The heads of state of Britain and France will call for greater transparency in the financial sector during their meeting on Thursday.
The French president's visit to England comes during global turmoil in the financial markets with the US federal reserve making a 0.75 per cent interest rate cut to provide a spur to the global economy.
Prices of oil, gold and other commodities have reached record highs in the past few weeks and losses caused by subprime mortgages have resulted in the collapse of Northern Rock in England and the sale of global investment bank Bear Stearns.
According to British officials, Gordon Brown and French president Nicolas Sarkozy will ask banks to ensure "greater transparency in financial markets" and to engage in the "full and immediate disclosure of the scale of write-offs".
In addition, Mr Brown and Mr Sarkozy will also call for a review into the operation of credit rating agencies - firms which provide information about the reliability of bonds - amid concerns that they are paid by the same investment banks who create the internationally tradable loans.
The two leaders will also discuss proposals to give the International Monetary Fund a greater role in ensuring economic stability by providing information on events that could lead to global financial crises.
Both countries, who are permanent members of the United Nations security council, are also keen on improving the 15-member body's representation of the world by calling for a permanent seat for Africa.
As in other areas of media, the music industry is finally starting to come around to the difficult truth that we now live in a world in which consumers expect information and entertainment to be free. Efforts to sell music by subscription have mainly failed. (Yahoo recently gave up on its Music Unlimited subscription service and sent its customers to Rhapsody, another struggling music provider.) But traditional radio’s offer of free music surrounded by audio advertising is also being rejected by a generation that resents undesirable interruptions.
“They want to be the program director and they insist that the program be free,” says Jerry Del Colliano, a professor of music industry at the University of Southern California and a former executive at Top 40 WIBG in Philadelphia. “Young consumers don’t have that need that we older folks have to have someone knowledgeable about the music tell them what’s new. They have their social network to tell them what’s cool.”
With increasing evidence that many people suffer from iPod fatigue—they know too well what’s stored on their player and they crave surprise—several companies are trying to figure out what blend of user-generated content and expert guidance will attract an audience.
Provide an efficient, highly skilled support service to corporate clients
Effectively and skillfully handle clients and prospective clients relationships
Actively identify opportunities for cross-sales and lead generation
Control and effectively manage deposit customers requirements
Deal effectively with queries, account opening and maintenance
Process and prepare lending documentation for all customers
Instruct, complete and process internal and external documentation to ensure securities preparation and discharge relating to lending proposals
Maintain the Customer Information Management database to ensure accurate and up to date records of all contacts made by and with the customer
Identify irregular accounts, take necessary actions and highlighting any potential longer term problems
Perform a range of routine transaction processing to provide first class customer service
Job Requirement
Diploma/Degree
At least 2 years experience in Premier/Priority banking environment
Possess excellent customer service attitude, interpersonal and communications skills
A strong team player and contributor
Ability to work in a fast-paced environment
Possess good PC skills
Only Singaporeans and Singapore PRs need apply
Trade Finance Operation Officer - Foreign Bank
Responsibilities
Process import and export documents
Advising, imports/export bills
L/c refinancing, reimbursement claims
Invoice Financing
Prepare monthly reports to Head Office
Day-end Balancing, monitoring tracers
Ad hoc duties
Requirements
Degree/ Diploma in Banking & Finance or its equivalent
Min 2-3 years of relevant finance related experience
Able to work with minimal supervision
At least 3 years of relevant experience
Only Singaporean and Singapore PR need apply
Finance Department
Responsibilities:
Prepare financial and statistical reports under IAS and FRS/IFRS
Provide support in other areas including
Preparation of various statutory returns to MAS and for HO
Monitoring compliance with regulations;
Attending to Corporate Tax and GST matters
Nostro reconciliation
Support in budget preparation, cost benefit analysis and operational risk management.
Assist in other accounting duties in the finance department
Taking up ad hoc projects
Requirements: • Degree/ Diploma in Accountancy, Banking & Finance or its equivalent • Min 2-3 years of relevant auditing, accounting or finance related experience • Exposure in futures, securities or financial institutions an added advantage • Proficient in Microsoft excel and work • Pleasant personality, good team player, responsible keen to learner and detail oriented • Good communication & interpersonal skills • Able to work under tight deadlines
Additional Information:
Location: Central
5 days week
Application:
Interested applicants kindly email a detail resume in MSWord Format with a recent photo to jo@mci.com.sg or call 6896 1660 / 6896 0827
*Do Not Quick Apply
**We regret to inform that only shortlisted candidate will be notified
by Asia globalization, finance, politics study •Monday, Mar. 24, 2008 at 1:05 AM
Chaos or prosperity for China ahead? Has China's ongoing reform altered the nation's political-economic landscape as far as government corruption is concerned? What is the next if this corruption goes deeper? Get the lastest analysis and information from leading experts on the ground inside China.
The price of Chinese corruption: what is the next in China's politics, finance, society, stability and international relations?
Asia Globalization, Travel, Politics Institute
Has China's ongoing reform altered the nation's political-economic landscape as far as government corruption is concerned? What is the next if this corruption goes deeper?
A compelling new report says that runaway corruption in China poses a lethal threat to the nation's economic development and "undermines the legitimacy of the ruling Chinese Communist Party."
Evidence from official audits, press articles and law enforcement data, the report says, indicates that "corruption in China is both pervasive and costly."
Bribery, kickbacks, theft and fraud, particularly by government officials, are said to be rampant.
Pei Minxin (裴敏欣) wrote the report issued last month by the Carnegie Endowment of International Peace, based in Washington. Pei is a political scientist educated at the Shanghai International Studies University. He earned his PhD at Harvard and his work has been widely published in the US.
The report asserts that corruption in China "has spillover effects beyond its borders" that hurt US, Japanese and other foreign investors.
"Illicit behavior by local officials could expose Western firms to potentially vast environmental, human rights and financial liabilities," the report says.
Public statements by Chinese President Hu Jintao (胡錦濤), Premier Wen Jiabao (溫家寶) and other senior Chinese officials suggest that China's leaders are well aware of the widespread problem but have been unwilling to curb it.
The report says: "The odds of an average corrupt official going to jail are at most 3 out of 100, making corruption a high-return, low-risk activity."
If Hu comes down too hard on corruption, he risks losing support of the delegates at the recently held party Congress who elected him. Those delegates are drawn largely from party officials at the local and provincial level.
Pei is not alone in assessing corruption in China. George Zhibin Gu ( 顾志斌), an investment banker who was educated at Nanjing University and earned a doctorate at the University of Michigan, has suggested that corruption may destroy China's economy, which has been growing at 8 percent to 10 percent a year. In the West, a 3 percent growth rate is respectable.
Much more systematic analysis and information is contained in Gu's two new books: 1. China and the new world order: how entrepreneurship, globalization, borderless business are reshaping China and the world; 2. Chin's global reach: markets, multinationals, globlization. Gu is based in Guangdong, China. His two books contain field investigations and a number of interviews with Chinese officials, business managers, farmers, scholars and researchers. There are surprising findings throughout the work.
Moreover, China's Xinhua news agency frequently details specific instances of corruption. Last week, the Chinese government was reported to have banned fire department officials from receiving sexual favors from companies seeking their protection.
Scrutinized through a wide-angle lens, corruption is just at the forefront of the internal ills that jeopardize China's economic and political strength. Unemployment and under-employment, in which a worker has only one or two days of work a week, may be over 25 percent. Paradoxically, China has begun to experience shortages of the skilled labor needed for its expanding industries. Economic progress has been uneven, with coastal cities leaving the rural interior far behind.
"Corruption in China is concentrated in the sectors with extensive state involvement," the Pei report says.
That includes construction of dams, roads and electrical grids. The sales of land or granting user rights are susceptible, as are financial services and heavily regulated industries.
"The absence of a competitive political process and a free press in China makes these high risk sectors even more susceptible to fraud, theft, kickbacks and bribery," the report says.
Pei cites a study done last year asserting that about half of those engaged in corruption were involved in infrastructure projects or land transactions.
Even so, the report says: "Beijing punishes only a very small proportion of party members or government officials tainted by corruption."
US, Japanese and other foreign investors may be put at a competitive disadvantage by rivals who engage in illegal practices to win business in China, the report says.
"Corruption puts Western firms' intellectual property rights particularly at risk because unscrupulous local officials routinely protect Chinese counterfeiters in exchange for bribes," it says.
While the report doesn't say so, US firms that pay bribes may violate the US Foreign Corruption Practices Act of 1977 that forbids kickbacks and bribery abroad, no matter what the customs of other nations.
The report also says: "Corruption in China affects other countries through the spread of cross-border crimes such as drug trafficking, human smuggling and money laundering."
But what is really behind China's deadly corruption? Pei is short on this deeper issue, but George Zhibin Gu in his books pinpoints on the root-causes: "unlimited bureaucratic power, which is based on cults and terror, is the root-cause of this ongoing China's corruption. And as long as this bureaucratic power remains in place, corruption can hardly be contained in any practical way."
Publication: US Banker Date: Thursday, June 1 2000
It took hardly any time for Charles Schwab Corp. to make a killing on its investment in E-Loan Inc. It paid about $3.70 each for 2.7 million shares of the online lender, at a total cost of $10 million, and by the end of the day, the shares were selling at $9.85. That was a paper profit of about $16.6 million. What's more, Schwab has options to buy another 13.1 million shares. Under the agreement, Schwab would pay only $3.75 a share for an additional 6.5 million shares and $15 each for the remaining 6.6 million shares. But will E-Loan ever make any money? It lost $1.97 a share last
Office and administrative support workers constitute 2 out of 3 jobs; tellers account for about 3 out of 10 jobs.
Many job opportunities are expected for tellers and other office and administrative support workers, because these occupations are large and have high turnover.
Many management positions are filled by promoting experienced, technically skilled professional personnel.
Nature of the Industry
Banks safeguard money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashier’s checks. Banks also may offer investment and insurance products, which they were once prohibited from selling. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits.
Goods and services. Banking is comprised of two parts: Monetary Authorities—Central Bank, and Credit Intermediation and Related Activities. The former includes the bank establishments of the U.S. Federal Reserve System that manage the Nation’s money supply and international reserves, hold reserve deposits of other domestic banks and the central banks of other countries, and issue the currency we use. The establishments in the credit intermediation and related services industry provide banking services to the general public. They securely save the money of depositors, provide checking services, and lend the funds raised from depositors to consumers and businesses for mortgages, investment loans, and lines of credit.
Industry organization. There 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 have begun 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. Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Banks have become more oriented toward marketing and sales. As a result, employees need to know about all types of products and services offered by banks. Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. In recent years, online banks—which provide all services entirely over the Internet—have entered the market, with some success. However, many traditional banks have also expanded to offer online banking, and some formerly Internet-only banks are opting to open branches.
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.
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.
Federal Reserve banks are Government agencies that perform many financial services for the Government. Their chief responsibilities are to regulate the banking industry and to help implement our Nation’s monetary policy so our economy can run more efficiently by controlling the Nation’s money supply—the total quantity of money in the country, including cash and bank deposits. For example, during slower periods of economic activity, the Federal Reserve may purchase government securities from commercial banks, giving them more money to lend, thus expanding the economy. Federal Reserve banks also perform a variety of services for other banks. For example, they may make emergency loans to banks that are short of cash, and clear checks that are drawn and paid out by different banks.
Interest on loans is the principal source of revenue for most banks, making their various lending departments critical to their success. The commercial lending department loans money to companies to start or expand their business or to purchase inventory and capital equipment. The consumer lending department handles student loans, credit cards, and loans for home improvements, debt consolidation, and automobile purchases. Finally, the mortgage lending department loans money to individuals and businesses to purchase real estate.
The money banks lend comes primarily from deposits in checking and savings accounts, certificates of deposit, money market accounts, and other deposit accounts that consumers and businesses set up with the bank. These deposits often earn interest for their owners, and accounts that offer checking provide owners with an easy method for making payments safely without using cash. Deposits in many banks are insured by the Federal Deposit Insurance Corporation, which guarantees that depositors will get their money back, up to a stated limit, if a bank should fail.
Recent developments. Technology is having a major impact on the banking industry. Direct deposit allows companies and governments to electronically transfer payments into various accounts. Debit cards, which may also be used as ATM cards, instantaneously deduct money from an account when the card is swiped across a machine at a store’s cash register. Electronic banking by phone or computer allows customers to access information such as account balances and statement history, pay bills, and transfer money from one account to another. Some banks also have begun offering online account aggregation, which makes available in one place detailed and up-to date information on a customer’s accounts held at various institutions.
Advancements in technology have also led to improvements in the ways in which banks process information. The use of check imaging allows banks to store photographed checks on the computer instead of paper files. Also, the availability and growing use of credit scoring software allows lending departments to approve loans in minutes, rather than days.
Other fundamental changes are occurring in the industry as banks diversify their services to become more competitive. Many banks now offer their customers financial planning and asset management services, as well as brokerage and insurance services, often through a subsidiary or third party. Others are beginning to provide investment banking services—usually through a subsidiary—that help companies and governments raise money through the issuance of stocks and bonds. As banks respond to deregulation and as competition in this sector grows, the nature of the banking industry will continue to undergo significant change.
Working Conditions
Hours. The average workweek for nonsupervisory workers in depository credit intermediation was 35.7 hours in 2006. Supervisory and managerial employees, however, usually work substantially longer hours. About 1 out of 10 employees in 2006, mostly tellers, worked part-time.
Employees in a typical branch work weekdays, some evenings if the bank is open late, and Saturday mornings. However, banks are increasingly expanding the hours that their branches are open and opening branches in nontraditional locations. For example, hours may be longer for workers in bank branches located in grocery stores and shopping malls, which are open most evenings and weekends. To improve customer service and provide greater access to bank personnel, banks are establishing centralized phone centers, staffed mainly by customer service representatives. Employees of phone centers spend most of their time answering phone calls from customers and must be available to work evening and weekend shifts.
Administrative support employees may work in large processing facilities, in the banks’ headquarters, or in other administrative offices. Most support staff work a standard 40-hour week; some may work overtime. Those support staff located in the processing facilities may work evening shifts.
Work environment. Branch office jobs, particularly teller positions, require continual communication with customers, repetitive tasks, and a high level of attention to security. Tellers also work for long periods in a confined space.
Commercial and mortgage loan officers often work out of the office, visiting clients, checking loan applications, and soliciting new business. Loan officers may travel to meet out-of-town clients, or work evenings if that is the only time at which a client can meet. Financial service-sales representatives also may visit clients in the evenings and on weekends to go over the client’s financial needs.
The remaining employees located primarily at the headquarters or other administrative offices usually work in comfortable surroundings and put in a standard workweek. In general, banks are relatively safe places to work. In 2006, the rate of work-related injury and illness per 100 full-time workers was 1.1 in central banks (monetary authorities) and 2.7 in other banking establishments (depository credit intermediation), both lower than the overall rate of 4.4 per 100 employees in the private sector.
Employment
The banking industry employed about 1.8 million wage and salary workers in 2006. About 7 out of 10 jobs were in commercial banks; the remainder were concentrated in savings institutions and credit unions (table 1).
Table 1. Percent distribution of employment and establishments in banking by detailed industry sector, 2006
Industry segment
Employment
Establishments
Total
100.0
100.0
Monetary authorities - central bank
1.2
0.3
Depository credit intermediation
98.8
99.7
Commercial banking
72.5
69.7
Savings institutions
13.1
14.7
Credit unions
12.1
14.2
Other depository credit intermediation
1.2
1.1
In 2006, about 84 percent of establishments in banking employed fewer than 20 workers (chart 1). However, these small establishments, mostly bank branch offices, employed 36 percent of all employees. About 64 percent of the jobs were in establishments with 20 or more workers. Banks are found everywhere in the United States, but most bank employees work in heavily populated States such as New York, California, Illinois, Pennsylvania, and Texas.
Occupations in the Industry
Banks employ various types of financial and customer service occupations. Tellers make up the largest number of workers, and overall office and administrative support occupations make up the largest portion of jobs in the industry. Management, business, and financial occupations also employ a significant number of employees in the banking industry.
Office and administrative support occupations. These occupations account for 2 out of 3 jobs in the banking industry (table 2). Bank tellers, the largest number of workers in banking, provide routine financial services to the public. They handle customers’ deposits and withdrawals, change money, sell money orders and traveler’s checks, and accept payment for loans and utility bills. Increasingly, tellers also are selling bank services to customers. New accounts clerks and customer service representatives answer questions from customers, and help them open and close accounts and fill out forms to apply for banking services. They are knowledgeable about a broad array of bank services and must be able to sell those services to potential clients. Some customer service representatives work in a call or customer contact center environment, taking phone calls and answering emails from customers. In addition to responding to inquiries, these workers also help customers over the phone with routine banking transactions, and handle and resolve problems or complaints.
Loan and credit clerks assemble and prepare paperwork, process applications, and complete the documentation after a loan or line of credit has been approved. They also verify applications for completeness. Bill and account collectors attempt to collect payments on overdue loans. Many general office clerks and bookkeeping, accounting, and auditing clerks are employed to maintain financial records, enter data, and process the thousands of deposit slips, checks, and other documents that banks handle daily. Banks also employ many secretaries, data entry and information processing workers, receptionists, and other office and administrative support workers. Office and administrative support worker supervisors and managers oversee the activities and training of workers in the various administrative support occupations.
Management, business, and financial occupations. These occupations account for about 25 percent of employment in the banking industry. Financial managers direct bank branches and departments, resolve customers’ problems, ensure that standards of service are maintained, and administer the institutions’ operations and investments. Loan officers evaluate loan applications, determine an applicant’s ability to repay a loan, and recommend approval of loans. They usually specialize in commercial, consumer, or mortgage lending. When loans become delinquent, loan officers, or loan counselors, may advise borrowers on the management of their finances or take action to collect outstanding amounts. Loan officers also play a major role in bringing in new business and spend much of their time developing relationships with potential customers. 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. They also may work as accountants, lawyers, and investment managers.
Securities, commodities, and financial services sales agents, who make up the majority of sales positions in banks, sell complex banking services. They contact potential customers to explain their services and to ascertain the customer’s banking and other financial needs. They also may discuss services, such as deposit accounts, lines of credit, sales or inventory financing, certificates of deposit, cash management, or investment services. These sales agents also solicit businesses to participate in consumer credit card programs. At most small and medium-size banks, however, branch managers and commercial loan officers are responsible for marketing the bank’s financial services. This has become a more important task in recent years.
Other occupations. Occupations used widely by banks to maintain financial records and ensure the bank’s compliance with Federal and State regulations are accountants and auditors, and lawyers. In addition, computer specialists maintain and upgrade the bank’s computer systems and implement the bank’s entry into the world of electronic banking and paperless transactions.
Table 2. Employment of wage and salary workers in banking by occupation, 2006 and projected change, 2006-2016. (Employment in thousands)
Occupation
Employment, 2006
Percent change, 2006-16
Number
Percent
All occupations
1,825
100.0
4.0
Management, business, and financial occupations
449
24.6
5.4
General and operations managers
34
1.8
-8.4
Marketing and sales managers
11
0.6
1.9
Financial managers
73
4.0
1.9
Human resources, training, and labor relations specialists
15
0.8
5.3
Management analysts
8
0.5
1.4
Accountants and auditors
27
1.5
1.7
Credit analysts
15
0.8
-8.3
Financial analysts
18
1.0
11.4
Personal financial advisors
24
1.3
22.3
Loan officers
133
7.3
12.1
Professional and related occupations
72
4.0
6.9
Computer specialists
56
3.0
8.8
Sales and related occupations
82
4.5
11.8
Securities, commodities, and financial services sales agents
50
2.7
17.2
Office and administrative support occupations
1,202
65.9
2.9
First-line supervisors/managers of office and administrative support workers
111
6.1
-5.2
Bookkeeping, accounting, and auditing clerks
63
3.5
1.7
Tellers
546
29.9
12.1
Brokerage clerks
9
0.5
-1.0
Customer service representatives
106
5.8
12.0
New accounts clerks
73
4.0
-18.4
Receptionists and information clerks
9
0.5
1.5
Couriers and messengers
6
0.3
-8.3
Executive secretaries and administrative assistants
36
2.0
1.9
Secretaries, except legal, medical, and executive
15
0.8
-9.6
Data entry keyers
8
0.5
-18.6
Office clerks, general
40
2.2
0.2
Office machine operators, except computer
12
0.6
-14.9
Note: Columns may not add to totals due to omission of occupations with small employment
Training and Advancement
A high school education is usually all that is needed for most office and administrative occupations, while management, business and financial occupations usually employ workers with at least a college degree. Good communication and customer service skills are necessary for all occupations in the banking industry.
Office and administrative support occupations. Bank tellers and other clerks usually need only a high school education. Most banks seek people who have good basic math and communication skills, enjoy public contact, and feel comfortable handling large amounts of money. Through a combination of formal classroom instruction and on-the-job training under the guidance of an experienced worker, tellers learn the procedures, rules, and regulations that govern their jobs. Banks are offering more products and spending more on reaching out to their customers. As a result, they will need more creative and talented people to compete in the market place. Banks encourage upward mobility by providing access to higher education and other sources of additional training.
Some banks have their own training programs which result in teller certification. Experienced tellers qualify for certification by taking required courses and passing examinations. Experienced tellers and clerks may advance to head teller, new accounts clerk, or customer service representative. Outstanding tellers who have had some college or specialized training are sometimes promoted to managerial positions.
Management, business, and financial occupations. Workers in management, business, and financial occupations usually have at least a college degree. A bachelor’s degree in business administration or a liberal arts degree with business administration courses is suitable preparation, as is a bachelor’s degree in any field followed by a master’s degree in business administration (MBA). Many management positions are filled by promoting experienced, technically skilled professional personnel—for example, accountants, auditors, budget analysts, credit analysts, or financial analysts—or accounting or related department supervisors in large banks.
There are currently no specific licensing requirements for loan counselors and officers working in banks or credit unions. Training and licensing requirements for loan counselors and officers who work in mortgage banks or brokerages vary by State, depending on whether they are employed by a mortgage bank or mortgage brokerage.
Various banking-related associations and private schools offer courses and programs for students interested in lending, as well as for experienced loan officers who want to keep their skills current. Completion of these courses and programs generally enhances the individual’s employment and advancement opportunities. The Banking Administration Institute offers the Loan Review Certificate program for persons who review and approve loans. The Mortgage Bankers Association (MBA) offers the Certified Mortgage Banker (CMB) program. A candidate who earns the CMB exhibits a deep understanding of the mortgage business. To obtain the CMB, one must have at least 3 years of experience, earn educational credits, and pass an exam.
Financial services sales agents usually need a college degree; a major or courses in finance, accounting, economics, marketing, or related fields serve as excellent preparation. Experience in sales also is very helpful. These workers learn on the job under the supervision of bank officers. Sales agents selling securities need to be licensed by the National Association of Securities Dealers, and agents selling insurance also must obtain an appropriate license.
Advancement to higher level executive, administrative, managerial, and professional positions may be accelerated by taking additional training. Banks often provide opportunities and encourage employees to take classes offered by banking and financial management affiliated organizations or other educational institutions. Classes often deal with one of the different phases of financial management and banking, such as accounting management, budget management, corporate cash management, financial analysis, international banking, and data processing systems procedures and management. Employers also sponsor seminars and conferences, and provide textbooks and other educational materials. Many employers pay all or part of the costs for those who successfully complete courses.
In recent years, the banking field has been revolutionized by technological advancements in computer and data processing equipment. Learning how to apply this technology can greatly improve one’s skills and advancement opportunities in the banking industry.
Outlook
The number of local branches and offices in the United States has been steadily increasing, and this trend is expected to continue to result in moderate growth in employment in banking.
Employment change. Wage and salary employment in banking is projected to increase by about 4 percent between 2006 and 2016, compared with the 11 percent growth projected for wage and salary employment across all industries. Growth will result from banks refocusing on the local branch as a critical means of servicing customers, because branch location is often the most important factor for customers in selecting a bank. New branches also will be appearing more frequently in nontraditional locations, such as inside local grocery stores or shopping malls. Growth will likely be greatest in areas where the population is growing.
The combined effects of deregulation, technology, demographic changes, and mergers will continue to affect total employment growth and the mix of occupations in the banking industry. Deregulation of the banking industry allows banks to offer a variety of financial and insurance products that they were once prohibited from selling. The need to develop, analyze, and sell these new services will spur demand for securities and financial services sales representatives, financial analysts, and personal financial advisors. Demand for “personal bankers” to advise and manage the assets of wealthy clients, as well as the aging baby-boom generation, also will grow. However, banks will continue to face considerable competition—particularly in lending—from nonbank establishments, such as consumer credit companies and mortgage brokers. Companies and individuals now are able to obtain loans and credit and raise money through a variety of means other than bank loans. Therefore, some loan officers may be replaced by financial services sales representatives, who sell loans along with other bank services.
Advances in technology should continue to have a significant effect on employment in the banking industry. Demand for computer specialists will grow, as more banks make their services available electronically and eliminate much of the paperwork involved in many banking transactions. On the other hand, these changes in technology will reduce the need for some office and administrative support occupations. Employment growth among tellers will be limited as customers increasingly use ATMs, direct deposit, debit cards, and telephone and Internet banking to perform routine transactions. The number of electronic payments has increased and checks now account for less than half of consumers’ monthly bill payments. In addition, technological improvements, such as digital imaging and computer networking, are likely to lead to a decrease or change in the nature of employment of the “back-office” clerical workers who process checks and other bank statements. Employment of customer service representatives, however, is expected to increase as banks hire more of these workers to staff phone centers and respond to e-mails.
The increasing number of retired baby boomers should have a beneficial effect on total employment in the banking industry. They are more likely than younger age groups to hold bank deposits and visit branches to do their banking. Many also may need help in retirement planning and investing wealth inherited from their parents and so may seek the services of the various financial professionals in banking, such as financial managers, and securities, commodities, and financial services sales agents.
In the past, consolidation within the banking industry contributed significantly to employment declines, but the effect of mergers on employment within the industry is expected to be minimal in the years ahead. Merger activity has slowed recently, and a balance is beginning to develop between the numbers of new banks established and existing banks lost due to mergers and acquisitions.
Job prospects. Job opportunities should be favorable for tellers and other administrative support workers because they make up a large proportion of bank employees and many individuals leave these positions for other jobs that offer higher pay or greater responsibilities. The need for skilled workers will create good job opportunities for individuals with up-to-date computer skills and financial services backgrounds.
Earnings
Industry earnings. Earnings of nonsupervisory bank employees involved in depository credit intermediation averaged $535 a week in 2006, compared with $738 for all workers in finance and insurance industries, and $568 for workers throughout the private sector. Relatively low pay in the banking industry reflects the high proportion of low-paying administrative support jobs.
Greater responsibilities generally result in a higher salary. Experience, length of service, and, especially, the location and size of the bank also are important. Earnings in the banking industry also vary significantly by occupation. Earnings in the largest occupations in banking appear in table 3.
Table 3. Median hourly earnings of the largest occupations in depository credit intermediation, May 2006
Occupation
Depository credit intermediation
All industries
General and operations managers
$40.89
$40.97
Financial managers
34.89
43.74
Loan officers
23.51
24.89
First-line supervisors/managers of office and administrative support workers
19.66
20.92
Executive secretaries and administrative assistants
18.05
17.90
Loan interviewers and clerks
14.35
14.89
Customer service representatives
13.68
13.62
New accounts clerks
13.60
13.65
Office clerks, general
11.82
11.40
Tellers
10.63
10.64
Benefits and union membership. In addition to common benefits offered by many industries, equity sharing and performance-based pay increasingly are part of compensation packages for some bank employees. As banks encourage employees to become more sales-oriented, incentives are increasingly tied to meeting sales goals, and some workers may even receive commissions for sales or referrals. As in other industries, part-time workers do not enjoy the same benefits that full-time workers do.
Very few workers in the banking industry are unionized—only 2 percent are union members or are covered by union contracts, compared with 13 percent of workers throughout private industry.
Sources of Additional Information
State bankers’ associations can furnish specific information about job opportunities in their State. Individual banks can provide detailed information about job openings and the activities, responsibilities, and preferred qualifications of banking personnel.
Information on banking careers is also available from:
Bank Administration Institute, 1 North Franklin St., Chicago, Il 60606. Internet: http://www.bai.org
Information about careers with the Federal Reserve System is available from the Web site or human resources department of the various regional Federal Reserve Banks. Internet: http://www.federalreserve.gov
Information on many of the occupations in banking, including the following, may be found in the 2008–09 edition of the Occupational Outlook Handbook:
Suggested citation: Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2008-09 Edition, Banking , on the Internet at http://www.bls.gov/oco/cg/cgs027.htm (visited March 24, 2008).
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