What Banking Roles Require and How to Start
Banking is not one job—it is a range of roles that require different education and licenses. A teller at a bank branch needs a high school diploma and on-the-job training. A loan officer needs a bachelor's degree and a state license. A bank manager typically needs a bachelor's degree plus several years of experience. An investment banker needs a bachelor's degree, often an MBA, and securities licenses. The path you take depends on which banking role interests you and how much education you want to pursue.
Most banking careers start with a bachelor's degree in finance, accounting, business, or economics, though some entry-level positions do not require one. After you land a job, your employer will often pay for or reimburse you for licenses and certifications you need to do the work. The banking industry is regulated, so certain roles require passing exams and getting state or federal approval before you can work in them.
Key Takeaways
- Bank tellers need a high school diploma and training provided by the bank, while loan officers and managers need a bachelor's degree plus a state license.
- Most banking roles require passing a licensing exam—the Series 7 or Series 63 for securities work, the NMLS exam for loan originators, or state-specific tests for other roles.
- Your employer typically covers the cost of licensing exams and study materials once you are hired.
- A bachelor's degree in finance, accounting, business, or economics is the most common path, but some banks hire high school graduates into entry-level teller roles with the option to advance.
Entry-Level Banking Jobs and What They Require
A bank teller is the most common entry point into banking. You need a high school diploma or GED, basic math skills, and the ability to handle cash and customer service. Most banks train new tellers on the job for two to four weeks. You will learn their systems, security procedures, and how to process deposits, withdrawals, and transfers. No license is required to be a teller, and you can start working while still in school or immediately after graduating.
A customer service representative in a bank or credit union also requires only a high school diploma. You answer phones, open accounts, and direct customers to the right department. Like tellers, you receive on-the-job training. These roles are good stepping stones if you want to move into lending or management later.
A bank operations clerk handles paperwork, data entry, and back-office work. Again, a high school diploma is typical, and training happens on the job. If you want to move beyond these entry roles into lending, management, or specialized areas, you will need to pursue further education or licensing while working.
Getting a Bachelor's Degree in Finance or Business
Most mid-level and senior banking roles require a bachelor's degree. Common majors are finance, accounting, business administration, or economics. A four-year degree takes time and money, but many banks offer tuition reimbursement to employees who are working toward a degree. Some employers will pay up to $5,250 per year in tuition assistance, though the amount varies by bank.
You can pursue a degree full-time before entering banking, or you can work as a teller or operations clerk while taking classes part-time or online. Many community colleges offer two-year business or accounting programs that can transfer to a four-year university, which lowers the cost of the first two years. Some banks partner with universities to offer discounted tuition to employees.
If you already have a bachelor's degree in another field, you can still enter banking. Many banks care more about your ability to learn and work with people than about your specific major. You may start in an entry-level role and move up as you gain experience and take on licensing requirements.
Licenses and Exams Required for Different Banking Roles
Certain banking jobs require you to pass a state or federal exam and get a license before you can work in that role. The exam you need depends on the job.
Loan originators (people who process mortgage, auto, or personal loans) must pass the Nationwide Multistate Licensing System (NMLS) exam and register with their state. The exam covers federal lending laws, state regulations, and ethical practices. You study using materials provided by your employer or third-party prep companies, then schedule the exam through NMLS. The test costs around $100 to $200, and your bank usually covers this cost. Most people pass after one or two attempts.
Securities brokers and investment advisors must pass the Series 7 exam (General Securities Representative Exam) or the Series 65 exam (Uniform Investment Advisor Law Exam), depending on the role. These exams test knowledge of stocks, bonds, mutual funds, and securities regulations. They are harder than the NMLS exam and require 50 to 100 hours of study. Your employer provides study materials and pays the exam fee, which is around $300. You typically have 120 days to pass after your employer sponsors you.
Bank managers and compliance officers may need to pass the Certified Bank Manager (CBM) exam or state-specific exams, depending on your state and employer. These are less common than loan originator or securities licenses, but some states require them. Your employer will tell you if your role requires a license.
Building Experience and Moving Up
Banking is a career where experience matters as much as education. Many people start as tellers, work for two to three years, then move into lending, operations management, or branch management. Your employer sees your work ethic, reliability, and ability to handle customer problems. If you perform well, they often promote you or move you into a role with more responsibility and higher pay.
As you move up, you may need additional licenses or certifications. A teller who becomes a loan officer needs the NMLS license. A loan officer who moves into management may need a Certified Bank Manager credential. Your employer typically requires these and pays for the exam and study materials.
Some people use banking as a stepping stone to other finance careers. You might work in a bank for five years, then move to an insurance company, investment firm, or corporate finance department. The skills and licenses you earn in banking transfer to these roles.
Advanced Degrees and Certifications
If you want to reach senior management or specialized roles like investment banking or wealth management, an MBA (Master of Business Administration) can help. An MBA takes one to two years full-time or two to four years part-time. Many banks offer tuition reimbursement for employees pursuing an MBA, though the amount may be higher than for a bachelor's degree—some cover $10,000 to $15,000 per year.
You do not need an MBA to become a bank manager or loan officer, but it can speed your path to senior roles like vice president or chief financial officer. Some people work in banking for five to ten years, then pursue an MBA to move into executive positions.
Professional certifications like the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) are valuable if you work in wealth management or investment advisory. These require passing exams and meeting experience requirements, but they signal expertise to clients and employers. Your bank may cover the cost of these certifications if they are relevant to your role.
Typical Timeline from Start to Mid-Level Role
Here is what a common path looks like: You graduate high school or earn a GED, then start as a bank teller. After six months to one year, you have learned the systems and proven you are reliable. You enroll in a community college business program or online bachelor's degree program, often with tuition help from your bank. While working as a teller, you take classes part-time for two to three years.
After two to three years as a teller and with some college completed, you move into a loan processing or customer service role. You finish your bachelor's degree while working. Once you have your degree, you take the NMLS exam (your bank pays for it) and become a loan officer. This entire path—from teller to loan officer—typically takes four to six years.
If you start with a bachelor's degree already in hand, you can skip the teller phase and start directly in a loan processing or customer service role, cutting one to two years off the timeline. If you pursue an MBA after working for five to ten years, you can move into management or specialized roles.
Frequently Asked Questions
Do I need a college degree to work in a bank?
No. You can start as a bank teller with a high school diploma and receive training on the job. However, if you want to move into lending, management, or investment roles, a bachelor's degree is typically required. Many banks offer tuition reimbursement to help employees earn a degree while working.
How long does it take to become a loan officer?
If you already have a bachelor's degree, you can become a loan officer in a few months: complete your bank's training, pass the NMLS exam (which takes two to four weeks of study), and register with your state. If you need a degree first, add four years. Most people move from teller to loan officer in four to six years total.
What is the NMLS exam and how hard is it?
The NMLS exam tests your knowledge of federal lending laws, state regulations, and ethical practices for loan originators. It has 120 questions and takes three hours. Most people pass on the first or second attempt. Your bank provides study materials, and you typically have 30 to 60 days to prepare. The exam costs $100 to $200, paid by your employer.
Can I work in banking without a license?
Yes, for many roles. Tellers, customer service representatives, and operations clerks do not need licenses. Loan officers, securities brokers, and investment advisors do. Your employer will tell you which license you need for your specific role and will cover the cost of the exam and study materials.
Does my bank pay for my degree?
Most large banks offer tuition reimbursement to employees, typically $5,000 to $10,000 per year for a bachelor's degree and more for an MBA. You usually have to work for the bank for a set period (often one to two years) before you become may be able to access, and you may need to stay for a certain time after finishing your degree. Check with your bank's human resources department for the specific policy.