A Guide to Banking Operations (With Careers and Salaries)

Updated 9 March 2023

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When a customer visits a bank or makes any kind of banking transaction online, the bank gives them an acknowledgement indicating that the transaction is complete. In reality, there are multiple operations that happen at the back-end to successfully execute each transaction. These operations are called banking operations. In this article, we examine the importance of banking operations, identify different classifications and discuss the skills and qualifications you may need to work in the field of banking.

What are banking operations?

Banking operations are legal transactions and a set of practices executed by the back-end team of a bank to facilitate its day-to-day operations. All banking job roles may not require professionals to interact with the customer directly, but their operations ensure that a client's transactions are executed accurately, by minimising risk and maximising the quality of customer service. Banking operations include the issuing of loans, customer support activities, stock trade, documentation, investment analysis and retail operations.

Why are banking operations important?

Banking operations enable banks to provide better and personalised service to their customers. Apart from traditional retail operations for individuals, banks today are involved in a variety of financial transactions for business and industrial processes. With the use of data processing technology and specialised software, banking operations help evaluate credit risks, approve loans, resolve disputes, automate service and maintain privacy for sensitive financial transactions. The back-end team is also responsible for quick and secure processing of all day-to-day transactions related to investment, finance, credit, equity and trade for their clients.

Types of banking operations

The exact nature of banking operations may depend on the office or the particular department they support. Since banks facilitate many types of transactions and services, they require specific banking operation teams trained for and qualified to deliver each service. These operation teams facilitate and execute transactions while complying with regulatory guidelines. The different types of banking operations are:

Investment banking

Investment banking operations are specialised bank operations subject to high level of scrutiny by regulatory bodies. Investment banking teams facilitate mergers, acquisitions, stock trade, equity transfers, capital market functions and debt processing. Database maintenance, data analysis, risk management, equity analysis and data processing are key responsibilities of an investment banking operations team.

Trade support

Trade support operations of a bank work with trading desks. At desks, executives may perform activities like booking a trade, checking for errors, reconciling and updating profits and losses for traders in real time. They also assist traders by performing trade analytics.

Operation teams send reports of each trade to invested traders and regulators. They strive to maintain accuracy, because small errors can lead to huge losses for clients. Since trade support operations happen in real time, they involve substantial risks and may be stressful for involved executives. However, professionals who are involved in this domain of banking have great earning potential.

Risk analysis and mitigation

Most transactions are subject to risks because of human error, fraud, malicious infringement and system failure. The risk operations department works to monitor, identify and minimise such risks for a client's transactions. They ensure that the front-end team complies with prescribed risk management protocols and oversees back-end operations.

Corporate banking

The corporate banking operations team works with large companies and public institutions. They directly work with businesses to provide loans and credit and facilitate smooth financial operation. Their primary responsibilities include verifying KYC (Know Your Customer) compliance, maintaining records and keeping client accounts operational. They also issue and transmit relevant documents regarding trade finances and business transactions. The operations team is responsible for ensuring that clients adhere to applicable credit policies and regulatory guidelines.

Client service

Some banking operations are client-centric. A client service operation team works towards closing and fulfilling loan agreements, processing payments and resolving customer disputes. The team also helps front-end executives to comply with anti-fraud policies. They also help customise repayment plans and prepare payment schedules for loans.

Retail banking operations

The retail banking operations team addresses KYC norms for new customers, ATM cash management, loan processing and timely loan disbursal. They ensure that their clients and the bank meet regulatory guidelines. Some banks may outsource their retail banking operations, depending on the volume of transactions.

Technical operations

The technical operations team helps in automation and digitisation of the bank's information systems. It ensures that crucial technological systems are working consistently to provide seamless service to clients. Even small disruptions can potentially lead to chaos in the banking system. The technical operations team provides security and ensures that sensitive and crucial financial data of clients are safe from threats.

Other crucial banking operations may manage specific activities pertaining to a bank and its internal operations. These may not be connected to individual customers of the bank. For example, the HR (Human Resources) operations team of a bank provides assistance in managing all HR related aspects of the bank, including payroll, leave, employee database and employee records.

Qualifications for a career in banking operations

Banking operations offer a wide range of employment opportunities ranging from entry-level clerical positions to top management roles. There are many graduate and master's level degrees specific to banking that prominent colleges and universities offer. These premium government institutes offer exclusive banking courses:

The National Institute of Bank Management (NIBM): Located in Pune, this is an institute set up by the Reserve Bank of India. It trains executives to function within various domains in banking operations.
The Indian Institute of Banking and Finance (IIBF): This institute is a professional organisation that functions in association with major banks and financial institutions within the country. Its aim is to nurture and train competent professionals for the banking and finance industry.

These are some qualifications in the domain of banking that are beneficial to pursue:

Undergraduate degrees

These are some undergraduate degrees that are beneficial to pursue:

BBA (Bachelor of Business Administration) in Banking
BBA in Banking and Finance
B.Com (Bachelor of Commerce) in Banking and Finance
B.Com in Bank Management
B.Com in Banking and Insurance
B.Sc. (Bachelor of Science) in Banking and Finance

Postgraduate degrees

These are some postgraduate degrees that are beneficial to pursue:

MBA (Master of Business Administration) in Banking and Finance
MBA in Banking and Insurance
M.Com (Master of Commerce) in Banking
M.Com in Banking and Finance
M.Com in Banking and Insurance
M.Com in Banking and Taxation
M.Sc. (Master of Science) in Banking

Diplomas and certifications

These are some diplomas and certifications that are beneficial to pursue:

Post Graduate Diploma in Bank Management
Post Graduate Diploma in Banking
Post Graduate Diploma in Retail Banking
Post Graduate Diploma in Banking Operations
Professional Certification Programme in Commercial Banking
Advanced Certification Course in Banking Laws and Loan Management
Post Graduate Certification Programme in Investment Banking
Certified Investment Banking Professionals course
AIWMI (Association of International Wealth Management of India) Investment Banking certification

Skills required for banking

Apart from educational qualifications, people interested in a career in banking may require additional skills to maintain a competitive edge. If you are interested in a career in banking, consider developing these skills:

analytical skills
computer literacy
communication skills
attention to detail
industry knowledge
discipline

Careers in banking

These are some prominent job roles in the field of banking:

Operations associate: This is an entry-level position, where professionals provide assistance to the bank manager in specific areas. The average base salary of an operations associate is ₹3,83,757 per year.
Client service manager: A client service manager supervises a team of client service executives who offer advice related to investments and finance. The average base salary of a client service manager is ₹4,57,655 per year.
Senior credit analyst: A credit analyst gathers and analyses data to check the creditworthiness of applicants and assess the risks associated with issuing loans. The average base salary of a senior credit analyst is ₹4,63,950 per year.
Senior fraud investigator: A fraud investigator reviews allegations of fraud and analyses the risk of fraud caused by security lapses and infringement. The average base salary of a senior fraud investigator is ₹5,13,955 per year.
Operations manager: Operations managers scrutinise transactions and reports to facilitate the smooth running of banking operations and high accuracy. The average base salary of an operations manager is ₹5,45,411 per year.
Equity analyst: Equity analysts study financial data and generate useful inferences to predict future value of a company's stock. The average base salary of an equity analyst is ₹5,56,819 per year.
Investment banker: An investment banker facilitates transactions relating to investments on behalf of their clients. The average base salary of an investment banker is ₹5,92,635 per year.
Financial risk analyst: Financial risk analysts study threats to assets and are crucial for banks to make lending decisions. The average base salary of a financial risk analyst is ₹7,46,736 per year.

Please note that none of the companies mentioned in this article are affiliated with Indeed.

Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.