What Do Bankers Do?Job Descriptions November 15, 2013
For many, a banker’s job seems like the most ideal career in the world, as it involves handling other people’s money. However, it involves far more than simply safeguarding the cash entrusted to the banker and attaching a percentage for services rendered.
Bankers are the mediators for investors and those who wish to sell their investments. When bankers accept deposits from a customer, they reinvest the amount in higher yield debt and equity instruments. They investigate the credit risk of customers applying for a loan. Bankers are responsible for establishing solid customer relationships, the planning and delivery of sales strategies or products and monitoring their progress.
A Position of Responsibility
Handling other people’s money involves gaining the customer’s trust. The primary function of a bank is to use the deposits, made by customers, to lend it out to others. The amount of money that can be lent is directly affected by the regulatory controls of the Federal Reserve, which stipulates that a bank must hold between three to ten percent of the total deposits. As mediators, bankers need to gain the confidence of investors, as well as clients with a product to sell.
Considering their position as both guardians and lenders of other people’s money, bankers monitor the cash flow of an economy. There are various reasons a person places money in a bank instead of holding cash. Part of this has to do with the feelings of security. This relieves worry over having the money stolen, and most people feel they will spend less if their cash is not immediately available.
They enjoy the convenience of tracking exactly where their money went, making it easier to balance their budget. With Internet banking, the convenience becomes greater; allowing them to use their bank deposits to pay bills without having to travel to the post office or visit the establishment where money is owed.
The Important Job of a Banker
A primary reason individuals use banks for depositing their money is that it helps them to establish credit. It would take many years for the average person to save enough cash to buy a home or vehicle, establish a small business or expand an existing one. Taking out a loan satisfies immediate personal needs, and more money is circulated into the economy through the costs of labor, materials and the purchase of products.
The responsibilities and functions of the banker are to help their customers reach their goals through products and services. Their activities may vary according to whether they work in retail, commercial or corporate banking. Many retail banks have branches that deal with both private individuals and corporate customers. Investment bankers may work within a branch that serves commercial or corporate customers, or from a specialized regional office.
Bankers safeguard the assets of their customers and create cash flow through loans. They earn their money through service fees placed on deposits and percentages placed on the loans. Bankers must use good judgment in establishing creditors and making investments. They must go by the guidelines of the Federal Reserve, to ensure customers may withdraw their money from their accounts without disruptions.
They establish clients who wish to invest in products or companies and clients with something to sell. They make loans based off equity and established credit ratings. Bankers may begin their careers as tellers, processing bank deposits. As they gain experience, they may become loan officers or investment bankers. This is a career field worth targeting, for the smart, detail-oriented thinker.