There are many interesting opportunities for actuaries to solve problems and manage risks in banking. Many roles in banking are similar to roles in insurance, albeit with different products, language and regulation. For example, banking provisions for expected credit losses are broadly equivalent to insurance reserves for expected claims, while there are parallels between model validation, stress testing and asset-liability management in banking and in insurance.
Watch the webinar to find out more about a career in banking.
Inside the Banking Boardroom - Opportunities for Actuaries - In this webinar Louise Pryor, Past President of the IFoA and herself a bank NED discussed and compared notes on “Inside the Banking Boardroom – Opportunities for Actuaries” with three fellow actuaries.
Data Science and Banking – Opportunities and Risks - Retail banking is going through a period of substantial change as it moves into the digital age. Data science is also adding value in risk areas such as fraud detection and cyber security. At the same time, the move to online banking is making it easier for firms including fintechs to enter banking without having to establish branch networks. However, there are risks, such as possible mis-use of customer data and possible bias in machine learning algorithms.
The Banking Reading List contains links to a number of papers that may be of interest to actuaries who work for banks and/or are interested in banking.
The papers focus on risk management, but also cover topical issues such as Covid-19 related regulations, climate change, expected credit losses and price discrimination.
At present, most of the papers are from the UK: if you have any suggestions about papers from other countries that could be included in the Reading List, please send them to firstname.lastname@example.org.
The IFoA are working with the Actuarial Society of South Africa (ASSA) to develop Banking specialisms. Co-operation continues at pace, supported by the IFoA Banking Community. Both the IFoA and ASSA have now reached agreement with our respective Boards and Committees on the syllabus for the equivalent of an SP and an SA Banking specialism, delivered by ASSA. Members are able to book a place on these examinations from February 2022.
I spoke of the DNA of actuaries, and that our DNA must be the fountainhead of the IFoA’s new strategy. Actuaries love mathematics and its related disciplines, and we seek to apply them in business and practical settings, especially in the financial and risk management contexts. One domain which lends to our active participation is banking, where our skills in long-term financial management and judgment will be of direct relevance and value. So I am delighted with the practical steps the IFoA is taking to support our members who have the desire to pursue careers in banking.
The IFoA’s new strategy calls for active strengthening of the skillsets and mindsets of our members in traditional and new domains. We see this as critical as the nature of work changes and industry structures are being redrawn because of the digital revolution. Above all, we see this as a great opportunity for our members to expand our influence and impact in a fast-changing world.
Tan Suee Chieh, IFoA Past President 2020-2021
Louise Pryor, Iain Allen and Clifford Friend, discuss the developments for the SP and SA Banking specialism in this recent presentation. The slides from this webinar are also available.
Read our case studies from actuaries either in banking or thinking or a career in banking, answering questions about their move into banking and their experience in banking. These case studies have come from actuaries at different stages in their careers who have moved into different areas in banking
There are a wealth of resources and courses available, some of which that can be accessed for free. Here are some suggestions:
Why not join the Banking Community. More members are always welcome, both from the UK and internationally.
If you would like to receive updates about ASSA's B100 and B200 exams please provide your details on the form and we will keep you up-to-date.