How much math do bankers do?

The level of math is directly dependent on the level of banking you aspire to be in. Retail banking requires some mathematical skills, but most of it is done for you. Business banking will require a higher degree of math skills to conduct cash flow analysis, efficiency ratios, and financial statement analysis. Investment banking requires the most extensive level of mathematical skills along with proper forecasting and financial modelling skills.

Getting your foot in the door in banking will allow you to learn as you go rather than trying to drink from a fire hose. As you progress through your career, you will find yourself being asked to take on more complex situations.

Bankers do not necessarily need math per say. I worked for a large financial industry and our systems were design to calculate everything for you. However, it is important to have basic math understanding.

A Bankers main role is to manage day to day sales of the financial center.

As a banker, I do a few calculations regularly. Those calculations include figuring how much lendable equity a person may have in their home, a possible payment schedule for lending, and what a payment might look like with specific interests and amount to lend. Most of the calculations I do are also available in a tool with the programs I use, which makes it very easy for me.

For investment banker, we dealt with math on a daily basis, mostly in some forms of valuation, financial statements, and other number metrics. Note, you do not necessarily have to know how to solve calculus or stats problems to be a good banker. However, I would say having those skill sets is a good training and process for you to build critical thinking and problem solving skills, which will benefit your career further down the road.

There is a lot of math within the banking industry. However, we have tools on our computers to do the math for us (excel, computer applications, etc.). The important thing bankers must understand are the financial concepts behind the math. If you are thinking of going into the banking industry, you should familiarize yourself with these concepts (time-value of money, internal rate of return, cash flows, capital structuring (debt and equity), etc). To learn these concepts, its best to study Finance and/or Accounting in high school/college.

Most interactions with clients require very little math. However, conceptually a strong foundation in basic arithmetic and understanding how to determine the correct data inputs into financial engines for calculating interest, cost of inflation, loan payments ect. will suffice. Banking (retail level /customer service) is less about math and more about teaching, communicating effectively, and sales. We spend most of our days having conversations with clients to better understand their household or small business needs/goals and present /recommend our respective Company’s solutions to the client. Banking can be highly personally rewarding when you realize you have the tools to make a difference in a family’s life. All that being said, there are so many avenues to pursue in “Banking” beyond being a “banker” which I’m sure require significantly higher level math than the duties of my role with SunTrust.

Thank you for the question ! Stay Curious my friend!

From my experience, used on a daily basis, preparing my cash register balance sheet for ending my day.