April 20, 2014

How To Become A Commercial Banker

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how to become a commercial bankerIndividuals who are wondering how to become a commercial banker in the current job market will find that the path can be very different depending on the final position that will be filled. Changes in financial regulations have allowed commercial banks to expand the services that are provided to include investments, mortgages, business planning and marketing. Individuals who are seeking a career as a commercial banker can fill any one of several positions including a loan officer, financial analyst or investment broker. The commercial banking industry is expected to grow modestly over the coming years and could potentially change depending on any new legislation that is passed.

Educational Path Required For a Career in Commercial Banking

Different positions within a commercial bank have different educational requirements. Applicants should have at least a bachelor in business, business administration or finance. A degree in marketing might be acceptable for certain jobs that involve developing business strategies. Many employers will be more willing to hire an applicant that has a master’s in business administration. The overall balance of classes that are taken should lean towards finance, accounting and administration. Most positions will require continuing education that can often be paid for by the employer.

Licenses and Certifications That Might Be Helpful When Considering How To Become A Commercial Banker

There are a number of different licenses and certifications that can make an applicant more attractive to a commercial bank. It can help to become a certified public accountant (CPA). A mortgage loan originator (MLO) license is granted by states and enables an individual to act as a broker for mortgage loans. Each state and specific area of commercial banking can have different licensing requirements. Individuals who are going to be dealing with securities, insurance or financial analysis are usually required to hold a certification or license in that area in order to practice professionally in that role.

The Different Roles for a Commercial Banker

A commercial banker can work in a variety of different positions and you’ll find information about these positions while researching how to become a commercial banker. Coordinating loans and arranging financing is the responsibility of a loan officer. Mortgage brokers connect clients with lenders. Investment bankers manage portfolios and can deal with securities, derivatives and the stock market in order to generate profits for clients. Many commercial banks now offer business development services to clients so that financial planning, brand development, marketing and product development are all combined to help give a business the tools that are needed for success.

Salaries and Compensation For Commercial Bankers

The median starting salary for a commercial banker is $60,000 per year. The actual starting salary can be as low as $35,000 per year or as high as $95,000 per year depending on the exact educational background of the applicant and the position that is being filled. Continued employment as a commercial banker usually results in dramatic salary increases that can be supplemented by yearly bonuses that are based on performance. A commercial banker that aggressively sells services and who excels in a position for a few years can easily make in excess of $100,000 each year in salary and other compensation. Exactly how to become a commercial banker that makes this type of money will involve dedication, sales skills and long hours spent acquiring new customers and managing large accounts.

Filed under: how to become a commercial banker, commercial banking career

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