Commercial banks are credit institutions carrying out banking transactions with individuals, businesses and public authorities. Commercial banks’ main activity is collecting funds to redistribute them in the form of credit, distinguishing them from merchant banks that essentially carry out market operations. This sector provides jobs for many people, but before choosing the profession of a commercial banker, you must be aware of the many jobs available in commercial banks and what you need to do to succeed in your career there.
This guide will help you learn everything you need to know before getting into commercial banking jobs.
What is a commercial bank?
A commercial bank is a banking institution that maintains direct links with its customers. This institution generally carries out all the activities of traditional banks, including the distribution of loans – personal loans, mortgages, bank overdrafts, etc. -, the sale of savings products – passbooks, life insurance, etc. -, the management of means of payment – checks, bank transfers, bank cards, etc. – and the collection of financial resources.
The commercial bank, as we know it today, often acts as an investment bank.
The main activity of commercial banks is intermediation, i.e. the collection of funds, in particular from individuals who will then be lent to economic agents (individuals, businesses, local authorities, etc.) in the form of loans.
Commercial banks are vital actors in the financing of the economy since they organize the contact between agents with surplus resources and agents with a financing deficit:
- From the former, they receive liquid sight or term deposits against remuneration;
- To the latter, they grant loans remunerated at debit interest rates higher than the deposit interest rates enjoyed by depositors.
Commercial banks in the United States
Commercial banks are still a mainstay of the US economy, and they will remain in that position for the foreseeable future. The United States has such a formidable business realm for banks to thrive that they can use their domestic foothold to expand overseas and conquer new markets. Whether regional or national banks, retail or investment banks, or even diversified across all segments, banks are in the United States to stay and potentially conquer the rest of the world.
How many jobs are available in commercial banks?
A Branch Manager is responsible for assigning and directing all the bank’s work and supervising all areas of activity. He will lead staff, foster a positive work environment and ensure customer satisfaction and the smooth running of the bank. This role is a hands-on approach and commitment to business development and success by introducing strategies to drive productivity and achieve banking goals.
The financial adviser, also called a banker, account manager or bank adviser, accompanies his clients to advise them on the financial products best suited to their profiles. He welcomes clients to a bank branch and assists them in managing their financial assets.
The banker studies the financial situation of his clientele (real estate, life insurance, etc.) to be proactive in optimizing his financial assets. He advises on attractive financial investments, helps his clients put together a credit application file, negotiates bank rates and overdraft authorizations or offers various products. The financial adviser follows the account of his client’s accounts daily, ensures commercial follow-up, and carries out prospecting work to expand his clientele.
The bank credit analyst is responsible for studying and formatting credit applications made to his bank and determining the most suitable commercial conditions by the credit policy. He is attached to the credit management team of a banking group. The credit analysis studies the financial situation of the bank’s prospects and optimizes the guarantees.
The Loan Officer is responsible for developing his client base while maintaining the quality of his loan portfolio. Reporting to the credit supervisor and the branch manager, he has a solid knowledge of the credit procedures of his structure, manuals, tariffs, products and their conditions. He is responsible for customer prospecting; he seeks new potential customers through commercial approaches and conducts presentation interviews with customers to provide information and explanations concerning the products and their conditions.
In addition, the Loan Officer ensures regular monitoring of clients according to the rules and procedures established by the organization. In addition, he is required to write reports on his credit portfolio and monitor the market, the prices charged and the conditions offered by competitors to determine the relevance and adequacy of the offer of his structure.
There are many commercial banking jobs available in the United States. This number is steadily increasing, making it an excellent career choice. If you are looking for a career in banking, commercial banks are for you.