The Not-So-Glitzy Reality of Banking in the U.S.
Banks and bankers are often portrayed in movies and pop culture as glittering towers of wealth and power. But behind the sleek skyscraper facades, the reality for most working in the U.S. banking industry is far more mundane.
The majority of banks in the U.S. are community banks and credit unions focused on consumer and small business lending in their local areas. Employees at small banks wear many hats and power through routine tasks like opening accounts, assessing loan applications, and providing customer service. The technology infrastructure at many banks is outdated, with workers stuck inputting data across outdated programs and Microsoft Excel spreadsheets.
Even at larger regional and national banks, much of the day-to-day work is tedious even if systems are more advanced. Tasks like ensuring compliance with regulations, reviewing transactions for fraud, investigating customer complaints, and promoting sales of new bank products are not very glamorous.
The recent Wells Fargo fake account scandal also tore away part of the veil of ethical banking ideals. Pressure to constantly sell more products through upselling and cross-selling creates unrealistic sales goals for many frontline banking employees. This demanding sales culture contributes to high turnover rates in bank branches and call centers.
Investment banking does still represent that iconic image of high finance with big deals happening that reshape companies and economies. But even here, behind the record-setting IPOs and mergers led by top firms, everyday work often revolves around creating pitchbooks, financial models, and research reports. Days are long and pressure is intense in a very competitive environment.
While innovations like digital banking, cryptocurrencies, and robo-advisors aim to revolutionize parts of finance, much of underlying day-to-day banking remains repetitive tasks focused on transactions, credit extensions, and customer service interactions.
Bank marketing does effectively sell that image of power, wealth, and innovation though. Who doesn’t want to envision themselves as a sharp banker in a tailored suit making multi-million dollar deals over a three-martini lunch? Reality is unfortunately much more mundane for your average bank employee manning the front lines of the less-than glamorous banking operation engine. But maybe that’s what helps fuel aspirations and new fintech ideas that steadily allow some innovation to take hold over time.
So next time you walk past that imposing bank tower downtown with marble floors emitting importance, realize there are still plenty of bankers in slightly-wrinkled oxfords doing daily battle with rigid legacy systems in between dealing with frustrated customers. Not exactly CNBC’s image of high finance, but systems don't run themselves.
