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.
SP and SA Banking
The IFoA are working with the Actuarial Society of South Africa (ASSA) to develop Banking specialisms. Co-operation continues at pace, supported by the IFoA Banking Member Interest Group (MIG). Both the IFoA and ASSA have now reached agreement with our respective Boards and Committees on the syllabus for the equivalent of an SP and an SA Banking specialism, delivered by ASSA. We anticipate being able to offer these examinations in 2022.
The Banking Pathway
Louise Pryor, Iain Allen and Clifford Friend, discuss the developments for the SP and SA Banking specialism in this recent presentation. The slides from this webinar are also available.
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.
Tan Suee Chieh, President of the IFoA
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
- IAA Oppertunities for Applying Actuarial Techniques in Banking
- 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?
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This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.
The importance of biodiversity for finance, business and policy is being increasingly recognised. While many studies highlight the overall economic impact that biodiversity loss could have, it is much more difficult to quantify and understand the particular impact that is may have on individual businesses or communities. The management and measurement of these risks is a field where actuaries are well placed to contribute.
The climate crisis and the degradation of our planet will affect societies everywhere. How we address these threats will require solutions that transcend borders. As a global profession, the actuarial community is well-placed to consider and propose effective risk management solutions to help manage the climate crisis.
Join leading experts to discuss key issues, emerging ideas and new research across the general insurance sector.
This is a free webinar with an expert panel providing their views on the ongoing IFoA consultation for proposals regarding changes to the regulatory framework on climate change and sustainability.
The regulatory consultation sets out, for feedback some proposed approaches that the IFoA are considering in relation to charter commitments under the UK’s Green Finance Education Charter (GFEC) and the regulatory framework, including the Actuaries’ Code.
Join leading experts to discuss key issues, emerging ideas, and new research across the Life insurance sector.
Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.