Page 111 - Encyclopedia of Business and Finance

eobf_C 7/5/06 2:57 PM Page 88

Careers in Finance

required records for approved loans or lines of credit. executives. Other factors that influence salary are experi-
Banks also need secretaries, receptionists, and computer ence, length of time with the bank, and location and size
operators to assist with the many administrative support of the bank.
duties. Employment in the banking industry is expected to
According to the Career Guide to Industries, 25 per- grow at 3 percent, which is much lower than the growth
cent of the positions in the banking industry are com- rate of the overall economy, which is expected to increase
prised of executive, administrative, and managerial 15 percent between 1998 and 2008. The downsizing and
occupations. Examples of these occupations include loan cost cutting that occurred in this industry in the early to
officers, trust officers, and financial managers. Loan offi- mid-1990s is expected to decline. Most of the growth in
cers are responsible for determining whether or not a cus- the banking industry is expected to occur in small regional
tomer can pay back a loan and then approving or credit unions and banks. As banks become more auto-
declining the customer’s loan application. They also help mated and ATMs are able to provide more services, fewer
to bring in new business by developing relationships with bank tellers and clerks will be needed. Areas of growth can
customers who will need bank loans in the future. Loan be found in customer service representatives for staffing
officers and counselors also tend to specialize in either call centers and trust officers to administer the estates of
commercial, consumer, or mortgage lending. Trust offi- an aging population.
cers are responsible for managing the finances of cus-
tomers or organizations that have been placed in trust
INSURANCE INDUSTRY CAREERS
with the bank. Very often they are called upon to be the The Career Guide to Industries states that more than 40
executor of an individual’s estate upon that person’s death. percent of the positions in the insurance industry are
Last, financial managers supervise operations at branch administrative support positions such as secretaries, book-
offices or departments to make sure customers receive keepers, word processors, and clerks. These support posi-
quality service.
tions often require skills and knowledge that are specific to
Education and training requirements for finance the insurance industry. For example, because insurance
careers in banking vary according to the special skills policy clerks focus on processing insurance policy applica-
required for success and the level of responsibility. Bank tions, changes to policies, and cancellations, they need to
tellers and clerks typically need, at minimum, a high have a strong understanding of insurance policies. They
school education. Some basic skills and interests needed often verify both the completeness of an application and
for success as a teller or clerk are math skills, interpersonal the accuracy of the insurance company’s records. Insur-
communication skills, and comfort in handling large ance claims examiners and investigators often investigate
amounts of money. Typically banks provide tellers and questionable claims or claims that exceed the amount the
clerks with additional training on the organization’s pro- insurance company is willing to pay. Investigators and
cedures and regulations. The American Institute of Bank- examiners spend most of their time checking claim appli-
ing, American Bankers Association, and the Institute of cations for accuracy, obtaining information needed for
Financial Education all offer accredited courses for decisions from experts, and consulting current policy
advanced training. Bank tellers and clerks take these edu- about claims.
cational courses to prepare for more responsibilities and to
Executive, managerial, and administrative jobs make
assist with career advancement. However, most banks up about 30 percent of the positions in the insurance
have their own training programs.
field. Three examples of job titles found at this level of
Financial managers, loan officers, and trust officers employment in the insurance industry are risk manager,
usually have a college degree if not a more advanced pro- sales manager, and underwriter. Risk managers develop
fessional or graduate degree. Most study business admin- the policies the insurance company follows when making
istration or earn a degree with a major in business decisions regarding claims. These policies are developed
administration. Any college degree plus a master of busi- by analyzing historical data about natural disasters, car
ness administration or a law degree are excellent prepara- accidents, and other situations that may result in physical
tion for one of these financial management positions. or financial loss. Sales managers sell insurance products,
Managers who also sell securities need to be licensed by assist clients with questions about policies, and supervise
the National Association of Securities Dealers. staff. They make up the majority of managers in local sales
Earnings in the banking industry reflect the amount offices. Finally, underwriters review applications for insur-
of responsibility and education required of the position. ance and the level of risk involved in agreeing to issue an
As a result, the more responsibility and education a job insurance policy. Essentially, the underwriter determines
requires, the higher the salary, as can be seen in the salary whether to accept or reject the application and how much
ranges of commercial loan officers, trust officers, and top a client should pay in premiums.

88 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION