Banking Salaries Going Up in 2011!

Bankers’ compensation should go up by almost five percent in 2011 for several important reasons. Before I go on here, it should be pointed out that not all banking salaries are headed north. There is a segment of banking generically referred to as “retail banking” (which is best described as what goes on when you walk into the local branch of your bank) that will actually decline a bit. The reason for that decline is twofold; a continuing pattern of making many of those jobs part time (and, hence hourly pay with no benefits) and growth of on-line and electronic banking.

What I reference here are salaries pertaining more to the type of banking that is extended to businesses and the professional bankers who handle the financial, lending, credit and investment functions for that part of our economy. The salaries of these professionals are going up!

Elevator going up

First, financial salaries across the board have been in a holding pattern since 2008 and everyone is willing to tighten their belts… for a while…but it will be hard to keep bankers’ belts tight when banks are scoring higher profits: According to FDIC Chairman Sheila Bair recently “the majority of banks are faring well and about 63% of institutions reported improvements in their net income”. In short, there is a positive expectancy that goes something like “the bank is doing better so I should be too”.

Baby Boomers going down

Second, few economists seem to be taking note of the fact that Americans are retiring at an increasing rate; the boomers are dropping out. The Social Security Administration reports that by 2015, the age 65 group of Americans will be our fastest growing segment.

“Wait a minute”, you say, ” I have been reading about baby boomers hanging in there beyond age 65″. I read the same articles and can’t find a lot of hard facts but I do find a lot of supposition based on two premises; first, that Americans are living longer and second, that they are poorer now than they were a few years ago and, hence, will continue to soldier on to rebuild their savings, etc. It may be that people in a certain income class have to work at their existing jobs longer but that may have always been the case. And, just because you are going to live longer, does that mean you want to work longer?

At any rate, I find, in the executive search work we do with banks, that the skilled professionals are departing their jobs at a rate faster than can be replaced and, hence, banks will have to pay more to keep the ones they do have. When the supply goes down, the price goes up… I think that’s what we were all taught in Economics 101.

Jobs becoming more technical and/or complicated

About fifteen years ago, I recall attending a symposium on the American economy and listening to a very well known economist tell the audience that there will be a “tremendous dumbing down of jobs” in the finance sector; that is, his view was that jobs will be made simpler. The theory was that computers would take over more and more of the decision making. My answer is nope, ain’t seen it yet! How about you… is your job easier/simpler that it was, say, even five years ago? Ask the average Chief Credit Officer if his job is easier today than it was five years ago and he will laugh you out of his office.

Let’s take a look at what many feel is the least technical job in commercial banking, the business development lending officer. This is the person who goes out and brings in new business loans to the bank. Not to insult anyone here; this is a tremendously important job in that business loans are the economic heart (or at least liver!) for all banks but the skills needed have probably remained unchanged in the last century. Yet, a recent interview with a VP of Commercial Lending went something like this: “My bank just installed its second prospecting management system in three years and I was still trying to learn the first one.” “We also have been attending seminars on our new portfolio risk assessment reporting system to keep ahead of the FDIC and, once it is up and running, I will be spending about a half day a week writing exception explanations on my accounts.” “I still can’t connect our email system to my cell phone and, hopefully, the IT guy will come over this week to help me”. “We’re short two credit analysts in our group because the bank dropped its credit training program a while ago so we all have to do our own credit write-ups now and this is much harder now than in the old days when we didn’t have to do an environmental impact report.” And so it goes. The computer making things simpler? I don’t really think so.

Mortgage banking yawning (if not waking up!)

Everyone knows about the great mortgage banking genocide that has taken place over the last few years. Underwriters, funders, shippers, securitization analysts, originators and the like have been swept from the face of the earth. At the same time, a mountain of new restrictions, laws and regulations have been dumped onto the backs of the remaining workers Right now the mortgage market is somnolent but with a few waking yawns here and there across the country. When it wakes up again (and it will!), the tremendous sucking sound you will hear will be commercial bankers pulled over into the mortgage sector. Historically, when mortgage banking begins to pull people from the commercial banks, the magnet is higher salaries. As this begins to occur, watch for higher economic retention incentives and counter offers to raise the ante for our friends in commercial banking.

Ok, so why five percent?

Five percent is a nice round number and human resource people (and economists) like the pretense of precision… so they will say something like 3.7 percent but, remember, no one ever audits their numbers after the fact. There is a lot of negotiating savvy in quoting a low percent increase and then offering you something over and above the average. The ultra simple logic of five percent goes something like this; two percent covering the ice age of 2008- 2010 and three percent for 2011. Is it enough? I am not sure but one thing you can count on is that salaries are going up!

Credit Card Debt Management – How to Locate Legitimate Credit Card Debt Management Services

We are commonly told that we should take advantage of technological advancements. Let’s take the example of internet technology in case of credit card debt management. If you want to organize your credit card expense, you can find numerous ways on the internet. However, nobody has the time to scan piles of information. You need to use a more direct approach for credit card debt management. Use more related keywords so that only relevant information is generated and you don’t have to search for the right content.

Credit card debt management for average earning users

Your card limits is according to your monthly salary and you should spend on credit accordingly. According to financial analysts, the people of United States have experienced extreme recession effects because they do not have any estimate of their expenses. If you don’t have a lot of budget for credit card debt management, what possible options are available?

Ignoring settlement options

There is no hard and fast rule that you should get into a settlement. Credit card debt management is a step which takes place before you actually talk to the settlement firm. You need to organize your liabilities in such a way that your counselor does not find it hard to analyze your conditions. You need to show a snapshot of your latest transactions.

You should keep one thing in mind. You are looking for liability reduction due to recession. When you apply for a settlement, the bank will have a look at your financial record before recession.

You can easily look for some of the best firms through television commercials. Settlement companies advertise a lot through television commercials and you can visit some of the popular firms personally. You can’t rely completely on what a settlement company mentions to you. Reality is quite different and you need to look at the problems.

Exaggerating settlement percentages

Paying forty percent of ten thousand dollars is better than paying sixty percent of the same amount. If you are eligible for liability relief, try to get the maximum reduction. Check the average reduction attained by a company. Look at all the previous cases and calculate the average percentage. If the firm has attained forty percent reduction on an average scale, it is illogical to expect a reduction of sixty percent or more from the same firm. You should do a comprehensive research on settlement firms before you actually decide to hire one.

Any Reputable Credit Card Debt Consolidation Company?

There are many reputable credit card debt consolidation companies to assist with your financial needs. It is reported that most households are using credit cards to supplement income. Unemployment and reduced salaries are sending many consumers to consolidation companies to merge credit card debt into one loan.

Finding the right consolidation company for financial relief can begin with talking to consumer advocates, friends, neighbors, and co-workers. Today’s economy and the credit card crunch are all topics of discussion because it is impossible to ignore the high interest rates that are being charged. Consumers are suffering and a debt consolidation loan is the answer when this kind of debt is out of control.

A reputable credit card debt consolidation company is a phone call away. Choose two or three companies that you have received good referrals about. Speak honestly with the loan officer, list your credit card balances and interest rates, and ask how you can receive financial relief through a debt consolidation loan. Let the loan analyst work for you and negotiate reduced balances with your creditors which is possible through the elimination of late fees and penalties. Through the negotiations your balances will be substantially reduced and a lower balance with a fixed lower interest rate will make monthly payments more affordable.

A good company for getting your debt consolidated is working to attain your best financial interest at all times. A competent consolidation loan officer will answer all questions and show how beneficial a loan consolidation can be for your financial future. A fast means of repayment through reduced payments, fixed interest rates, and a fixed payment schedule are proof that this repayment system is a financially sound decision. Choose a reliable and reputable debt consolidation company to eliminate many bills and enjoy the freedom of making only one lower monthly payment.