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The Role of a Credit Manager in a Bank

what is a credit manager

A credit manager is a common job position found at a bank. Banks make a great deal of money offering credit to individuals and businesses and charging interest on the money owed. Because of the critical importance of a well-run credit department to the success and profitability of a bank, the role of credit manager is a key supervising position.

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Credit Manager Responsibilities

Bank credit managers must review and accept or deny applications for bank-issued credit cards, investigate applicants’ credit histories, set credit limits and arrangements for payment and manage collections for overdue accounts. Credit must only be granted to those believed to be trustworthy and dependable to pay the money back. Proper steps must be taken to pursue legal action against those who refuse to pay delinquent accounts. As a manager, a regular part of the job involves compiling financial reports on the bank’s credit handlings and supervising other workers. Managers must make sure measures are in place to guard against credit card fraud to protect customers and the bank’s investments.

Credit Manager Character

Good organizational and management skills are needed to oversee employees and maintain efficiency in the bank’s credit department. Excellent communication skills, both orally and in writing, are also essential to maintain strong relationships with clients. Firm business communications and negotiating skills are required to handle collections that involve difficult circumstances. Critical attention to detail

is important when dealing with any type of finances, and good judgment must be used when deciding whether a potential client is trustworthy enough for the bank to offer credit.

Credit Manager Work Environment

Work is typically done in a comfortable office setting and involves regular interaction with co-workers and the public. Credit managers who display a good grasp of business knowledge and learn about other areas of banking are often chosen for promotions to higher management positions. Many start out gaining experience in credit card debt collection and work their way up to manager status.

Credit Manager Educational Expectations

Good computer skills and education in finance, credit and business management and math are essential for the position. Most obtain a minimum of a bachelor’s degree in finance, accounting, business administration or a similar major, states the Bureau of Labor Statistics. Those with master’s degrees and financial certification may enjoy more job opportunities. It is also important to study and abide by all state and federal financial and credit laws.

Job Outlook and Pay

Credit manager positions should grow about 9% between 2012 and 2022, according to BLS predictions. Because of this limited growth and a fair amount of finance majors in colleges, applicants for credit manager positions can expect to face stiff competition. Financial managers in the U.S. earned a median annual salary of about $109,000, according to 2012 BLS reports.

Category: Credit

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