Bank Credit Analyst Salary
What is the Bank Credit Analyst Salary?
Bank Credit Analysts are a sector of credit analysts. They specialize in analyzing credit and finances. To determine a person's reliability, they are an essential part of the loan-taking process and banks.
When evaluating regular borrowers, companies, and securities, these individuals consider all financial records, purchases, sales, and credit. They try and asses if an individual/entity can repay a loan or is a good investment for their bank.
Credit Analysts, in general, play an important role in the economy. Regardless of being part of a bank's health and profit, they provide crucial knowledge and advice to banks when providing lines of credit—these lines of credit help to fuel the movement and growth of a healthy economy.
Employees in this role are under high pressure to provide highly detailed and concise information on an applicant. Therefore, they are extremely proficient in finance and financial statements/concepts. They also have close attention to detail.
- Credit Analysts work to determine the risk of a possible borrower.
- Credit Analysts require good communication skills and knowledge of financial statements.
- Analysts make around $70,000 ~ 80,000 a year.
- Requires a bachelor's Degree and experience in the field of finance.
- Large banks hire the most analysts.
- New York/East Coast Cities pay the most for CAs.
- Certification is a great way to stand out!
Responsibilities of a Credit Analyst
There are a lot of jobs a credit analyst needs to do. Banks heavily rely on analysts to do a proper job and research diligently. Each responsibility that falls under an analyst overlaps with each other, but each needs to be executed properly to benefit the bank the analyst is working at.
Such responsibilities include:
1. Talking with clients to validate financial records
Each client is different, and each financial record is unique. Therefore, it's important that all financial records are in order and that no fraud is to be found. You'd be surprised how many people lie just to get a loan.
2. Asses credit history and identify risk
Risk for a bank is a large factor. Each bank wants its loans to be paid back in full with interest. If a borrower is seen as unfaithful in their payments, it hurts the bank and its profits. The credit analyst's job is to determine a borrower's risk.
3. Stay up to date with protocol/laws
Laws retaining loans are constantly being debated and amended. If a change were to occur, it is expected that a credit analyst would understand and regard these new rules when looking into a borrower's application.
4. Creating Reports
Creating Reports is important for this position. You must convey all the information you collect on a borrower to higher up at your bank. They need to understand a borrower's risks and if they should be approved.
Average Day for a Credit Analyst
A general day for this job would consist of looking at financial charts and conversing with applicants and higher-ups. Information needs to flow clearly when working on analysis. Your research and input heavily impact the availability of a loan to a borrower.
Suppose you are assigned to confirm a financial record for a borrower. In that case, it's your job to converse with this borrower to write down and cross-analyze records and testimonies to confirm a record's legitimacy.
Not only are records confirmed, but credit scores are analyzed as purchasing records and all other forms of financial history. After research and checking, it's up to you to determine the risk of a borrower. For example, borrowers with poor salaries and a history of late payments would be considered high risk.
While borrowers that pay their payments on time, have a stable income and practice financial safety would be considered low-risk.
Your decision as a borrower can change the course of a loan. For example, borrowers determined to be untrustworthy will likely be rejected, while those with good and on-time payments will likely be approved.
Bank Credit Analyst Salary
The salary of a credit analyst can vary a lot. Banks and other employers will pay differently based on position, company size, experience, and seniority. Other factors, such as the density/competition of a state or the GDP of a state, all affect pay.
The U.S. Bureau of Labor (BLS) stated that the mean salary was $88,030 per year, while the median salary was $77,440 as of May 2021.
Based on the BLS, the following wages are based on percentiles:
- Top 10% - $47,630 ($22.90/h)
- Top 25% - $60,490 ($29.08/h)
- Top 50% - $77,440 ($37.23/h)
- Top 75% - $101,250 ($48.68/h)
- Top 90% - $153,560 ($73.83/h)
States with the most Credit Analysts per 1,000 people:
- South Dakota - 0.99/1000
- New York - 0.79/1000
- North Carolina - 0.71/1000
- Missouri - 0.68/1000
- Colorado - 0.66/1000
Highest-paying states for Credit Analysts:
- New York - $129,460 ($62.24/h)
- Connecticut - $98,430 ($47.32/h)
- New Jersey - $ 96,080 ($46.19/h)
- Virginia - $95,990 ($46.15/h)
- Iowa - $93,390 ($44.90/h)
An informed choice of where to work should start with these data points. Each state, city, and company have different needs for analysts. Some states may have a low density of analysts but pay well, while others have lots of competition for analysts but even better opportunities.
Wages and other salary information are available at the U.S. Bureau of Labor.
Bank Credit Analyst Job Requirements
To work in the financial world, at a minimum, you'll need a bachelor's degree in a financial study such as finance, business, or accounting. After that, an associate is acceptable, but most employers want to see four years of study.
It's also a bonus to be familiar with a multitude of subjects integral to this industry. Subjects like economics, ratio analysis, statistics, analysis of financial statements, and even calculus all have a role in this industry.
Regardless of graduation, experience is king. You should gain a few years in a lower position or another profession close to analysis, financial statements, accounting, etc. A background in this industry helps you stand out and make you a better candidate.
Certification courses are also a great way to stand out! Most schools offer a certification test. These tests show your proficiency as an analyst. They take time to study and practice for and can often cost money. Of course, these certifications are not required, but most employers will prioritize applicants with certifications.
Bank Credit Analyst Job Market
Most analysts are employed at commercial and investment banks. This is because these institutions are where their skills thrive.
Any other place that issues credit-related services also will employ analysts, but large banks like Wells Fargo & Co., Bank of America, J.P. Morgan Chase, etc., will be the main employers.
These banks are the largest providers of credit and loans. These institutions are widely known and have multiple branches in multiple countries. This large-scale business requires the most considerable amount of analysts and employees.
Although these banks are the highest employers of analysts in the financial industry, there are more viable options. Although, for example, it's possible to work for a smaller or regional bank, investment firms, and even personal accountants require data acquired from credit analysts.
Regardless of working as an analyst, even if you decide not to follow through, the education required opens a pathway for many other jobs.
A financial degree alone is a gateway to hundreds of jobs. Additionally, the skill you'd learn from a field of credit analysis is valuable knowledge to bring into any account, financial, economic, or almost every job.
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