As a fresher about to start a career as a working professional, there were some challenges in considering banking as a career.
Firstly the exams; so far these were based mainly around insurance, next facing the interview, I am not much aware of the banking terminologies so might it be difficult to face the interview? Banking is not a traditional domain for actuarial aspirants; would it be a good decision?
But these questions were satisfactorily answered after being mentored by some of the industry experts who gave advice. I began to understand that working in the banking industry is similar to insurance. Facing a banking interview would not be tough provided I was well versed with some of the terminologies that are frequently used as well as the regulatory requirements. Even if I am interviewed for a traditional role, these preparations would be needed….so that would not make much difference.
I think a career in the banking industry, taking this non-traditional route will differentiate me from others, and help me stand out.
Ritika Agarwal
Iain Allen
Over recent years, I have helped several new entrants with their applications for banking licences. Previously, I was Group Director, Strategy, at RBS from 1994 to 2008, involved in all aspects of the Group’s activities. I have been an Honorary Visiting Professor in the Faculty of Actuarial Science and Insurance at Cass Business School since 1991.
My actuarial skill set has equipped me well for understanding business issues in financial services, including banking, and for making commercial judgements about them. In banking, many activities and modelling techniques have parallels in insurance, albeit with different terminology and different regulations.
When I moved from investment banking to what I call ‘proper banking’, my lack of knowledge about banking terminology and regulations made for a challenging first year, and could have been a handicap in my job interview at RBS. Luckily, in hindsight, my job interview focused on the strategy for a bank rather than on banking.
After about 30 years in banking, as an employee and as an independent consultant, working for large banks and small banks, I am keen to pass on the benefits of my experience in banking to other actuaries, through the IFoA Banking Members Interest Group, the IAA Banking Working Group and Cass Business School.
A life actuary by background, working for a life insurer initially, then moving into consulting, followed by a move into banking and pension trusteeship.
My transition to banking came in 2010 when I took a role within the European Regional Insurance team of a large global bank, HSBC, as I could see the potential opportunities to work more broadly across the bank at a later date. Strategic changes increased my profile and in 2014 I was asked to head the independent model validation function for the bank globally and across all lines of business, which was an incredible role providing valuable insight into all parts of the bank. Given the continued and increased profile of the management of model risk within banks since the financial crisis, this led to further profile and opportunities, and I was the Global Head of Model Risk Management and Model Risk Steward at HSBC
Currently, my skills and experience lend themselves most naturally to insurance, banking, asset management, and pensions, but things are continually evolving! I am open-minded and not wedded to any one routing, to be honest, I will go where there are interesting opportunities, and interesting people, and where I feel that I can add value. The last few years working in model risk have been incredibly interesting, particularly with the increasing use of technology and the evolving regulatory backdrop following the last financial crisis. I am looking to broaden my risk exposure further with a CRO role before transitioning to a non-executive career.
Clare Beale
Dick Rae
I have just finished my executive career and am now looking to find some Non-Executive Roles to enable me to continue to play a role within the financial services industry. My career spanned 22 years in life insurance and reinsurance before spending 15 memorable and enjoyable years in investment banking. The last 5 years of my career I spent in asset management.
I knew nothing about banking and just enough about the Capital Markets. Fortunately, it was JP Morgan that wanted me for my actuarial knowledge of the insurance industry and its regulatory regime. Over time I was able to acquire the banking and capital markets knowledge that I needed to work out how banking products could best meet the needs of insurance company clients.
The major shock was the change of culture. Being an actuary meant nothing other than the fact that I understood the language that insurance companies and actuaries spoke. Otherwise, my FIA qualification was not considered special. It was just the skill set that I needed to do my job.
The most fascinating time in my banking career was the financial crisis. Watching how perilously close the whole financial system came to melting down. The financial system pre-crisis was fuelled by debt. Hedge funds used debt to leverage their trading positions.
I am now looking for suitable roles as an independent non-executive director (NED). My career has spanned three industries (insurance/reinsurance, investment banking, and asset management). I have had the privilege of working with many senior executives within many companies. Each have their own style and character. I feel that it would be a waste not to continue to use the depth of experience I have gained over the years and my hope is that there are two or three organisations out there that would see a benefit in tapping into this.
