Credit Analyst.

About the Role

Banks lend money to businesses, and every loan carries some risk. Managing that risk is called credit risk, and it’s one of several risk functions within a bank, alongside legal and regulatory risk. A Credit Analyst works within credit risk, assessing whether it’s safe to lend to a business and how that risk should be managed, working closely with the relationship banker on new and existing lending.

Day-to-day, a Credit Analyst reviews and monitors a portfolio of business customers, providing independent risk analysis on both new lending and existing relationships. Tasks can include:

• Providing an independent, balanced credit appraisal on lending requests, encompassing commentary on management, up-to-date sector/industry interpretation, financial and cashflow analysis, deal structuring and recommendations, and any other relevant risks
• Portfolio/relationship management, including reviewing financial information provided by customers and sharing findings and observations with the relationship banker and beyond as relevant
• Maintaining a strong, supportive relationship with the relationship teams and wider bank, to ensure that customer activities are fully supported within a risk framework

Routes to Becoming a Credit Analyst

In many ways, the routes and programme options mirror those for a Banker. A broad, generalist understanding of banking is helpful for certain roles within a risk function, but the specialist nature of some risk management roles may require a particular professional qualification, often pursued by entering a specific risk area at a junior level and studying as required.

Banks often run summer internships accessible to university students across a range of disciplines, including risk, providing an insight into banking. For younger school and college leavers, apprenticeship schemes are often available under particular disciplines.