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What Is the Banking Sector?

The definition of the Banking Sector is as follows: it is the economical section that holds financial assets for others, where financial asset is explained as a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks. Apart from holding financial assets, banks invest them as leverage to create more wealth. The condition that banks promise to fulfill, when they take clients’ money into their possession, is that this money can be withdrawn if they need it back.


What is the Investment Banking Sector?

The Investment Banks are financial intermediaries that purchase and sell bonds, stocks, and other investments. They also help other companies make initial public offerings. Other services that investment banks perform is raising capital and security underwriting and making mergers and acquisitions. Unlike commercial banks, investment banks do not take deposits. Investment banks earn profit by charging fees and commissions for providing these services and commercial advice.


What Is the Difference between the Banking Sector and the Investment Banking Sector?

Apart from the differences evident in the above definitions of the two sectors, the Banking Industry also differs from the Investment Banking Industry in how they are regulated. Banks are regulated by various federal authorities, the Federal Reserve and Federal Deposit Insurance Corporation being the most important among them. Insured by the federal government, banks are able to provide security to their customers and protect their accounts.

Investment banks are not as tightly regulated by the Securities and Exchange Commission. They, therefore, do not protect their clients’ accounts in equal measure. On a positive side, being less regulated gives investment banks more freedom in operations and makes them more tolerant of risks. In the Banking Sector, by contrast, risk is much lower, and so is its tolerance to it. 

Many banks, however, oppose the complete separation of all investment and commercial banking activities and practice both. Those banks that combine the functions of the commercial banking and investment banking reap certain benefits. They can use investment capabilities to help organization in the sale of an Initial Public Offering. After this, they can use their commercial division to give good credit to new businesses, which eventually will help them to bring their stock prices up. The combination banks also enjoy benefits of commission revenue.


 

What Are the Most Popular Employers in the UK Banking and Investment Banking Sectors?

According to various surveys – The Guardian UK300 and eFinance Careers Ideal Employer Ranking, for example - there are several banks in the United Kingdom, where job applicants strive to work. Every year, there are the same six employers that keep top positions, although sometimes they exchange places with each other. Public love for the banks in England is distributed among these companies listed below in order of its intensity:

  • P. Morgan – This is an American multinational company that has several branches open in the United Kingdom. Headquartered in London, J.P. Morgan also has offices in Bournemouth, Glasgow, and Edinburgh. This makes the bank the largest private sector employer in Dorset and the largest technology employer in Scotland. J.P. Morgan provides services to financial institutions, intermediaries, and private individuals. As an investment bank, it also offers M&A advisory, corporate banking, debt capital markets, capital raising, and risk management.  
  • Goldman Sachs International – Headquartered in London, this company was founded in 1966. Providing financial services worldwide, Goldman Sachs operates in four segments: Investment Banking, Institutional Client Services, Investing and Landing, and Investment Management. The range of the services the bank offers is wide, from financial advisory services, especially about mergers and acquisitions, to divestitures, corporate defense activities, risk management, underwriting services, including equity and debt underwriting of public offerings, restructuring, and spin offs.
  • Barclays - This is a British multinational investment bank and financial services company that is headquartered in London. Outside the United Kingdom, the bank has operations in more than 40 countries. It specializes in investment banking but conducts other businesses as well. Among them are personal banking, corporate banking, wealth management, and investment management. Barclays is listed on London Stock Exchange and is constituent of the FTSE 100 Index. Its revenue is £21.076 billion.
  • Morgan Stanley – This is an American investment bank and financial services company that in 1977 opened its European headquarters in London. It offers a full range of services covering mergers, restructurings, fixed income and quality financing, acquisitions, secondary trading, research, foreign exchange, commodities, asset management, and prime brokerage. It is listed on New York Stock Exchange and has a revenue of $37.95 billion.

 

Explore More Banking and IB Employers

Follow the links in the table below to learn more about the application and selection process of some known employers.

ADIA Admiral American Express ANZ
AON Aviva AXA Bank of England
Barclays BNP Paribas Capital One Catlin
Citi Commonwealth Credit Agricole Credit Suisse
Deutche Bank ECB EIB Fidelity
Goldman Sachs Hiscox HSBC RBS
iCAP Santander JP Morgan Societe General
Standard Chartered Lloyds UBS Lloyds Market
Macquarie Merrill Lynch Morgan Stanley NAB
Nomura RACV World Bank  

 

Finance & Banking Industry Preparation
Abbey National Treasury Services Plc ABC International Bank Plc Access Bank UK Limited, The
Adam & Company Plc ADIB (UK) Ltd Ahli United Bank (UK) PLC
AIB Group (UK) Plc Airdrie Savings Bank Al Rayan Bank PLC
Aldermore Bank Plc Alliance Trust Savings Limited Alpha Bank London Limited
ANZ Bank (Europe) Limited Arbuthnot Latham & Co Limited Atom Bank PLC
Axis Bank UK Limited Bank and Clients PLC Bank Leumi (UK) plc
Bank Mandiri (Europe) Limited Bank of America Merrill Lynch International Limited Bank of Baroda
Bank of Beirut (UK) Ltd Bank of Ceylon (UK) Ltd Bank of China (UK) Ltd
Bank of Communications (UK) Limited Bank of Cyprus UK Limited Bank of India
Bank of Ireland (UK) Plc Bank of London and The Middle East plc Bank of New York Mellon (International) Limited, The
Bank of Scotland plc Bank of the Philippine Islands (Europe) PLC Bank Saderat Plc
Bank Sepah International Plc Barclays Bank Plc BFC Exchange Ltd
BIRA Bank Ltd BMCE Bank International plc British Arab Commercial Bank Plc
Brown Shipley & Co Limited C Hoare & Co CAF Bank Ltd
Cambridge & Counties Bank Limited Cater Allen Limited Charity Bank Limited, The
Charter Court Financial Services Limited China Construction Bank (London) Limited CIBC World Markets Plc
ClearBank Ltd Close Brothers Limited Clydesdale Bank Plc
Co-operative Bank Plc, The Coutts & Company Credit Suisse (UK) Limited
Credit Suisse International Crown Agents Bank Limited DB UK Bank Limited
Diamond Bank (UK) Plc Duncan Lawrie Limited EFG Private Bank Limited
Europe Arab Bank plc FBN Bank (UK) Ltd FCE Bank Plc
FCMB Bank (UK) Limited Gatehouse Bank Plc GE Capital Bank Limited
Ghana International Bank Plc Goldman Sachs International Bank Guaranty Trust Bank (UK) Limited
Gulf International Bank (UK) Limited Habib Bank Zurich Plc Habibsons Bank Limited
Hampden & Co Plc Hampshire Trust Bank Plc Harrods Bank Ltd
Havin Bank Ltd HSBC Bank Plc HSBC Private Bank (UK) Limited
HSBC Trust Company (UK) Ltd ICBC (London) plc ICBC Standard Bank Plc
ICICI Bank UK Plc Investec Bank PLC Itau BBA International PLC
J.P. Morgan Europe Limited J.P. Morgan International Bank Limited J.P. Morgan Securities plc
Jordan International Bank Plc Julian Hodge Bank Limited Kexim Bank (UK) Ltd
Kingdom Bank Ltd Kleinwort Benson Bank Ltd Kookmin Bank International Limited
Lloyds Bank Plc Lloyds Bank Private Banking Limited Macquarie Bank International Ltd
Marks & Spencer Financial Services Plc Masthaven Bank Limited Melli Bank plc
Methodist Chapel Aid Limited Metro Bank PLC Mizuho International Plc
Monzo Bank Ltd Morgan Stanley Bank International Limited National Bank of Egypt (UK) Limited
National Bank of Kuwait (International) Plc National Westminster Bank Plc Nomura Bank International Plc
Northern Bank Limited Northern Trust Global Services Ltd OakNorth Bank Limited
OneSavings Bank Plc Paragon Bank Plc PCF Group Holdings Ltd
Persia International Bank Plc Philippine National Bank (Europe) Plc Punjab National Bank (International) Limited
QIB (UK) Plc R. Raphael & Sons Plc Rathbone Investment Management Limited
RBC Europe Limited Reliance Bank Ltd Revolut
Royal Bank of Scotland Plc, The Sainsbury’s Bank Plc Santander UK Plc
Schroder & Co Ltd Scotiabank Europe Plc Scottish Widows Bank Plc
Secure Trust Bank Plc SG Hambros Bank Limited Shawbrook Bank Limited
Smith & Williamson Investment Services Limited Sonali Bank (UK) Limited Standard Chartered Bank
Starling Bank Limited State Bank of India Sumitomo Mitsui Banking Corporation Europe Limited
Tandem Bank Limited TD Bank Europe Limited Tesco Personal Finance Plc
TSB Bank plc Turkish Bank (UK) Ltd UBS Limited
Ulster Bank Ltd Union Bank of India (UK) Limited Union Bank UK Plc
United National Bank Limited United Trust Bank Limited Unity Trust Bank Plc
Vanquis Bank Limited Virgin Money plc VTB Capital plc
Weatherbys Bank Limited Wesleyan Bank Limited Westpac Europe Ltd
Wyelands Bank Plc Zenith Bank (UK) Limited Other Bank or Financial Firm

If the company that you are looking for does not appear on the list, please contact us and we will do our best to ensure you get the right preparation you need for your upcoming assessments.


 

What Job Opportunities Does the Banking Sector Have?

The Banking Sector is a cornerstone of our economy: banks transfer risk, provide liquidity, facilitate transactions, and provide financial information for businesses and individuals. The industry, therefore, never lacks job opportunities. If you are considering joining the Banking Industry, you have a wide range of roles you can play there. Some of them are listed below:

Tellers

Tellers communicate with customers more than other bank employees. Their duties are to provide services to customers, accepting deposits, cashing checks, and solving some small monetary problems. the advantage of the teller’s role is that, when you receive enough experience, you can move up to the head teller or supervisor positions. If you become a supervisor, you will make sure that other tellers follow Banking Industry rules and operating procedures. To be a good teller, you need to be concentrated and attentive to the smallest details, because you contribute to the bank’s overall risk management. It is up to the teller to place a hold on large dollars transactions or checks. Most of the banks require tellers to hold a bachelor’s degree, but sometimes a previous working experience is enough to work in the banking industry.

Loan Officers

This role is highly important for banks, since it is precisely by issuing loans that they earn money. Loan officers are allowed to give clients different types of loans. They take the responsibility to authorize credit cards and automobile loans. Another responsibility that loan officers shoulder is opening transactional checking and saving accounts. Or they work with organizations, issuing business loans. Because the most popular loan in our times is mortgage, many banks hire specialists giving mortgages to people, paying them in the form of commissions. Loan officers are required to have at least a bachelor’s degree, although tellers are also often promoted to the position of loan officers.  

Financial Analysts

Banks also require financial analysts whose responsibility is to help clients to make investment decisions. To do so, they collect and then analyze financial information, basing their recommendations to the clients on their analysis. Other responsibilities of financial analysts include working on spreadsheets, making reports, and giving presentations. Yet the duties of financial analysts largely depend on what type of analyses they do. They can analyze securities, investments, and ratings. Financial analysts usually have a bachelor’s degree either in business administration, accounting, statistics, or finance.  

Collectors

This position requires employees to keep track of past due accounts, such as mortgages, car loans, or credit cards and collect payments for them. This is a crucial position for the bank’s profitability. To collect overdue payments, collectors need to go through a list of clients owing money to the bank and then contact them on the phone, trying to find out the reason why a payment is overdue. Good computer skills are essential for this role, and so is an ability to communicate with the clients who can be in financial dire straits. Collectors need to know how, in their conversations with the clients, to give good customer service, show empathy to their problems, and remain firm in their decision to collect what is owed to the bank.

 

JobTestPrep does everything in its power to help job applicants to understand advantages of working in the Banking and Investment Banking Industries. We also make job-seekers’ ambitions to enter this sector realizable by offering them our high-quality PrepPack™ containing accurate simulations of those tests that they may be asked to take as a part of their pre-hire process. Study with our tests and interview materials, track your progress, while you are studying with our answer keys and study guides, and become employed in the Banking Sector.