Commercial Banking
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Overview of Commercial Banking Areas
What type of entry-level jobs exist in Commercial Banking?
Commercial Banking Career Paths
Links about Commercial Banking
Also referred to as retail banking, commercial banks are what most people think of, when they think of a bank. Commercial banks are in the business of providing banking services to individuals, small businesses and large organizations. Commercial banks provide loans, maintain checking and savings accounts, safeguard money and valuables, process credit and payment services, such as money orders and cashier’s checks. Banks also offer investment and insurance products.
Generally, the breakdown of a commercial bank includes the following areas: Commercial and Consumer Lending (Loans), Branch Management, Trust Services, Treasury Management, and Sales (Financial Services).
Back to topOverview of Commercial Banking
Back to topThere are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they begin to expand the range of products and services they offer, there are still key distinguishing traits.
Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks.
Examples of Commercial Banks include:
Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals. Modern savings and loan associations tend to look and feel like any other bank participating in retail banking. Recent changes in regulations allow them to refer to themselves as banks or savings banks. The services offered today to individuals are similar, if not identical, to services offered by commercial banks or credit unions.
Examples of Savings and Loans include:
Credit unions are another kind of depository institution. Most credit unions are formed by people with a common bond, such as those who work for the same company or belong to the same labor union or church. Members pool their savings and, when they need money, they may borrow from the credit union, often at a lower interest rate than that demanded by other financial institutions.
Examples of regional credit unions include:
Overview of Commercial Banking Areas
Lending - Loan officers determine, based on the bank's criteria who receives loans and who does not. There's a fair amount of networking involved in this job, either at the local chamber of commerce and Rotary Club or overseas in emerging markets. If you prefer to crunch numbers in private and deal with people only occasionally, this isn't the job for you. But an accounting whiz with sales skills and diplomacy will thrive. There are three main areas in which loan officers specialize: commercial, consumer or mortgage loans. |
Branch Management - This is a great way to learn the industry. Managers learn operations and how to manage relationships with upper management, staff, and customers. Many of these people have been promoted from a position as a loan officer. This is an excellent place to find internships and summer employment. |
Sales - Banks are competing with brokerages, investment banks, and mutual funds, all of which offer more obvious and alluring opportunities in sales. Demand is also rising for salespeople who understand product development and for investment managers (brokers). Bank salespeople are often called Financial Services Representatives. |
Treasury Management - Involves managing the cashflows of businesses. Banks provide cash management solutions designed to help businesses speed collections, control payments and manage funds more efficiently. The goal of Treasury Management is to help businesses maximize cash balances and reduce interest expense. |
Trust Services - Involves assisting clients in creating trusts that will manage and protect their financial assets. These assets may include: real estate, monetary investments or retirement plans. Trust officers maintain customer's accounts by performing tasks such as accounting, record keeping and financial advice. |
What type of entry level jobs exist in Commercial Banking?
| Back to top | Description: College graduates often start as credit analysts—jacks of all trades. Credit Analysts do all the background work supporting the commercial bank's lending decisions. |
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Skill Requirements: Credit Analyst positions are typically open to all majors. This is usually a "Lender in Training" position. Skills required include:
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| Training: Smaller banks and credit unions typially train on the job, whereas larger commercial banking institutions offer dedicated training progams for developing Credit Analysts into Loan Officers. | |||
Tasks:
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Education: BA, BS, BBA |
Hours: 40 hrs per week |
Salary: $27,000 - $32,000 |
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Treasury Management: Treasury Management Associate Back to top |
Description: Entry-level hires often start as Treasury Management Associates. An associate's primary responsibility is to assist Senior Treasury Analysts with ongoing analysis and management of company bank accounts held by customers. |
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Skill Requirements: Candidates should have a solid background in Finance and Accounting (typically no less than 9 hours). Candidates should also possess:
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| Training: Larger commercial banking institutions offer dedicated training progams for developing Treasury Management Associates. Undergraduates are typically hired directly into the program for 12-18 months. | |||
Tasks:
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Education: BA, BS, BBA |
Hours: 45+ |
Salary: $35,000 - $42,000 |
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Branch Management: Assistant Branch Manager Associate Back to top |
Description: New hires interested in Branch Management are typically hired as Assistant Branch Manager Associates. Associates are hired to learn day-to-day branch functions and the business of retail banking. |
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Skill Requirements:
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| Training: Larger commercial banks matriculate Associates through a 12-18 month training program. Associates learn to sell product lines, direct bank branches and departments, resolve customers’ problems, and ensure that standards of service are maintained | |||
Tasks:
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Education: BA, BS, BBA |
Hours: 45+ (alternating weekends required) |
Salary: $27 - $35,000 |
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Sales: Financial Services Sales Representative Back to top |
Description: Financial Services Sales Representatives sell annunities, brokerage accounts, mutual funds, and other investment products to banking customers. |
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Skill Requirements: Candidates should have a solid background in Finance. Candidates should also possess:
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| Training: Financial Services Representatives learn the details of their jobs through on-the-job training and classroom instruction under the supervision of bank officers. A representative is typically in training for 12-18 months. Training typically leads to licensure to sell insurance and annuities. While in training representatives sell banking services like cash management, deposit accounts, and lines of credit. Many representatives will train for certifications such as: Certified IRA Services Professional, Certified Retirement Services Professional, or Certified Financial Planner. | |||
Tasks:
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Education: BA, BS, BBA |
Hours: 40 |
Salary: $32,000 - $100,000 (Based on commission) |
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Commercial Banking Career Paths
Commercial Lending: Career Path Back to top |
Commercial Loan Officer (Salary Range: $40K-60K): Credit Analysts can be promoted to Loan Officer after 2-3 years. Loan Officers typically specialize in commercial, consumer, or mortgage lending. Loan officers play a major role in bringing in new business and spend much of their time developing relationships with potential customers. They evaluate loan applications, determine an applicant’s ability to pay back a loan, and recommend approval of loans. |
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Commercial Loan Workout Officer (Salary Range: $58-90K): Commercial Loan Officers can be promoted into more lucrative areas of lending. After 5-7 years Commercial Loan Officers can be promoted to a Commercial Loan Workout Officer. They are responsible for maintenance, security, and sale of real estate (foreclosure properties) and other assets obtained by the bank (automobiles, stocks, bonds). Officers also work with small business owners that are working to pay-off loans related to failed business ventures. This position is heavy on the sales side and the upside is commission- based. |
Small Business Banker (Salary Range: $50-95K): Commercial Loan Officers can also be prompoted to Small Business Banker. They are responsible for originating commercial loans to small business owners. This position is heavy on the sales side and the upside is commission-based. | ||
Senior Commercial Lender or Head of Commercial Lending (Salary Range: $65-75K): Positon is responsible for managing a group of lenders. Many lenders tend to shy away from promotions to Head of Commerial Lending because there is more upside potential in the field. |
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| Back to top | Mortgage Loan Officer (Salary Range: $30-70K): Credit Analysts and Loan Processors can be promoted to Mortgage Loan Officer after 1-2 years. They solicit new loans, gather background information, assist borrowers with filling out loan applications, and submit applications for processing. Many smaller banks and specialized lending institutions hire undergraduates directly in as Mortgage Loan Officers. | ||
Mortgage Broker (Salary Range: $60-90K): Mortgage Brokers are the middlemen in the mortgage lending industry. They contact borrowers seeking mortgage financing and negotiate loans with mortgage lenders. Brokers work on commission basis only. After several years experience, Mortgage Lenders may move to this position as it can be more lucrative. |
Mortgage Loan Supervisor (Salary Range: $50-65K) : Mortgage Loan Officers with leadership experience may opt to pursue management positions where they are responsible for managing a workforce of Mortgage Loan Officers. | ||
| Back to top | Trust Officer: Trust Services positions are usually filled through promotion of bank employees with trust operations experience. Trust Officers manage a variety of assets that were placed in trust with the bank for other people or organizations; these assets can include pension funds, school endowments, or a company’s profit-sharing plan. Sometimes, trust officers act as executors of estates upon a person’s death. Trust officer may also deal with Real Estate Investment Trusts (also known as REITs). These are entities that invest in different kinds of real estate or real estate related assets. |
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Porfolio Manager or Trust Department Manager: Trust Officers have several advancement options. They may advance to become Portfolio Manager within the trust department, where they will have resposibility for managing a porfolio of trust accounts, or become Trust Department Manager if they have management skills. |
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Branch Management: Career Path Back to top |
Assistant Branch Manager (Salary Range: $27K - 35K): After completing 12-18 months in the Assistant Branch Manager Associate program, associates can be promoted to Assistant Branch Manager. Assistant Branch Managers manage customer service and operational activities within a small branch,
ensuring compliance with established internal operational standards and
government regulations. They also manage, lead, coach and participate in sales
activities to develop and expand customer relationships. |
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Branch Manager (Salary Range: $32-$55K): Assistant Branch Managers can be promoted to Branch Manager after 3-4 years of service. They lead the sales activities of all personnel within a branch, ensuring full
utilization of the customer relationship management system to meet and exceed
established sales goals. They also manage operations and customer service activities
within a branch and deliver financial services products to current and
potential individual and business customers. |
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| Regional Manager (Salary Range: $55-80K) Branch Mangers can be promoted to Regional Manager after 5-7 years (positions are very limited). A Regional Manager supervises a group of branch offices of commercial banks. The Regional Manager is the banking executive responsible for deposit and loan growth in the group. | |||
Regional Vice President (Salary Range: $80-120K): Regional Managers can be promoted to Regional Vice President. Consolidation within the banking industry has reduced the number of Regional VP positions in recent years. |
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| Back to top | Sales Manager (Salary Range: $45K - 100K): Financial Services in a commercial bank can become lucrative very early. Many Financial Sales Representatives opt to remain representatives so they can grow their portfolio of accounts and continue to boost their commissions. Representatives with leadership experience and an interest in management can move up to Sales Manager and eventually Director of Investment Services. |
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The Commercial Banking Hiring Process
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If the banking institution you are interested in recruits on campus, please post your resume directly through the William & Mary Career Center e-Recruiting website.
- Link to William & Mary eRecruiting Quick Start Guide
What constitutes a good banking resume:
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- Demonstrated quantitative and analytical skills
- Results orientation
- Written and verbal communication skills
- Team player mentality
- Reflect on industry exposure and/or experience, leadership skills, experience in customer service, knowledge of financial operations, multi-tasking skill.
- Use Times New Roman font in point size 10-12.
- Use bullet points to accentuate appropriate elements and make your resume easier to read overall.
- Use a basic, conservative format – avoid “flash.”
- Keep your resume to ONE PAGE. Multi-page resumes are often discarded.
- Print your resume and cover letter on matching white or off-white paper.
The Commercial Banking Interview Process
Commercial Banking interviews typically include 2 rounds of interviews that are behavioral in nature. If the bank is recruiting at William & Mary, then the first will be on-campus and the second is on-site; ie., the bank's headquarters.
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Campus
On-Site
Purpose
A screening interview to eliminate candidates who do not meet required criteria.
To decide which applicant(s) should receive an offer.
Your Objective
To be recommended for the next step by describing your skills and career objectives persuasively.
1) To obtain the offer by persuading hiring executives that you would be the best candidate, and 2) to obtain enough information in order to make the decision to accept or reject an offer.
Their Objective
To probe for basic information through a structured interview. Can the applicant do the job?
To determine the applicant's long-range potential (promotability) through more in-depth questioning. Who is the best applicant?
Interviewers
One interviewer, either from the personnel department or a line manager from the department with the vacancy.
There could be from one to six or more interviewers. They could include the supervisor or manager, department head, personnel manager, etc. You may be interviewed by several people at a time.
Length
Normally 30 minutes.
Each interview could be 30 minutes to an hour. (May be interviewed throughout the day).
Selection Ratio
For very competitive positions, as few as 15-20% could be recommended for an on-site interview.
Firms normally aim for a higher selection ratio.
Attire
Business suit (for men) or tailored suit or dress and jacket (for women).
Business suit (for men) or tailored suit or dress and jacket (for women).
Preparing for a Structured Behavioral Interview:
You will be asked questions that focus on situations you’ve encountered in the past. When you answer, there are three pieces of information the interviewer will collect for each behavioral example:
- The Situation or Task that you faced
- The Actions that you took
- The Results or changes caused by the action
Following is an example of a candidate’s response that includes all parts of a behavioral example:
Back to topQuestion: Can you tell me about a time where you effectively handled a customer complaint?
- Situation/Task: There was one time when a customer was upset because the ATM at our branch was down. The customer needed to check her account balance and the ATM was under repair.
- Action: I saw that the customer was upset, so I asked her if I could help. After finding out that she was interested in checking her account balance, I walked her over to our phone kiosk and let her know that she could obtain her balance by
calling our 1-800 number.- Result: The customer thanked me and two weeks later my manager received a letter of appreciation from her.
Here are 10 ways to improve your success in interviews:
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- Show interest by preparing for the interview—research the bank/industry, prepare a list of questions, and know your skills, talents, and accomplishments, etc.
- Dress to reflect the image of a business professional.
- Express sincere interest in both the company and position.
- Extend a firm, friendly handshake and maintain good eye contact.
- De-emphasize money and fringe benefits. (Simply do not bring this subject up during your interview!)
- Exhibit confidence and poise (at ease, calm, relaxed).
- Express a career purpose and interest in long-term opportunities (goals).
- Indicate participation in group activities (team player).
- Express appreciation for the interviewer's time.
- Follow up appropriately after each interview (phone call, thank you email, etc.).
Useful Links
Occupational Overview for Loan Officers (Bureau of Labor Statistics)
Commerical Banking - Facts and Trends
WetFeet.com's Career Profile on Commercial Banking
US Departmnet of Labor's Career Guide to Banking
American Banker (Online resource for banking professionals)
Links to Professional Associations
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Commercial Bank Websites (Banks with recruiting relationships on campus)
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Commercial Banking Websites (Other Banks)
Commercial Banking Job Opportunities
William & Mary e-Recruiting - Commercial Banking Job Search - You will need your William & Mary login and password to access the job opportunities within e-recruiting.
Louisiana State University (Graduate School of Banking)
University of Virginia (MBA - Concentration Finance)
William & Mary (Mason School of Business) (MBA)
Univeristy of Wisconsin (MBA - Finance and Banking)
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