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.
Webinar: 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.
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 email@example.com.
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
Why not join the Banking Member Interest Group. More members are always welcome, both from the UK and internationally.
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If you would like to receive updates on future developments please provide your details on the form and we will keep you up-to-dated.
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Drawing from his most recent book “The New Long Life” and his longevity research Andrew J Scott will outline how longer lives and new technologies will fundamentally reshape how we structure our lives and transform the economy. As well as looking at the agenda this will set governments and corporates he will focus on the implications for you and how you prepare your future career.
The IFoA’s Actuarial Review Team has published its first thematic review, which looked at the actuarial advice given by scheme actuaries to UK pension scheme trustees on setting transfer values and commutation rates.
IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual India Town Hall 2021, hosted by John Taylor with IFoA Council Member Mahidhara Davangere and IFoA Chief Executive, Stephen Mann.
What are the options for the world economy looking ahead?
In this Thought Leadership Lecture, Economist, Vicky Pryce, will be discussing world economic trends, including the differences in geographical performance and how output is recovering and where.
Trust and Leadership for Actuaries
Led by Dr. Jim Baxter, University of Leeds, this webinar introduces some key ideas in the ethics of trust, with a particular focus on those in, or on the path to, leadership roles. Dr Baxter is joined by a panel of experienced leaders who will give their personal perspectives on how they understand the value of trust and how they seek to promote and inspire trust, drawing on their experiences of leadership. The panel includes:
In this webinar, we have two presentations showing the latest research on the implications for life and health insurers of two key issues: genomics and pandemic risk.
Dr Peter Joshi and Paul Timmers will share their research on how well-established underwriting processes can allow for genomics in predicting expected mortality and morbidity. They will then discuss the potential for stratified screening and personalised medicine to improve health and reduce claim costs.
As the world’s attention begins to turn to COP26 later this year in Glasgow, Sarah Gordon (Chief Executive, Impact Investing Institute) will share her vision for how the financial services industry can deliver for people and the planet, as well as how to encourage more investment with the intention to generate positive, measurable social and environmental impact alongside a financial return.
IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual SSA Town Hall 2021, hosted by John Taylor with IFoA Council Members Mukami Njeru, Prosper Matiashe and IFoA Chief Executive, Stephen Mann.
IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual MENAP Town Hall 2021, hosted by John Taylor and IFoA Chief Executive, Stephen Mann.