Careers in banking

Black Collegian, Jan 1994 by Chapelle, Tony

Investment banking is another fast-growing addition to most regional banks. The average investment banker or merchant banker makes from low $50K to upper $60K.

MBAs who are aiming for investment services jobs at commercial banks should expect to start as either financial analysts or project coordinators. Financial analysts crunch numbers on financial statements to determine whether the investments of banks' clients--such as companies or smaller banks--are risky or safe. Many factors can affect those investments like interest rate swings or taxes, and the analyst's job is to keep clients informed. Project coordinators cover a broad range of responsibility. They are the ones who think up and actually bring financial services, such as photos on bank cards, to the public. Or they may compile data and report to federal and state regulators on how well their bank is meeting guidelines.

One non-traditional area for bankers is at the U.S. government's central bank system, the Federal Reserve Board.

"The Fed," as it's commonly called, comprises regional banks in 12 cities, and is probably best known for setting the nation's discount lending rate. The system keeps America's money supply flowing by acting as lender of last resort to commercial banks. All of America's paychecks, personal checks, and currency also move through this system at some point.

"Fed" jobs are best-suited for people interested in setting public policy, says Patricia Cabello, director of recruiting at the Federal Reserve Bank of New York. "One reason people come here is that the work we do here has a real impact on our overall economy," she says. For example, Cabello, who worked up through the ranks at the Fed, helped the government figure out how long it should take before local banks cash checks and put the deposit into customer accounts.

Cabello says 40 percent of new hires at the New York bank last year were people of color. Salaries for college recruits range from $30,000 to $32,000. The average MBA will start at $49,000.

And don't forget job opportunities at the nation's 56 African-American banks and thrift institutions. African-American bankers may be able to advance further at these financial institutions.

"A recent graduate may find more opportunities at a place like this, where he could realistically make a goal of becoming the CEO," says Richard Greene, president of Harlem-based Carver Federal Savings Bank, the nation's largest African-American-owned financial institution.

Greene, however, admits there's a tradeoff: You'll probably make less money at African-American banks than at majority firms.

Unfortunately, a study of non-white banks last summer showed that they, too, made the majority of their loans to applicants with higher-than-average incomes.

EDUCATION FOR THE FUTURE BANKER

So what will prepare you for the rigors of today's sophisticated personal and commercial finance business? Willie Spears, a 22-year banking veteran, took business administration at Grambling, and then completed certificate course work at the School of Banking of the South at Louisiana State University. Spears says well-rounded future bankers should take college courses in: accounting, real estate, credit analysis, employee relations, recruiting, and marketing.