It’s ridiculous how the actual bankers are really responsible for a lot of the revenue and balance growth that the banks bring in but are the most underpaid amongst all positions in the company. On top of that the company constantly is adding more and more responsibility to the role while not compensating fairly and not providing a fair incentive plan. Why is this? I know the company wants to profit off our backs as much as possible but they can still make a TON of money and pay us proper incentives on the banker side. But yet they find us expendable and are currently just replacing pretty much everyone in the role as turnover is at an all time high. #finance #banking
You mean like personal banking? Retail banking?
Yeah personal and retail banking. investment and other bankers make a shit ton more. I’m going into the investment side
Maybe you are easily replaceable/expendable? (I know I am too)
They really don’t. So I worked in a pretty good sales job on the institutional side at another bank. To answer your first question, I think personal/retail bankers are completely unnecessary and a dying breed, much like voice traders. Half of this blind community is actively working to make them become obsolete because there is nothing that they can do that a consumer can’t do themselves with a little help from our tech friends. The balances grown under a retail banker are minuscule and the revenue generated isn’t all that much. Collectively across all branches sure but pales in comparison to institutional side. The knowledge required to be a retail banker is also minimal. Anyone can do the job, I think the same is true on the institutional side but it has a higher barrier of entry. Retail banking is dead. Institutional is also being challenged. I’ll put it like this, traditional banks used to be lucrative in the 80s but I was told I missed the boat by 20yrs, thanks to the greed and distrust created during 2007 crisis. Sure, director, MD and global heads are making a boatload but I’ve seen SWE in here with higher salaries that have 7 YOE. If you make it to senior MD running a global business there really isn’t a comparison but that’s pretty challenging. It’s politics. At a previous company I doubled revenue for my assigned coverage (11mm). My TC was 140k. Is it better, yes… but it’s not getting me to an early retirement. Go to a fintech.
As a retail banker I generate revenue on a high level and that comes from more than just banking experience but overall sales experience. Retail Banking at the end of the day is still a sales job which requires BOTH knowledge and retail skills. A lot of ordinary people don’t go and find that knowledge on their own, even if it is readily available. Dying breed? I wouldn’t go that far. You could literally say any retail job is dying since the advancement of tech. But that doesn’t mean those in retail don’t hold an important spot. Does it require a lot of experience to be a start out banker? Definitely not. But can “anyone” be a banker? Definitely NOT. It requires a sales skill set and personable skills that a lot of people don’t posses. Why should someone bank with you vs the competitor across the street? The person who’s better at their job it going to win that battle 100% of the time no matter which business truly has the better benefits. I used to work in commissioned telecom sales. Similar thing but the commission portion was a LOT fairer compared to the bank and a lot more lucrative even tho it’s an industry that makes less money than banking. The banks can pay, they just don’t want to. I’m not saying that bankers should be making 100k+. But they should be making at least 65-80k TC depending on skill set. Right now BofA TC for a banker is around 50k. That’s why I’m going into the investment side to get to at least 100k
I’m not minimizing your ability I’m just being realistic with you. Do you have a skill.. yes but I wouldn’t be applying it in the way you are. Traditional banking is dead. You require a physical presence for an audience that wants to physically go into a branch and you’re likely selling a product that I can find a better alternative for from 5 minutes of Google. Can the banks pay more sure… every company can but they’re also shrinking their footprint in physical branch banking completely. Look at Citi. I’ll give you an example.. what APR does your bank pay for customer deposits? Even in their most competitive products, the only bank that pays a decent rate on cash with todays low interest rate is someone like GS with their Marcus accounts at 50bps. Credit cards, 1.5% (everyone’s got that now). Merrill Edge… open up any other brokerage account for zero comms and free research. There are a plethora. The problem is that retail banking was for consumers who weren’t interested in doing their own due diligence and built trust with a banker… that died years ago. And it’s going to accelerate even faster in the future like Amazon wiped out malls or streaming knocked out blockbuster. The banks aren’t stupid, they’re doing their best to evolve and most will succeed because they have the capital to do so. Will there always be a place for sales role in institutional banking.. I think so but I also think the money needs to be way better to attract top talent. If you’re in an operations role.. we’ll AI and robotics aren’t your friend. Adapt or die.
Retail Lending has always been a commodity business, lowest rate wins. The ability to offer the lowest rate depends on quite a few things like efficiency, cost of capital, underwriting etc. none of this is decided by the personal or retail banking person in the bank. At best they act as lead gen and should be compensated as such
Do you think lead gen doesn’t generate a large part of revenue or something? On top of that they aren’t really lead gen if they are actually opening their own accounts and services. That would be complete sales. A teller would be lead gen, not a banker.
Bank people job is to count and handle other people money. Not theirs 😁
Supply and demand
This. Too many people can do this job hence less pay. The bankers are available dimes a dozen.
Yeah but a lot of people can do a lot of jobs. Key is can anybody do the job well and the answer is simply no. Businesses have to realize the better the talent, the more profitable your company will be
Uhhh, you do know ... all banks right now are moving towards removing as many physical branches possible ?
what about investment bankers? I thought they make loads, but not sure...
They make much more than retail bankers but it still isn’t like astronomical. But it can be in six figures with the right client base
Investment Bankers making much more than Retail Bankers is an understatement. Retail Bankers have a $20k-$30k yearly base + bonus. Most IBs now start their entry level analysts at $100k+. Anyone can become a Retail Banker. IB isn’t rocket science, but you’d have to have the pedigree in order to charge clients high fees.
Because engineers are on the wrong side of the balance sheet at banks
Because employers can get away with it.
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