Commercial banking refers to the financial services provided by banks to businesses. These services
include checking and savings accounts, loans, and credit facilities, among others. Commercial banks
provide a range of financial products and services to some individuals, but their primary focus is
on serving the needs of businesses of all sizes.
Commercial banks provide a source of capital for businesses to invest and grow. They also help businesses manage their risk level by providing financial products and services that allow companies to hedge financial risk. Commercial banks also play a key role in facilitating trade by providing letters of credit and other services that help businesses secure payment from their customers.
To become a commercial banker, it is typically necessary to have a bachelor's degree, and some banks may prefer applicants with a degree in a business-related field such as finance or economics. Many banks also require candidates to pass certain exams, such as the Series 6 or Series 7 exams, which test knowledge of financial products and regulations.
Commercial bankers typically earn an average salary relative to other careers in the finance industry. They often start their careers in a more operational role, such as a teller or loan processor. From there, they can work their way up to more senior roles, such as a loan officer or branch manager. These roles typically involve more interaction with customers and require strong communication and problem-solving skills.
As they progress in their career, they may have the opportunity to specialize in a particular area, such as commercial lending or investment banking. They may also have the opportunity to take on more strategic responsibilities, such as leading business development efforts or managing a team of bankers. Some commercial bankers may eventually have the opportunity to become a senior executive or board member at a bank.