What should I know when considering a degree in Banking & Financial Management?
Financial assets are one of an organization’s most important resources. Assets that are well-managed allow an organization to maintain steady financial growth and potentially expand the company. Assets that are poorly managed can expose a company to the threat of profit loss or complete financial ruin. To ensure the security of this valuable resource, organizations elicit the services of banking and financial management professionals. These highly-skilled professionals oversee the management, investment, allocation, and growth of an organization’s capital. They compose financial reports, collect and analyze financial data, monitor account activity, process transactions, advise upper-level managers, and propose plans of action. The majority of these professionals work for banks, credit unions, insurance companies, and other financial institutions. However, their skills are widely used by institutions in almost all industries including business, non-profit organizations, government agencies, and individuals. Experienced professionals often decide to branch off from a company to become professional consultants and work on a contract basis.
Required Education
Unlike many fields, banking and financial management places a higher emphasis on experience than on formal degrees. Many organizations—especially banking institutions— will promote professionals from within who have extensive experience or longevity with the company. Nevertheless, employers still value candidates who have the winning combination of work experience and a financial management degree. Students also have the option of attending an online finance degree program or a specialized banking school.
Bachelor’s Degree
The minimum education requirement for positions in banking and financial management is a bachelor’s degree in finance, accounting, economics, or a similar area. Undergraduate programs train students in the basic principles, processes, and practices of national, global, and corporate economic systems. They also integrate the principles and functions of management into the curricula. Students not only learn how these systems work, but also how to apply those principles to meet the needs of corporations. Potential areas of study include courses in: math, economics, computer science, and management.
Master’s Degree
Although only a bachelor’s degree is needed for entry-level positions, many employers seek candidates who have a master’s degree in the field. These rigorous programs are designed to prepare students for the challenges and responsibility that comes with upper-level management positions. The concentration shifts from memorizing basic principles to performing more in-depth analyses. Students at this level begin to focus on a specific area of study such as financial strategy, mergers and acquisitions, investment analysis, risk management, or financial theory and policy analysis. Specialized courses within these areas include: basic credit analysis, managing the retail bank, troubled asset resolution, strategic marketing, and bank regulatory law.
Certification
Banking and financial managers may also benefit from voluntary certification. Certification can serve as a positive reflection on both the management professional and their employer symbol of quality training. A number of professional associations offer different certification options. The American Management Association has a Financial Management Certification program that requires students to complete three seminars within 24 months. The Institute of Certified Bankers has 12 certification options including: retail, regulatory compliance, security, lending, and trusts and investments. The Loan Review Certification, which consists of courses and exams, is offered by the Banking Administration Institute.
Earning Potential
Reports from the Bureau of Labor Statistics show that banking and financial management professionals can expect to earn a median annual wage of $95,310. The highest paid professionals received yearly salaries in excess of $130,860 and the lowest paid received $51,910 a year.
The BLS expects that through the year 2016, employment opportunities will retain a steady growth of 13%. Competition for these positions however will likely remain high.
Careers in This Area
Depending on the nature of the company they work for, banking and financial management professionals may hold different titles and perform specialized functions. Controllers manage the collection, creation and submission of financial reports. Budgets, generation of funds, and investment regulations are handled by treasurers and financial officers. The collection, policies, and dispensing of credit are the domain of credit managers. The cash flow of a company is directed by cash managers. They must monitor the way the cash flow is expended, received, and designated. Evaluating potential pros and cons of engaging in a proposed business enterprise is the responsibility of risk and insurance managers.
Type of Person Who Will Succeed in Banking and Financial Management
It is important for banking and financial management professionals to possess exceptional math skills and enjoy working with numbers. Since 100% accuracy is imperative when handling large corporate budgets, professionals should also possess strong attention to detail. Communication skills are important because managers will work in teams and interact with customers or clients on a regular basis. Knowledge of international finance and/or a foreign language are an asset for those who deal with international clients.
Article References
The American Management Association
http://www.amanet.org
Banking Administration Institute
http://www.bai.org
The Bureau of Labor Statistics
http://www.bls.gov
The Institute of Certified Bankers
http://www.cft-flsc.org/
What are the leading schools offering programs in Banking & Financial Management?
- Boston University - Graduate Programs : Boston University was founded in 1839 and is now the fourth largest independent university in the United States. It is a hub of academic and scientific activity. With more than 3,400 faculty members and more than 30,000 students, it is one of the nation's leading research-based universities. (More Info)
- New England College : The New England College online master degree programs were developed by industry leaders and respected academia. These programs were designed with the intention of providing a specialized degree for busy professionals who want to augment their current education and experience in their field to remain ahead in an increasingly competitive market.
(More Info)
- National American University Online : National American University Online offers flexible distance learning programs for Associate and Bachelors degrees in Business Administration, Criminal Justice, Health Care, and Information Technology. (More Info)
- Strayer University Online : At Strayer University, you can complete a degree or quickly gain marketable skills and specialized knowledge through a six to 12-course certificate or diploma. Many of our programs also provide the background to prepare for professional certification in
a wide variety of disciplines. Associate, bachelor, and master degrees are also offered. (More Info)
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