Banking provides actuaries with opportunities to apply their highly developed skills and knowledge to an extensive and diverse variety of roles
There are many interesting opportunities for actuaries to solve problems and manage risks in banking. Many roles in banking are similar to roles in insurance, albeit with different products, language and regulation. For example, banking provisions for expected credit losses are broadly equivalent to insurance reserves for expected claims, while there are parallels between model validation, stress testing and asset-liability management in banking and in insurance.
Career Opportunities for Actuaries in Banking
Watch the webinar to find out more about a career in banking.
Recent webinars for you to view:
Inside the Banking Boardroom - Opportunities for Actuaries - In this webinar Louise Pryor, president elect and herself a bank NED will discuss and compare notes on “Inside the Banking Boardroom – Opportunities for Actuaries” with three fellow actuaries.
Data Science and Banking – Opportunities and Risks - Retail banking is going through a period of substantial change as it moves into the digital age. Data science is also adding value in risk areas such as fraud detection and cyber security. At the same time, the move to online banking is making it easier for firms including fintechs to enter banking without having to establish branch networks. However, there are risks, such as possible mis-use of customer data and possible bias in machine learning algorithms.
Banking Reading List
The Banking Reading List contains links to a number of papers that may be of interest to actuaries who work for banks and/or are interested in banking.
The papers focus on risk management, but also cover topical issues such as Covid-19 related regulations, climate change, expected credit losses and price discrimination.
At present, most of the papers are from the UK: if you have any suggestions about papers from other countries that could be included in the Reading List, please send them to firstname.lastname@example.org.
In my Presidential Address, I spoke of the DNA of actuaries, and that our DNA must be the fountainhead of the IFoA’s new strategy. Actuaries love mathematics and its related disciplines, and we seek to apply them in business and practical settings, especially in the financial and risk management contexts. One domain which lends to our active participation is banking, where our skills in long-term financial management and judgment will be of direct relevance and value. So I am delighted with the practical steps the IFoA is taking to support our members who have the desire to pursue careers in banking.
The IFoA’s new strategy calls for active strengthening of the skillsets and mindsets of our members in traditional and new domains. We see this as critical as the nature of work changes and industry structures are being redrawn because of the digital revolution. Above all, we see this as a great opportunity for our members to expand our influence and impact in a fast-changing world.
Read our banking case studies
Read our case studies from actuaries either in banking or thinking or a career in banking, answering questions about their move into banking and their experience in banking. These case studies have come from actuaries at different stages in their careers who have moved into different areas in banking.
Courses and Resources to get started
There are a wealth of resources and courses available, some of which that can be accessed for free. Here are some suggestions:
- Economics of Money and Banking, Columbia University (a two part course): Covers basic concepts of economics, monetary policy and banking, and provides an international perspective
- Financial Markets, Yale University: Introduction to risk management, behavioural finance, securities, insurance and banking.
- Financial Markets (2011), Yale University via Yale Courses
- Financial Engineering and Risk Management, Columbia University (a two part course): Part 1 considers the use of stochastic models to price derivative securities in various asset classes. Part 2 considers fixed income securities, including arbitrage pricing, and the mechanics and pricing of forwards, futures, swaps and options.
- Money & Banking by Prof. Surajit Sinha, Department of Humanities and Social Sciences, IIT Kanpur
- Banking Environment Initiative - University of Cambridge Institute for Sustainable Leadership
- IAA Banking Toolkit
- Call for Input: Open Finance, FCA - December 2019
- Measures to reflect the impact of Covid-19 - BCBS, April 2020
Interested in keeping up to date with developments?
Join the Banking Member Interest Group
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Dr Catherine Donnelly will present the basics of the structures for pooling longevity risks and summarise recent research results in this area in addition to outlinging future research around this topic. This is work under a research programme funded by the IFoA's Actuarial Research Centre, called 'Minimizing longevity and investment risk while optimising future pension plans'.
Climate-Related Risk - This free to view webinar on Climate-Related Risk is the first in a series focusing on some of the ‘Hotspots’ identified in the JFAR Risk Perspective bringing the Risk Perspective to life with practical illustrations and insights from subject experts from the IFoA and other Regulators
Recent decades have seen institutions, such as employers and financial services, give people more choice and flexibility, but these freedoms have come with more responsibilities. Individuals are now responsible for managing more of their own financial risks, from ensuring they put enough money into their pension to securing affordable protection to be financially resilient.
Join us for this brand new IFoA webinar weries comprising of a fortnight of webinars, panel sessions and a hackathon, that showcase the range of ways in which the actuarial profession has added value, in the public interest, to the understanding and management of the current and future pandemics through insight and learning.
This event is now temporarily closed on Monday 26 April, but the session will be repeated on Tuesday 27 April, 09.00-10.30. Please click here to register your place.
Actuaries have a lot to offer biodiversity management over the next decade as the world develops more depth to its response to this global challenge. This sessional offers an opportunity to learn about this emergent risk, to contribute to our thinking as a profession and help us develop the next steps forward.
IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual Europe Town Hall, hosted by John Taylor with IFoA Council Members Alan Rae, Jennifer Hartley, Maribel Vasquez Flores and IFoA Chief Executive, Stephen Mann.
Mis-estimation risk is a key element of demographic risk, and past work has focused on mis-estimation risk on a run-off basis. However, this does not meet the requirements of regulatory regimes like Solvency II, which demands that capital requirements are set through the prism of a finite horizon like one year. This paper presents a value-at-risk approach to mis-estimation risk suitable for Solvency II work
This year's Finance and Investment Virtual Conference takes on the timely theme of ‘resilience’, something we have all learnt a lot more about in the last year! Our diverse range of talks will explore the theme of resilience in a variety of ways including in building robust investment portfolios, in the incorporation of ESG factors, in govern
This talk will explore the potential benefits that wearable tech can bring to health & protection insurers and their customers. The traditional approach of integrating wearables into insurance has largely focused on measuring steps and using rewards-based incentive programs to encourage more activity.
Join us for this talk with Professor Sir Adrian Smith as part of the 'Dr Patrick Poon Presidential Speaker Series'. Professor Smith joined The Alan Turing Institute as Institute Director and Chief Executive in September 2018. In November 2020, he became President of the Royal Society, in addition to his leadership of the Turing. He is also a member of the government's AI Council, which helps boost AI growth in the UK and promote its adoption and ethical use in businesses and organisations across the country. He received a knighthood in the 2011 New Year Honours list.
We continue to live in a world of global uncertainty. Survival depends on our ability to simultaneously navigate through the diverse root-causes, ranging from: the consequences of Climate Change; on-going financial consequences of the COVID pandemic; or self-imposed changes in regulatory requirements and accounting standards.
Welcome to the programme for our 2nd Virtual Pensions Conference. This year's conference features 11 webinars offering members and non-members the opportunity to get up to date content from leading experts in the pension industry. There will also be opportunity to ask questions and contribute to the discussion.