Graduate Careers in Banking
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‘Banking’ is one of the largest and best-known industries of the developed world, but today’s financial services environment has changed beyond recognition from what it once was; accordingly, today’s bankers owe little to the age of the 1940’s Capt. Mainwaring-type bank managers! In an industry that drives global social and economic change, a graduate career in banking offers a wealth of opportunity. Modern banking is about highly trained staff delivering top quality service to customers, whatever their financial needs. Graduate careers in banking are high-pressure and high-flying and can be in some of the largest and most successful institutions in the world. This requires high levels of technical expertise and management skill. Read on to discover what a graduate career in banking can offer you.
Many of the services provided by banks are now also offered by other financial institutions such as building societies, insurance companies and even supermarkets. It's very difficult now to draw a line around any sector in the financial services industry and list the services typical organisations in that sector will provide, generally speaking though, the main areas are:
Commercial banks and building societies - dealing with transmission of money, loans, mortgages, pensions, insurance, foreign currency, trade finance, stocks and shares … and a wide range of other investment and lending services
Supermarkets, airlines, large motor car companies etc . - retail financial products such as mortgages, pensions, tax efficient savings accounts, ordinary savings and current accounts
Investment banks - dealing with corporate finance and engineering such as mergers, acquisitions and take-overs; capital market activity such as bonds and equities (shares); stock market analysis; fund and portfolio management, derivatives including foreign exchange hedging Insurance companies
Insurers and Re-insurers - providing financial protection against risk for the cost of a premium
Independent financial advisers - helping people plan for their financial future
Broking firms - buying and selling stocks and shares
Unit and investment trust companies - financial organisations concerned with earning money for their investors through techniques such as portfolio management
The intense competition within the industry means that banks need top quality staff who are reliable and, of course, totally trustworthy. Good communication skills are essential; you need to be able to quickly grasp the essential elements of the job and be able to explain complex issues in jargon-free terms to customers.
The majority of the ‘high-street banks’ offer graduate training schemes and often a choice of training schemes for different parts of their business. These training schemes are often fast track learning courses, spending two or three years moving through different central functions within the bank to get to know how the organisation works before moving into a management position. The graduate route is the way a bank grooms people for senior management positions.
Managers spend a large proportion of their time meeting customers either at the branch or at the customer's premises. They need to have a wide knowledge of the financial services available and know when to bring in specialist advisers from other areas of the bank. Managers are often active members of local trade bodies and associations and give talks to community organisations and schools.
Traditionally, career progression within banking hinged on successful completion of the ‘Banking Certificate’, offered by the then Institute of Bankers, which was established at the end of the 1800s. Today, there is no requirement as such to complete ‘the banking exams’ but Continuing Professional Development, and a commitment to industry specific learning is expected, in addition to holding a first degree. Membership of a body such as ifs Finance School or undertaking any of its financial services qualifications/courses will help demonstrate continued learning.
The training offered by the banks themselves is very thorough; most banks have their own residential training colleges and staff will also attend internal and external courses. All staff can expect to attend regular training courses throughout their career to keep up to date with new developments.
The management structure in banking varies considerably. Large branches may have a management team, which would include individual managers responsible for lending,
administration, audit and operations. At the other end of the scale, one manager could be responsible for several small branches. Many banking jobs are in specialist areas such as IT or corporate banking, which deals with the accounts of business customers. Many banks have central customer enquiry centres, which handle telephone enquiries from customers anywhere in the country.
Working hours are generally 9am until 5pm, but working patterns can vary. Some branches open on Saturdays and some are even starting to open on Sundays. Processing and telephone banking operations centres often operate a shift system. Salaries depend on responsibility and location. Most banks operate an annual appraisal system and salary increases are awarded according to your performance during the year. Profit sharing, subsidised mortgage and non-contributory pension schemes often form part of the remuneration package.
Because banks offer excellent training, recruits from all academic disciplines can be welcomed for the more generalist management type roles and training schemes. Graduates with finance, business and mathematical backgrounds may have advantages over their peers though.
Regardless of your current discipline, there are some things you can do now to benefit an application you might be making to prospective employers. To make sure you have the best possible start to your graduate career in banking, you should read good quality financial press, such as the Financial Times or Financial World magazine to try and keep abreast of industry issues and debate. You should also think about joining an industry body, such as the Institute of Financial Services ( ifs), which will help engage you with the industry and provide opportunities to meet other professionals. To kick-start your graduate career in banking it is recommended that you get some work experience, even if it’s just temporary work as a cashier over the summer vacation.
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its Finance School
IFS House,
4 – 9 Burgate Lane,
Canterbury,
Kent.
CT1 2XJ
+44 (0) 1227 818609
www.customerservices@ifslearning.com
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