For many years, young people have wanted to enter the banking sector. A huge proportion of super-rich and ambitious entrepreneurs have banking backgrounds. The industry has proven to be a valuable springboard for several of the most successful people in business such as Spencer Rascoff, Christopher Wightman, and Declan Ee, giving them the skills required for top-level entrepreneurship.
Here are five reasons why banks are a popular choice for young people.
An Equal Barrier to Entry for all
Banks offer entry-level employment programs for graduates regardless of their professional backgrounds. Whether they’re graduating from related degrees like finance, mathematics, and economics, or unrelated ones like arts and psychology, graduates can find career paths in the banking industry. No particular skill is required to enter this sector as banks usually hire inexperienced candidates and provide the necessary training. As a result, banking professionals have the opportunity to learn from individuals with a variety of specialisms.
What’s more, multiple studies have shown that university students often regret their subject choices. It is an excellent opportunity for young people to change their career paths by pursuing a career in banking.
Professional Training and Development
Banks, particularly established ones like Morgan Stanley and Barclays, offer their candidates structured apprenticeships and training programs. Tested and proven, these programs produce effective results. Some employers will even pay for employees’ courses and examinations to acquire professional qualifications along the way, depending on the career development route.
Graduate employment schemes, for example, allow young people to follow highly structured career progression plans for years to come. These routes not only provide young people with career stability but are still designed to allow a decent amount of flexibility.
Aside from professional training programs, banks utilise social and team-building activities to prepare their employees for this demanding industry. The challenging nature of banking promotes a healthy learning curve that helps workers become more confident decision-makers and time managers.
Long-term Career Prospects
The banking sector offers employees a clear career path, from entry-level to management, and director. Most young people are given a clear indication of their next promotion before joining the bank, giving them a sense of security.
The scale of the banking sector also makes for higher promotion potential than in other industries. There is a saying that the sky is the limit in the banking sector. A few years of hard work can lead to promotion to management, even for probationary officers and clerks. A hardworking and ambitious professional may manage to land a position in a general management team after just ten years.
There are many examples of probationary officers rising to high positions in the banking industry. One of the most prominent examples is Rajnish Kumar. SBI appointed him chairman of the board after he began working there as a probationary officer in the 1980s.
Compensation and Benefits
The banking industry is of course known to pay exceptionally well, consistently ranking among the top 10 highest-paying sectors.
It is an unspoken rule not to discuss compensation in banking interviews. However, people who work in banking at any level will not deny that money is one of their primary motivations. According to recent research, a banking salary may be the only way for young people in major cities like London and New York to afford a place to live, given the current inflation rate and real estate price rises.
In addition to generous salaries, banks offer plentiful bonuses and benefits – significantly more generous than other high-performing industries. Buying medical and disability insurance for their employees is an industry-standard in banking and other benefits such as including sick leave, holiday, and pension funds are also generally available to employees.
Opportunities Beyond Banking
Banking can provide the skills you need for any job in any sector. Thus, bankers frequently start their own businesses or divert to higher-paying jobs later in life.
Working as a banker involves trust, responsibility, and integrity. Throughout a banking career, employees will acquire a number of skills related to dealing with finances in a high-pressure environment, and a host of skills related to leadership and working in a team. There aren’t many careers that provide such a well-rounded set of skills which can be applied as widely as in banking.
Founder and ex-CEO of NatWest Financial Products Plc. Chris Wightman has now turned his hand to tech in the agriculture sector, becoming president and CEO of VM Agritech. His experience in the banking industry has equipped him with the unique set of skills that have allowed him to build the company’s success.
Overall, banking offers the whole package to new graduates. From the exceptional benefits which come with the job to the skills that graduates learn, there are countless reasons to enter banking. This becomes even more attractive when these skills can be applied elsewhere, with limitless career opportunities.