The financial services industry is a large part of the American economy. In 2010 it employed more than 300,000 people, and employment growth is expected to be between 7 percent and 13 percent until 2018. Salaries increase with years of experience, and pay is higher for people with advanced degrees. The type of banking job also impacts starting salary.
Types of Jobs
Jobs in investment or retail banking have different degree requirements, job descriptions and pay scales. An associate investment banker is the most common entry level job in investment banking. First year jobs in retail banking are usually for the position of branch manager, assistant manager, or personal banker. Both families of jobs involve financial planning and executing financial transactions, but the difference is in the customers. Investment banks work with large institutions, and retail banks work with individuals and small to medium sized companies.
An investment banking associate in his first year who has a bachelor’s degree could expect his total compensation to be between $50,000 and $100,000 in 2011. The base salary is closer to $50,000, but commission, bonuses and a profit-sharing plan may increase pay. The pay range is heavily influenced by experience and education level. Workers in their first year make much less than those with more experience, and workers with bachelor‘s degrees make less than those with master’s degrees.
In a retail bank, the branch manager is responsible for branch profits and the performance of other employees in the branch. Branch managers are typically the highest paid employees in a branch, and, as of 2011, the salary for first-year branch managers with a bachelor’s degree was between $30,000 to $50,000. Branch managers usually have a bachelor’s degree in business administration, management or finance.
Assistant Managers and Bankers
Assistant branch managers are responsible for overseeing adherence to bank security procedures, and a personal banker is the primary bank sales agent. As of 2011, the salaries for first-year employees with a bachelor’s degree was between $31,000 to $40,000 for assistant branch managers, and $28,000 to $36,000 for personal bankers. Assistant branch managers tend to have larger starting salaries, but bankers have higher earning potential due to commissions.