Banking Industry Job Outlook

Employment growth will be driven by increases in Americans’ wealth and investments and a growing number of local branches.

Wage and salary employment in banking is projected to grow 8 percent between 2008 and 2018, compared with the 11 percent growth projected for wage and salary employment across all industries.

Banks compete strongly to attract new customers. Because convenience of local branches is one of the most important factors for customers selecting a bank, the number of local branches will continue to increase. New branches frequently will be located in nontraditional locations, such as inside grocery stores. A growing number of branches will increase employment of branch managers and tellers.

Deregulation of the industry allows banks to offer a variety of financial and insurance products that they were once prohibited from selling. Managing and selling these services will spur demand for financial analysts and personal financial advisors. Demand for "personal bankers" to advise and manage the assets of wealthy clients, as well as the aging baby-boom generation, also will grow. However, banks will continue to face considerable competition in financial services from nonbank establishments, such as insurance companies and independent financial advisor firms.

The increasing number of retired baby boomers should have a beneficial effect on total employment in the banking industry. They are more likely than younger age groups to hold bank deposits and visit branches to do their banking. Many also need help in retirement planning and investing which increases demand for financial managers and personal financial advisors.

Job opportunities should be favorable for office and administrative support workers because they make up a large proportion of bank employees and many individuals leave these positions for other jobs that offer higher pay or greater responsibilities. The need for skilled workers will create good job opportunities for individuals with financial services backgrounds.

Source: Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2010-11 Edition