What is a Credit Analysis Manager?
A credit analysis manager is responsible for analyzing and reporting of financial data about clients. This includes information regarding credit history, paying habits, annual earnings and purchase activities. The typical annual salary for a credit analysis manager is approximately $46,800, but those with experience and advanced degrees will earn over $57,000 per year, according to PayScale.
Bank Credit Analysis Manager
Credit analysts gather and evaluate customer data. For example, a credit analyst in a bank may analyze the credit card payment data of clients who have defaulted on their payments. They will submit their findings and recommendations to a credit analyst manager who will have the final decision of whether to close the card or reduce the credit line. Thus, credit analysis managers who work in banks are responsible for determining what information is relevant and then using their expertise to perform risk and quality checks on client’s credit standings. Credit analysis managers may also analyze existing or prospective loan portfolios in order to maximize credit quality and minimize potential losses. They also act as credit quality analysis consultants for senior managers.
Commercial Lending Manager
A commercial lending manager is a credit analysis manager who analyzes and interprets credit, financial and underwriting information. They approve new and monitor existing commercial loan assets. They prepare credit memoranda in collaboration with portfolio and relationship managers. They organize and analyze financial information relating to existing and new clients. They complete credit investigations from third-party requests and augment credit decision making through observing safety procedures and security guidelines. Commercial lending managers must maintain a thorough knowledge of state and federal compliance regulations as well as finance industry standards and bank procedures. Most banks expect commercial lending managers to have a bachelor’s degree in finance or accounting with several years of experience in commercial credit analysis.
The minimum educational requirement for credit analysis is a bachelor’s degree in finance or accounting, so managers will need a graduate level degree. These bachelor degrees expose students to subjects like statistics, calculus, economics, ratio analysis, industry assessments and financial statement analysis. All of these subjects help credit managers perform risk evaluations. For example, industry analysis help credit analysis managers assess environmental risks, while behavioral economics helps them understand individual consumer behaviors. Some employers require credit analysis managers to have a Chartered Financial Analyst (CFA) or similar certification. Besides education, credit analysis managers must have strong attention to detail and quantitative analysis skills because missed information or incorrect evaluations may cause serious financial consequences.
There are certain benefits of being a credit analysis manager. First, those who work in the field of credit analysis are not limited to any particular type of company. This is because banks and credit rating agencies aren’t the only organizations that offer financing for their products and services. As a result, they mind find work in a retain chain, utility company, auto dealer and even an energy company’s commercial credit department. Second, working as a credit analysis manager will lead to higher and exciting career paths such as portfolio manager or investment banker. Related careers include auditor, treasurer, financial advisor, fraud analyst and operations research analyst.
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Credit analysis managers will most likely be assigned to work with companies in a particular industry, so they must have insider knowledge and strong business acumen.