A bank is a financial institution that pools funds from depositors, primarily individuals and businesses, and loans these funds to borrowers, usually businesses and governments. Banks make profits by charging interest on loans and other debt instruments and generating revenue through transaction fees, such as a merchant account fee for accepting credit cards or checks. Banks can range in size from small, community-based institutions to global commercial banks.
Banks have a long history, with the first modern ones emerging in Renaissance Italy. Modern banking involves a complex system of interconnected markets and a variety of rules and regulations to ensure stability and safety for all parties. Banks are required to hold a large amount of cash and marketable securities in reserve as well as provide explicit or implicit guarantees of deposits in case of disaster.
Banking is highly competitive, and a career in the field requires extensive education and experience. Those who work in the industry are highly compensated for their skills, but they must continually learn and adapt to changing industry conditions. Large, multinational banks often have clear paths for advancement that can lead to management roles.
Those seeking jobs in banking should emphasize their customer service skills when interviewing. Since most positions involve interacting with customers, this is an important qualification. Prior customer-facing job experience, such as a retail position, restaurant work or volunteering at a day camp, can help prepare candidates for the responsibilities of a bank worker.