Job prospects in this career are rated FAIR because:
Over the past few years, the number of banking, credit and other investment managers has dropped slightly. This decline is the result of a decrease in the number of bank branches and an increase in the use of computerized banking services. In view of the fact that the decline in the number of bank branches appears to be over and the number of credit and other investment managers should continue to increase, the number of banking, credit and other investment managers are expected to stop decreasing and to increase slightly over the next several years.
Career opportunities will arise primarily from the need to replace managers who will be retiring or who will free up their positions by taking a promotion at a senior level, but also, at a lesser degree, from employment increase.
These career opportunities are generally filled through internal promotions by people who have a lot of experience in this field and in supervision. People who have experience in several branch services are at an advantage. Some positions are expected to be filled by unemployed banking, credit and other investment managers with experience and by immigrants who meet the entrance requirements for the occupation.
Employment changes in this occupation are not closely tied to economic conditions, as indicated by the employment stability enjoyed in the depository credit intermediation industry in the early 1990s. It depends largely on technological change and the reorganization of banking services.
Over the past decades, automated banking has transformed deposit institutions. This automation has diversified not only withdrawal and deposit methods (automated tellers, direct deposit, preauthorized withdrawals, debit card service at the point of sale, transactions over the Internet, and so on), but also loans and investment services.
Furthermore, the use of specialized services for investments is favoured by baby boomers who are, in large numbers, reaching the age when retirement and return on investments is a primary concern. Also, the vast number of financial vehicles that are available encourages individuals to seek professional advice.
In response, the banking community is overhauling its services. To meet the demand for financial advice services while decreasing operating costs, banks and credit unions are increasingly directing suers of traditional services (deposits and withdrawals) to electronic services. Consequently, they have accelerated the implementation of these services and increased user fees for over-the-counter services. This reorganization led to strong growth in the use of electronic services and the closing of several branches or a reduction in the number of operating hours.
However, partial deregulation of the banking industry has allowed some new banks to be established in Canada. Also, deregulation of financial services has opened new markets for banks such as mutual funds and securities, etc. These conflicting trends resulted in a slight decrease in the number of these managers.
Since the turn of the century, the rate of use of electronic banking services continued to grow but less quickly since it was already very high. The movement to close branches slowed as a result of competition in the financial services sector and pressure from users. Faced with this new reality, large numbers of banks decided to focus more on the quality of customer service, extend their business hours and hire more tellers. Some branches are even open on evenings, Saturdays and Sundays. The implementation of legislation requiring banks to offer low-cost services to all members of the public, regardless of social status, and to announce branch closings in advance may also have contributed to this changing trend. Since the movement to close bank branches now seems to be behind us, the number of branch mangers employed by banks and credit unions should stop declining. On the other hand, the sharp rise in demand for credit and investment consulting services should result in a significant increase in the number of credit and investment managers, who also belong to this occupational group. For this reason, the number of banking, credit and other investment managers are expected to stop decreasing and to increase slightly over the next several years.
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Job prospects for this career are rated Fair