Commercial Banking in Canada:
The Canadian commercial banking sector is appealing as a potential career option primarily due to the potential to utilize my relationship-building skills within it. I have a solid foundation in finance and feel I can expand on this with greater knowledge of the industry. Despite my limited experience in the banking sector, I know it is built upon the tenets of trust, communication and customer service – areas that I excel in. While financial competency is crucial, it is the aforementioned skills that cannot be taught and often differentiate the successful employees from the rest of the workforce.
Key Trends/Pressures/Changes:
• The Canadian banking sector is healthy and is recognized as being one of the strongest banking systems in the world – this has proven the industry to be a very safe and stable investment option during troubling economic times (Euromonitor, 1).
• The sector grew by 2% between 2006-2012, surprising given the challenges faced by the US banking sector. This growth was assisted by an increase in government intervention that restored trust in financial institutions (Euromonitor, 1).
• Growth within the banking sector will be driven by the development of new products – specifically high end, sophisticated financial services. The Canadian government has strengthened its position as a world financial centre and is focused on remaining attractive to foreign investors (Euromonitor, 2).
These trends indicate that there is growth within the sector and it has the support of the Canadian government to ensure this continues. Further, this would indicate that demand for qualified candidates would also be growing, providing an opportunity for me to enter the market upon completion of my MBA studies.
Geographic Considerations & Key Players:
Toronto is considered the centre of Canadian financial services and is the third-largest market in North America (Euromonitor, 2). Toronto, Vancouver and Montreal ranked 9th, 17th and 19th respectively, on the Global Financial Services Index for 2011 (Euromonitor, 2). The make-up of the banking industry comprises 77 banks, 47 trust companies, 19 loan companies, seven credit associations and one retail association, however the industry is highly concentrated with a few large firms (Euromonitor, 2). The key players in Canada are The Royal Bank of Canada, Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada and The Bank of Nova Scotia (Euromonitor, 2).
Analysis:
The retail-banking sector has played a large role in growing the financial services industry and will be important to its continued success. I have the right skill-set to make an impact in this sector given my background in finance and my relationship-building and management strengths. Commercial banking requires one to identify client’s needs and work together to develop a financial plan to help them achieve their goals. I take an analytical approach to tasks, however can incorporate elements of creativity to problem-solving in order to see the ‘bigger picture’. Further, through continued research into the commercial banking industry and I can move closer to my goal of a career within the sector.
Works Cited:
Euromonitor International. “International, Monetary Intermediation in Canada.” 2013. Passport GMID (ISIC: 651).