Banking

• Nature of the Industry
• Working Conditions
• Employment
• Occupations in the Industry
• Training and Advancement
• Outlook
• Earnings
• Sources of Additional Information

Significant Points

• Office and administrative support workers constitute 64 percent of all jobs.
• Many job opportunities are expected for office and administrative support workers, because these occupations are large and have high turnover.
• Many management positions are filled by promoting experienced, technically skilled professional personnel.
• Despite recent volatility within the banking industry, wage and salary employment is expected to grow 8 percent over the projection period, compared to 11 percent for all industries.

Nature of the Industry About this section

Banks safeguard money and provide loans, credit, and payment services such as checking accounts, debit cards, and cashier's checks. Banks also may offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending money.
Goods and services. Banking comprises two parts: Monetary Authorities—Central Bank, and Depository Credit Intermediation. The U.S. Federal Reserve System is the central bank of the United States and manages the Nation's money supply and international reserves, holds reserve deposits of other domestic banks and the central banks of other countries, and issues the dollars we use. The credit intermediation and related services industry provides banking services to consumers and businesses. It secures the money of depositors, provides checking and debit card services, and lends money to consumers and businesses through credit cards, mortgages, car loans, investment loans, and lines of credit.
Industry organization. There are three basic types of banks: commercial banks, savings and loan associations, and credit unions. Although some of the differences between these types of banks have lessened, there are key distinctions. Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. Commercial banks come in a wide range of sizes, from large global banks to mid-size regional and small community banks. In addition to typical banking services, global banks lend internationally and trade foreign currencies. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area and provide banking services to individuals and local businesses. Community banks are based locally and have fewer branches than regional or global banks. In recent years, online banks—which provide financial services entirely over the Internet—have entered the market, with some success. However, even in Internet banking distinctions have lessened as traditional banks also offer online banking, and some formerly Internet-only banks have opened branches.
Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of consumers. Over time, distinctions between savings banks and commercial banks have largely disappeared.
Credit unions are another kind of depository institution. Credit unions are formed by people with a common bond, such as those who work for the same company, belong to the same labor union, or live in the same county. Only people who have the common bond are allowed to become members. Loans and savings accounts are restricted to members. Credit unions are nonprofit organizations that are governed by a board elected by the depositors (members).

Banking

• Nature of the Industry
• Working Conditions
• Employment
• Occupations in the Industry
• Training and Advancement
• Outlook
• Earnings
• Sources of Additional Information

Significant Points

• Office and administrative support workers constitute 64 percent of all jobs.
• Many job opportunities are expected for office and administrative support workers, because these occupations are large and have high turnover.
• Many management positions are filled by promoting experienced, technically skilled professional personnel.
• Despite recent volatility within the banking industry, wage and salary employment is expected to grow 8 percent over the projection period, compared to 11 percent for all industries.

Nature of the Industry About this section

Banks safeguard money and provide loans, credit, and payment services such as checking accounts, debit cards, and cashier's checks. Banks also may offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending money.
Goods and services. Banking comprises two parts: Monetary Authorities—Central Bank, and Depository Credit Intermediation. The U.S. Federal Reserve System is the central bank of the United States and manages the Nation's money supply and international reserves, holds reserve deposits of other domestic banks and the central banks of other countries, and issues the dollars we use. The credit intermediation and related services industry provides banking services to consumers and businesses. It secures the money of depositors, provides checking and debit card services, and lends money to consumers and businesses through credit cards, mortgages, car loans, investment loans, and lines of credit.
Industry organization. There are three basic types of banks: commercial banks, savings and loan associations, and credit unions. Although some of the differences between these types of banks have lessened, there are key distinctions. Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. Commercial banks come in a wide range of sizes, from large global banks to mid-size regional and small community banks. In addition to typical banking services, global banks lend internationally and trade foreign currencies. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area and provide banking services to individuals and local businesses. Community banks are based locally and have fewer branches than regional or global banks. In recent years, online banks—which provide financial services entirely over the Internet—have entered the market, with some success. However, even in Internet banking distinctions have lessened as traditional banks also offer online banking, and some formerly Internet-only banks have opened branches.
Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of consumers. Over time, distinctions between savings banks and commercial banks have largely disappeared.
Credit unions are another kind of depository institution. Credit unions are formed by people with a common bond, such as those who work for the same company, belong to the same labor union, or live in the same county. Only people who have the common bond are allowed to become members. Loans and savings accounts are restricted to members. Credit unions are nonprofit organizations that are governed by a board elected by the depositors (members).