate interest and other fees when approving loans. Computer operators and data processors must understand the figures they are working with for accuracy. If math is not to your liking, then banking is not in your future. Computers Even the smallest banks now have computers and this technology is growing at a fast pace with new programs and faster systems. From the mail room to the board room computers are as much a part of banking as counting the money is. They track daily transactions including the flow of funds in and out of the institution; keep files on loans, investments, stock portfolios, etc.; generate reports on every aspect of banking; prepare monthly statements and much more. This technology will continue to advance and become more complex as new and faster programs and systems are developed. If you are not comfortable working with computers, then banking is not in your future. In addition to math and computers, a successful banking professional generally has the following qualifications: Likes to work with all kinds of people in a variety of situations. Is honest, trustful and discreet when handling other people’s funds. Takes pride in the accuracy of the work.

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Will make a good spokesperson for the bank no matter the circumstance. Can adjust to changes and evolving technology. Banking is now global. Economic events in the United States affect the rest of the world and vice versa. Those seeking a career in banking and other financial services will find challenges and rewards in the professionalism, pay and promotions the industry offers. Skilled professionals will drive this industry to new heights.

ATTRACTIVE ASPECTS BANKING IS FAST-PACED AND CHALLENGING. IT IS DIFFERENT EVERY DAY AS INDIVIDUAL

and corporate customers seek to accomplish a variety of their banking needs. The volume of customers on any given day can set the pace of work and, as always, accuracy and a smile go a long way. Service with a smile makes the job pleasant for everyone. Banks are excellent places to work. They are respected institutions that have modern facilities and use current technology, and many have amenities such as subsidized in-house cafeterias. The pay and benefits increase as you gain experience and responsibility, and there are opportunities to advance from within the institution. In fact, many bank presidents started on the ground floor and worked their way up to the executive level. Banks encourage innovation and often ask employees for suggestions on making the system better. Banking is still a tradition conscious industry, but the three-piece, pin-stripe suit formerly worn exclusively by white male bankers has been rearranged to include many women and minorities in managerial positions and at senior executive levels. And the dress can be more casual wear. But how you look, dress and carry yourself is still very important because banking is still a conservative professional career. A career in banking can become a good, steady, well-paying future for the right candidate. And the new century will pose challenges and new innovations not even thought of as yet.

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NEGATIVE ASPECTS FEW CUSTOMERS OR EVEN YOUR BOSSES MAY REALIZE HOW HARD YOU WORK. FRIDAY

afternoons and the eves of holidays are crazy because everyone waits to either cash or deposit their checks causing long lines, with your boss watching over you to keep up a faster pace, and tired, angry customers who want to get home or out of town for the weekend. And travelers always wait until the very last minute to buy their travelers checks and foreign currency, enter their safety deposit boxes, etc. It’s a madhouse and you become the target of the disgruntled.

Customers expect you to know everything about every banking service and resent it when you refer them to another person or department for answers. They also expect you to know them personally and some resent your asking them for a photo ID. There is seldom a “thank you” or a smile on their part, but you are expected to be at your best even when you are being verbally abused. This is especially true when a loan application has been rejected and the customer holds you personally responsible for the action. They have little or no understanding, even after an explanation, why their request was not granted. The technology keeps changing and by the time you master one system or computer program another is taking its place and you’re again in a training program. You are always under pressure to complete one task and start another. So much has to be accomplished on a daily basis that the stress is sometimes overwhelming.

EDUCATION AND TRAINING ALMOST EVERY JOB THAT YOU WOULD CONSIDER FOR A CAREER REQUIRES AT LEAST A

high school diploma, and many require two years or more of college. Technology has changed the way we live and work and that has had an impact on our educational goals. If you want to succeed, you will have to think seriously about how far you want to go and what skills you will need to get there. A career in banking requires technical and communication skills and that means education and training. A high school diploma, or its equivalent, is necessary for entry-level positions such as tellers, clerks, and other support staff. An interest in math and a knowledge of how to use a computer are important. Many financial institutions, especially the larger ones, have in-house training programs for different levels of work, but you must first have the interest and the desire to learn. 24

A college degree in business, mathematics or computer science is essential for professional positions in financial institutions. Banks also like to employ people who are well-rounded educationally and accept liberal arts and other degree holders. An MBA (Master of Business Administration) graduate degree may be important if you want to reach the higher levels of banking. Some banks will reimburse part or all of your tuition for continued part-time study toward this degree, if they think you are worth it and if you make a commitment to stay with the bank for a certain number of years. Your public or school libraries have the listing of colleges, universities and community colleges which have business, science and computer courses and degree programs. Some banks and banking associations have internships, scholarships, loans and other funded programs for students. Contact the American Bankers Association, www.aba.com or other professional associations for more information. Also visit your local bank and ask their personnel/human resources department about financial help resources. Training is ongoing in this field. Banking is global and technology driven, and therefore constantly changing. If you want a career in banking then be prepared to attend training sessions, workshops, seminars, conferences and other venues to increase your skills and keep up with the industry. At the executive level, programs are tailored specifically to executive management in a global economy. It always helps to start out with a plan and then determine what is needed to make the plan a reality. If you want to go to the top in banking, then you will need all the required tools to get there and that includes education and training.

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YOUR EARNINGS POTENTIAL BANKING SALARIES AT THE ENTRY-LEVEL TEND TO BE LOW, BUT IF YOU HAVE A PLAN

and desire to move upward then rewards await you. Salaries are always based on the size of the institution, the area of the country in which it is located, large city versus small town, education, training and experience levels, responsibilities and your potential. With this in mind, the following salaries are averages for these positions:

Teller $10,000 - $25,000 Head Teller $25,000 - $35,000 Bookkeeper/Accounting Clerk$15,000 - $25,000 Clerical Supervisor/Manager$25,000 - $45,000 Computer Operator $15,000 - $30,000 Data Entry/Keyer $20,000 - $25,000 Clerical $15,000 - $20,000 Secretary/ Administrative Assistant$20,000 - $40,000 Branch managers at small installations can earn upwards of $50,000, while larger companies pay upwards of $100,000. Large banks pay their senior executives $250,000 and up, plus stock options. For the candidate who has the necessary education and experience, banking can be very financially rewarding.

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OPPORTUNITIES BANKING IS AN EXCELLENT CAREER CHOICE FOR THE COMING DECADES. WHILE BANK

mergers and acquisitions have trimmed some opportunities in certain areas, the globalization of financial institutions has opened up new opportunities in other areas.

Banks are usually a high visible presence in most business districts and communities. They are solid and respectable. They are found everywhere. From teller to senior executives, the jobs are there to make a start and continue with a plan to advance. Specific titles, responsibilities and salaries will change from bank to bank and from area to area, but the bottom line remains the same – banks have career opportunities for those go-getters who want to make their mark in life. Banking is hard work. It is also challenging, reputable, traditional, high tech, fast-paced and, in most instances, financially rewarding. As new technology changes banking, new positions will be created in this country and around the world to meet the challenges of a global economy. With good skills, a penchant for learning, and a desire to develop and advance, a career in banking could be your ticket to success.

START PLANNING TODAY IF YOU HAVE READ THIS FAR THEN YOU ARE INTERESTED IN FINDING OUT MORE ABOUT

banking careers. Start your planning today so that you have enough time and information to evaluate all the pros and cons of the field to see if you want to pursue this further. You can only make an informed decision if you have the necessary information. Evaluate your talents and interests by writing them down and noting where you could go with what you now have, and how much further you could go with more education and training. Your list should include one or more of the following strengths: mathematics, computers, business and financial subjects. Go to your public library and read a book or two on banking. Your reading should cover basic banking to Internet banking and global finance. Also search the Internet for banking and financial information. Cable television stations CNN and CNBC are also good sources of financial news. Visit one or more banks in your area and talk with their human resources or personnel department about job opportunities, requirements, salaries, benefits and more. Talk with a professional in one or more 27

departments to ask questions about their specific work. Invite one of these professionals to talk to your class about their work and banking in general. Talk with your family, school teachers and counselors, friends and others about your thoughts on a banking career to get as much input as possible. Choosing a career will be one of the most important decisions you will make in your lifetime and it should be as open and informed as possible. You can always change your mind down the road, but you shouldn’t even begin to travel that road unless you have every bit of information you can gather. Keep a journal as you search. Include what you read, people you talked with, questions asked and answered, impressions and other thoughts. You will then have a good idea of what you have learned and if a career in banking could be in your future.

ASSOCIATIONS n

American Bankers Association www.aba.com

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American Financial Services Association www.americanfinsvcs.com

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American Institute of Banking (Part of the ABA) www.aba.com

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Bank Administration Institute www.bai.org

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Credit Union Executives Society www.cues.org

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Independent Community Bankers of America www.icba.org

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Institute of Financial Education www.ifegotheinstitute.com

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Mortgage Bankers Association of America www.mbaa.org 28

PERIODICALS n

ABA Banking Journal www.banking.com/publications.asp

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Business Week www.businessweek.com

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Consumer World www.consumerworld.org

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Forbes Magazine www.forbes.com

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Fortune Magazine www.fortune.com

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Inc. www.inc.com

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Money Magazine www.money.com

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The Banker www.thebanker.com

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The Wall Street Journal www.WSJ.com

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Plus the business pages of your local newspapers

Copyright 2005 Institute For Career Research CHICAGO CAREERS INTERNET DATABASE www.careers-internet.org

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