Before you choose commercial banking as your career there are a few things you need to know about it.
Commercial banking has you providing clients with credit products. This includes term loans, syndicated facilities , cash management services and other income products.
You deliver financial advice and solutions as a credit analyst. Being a credit analyst also includes suggesting solutions that are tailored to your client’s needs, such as buying new equipment, funding working capital, growing their business and day to day banking.
Before you choose commercial banking as your career you should check the personality you are having. personality is a big deal in a career like this .
The personality of someone who is going to choose commercial banking as their career should have the following traits:-
- Relationship-oriented
- friendly
- inquisitive
- focused
- analytical
- self motivated
Entry point for commercial banking career
You typically start as a credit analyst if you are having a B.com, B.A, or any other degree You can also start as an account manager if you are coming from a MBA program.
The job of a credit analyst is analyzing a client’s financial statements, competitive position, industry and management team. The structure and pricing of a financing request is determined by the “application of credit” which is prepared by the credit analyst.
The job of an account manager is focused on business development and is more client facing role. The account manager have to find new clients for the bank and maintain relationship with existing ones. To deliver the results to your clients you have to work closely with colleagues on the credit side.
Typically the working hour is from 8am to 6pm, although hours can be longer based on the urgency of loan request.
How to prepare for commercial banking interview
Solid understanding of both technical and behavioral question is important while you are preparing for commercial banking interview. Questions can be skewed towards financial ratios and credit metrics rather than financial modeling , when on the technical side.
Questions such as “how do you evaluate the financial performance of a company “ etc are common questions to be asked.
Exit strategy
A career is made out of commercial banking with a work life balance for a lot of people. But if you are willing to move on, cooperative banking is a good option then. Co operative banking is similar to commercial banking but with large clients who are often public. It is always an option to move on and go back to school to get an MBA degree or CFA CREDENTIAL.