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The banking sector encompasses banks and the firms and agencies that help them and the economy run properly. These five degrees supply those interested in the banking industry with knowledge and skills to navigate its vast financial and regulatory landscape.
Business Administration/Finance
Risk and the time management of money lie at the heart of commercial banking. Degrees in Business Administration and Finance prepare graduates for careers in the banking sector that involve these principles.
Loan officers employ their knowledge of financial ratios and projecting earnings to gauge the risk that borrowers will default on loans. To calculate the ratios, loan officers must read and understand financial statements.
Banks employ personal financial advisors to guide clients in wealth management and building. The services may include selecting stocks, bonds, mutual funds and other financial assets, taking into the account clients’ goals, needs and tolerance for risk of financial losses.
Related Resource: Top 10 Best Online Master’s in Finance Degree Programs
Law
Banks rely upon lawyers to aid their compliance with various regulations covering topics such as:
*Lending practices and disclosures
*Availability of deposited funds for withdrawal by customers
*Reporting large cash transactions under money laundering laws
*Investment activities by banks
Also, attorneys consult the Uniform Commercial Code for the responsibilities of banks and their customers for deposited checks.
Law school classes include commercial law, banking law, corporate laws, securities law and consumer lending law. Law schools offer an L.L.M. (Master of Laws) in banking for attorneys and graduates to concentrate more in-depth into these subjects.
According to the Bureau of Labor Statistics, lawyers filled 2,260 positions in banks as of May 2015. Law firms hire the majority of lawyers who practice banking law.
Accounting
These professionals participate in the banking sector by combining knowledge of accounting principles with the complexities of the bank environment. Typical bank assets include securities, cash, receivables and other intangibles. Bank balance sheets and income statements report losses from bad loans, interest received from lenders and interest paid to depositors. The bank accountant also must audit statements prepared by banks, many of which are submitted to bank regulators and the Securities and Exchange Commission.
Federal agencies employ policy accountants to fashion and oversee reporting and accounting standards for banks and savings and loans.
The Bureau of Labor Statistics estimates, as of May 2015, that banks employed 20,310 accountants.
Economics
Economists use indicators of economic performance, such as unemployment rates, wage levels, consumer confidence, and inflation to advise banks on their lending standards.
Monetary policy serves as a major driver of bank activity. Commercial banks borrow from Federal Reserve Banks to help fund their lending. With a bachelor’s degree, economists can work for the Federal Reserve as researchers to uncover economic trends and aid policy makers in restricting money supply to curtail inflation or expanding it to spur economic growth. Economists with PhD degrees serve as senior policy analysts in the Federal Reserve.
Information Technology
The security of customer’s financial and personal information and the reliability of data are critical to a bank’s operation.
As testimony to this, the Bureau of Labor Statistics estimates, as of May 2015, that the finance and insurance sector account for 12 percent of employment of computer and information systems managers. Information technology graduates learn how to spot vulnerabilities of a bank to cyber attacks or data breaches and the measures to defend against them. The Bureau says that, with banks and other companies perhaps turning to “cloud” computing and storage, the filling of these jobs may shift from internal internet technology departments to private vendors who offer cloud support.
An information technology degree can even lead graduates to an accounting career that focuses on the auditing of data from and access to computers and databases.
Careers in the banking sector are not limited to making loans or working at a branch. The efforts of economists, lawyers, information technologists and accountants can support the banks’ financial services.
