Did Uncle Scrooge from Duck tales know about the existence of banks? Obviously, he did not. If he did, he would not have built his signature mammoth vault to safeguard his gold coins. Now, cast your mind back to the opening sequence of the Dark Knight, where the joker and his continually depleting gang of thugs, pull off a daring bank robbery. If you are wondering why so many movies have been made on bank robberies, it is probably because of the sheer audacity of the thought.
What happens to our money once we deposit it in a bank? Is it stored in currency bills, or as numbers? Do banks have different lockers for each customer? Is the design much more complex?
Banking is primarily the business of dealing in money. From savings accounts to salaried accounts, banks cater to customers to help them keep a record of their money, accepting deposits which can be withdrawn or transferred. Thus it is vital that this business need be managed by an expert. Banks also give out loans, a necessity for many who don’t have enough cash to buy homes, vehicles, establish businesses etc.
And what about insurance?
Insurance is also a very important part of our lives today. Imagine if your house caught fire and is burnt down. If there was no such thing as insurance, how would someone recover from such a loss? I am sure most of us, are aware of the great ruckus created by a traffic cop, who stops us roadside and demands to see the insurance papers for the vehicle.
If you have an eye for detail, and an inexplicable urge to tabulate everything, it would probably be a good idea, to pursue a career in banking and insurance. Choosing the right course and the right country is a big challenge, with a wide array of options available, both in India and abroad.
Banking and insurance is taught in most countries as part of the MBA, BBA or Associate diplomas/ degrees. However, you can also find universities and institutes in different countries, who have specialised diploma courses on banking.
USA- In the USA, there are various courses offered for students wishing to pursue banking and insurance as a career. The programmes are usually a part of 2 year MBA programmes with a concentration on banking and insurance models, a 4-year BBA course with a concentration on banking, or as 20 month associate degree/diploma. An associate's degree for banking and finance focuses on marketing and advertising, retirement investing, credit reporting, lending standards and accounting principles.
- New York University (NYU), offers a 2 year full time MBA programme (approx. tuition fee is $94,900/year), where banking, insurance and finance are offered as specialisations from among 23 different fields.
- The University of Pennsylvania has Bachelor of Science Economics programme, which includes modules for banking and insurance and generally costs around $42,098 for the 4 year course.
- The AAS Accounting program at Devry University would cost you around $5000/year for the course which can be 18-24 months long.
Apart from these institutions, the University of Chicago and Stanford are some of the other places to study banking and insurance.
UK- In U.K., a banking and insurance course is either an undergraduate programme BSc Finance, or a post-graduation MSc Finance and Accounting. Some institutions have post graduate diploma programmes as well, and other universities have MBA courses for chartered bankers.Typically, the undergraduate courses are priced at 8,500 pounds a year, with 2 year long modules.
A 2.2 Honours degree and an overall score of 7.0 in IELTS are required, to pursue an MBA, with special modules for banking and insurance. An IELTS score of 7.0 is also required to pursue a BSc, along with either 3 years work experience at a managerial level or an equivalent degree, either in accounting, economics, business studies, mathematics or statistics. These are some prerequisites, to pursue banking and insurance, in the UK.
Singapore- In Singapore, Banking and insurance courses are available as undergraduate programmes. The undergraduate management programmes in Singapore are typically 4 year long and the fee ranges from SGD $ 15000-40000 for the entire course. Students are required to complete at least 12 years of schooling before applying to these courses. Most of the universities in Singapore require an IELTS score of 6 or above and a TOEFL score of 550 and above. These universities also mandate the successful completion of 2-year full time study in English medium. Some of the prominent institutes in Singapore include:
- NUS Singapore
- Management Development Institute of Singapore
- Singapore Institute of Management
- JCU Singapore
- SGP International Management Academy
- Shelton College Singapore
India- In India the Institute of Finance, has study programmes for banking and insurance. These courses are either post-graduate diplomas for branch banking or banking operations. Certain universities have undergraduate programs, either BBA or B.Com courses. There are no undergraduate programmes, which specifically cater to banking and insurance as core subjects, as these courses often include individual modules for banking and insurance.
There are many exams held to employ people at banks. The placement to a bank will depend on your score in the PO exam, which is conducted by most of the banks today. Even privately owned, international banks conduct their own exams to filter and shortlist prospective employees, based on their scores and their attitude.In 2012 alone, 61000 candidates have appeared for entrance exams and qualified for interviews at a variety of banks. Around 42000 of them joined banks.
Alagappa University, Aligarh Muslim University, Amity University and Bharti Vidyapeeth are some of the universities offering graduate and postgraduate programmes, either a BBA or MBA with specialisations in banking and insurance.
Terrorists need bankers as well! Remember Le Chiffre from Casino Royale? Sadly, there are no courses which offer training on high stake card games like the one Le Chiffre plays with 007 in the movie.
However, students who do enrol for banking and insurance courses are trained on these basic concepts of banking and insurance:
The major areas where a person will be trained are:
- Environment & Management of Financial Services
- Principles of Management
- Effective Communication
- Micro Economics.
- Quantitative Methods
- Financial Accounting
- Macro Economics
- Business laws
- Laws relating to Banking & Insurance
- Financial Management
- Management Accounting
- Customer Relationship Management
- Taxation of Financial Services
- Universal Banking
- Corporate Law's & Law Governing Capital Markets
- Entrepreneurship Management
- Equity Debt
- Foreign exchange & Derivatives
- E-commerce application
Once you have an idea about these topics you have been trained on, you will be ready to start working in a bank or open up your own insurance firm.
Did you know, Mr. Incredible played the character of a very soft-hearted insurance claims adjuster in “The Incredibles?” A career with insurance might not bless you with super powers like Mr. Incredible, or get you work on an exotic island. However, the amount of opportunities available in banking and insurance today could get you work, locally as well as internationally. Almost everyone has life insurance, health insurance and a motor insurance.
In the banking sector, there are various nationalised banks, and some private ones. Usually these banks hire thousands every year. Also, with a huge chunk of the working youth opting for credit cards and running up huge debts, credit analysis is a niche area, which is a lucrative option.
Internationally, there are many job openings and the demand for bankers, insurance investigators, investment banking analysts, and credit analysts has increased. Hence, there are various options available at your disposal, depending upon your inclination and your skill.
Once you have completed a course in banking and insurance, there is a multitude of options at your disposal. You can work in nationalised banks, private banks, or insurance firms as a:
- Bank Manager
- Investment Banking Analyst
- Customer relation manager
- Insurance claims adjuster
- Credit Analyst
- Insurance investigator
- Equity Manager
If teaching appeals to you, you can also coach students on how to clear bank PO exams, the nuances of derivatives trading, investment banking, etc.
The companies which you would most probably end up working with would cater to the banking and insurance space, either locally or internationally can offer you job opportunities and salary perks that match industry frontrunners.
Some companies include:
- State bank of India
- Royal bank of Scotland
- Barclays Bank
- HSBC
- Bank of America
- Deustche bank
- Bajaj Allianz
- Metlife
Apart from these big name players there are other government banks and insurance firms that can offer you good opportunities.
Surely you must have heard about Mr. John Pierpont Morgan. J.P. Morgan is widely hailed as “The father of Modern Banking”. He started working at his father’s branch in London, moving to New York shortly afterwards, eventually going on to become the main catalyst, in what was to be the greatest merger of modern times. Edison General Electric and Thomson-Houston Electric Company combined to form General Electric. G.E. today is the 3rd largest firm in the world among the Forbes Global 2000 companies in the world.
Working for a bank can sometimes be a monotonous and uninteresting prospect for the few who feel, they can put their education to better use by working alone.
The chances of going solo and working for yourself are not very bright, unless you decide to venture into insurance. That said if you can raise some decent capital, then you can surely decide to start up a bank of your own. With the growing number of private banks, it should not be a huge problem.
Being an entrepreneur, you can also weigh the possibilities of being a financial advisor with consultant organizations, or trading in stocks, derivatives and commodities, or even be an insurance investigator, inspecting insurance frauds, falsified claims, etc. There is a huge amount of money to be made here.
What is the one thing banker will take from you, and the insurance guy might sanction for you?
If you guessed money, then you are absolutely correct. It’s all about the money. All this talk of money must be making you wonder, how much money banking and insurance professionals can earn. It depends on a number of factors, such as educational qualification, type of employer, industry, location of work and so on. Besides a monthly salary, bankers and insurance professionals, enjoy many perks, in the public and private sectors.
Following is the remuneration overview in India:
| Experience in Years | Compensation per annum |
|---|---|
| 0 to 5 years | 2 lakh to 7 lakhs |
| 6 to 10 years | 8 to 13 lakhs |
| 11 to 15 years | 13 to 20 lakhs |
| 15 years | 20 lakhs and above |
Once you have completed a course in Banking, there are various subjects that you wouldn’t make sense for you to pursue like Life Sciences, Biology, Humanities, Arts, and Literature. There is no fixed background required, if you wish to work in banking and insurance. However, for obvious reasons one shouldn’t study to be a doctor, and apply for a course on banking. Most courses on Banking and Insurance are typically studied after a graduate degree of Business Management, Finance, Accounting, or Mathematics and Statistics.
Banking and insurance are sure shot money spinning careers. Although, working with the share market, predicting the rise and fall of commodities can also be mighty thrilling, as difficult as it may sound. Imagine advising someone on how to sell and buy shares and other commodities, like gold, silver? Being in this profession can also give you a head start on how to beat economic slowdown and help your customers reap immense profits.
The advantages and disadvantages would depend upon what you wish to focus on.
A career in this field comes with advantages like:
- Job Security( with nationalised banks)
- Prestige and status
- Fixed job times
- Maximum holidays sanctioned
- Frequent relocation (If you like to travel)
- Comfortable life
On the flipside, the disadvantages are:
- Monotonous work
- Time bound work
- Mechanical work
- Stress
- Health hazards
- Longer hours during times of audit
Advances in the field of banking and insurance have gathered momentum over the past few years. Niche new avenues such as investment banking and derivative trading have opened up. These are some skills that will set you on the right path to success in the banking and insurance industry.
Some of these skills are listed below:
- Patience
- Dedication
- Diligence
- Sincerity
- Meticulousness
- Amiability
- Proactive nature
- Confidence
- Calmness
- Self-motivation
By now, your inclination to pursue banking and insurance as a career might have been triggered. Studying banking and insurance can help you understand, the nuances of investing and managing money, or the inner workings of an insurance firm. This expertise will be more than useful. It could help you derive profits in even in economically slow times
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