A bank credit analyst looks over information on current and potential customers to help make credit decisions. Assembling materials, preparing reports, and making final recommendations to other bank personnel who meet with customers to discuss their needs are all part of this job. Working in this position may necessitate a degree in finance or a related field, and many banks prefer experienced candidates who have worked in credit departments.
One aspect of the job entails gathering information from customers, reviewing it, and gathering data independently. Credit checks are a common tool, and a credit analyst can also look over financial records for signs of bankruptcies and other issues that could pose a credit risk. As the analyst gathers this information, it can be turned into a report that details the client’s creditworthiness.
This information may be used to determine whether a credit request is approved, as well as whether or not credit limits are reduced for existing customers. It also enables financial institutions to keep an eye on potential risks and plan accordingly. If a major client appears to be having trouble paying bills, for example, it could be a sign of impending bankruptcy, which would be detrimental to the bank’s interests.
People who want to get credit from a bank can also be evaluated to see if they should be approved and under what conditions. The bank credit analyst examines their information as well as any additional materials gathered during their research before making a recommendation. This can also include an assessment of assets, especially those that could be used as collateral. Someone applying for a mortgage, for example, must be able to demonstrate that the new home is worth enough to cover the loan’s outstanding balance.
A bank credit analyst examines portfolios and investment opportunities in addition to evaluating customers. These assessments determine the level of risk associated with a business opportunity, allowing a bank to decide whether or not to pursue it. If it does, the bank credit analyst will keep track of the investment’s performance and may make recommendations to sell it if it appears to be in trouble. This enables banks to manage and balance risks while also profiting from their investment activities.
Workers in this position, especially if they are part of the senior staff, may be eligible for benefits through the bank. These may include benefits such as paid vacation and relocation assistance if they must relocate for work. Experience and skills can be used by a skilled credit analyst in negotiating raises or contracts with new employers.