Banking groups around the country are working with colleges and universities to draw more young people into the industry — especially to small banks.
Representatives from 17 academic institutions gathered this summer, for example, to share best practices for building academic banking programs, said Lisa McBride, the Risk Management Association’s director of professional development, who helped facilitate the meeting.
The RMA, a nonprofit association that aims to advance the use of sound risk management in the industry, started its academic initiative in 2015 and now offers its commercial credit risk analysis content to universities and colleges. The association also offers a Credit Essential Certificate that many schools use as final exams for the banking course.
“We keep hearing from members that there is a shortage of talent in the industry, and it’s hard to attract younger people to banking,” McBride said. “We wanted to do something to help the industry.”
Several industry organizations, associations and regulatory agencies are working on similar projects and programs to build interest in the industry among younger generations. The Federal Deposit Insurance Corp. keeps a tally of two- and four-year banking programs around the country. As of April, the FDIC counted 33 four-year programs and 39 two-year programs.
Efforts to develop banking education programs have increased over the last couple of years, said Jim Edrington, the American Bankers Association’s chief member-engagement officer. That could be in part because competition for talent has increased as unemployment numbers shrink, said Edrington, who is on the advisory board of Marquette University’s banking program.
“There has been increased activity, and it has also created a greater sense of urgency as well as a level of awareness on the part of the banking industry that you have to create these feeder programs, even as far back as high school, to get folks interested in a career in banking,” Edrington said.
Another reason for the increased flurry of activity around educational banking programs could be that interest in banking careers is returning after falling off following the 2008 financial crisis, said Stan Viner, chair of the University of Mississippi’s banking and finance advisory board.
Community banks have struggled to attract students and millennial workers in recent years, Viner said.
“What I hear again and again from bankers is we don’t have any young people coming out of colleges wanting to enter banking,” said Randy Dennis, president of DD&F Consulting Group.
While more community banks are starting to offer
Viner said community banking could resonate as a viable career option for students who want to return to their hometowns or make an impact locally. Small banks have not done enough to spread this message, Dennis added.
“I do think we in the banking industry have dropped the ball,” Dennis said. “We haven’t promoted it.”
That could be changing. This summer the RMA decided to bring its schools together to share ideas and strategies for building banking programs. The meeting consisted of two days of dialogue and brainstorming.
The RMA is focusing its efforts on commercial banking, but it could expand into other areas over time, McBride said.
“A lot of times you talk to younger students about banking, and they automatically think of investment banking or teller positions,” McBride said. “There is a lack of awareness of all the other positions available.”
Funding is the main issue for schools interested in forming banking programs, McBride said. Some schools including Marquette have put together advisory boards of bankers and association representatives. Board members may pay membership fees or offer sponsorship dollars, which help fund the banking programs.
Some state banking associations
Last year the North Carolina Bankers Association led fundraising efforts to pay for a professorship of banking at Appalachian State University. The Pennsylvania Bankers Association is interested in creating a similar partnership with a local university, though nothing is in the works at this time.
Eastern Kentucky University, which participated in the RMA’s brainstorming session this summer, launched its minor in banking in the fall of 2016. Maggie Abney, the university’s executive in residence for banking, said a number of trade groups and banking associations have helped the university launch and nurture the program by providing course materials, networking opportunities and case-study exercises.
“The entire industry has been very supportive of university programs and wants to partner with university programs,” Abney said. “There are a lot of resources out there.”
