Is Commercial Banks A Good Career Path?

Is commercial banks a good career path? Commercial banking is a great career choice, even if you are starting as a fresher.

The pay is attractive with salaries going beyond $88,286 annually.

In the US, revenue in the commercial banking industry alone is estimated at $862.4 billion this year.

Commercial banks have been around for quite some time, and even though the banking landscape is continuously evolving, it has always been in demand.

Moreover, this industry has performed better than the finance and insurance industries.

Commercial banking is an excellent career for those looking at a lucrative, long-term career path.

What Is Commercial Banking?

Commercial banking forms an important sector of the banking industry.

Commercial banks essentially serve individuals and clients, i.e., clients engaged in commercial activities.

Such banks provide clients with a wide range of services and products, including checking and savings accounts, loans, mortgages, investment services, safe deposit boxes, etc.

They will then profit through the fees they charge for these services.

Commercial Banking Job Description

Your duties as a commercial banker will depend on your employer and your position.

However, there are some general duties and responsibilities you will be expected to undertake:

  • Connecting clients and lenders
  • Setting up commercial loans
  • Offering financial advice to clients
  • Managing commercial accounts
  • Issuing checking and savings accounts and other deposit products
  • Seek new customers and contribute to your banks marketing efforts

 

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Is Commercial Banks A Good Career Path?

How Many Jobs Are Available In Commercial Banks?

Commercial banking is one of the fastest-growing sectors in the US economy.

You might be pondering on the availability of jobs in this sector. As of 2022, there are over 1,838,918 commercial banking employees in the US.

You will also find over 25,000 commercial banking jobs on LinkedIn.

Do Commercial Banks Pay Well?

Commercial bankers are high in demand, so that you can expect decent pay. Commercial bankers can earn a median annual salary of around $88,286.

An entry-level commercial banker with less than a year’s experience can still earn nearly $51,000 per year, which is competitive with other jobs in the industry.

Commercial Banking Career Path

To start a career as a corporate banker, you need to focus on getting the required degree and grades.

Your academics matter here. Most recruitment usually starts at target pools of schools where young bankers are recruited for starter positions.

If you are selected, your commercial banking career will usually start with you as a credit analyst underwriting loan requests.

Most individuals with an undergraduate degree are typically hired as an analyst.

You can then advance to higher positions over time, usually first as an associate corporate banker and then onto VP or associate directors.

Directors and managing directors are senior-level management roles far more competitive since the functions are limited. 

 

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Best Paying Jobs In Commercial Banks Can Skyrocket Your Income

Is Commercial Banking Stressful?

Your experience as a commercial banker depends significantly on the position, the bank, and the location you are employed in.

Working as a commercial banker can indeed be stressful at times, and high-pressure situations will eventually arise at one point or another.

But you need to understand that every job has its ups and downs, and your experience won’t necessarily be wrong.

Commercial Banking Work Life Balance

While commercial banking is a challenging career, it is also equally rewarding. Commercial bankers typically earn high salaries and have long-term job security.

You will be pleased to know that commercial banking tends to have an outstanding work-life balance.

While most banks will have you working the standard nine to five, they can still be pretty flexible.

Some banks even allow you to choose when to start and end your day and where you want to work, remotely or in an office space.

Best Paying Jobs in Commercial Banks

According to WallStreetMojo, some of the best paying jobs in commercial banks include:

  • Credit analyst (median annual salary $71,90)
  • General managers (median annual salary between $1,00,000-$3,00,000)
  • Business development managers (median annual salary between $1,00,000-$1,50,000)
  • Branch managers (median annual salary between $2,00,000-$5,00,000)
  • Loan officers (median annual salary $63,040)

Which Commercial Banks Pay The Most?

Goldman Sachs takes the lead, paying their VPs more than any other banks in the industry (according to Forbes), usually around $196,896 a year on average.

They are followed by Capital One, which pays its VPS an annual salary of $165,514.

Finally, you have American Express, whose VPS earn a median salary of $163,908 a year (excluding their bonuses).

How To Get Into Commercial Banking?

Before pursuing a commercial banker career, you must learn about commercial banks and the roles and responsibilities you will have to undertake.

Commercial bankers are expected to obtain a bachelor’s degree (or a master’s), usually in business administration or other finance-related fields.

Banks may prefer individuals who undergo training programs or internships in the banking industry.

Remember, the more skills you gain, the more likely you will land a higher-paying position.

Once you have the necessary experience, you can start applying for jobs in your area.

 

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How Many Jobs Are Available In Commercial Banks?

Is Banking A Good Career To Get Into?

Banking is a great career to get into! There are many career progression and growth opportunities, all-inclusive of great pay and plenty of benefits.

It can be a challenging career at times but well worth the time.

Banking firms are also incredibly regulated and supervised, so you’ll find them safe and pleasant workplaces.

Commercial Banking Careers

What types of careers can you pursue as a commercial banker? Here are some jobs you should consider:

  • Credit analyst
  • Account manager
  • Branch manager
  • Quality assurance specialist
  • Loan officer
  • Executive

Commercial Banker Salary

As mentioned earlier, as a commercial banker, you can earn an estimated median annual salary of $88,286.

This can increase as high as $110,385 but will usually depend on your education, your skills, your experience, and the position you are employed in.

Commercial Banking Salary Progression

Starting as a commercial banker, you can expect to be earning around $60,000 annually for the first 1-2 years.

Once you build a strong portfolio and learn to sell bank services, usually 3-4 years down the road, you can expect this to rise to $95,000-$120,000 per year.

From here, if you land a leadership position, you can expect an even higher pay ($250,000+). 

How Do I Become A Successful Commercial Banker?

You can become a successful commercial banker by focusing on your academics and ensuring you are appropriately qualified if you hope to secure a good position at your chosen bank.

You should also build strong analytical and decision-making skills.

Your technical skills aren’t all that matters; a large part of your career will include human relations, so you should learn to become a proactive communicator.

Commercial Banking Exit Opportunities

There are plenty of exit opportunities for commercial bankers.

Since you already get plenty of experience in sales and credit analysis, you can move on to corporate banking, investment banking or debt capital markets, and private lending. 

Do commercial banks pay well?

Commercial bankers can earn a median annual salary of around $88,286. An entry-level commercial banker with less than a year’s experience can still earn nearly $51,000 per year, which is competitive with other jobs in the industry.

Is banking a good career to get into?

There are many career progression and growth opportunities, all-inclusive of great pay and plenty of benefits. Banking firms are also incredibly regulated and supervised, so you’ll find them safe and pleasant workplaces.


Is commercial banking a growing industry?

Commercial banking is one of the fastest-growing sectors in the US economy. As of 2022, there are over 1,838,918 commercial banking employees in the US.

Is commercial banking competitive?

Directors and managing directors are senior-level management roles far more competitive since the functions are limited.

How do you land a job in commercial banking?

Commercial bankers are expected to obtain a bachelor’s degree (or a master’s), usually in business administration or other finance-related fields. Banks may prefer individuals who undergo training programs or internships in the banking industry.

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