Cash Management (also called Treasury Management) is a sub-function of commercial banking. Cash Management generally refers to the activities necessary to ensure that a company has the right amount of liquidity at the right time to meet scheduled obligations. Those activities involve managing the various time delays in collections and disbursements, optimizing a company's cash balance ratio and selecting proper short-term investments for excess liquidity.
Common Job Titles: Treasury Analyst, Treasury Risk Manager, Treasury Operations Manager
A commercial bank is a financial institution that provides banking services to businesses and corporations. These services can include lending money, financing, management of treasury/cash-flow, accepting deposits and processing payments. More recently, international activities such as cross-border lending and supply-chain logistics have moved under the auspices of commercial banking.
Common Job Titles: Loan Officer, Credit Analyst, Mortgage Banker, Risk Analyst
Deposit operations is a back office banking function responsible for handling activities related to account opening and management, such as new account setup, transaction processing, account maintenance, exception handling, account closing, and disbursements. They also handle financial compliance-related tasks (such as IRS reporting, Regulation D & E monitoring, and risk-fraud analysis) related to the lifecyle of a retail or commercial banking account.
Common Job Titles: Deposits Group Manager, Deposit Services Manager, Operations Associate, Deposit Operations Specialist
The electronic banking, or online banking, function develops and maintains websites and applications that allow banking customers to perform financial transactions (such as deposits, transfers, loan applications, bill payments). Security is of the utmost importance for electronic banking groups. Web-based attacks are common and the sensitive nature of banking account information demands strict, bleeding-edge electronic banking security practices.
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The investment banking group works with clients to raise capital for large-scale mergers and acquisitions (M&A) and performs underwriting and advisory services throughout the process. The investment banking group might also trade securities on behalf of an institutional client, facilitate the restructuring of a large corporation or work with lenders and venture capitalists to secure funding for a client in need of capital. After moving up the ranks within an investment banking operation, top employees (typically senior vice presidents and managing directors) are responsible for managing relationships with key clients and seeking out new business opportunities with potential high-worth investors or partners.
Common Job Titles: Investment Banking Analyst, Investment Banking Associate, Research Associate, Vice President, Managing Director
The loan servicing group deals with all communication between the borrower and the lender after the approval and initial payment disbursal. They collect payments, help the borrower with repayment plans or loan consolidation and assist with other customer service-related tasks (address change, billing questions, payment statements, etc.) during the life of a loan. Mortgage servicers are compensated with servicing fees, generally a small percentage (less than 1%) of the remaining principal balance on the loan each month.
Common Job Titles: Loan Servicing Specialist, Loan Servicing Admin, Loan Servicing Representative
The mortgage banking group works with borrowers to help them secure loans for homes and other types of real estate property. They handle all tasks throughout the lifecycle of a mortgage loan, including mortgage loan application origination, loan processing and underwriting, loan servicing, and payments. The mortgage loan group, in some cases, also puchases (or sells) loans from the primary market and resells them to borrowers in mortgage markets that may be experiencing a shortage.
Common Job Titles: Mortgage Loan Officer, Mortgage Account Executive, Mortgage Banker
Retail Banking, (also called Personal or Community Banking), refers to a collection of financial services provided to individual consumers rather than to companies or institutions. These services are generally not as diverse as those of commercial or investment banking. They focus mainly on savings accounts, checking accounts, credit/debit cards, personal loans, home equity loans and mortgages.
Common Job Titles: Risk Analyst, Customer Service Representative, Teller, Branch Manager, Loan Officer
Wealth Management (also called Private Banking) refers to a collection of services usually rendered to high-net-worth-individuals and typically encompasses portfolio management, financial/estate planning, retail banking, legal resources and tax strategies.
Common Job Titles: Wealth Advisor, Relationship Manager, Portfolio Manager, Financial Advisor, Trust Officer
Wire Transfer Operations
This function is responsible for creating, transmitting and receiving electronic fund transfers from one person or establishment to another. Various wire transfer systems deliver a range of choices relative to the proximity and finality of settlement and the cost, value and volume of transactions.
Common Job Titles: Wire Transfer Specialist, Global Funds Transfer Payment Specialist, Money Transfer Consultant