Commercial bankers are in charge of bringing in money by selling bank products to businesses. A commercial banker’s salary is typically determined by factors such as prior experience and academic credentials. Salary levels are also influenced by the bank’s market presence as well as the size of the banker’s loan portfolio. In many cases, bankers are paid a base salary plus commission, so a commercial banker’s salary may fluctuate depending on sales results.
Many banks require candidates for commercial banker positions to have completed college degree programs in finance, economics, or business administration. Some banks offer a bonus to bankers who have earned advanced degrees in the same fields. Other banks promote personal bankers who previously worked with consumers into commercial banking positions; their wages are often lower than those of their college-educated counterparts.
Banks frequently have several levels of commercial bankers. Senior bankers are given a portfolio of high-net-worth clients to manage, and they are in charge of maintaining and growing these lucrative relationships. Junior bankers are in charge of managing the accounts of small business owners, and their lending and deposit goals are typically lower than those of their more experienced counterparts. As a result, the salary of a commercial banker is determined in part by his or her specific job responsibilities.
Bank employees’ salaries are frequently linked to the bank’s profitability and market presence. A large bank with many branches and a large customer base will typically have more cash on hand to cover its wage bill than a small bank with a small client base. In addition, banks, like other employers, usually consider the local cost of living when setting wage levels. As a result, a commercial banker’s pay is influenced by where they work.
Commercial bankers, unlike mortgage lenders and investment officers, are typically paid a base salary plus performance-based commissions or bonuses. Bankers tasked with managing client portfolios are typically compensated based on the revenue generated by the portfolio. If a bonus is based on a percentage of a loan portfolio’s revenue, the banker with the most profitable loan clients will receive the highest commission payment. Commercial bankers’ salaries are often influenced by the performance of a branch or the bank as a whole, in addition to individual sales results. Even if a commercial banker has no direct involvement with those products or clients, factors like declining deposit rates or rising credit card defaults can have an impact on their pay.