Commercial Banker Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a commercial banker. You can use our job description template in this article to produce your own. We also provide you with information about the salary you can earn as a commercial banker.
Who is a Commercial Banker?
A Commercial Banker is also known as a business or institutional banker who assists or aids clients with financial needs. Commercial bankers usually work in small or large-scale banks or other financial institutions. The responsibility they perform in smaller banks is to handle petty transactions for clients while in a large bank they may specialize in one area. The responsibility of a commercial banker differs from one bank to another although there are general duties that a commercial banker performs. The responsibility they perform is; approving or denying loans, receiving new customers, coordinating different bank departments, overseeing staff members, and assisting with customer service.
The core responsibility of a commercial banker is to approve or deny loans. When an applicant for instance applies for an investment such as a loan or car; it is the responsibility of the commercial banker to spearhead the whole process. They achieve this by meeting one-on-one with the applicant and crosschecking investment ideas or checking the credit history. If the loan is financially feasible, he will fill in the necessary information to approve the loan, or else the applicant’s loan will be rejected.
Another excellent function they perform is to bring new customers to the bank. For a bank to remain relevant and stand output amid other banks and it must have solid customer service. A commercial banker is responsible for ensuring that new customers come to the bank and he achieves this by engaging his sound communication skills and approachable demeanor.
Coordinating a different bank department is also a role a commercial banker plays to ensure everything runs out smoothly in the bank. For instance, a commercial banker act as a liaison between tellers, customer service representatives, and also accountants. They achieve this by holding interactive sessions to ensure that important issues are settled. Conducting this liaison role can help different departments to maintain communication and harmony.
A commercial banker also oversees a group of staff working in a bank. He or she observes the teller to ensure that financial transactions and customer service are handled as expected. In addition, he may also crosscheck the calculations of accountants for accuracy. This position requires that the commercial baker possess leadership skills and can handle multiple tasks in the bank.
A commercial banker may specialize in one of the following:
- Loan Officer: Organizes loans for clients with businesses. He drafts the necessary paperwork for a loan.
- Mortgage banker: He performs a similar responsibility with a loan officer but with a tedious loan process and also a direct client interactive session.
- Credit Analyst: He determines an applicant is creditworthy by estimating the creditworthiness of a prospective borrower
- Trust Officer: He performs the responsibility of handling the formulation of custom financial plans for clients in estate law, planning or taxation, and investment.
- Branch manager: He or She oversees the day-to-day operations of all transactions in a bank branch, drafts financial reports,s and also formulates plans for the bank’s financial goals.
Commercial Banker Job Description
Below are the commercial banker job description examples you can use to develop your resume or write a job description for your employee. The employer can use it to sieve out job seekers when choosing candidates for interviews.
The following are the duties and responsibilities of a commercial banker:
- Conserving relationships with clients, including meeting with them regularly to discuss their needs and provide them with financial advice
- Convening with clients to discuss investment opportunities, including stocks, bonds, mutual funds, and other securities
- Counseling clients regarding their financial goals, such as buying a home or starting a business
- Giving customers financial services such as checking, saving, and loan accounts
- Evaluating financial records provided by clients to ensure they are accurate and complete
- Giving financial advice to businesses regarding capital requirements and loan structures
- Giving financial advice to businesses regarding investment opportunities, risk management, and financial strategies
- Giving financial advice to individuals on topics such as budgeting, debt management retirement planning
- Interacting with different departments within the bank to ensure that customers requests are handled promptly
- Marketing their bank to entice new clients
- Proposing financial advice tailored to a client’s specific needs
- Supplying credit products, such as term loans, cash management services, syndicated facilities, and fluctuating lines of credit
- Handing out deposits products, such as checking and saving accounts
- Giving business development services, such as brand development, financial planning, product development, and marketing
- Giving lending services, such as commercial real estate lending, equipment financing, and working capital for business
- Providing specialized services for certain businesses or industries, such as aircraft lending, investment real estate lending, or auto dealer services
- Giving treasury management services, such as disbursement, fraud prevention, and fund collection
- Education: the basic requirement to become a commercial banker is a bachelor’s degree in Finance, Accounting, Economics, Marketing, or any related field. Some banks can hire a non-finance degree graduate and train him or her in a graduate training program. Such candidates with non-financial degrees may need to acquire a financial-related certification of a program.
- Training & Experience: Commercial bankers may receive job training from their employers after they are recruited. This is very paramount because commercial banks operate different banking strategies. This training exposes them to the company’s policies and procedures as well as how to handle software and technology. Commercial bankers need to receive training in the aspect of finance and banking.
- Certifications and Licenses: Candidates can boost their careers by acquiring certifications and licenses. Certification allows the employer to identify a candidate’s knowledge and skills especially the ability to complete banking tasks. They also showcase professional integrity and dedication.
- Customer Service: Customer service is the ability to interact with clients effectively. As a commercial banker, you may have to interact with clients and also prospective clients, so when you employ your customer service skills, you will be able to communicate effectively and build them with clients. Customer service skills also a commercial bank to stand out amid other competitors in the banking sector. This also brings about problem-solving skills which make your client trust you.
- Communication: Communication is the act of passing information from one person to another. As a commercial banker, you have to communicate with clients daily and other members of the bank to ensure the smooth running of the bank. Effective communication is very much integral to bringing about tremendous success in the bank.
- Problem-solving skills; this is the ability to proffer solutions to issues and also to execute them. As a commercial banker, you may be saddled with the responsibility of managing company financial transactions which is the flow of cash to an organization. This involves specifying and solving issues that the organization pays its employees and suppliers.
- Time-management: Time management skills meeting up with the specified deadline for a task. This is very crucial to the success and the career of a commercial banker. For instance, commercial bankers may manage the opening and the closure of the bank; this demands that they ensure that all transactions are performed at the appropriate time.
- Financial knowledge: As a commercial banker, you need to have a strong grasp of financial concepts such as interest rates, investment strategies, and credit scores. This knowledge can help you to give the best financial advice to clients based on their needs. For instance, if a client wants to purchase a car, you may have to interpret to them the importance of them repaying their loan on time to get a good credit score.
- Digital banking skills: digital banking is becoming more popular day in and day out. In recent times, people are adopting the trend of using online banking services to manage their transactions. This trend will continue to become more popular as more people are very much comfortable with online banking.
Commercial bankers can take advantage of this trend by developing digital banking solutions to give customers an exceptional banking service. They can also focus on enhancing customer experience by providing better online support or by making it very much easy for potential customers to open new accounts.
How to Become a Commercial Banker
- Enroll for a Bachelor’s Degree
The minimum qualification to become a commercial banker is a bachelor’s degree in Finance, Economics, Marketing, or any related field. Someone with a high school diploma can become a commercial banker but he or she needs to have years of experience. While enrolling for your undergraduate degree, you should take multiple math courses and have an in-depth focus on accountancy, and also technology courses that teach students how to utilize spreadsheets and other processing programs.
- Get an Advanced Degree
If you want to stand out among other candidates, acquire a master’s degree in business administration (MBA). Enroll for courses in accounting, economics, business strategy, and finance which will allow you to start working with clients directly. Pursuing an MBA will help you to have progressive career growth.
- Gain Work Experience in the Financial Sector
Some commercial bank jobs demand that you get experience and you can start by taking low entry-level positions. Consider applying for an internship or voluntary internship in a financial institution to build your skills. You can also look for internship placement in school after graduation. You can enroll for internship placement in a local financial organization where the school institution boosts your career development.
- Explore licensing Opportunities
The license requirement of a state varies from state to state and you must acquire a license to perform your responsibilities. For instance, in some states, people who sell securities, loans, or insurance must have state-approved licenses. Discover the state requirement of your state and communicate to the school’s career services department for specific information. Common licensing for commercial bankers is the Certified Public Accountant (CPA) or Mortgage Loan Originator (MLO).
- Apply for jobs
Research the available job vacancies in your area where you will love to work. Ensure you read the job description carefully and include the requested documents such as your cover letter, resume, and proof of licensure. If you secure an interview placement, you will need to as the job recruiter if you are to come with any documents. Dress in professional banking attire to impress your job recruiter.
Where to Work as a Commercial Banker
Commercial bankers work in the financial sector such as Commercial banks, Insurance companies, Mortgage banks, and other financial establishments that demand their skills and expertise. They usually work for 40 hours per week or more if the need arises. Commercial bankers usually work on regular bank hours which implies that they may have to work in the evenings sometimes to attend to clients or meet up with deadlines, they can also travel from one place to another to meet clients or attend conferences. Commercial bankers must be able to make quick decisions especially when they are playing the role of a branch manager. They must be able to handle stress and deal with complicated clients.
Commercial Banker Salary Scale
The salary of a commercial banker varies across countries and below are some countries:
- In the United States, The average commercial banker salary in the USA is $92,500 per year or $47.44 per hour. Entry-level positions start their career at $75,000 per year while most professional workers make up to $132,500 per year. The average commercial banker’s salary in New Jersey is $132,500 per year or $67.95 per hour. Entry-level positions start at $100,000 per year while most professional workers make up to $162,500 per year. The average commercial banker’s salary in Virginia is $115,000 per year or $58.97 per hour. Entry-level positions start their career at $57,500 per year while most professional workers make up to $145,000 per year.
- In the United Kingdom, The average Commercial banker salary in the United Kingdom is £50,000 per year or £25.64 per hour. Entry-level positions start their career at £30,937 per year while most professional workers make up to £80,000 per year.
- In Canada, The average commercial banker’s salary in Canada is $61,950 per year or $31.77 per hour. Entry-level positions start their career at $45,445 per year, while most professional workers make up to $108,325 per year.
- In Australia, The average Commercial banker’s salary in Australia is $136,500 per year or $70 per hour. Entry-level positions start a career at $105,000 per year, while most experienced workers make up to $136,500 per year
- In Nigeria, The average salary for a Commercial Banker is NGN 2,800,000 per year in Lagos.