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What is the importance of management jobs when applying for bank products?
I live in the EU. I recently applied for a credit card, and the banker asked me (about my job): "Is it a management role?"
I realized that it is a question I have been asked several times in the past by banks. I tried a cursory google & Reddit search, but I haven't found anyone being curious about this.
I'll try here then. Does anyone know why bankers ask this question? How does it matter? Are "individual contributors" seen as worse/riskier customers than managers?
I have my own informal, anecdotal opinion, but I'm hoping to hear some more informed answer.
I asked a friend who works at a small European bank. He says a minority of banks use job title as a minor factor in predicting default risk and repayment.
He didn't know offhand whether being a manager increases or decreases risk in the view of the bank.
It would definitely be interesting to hear some concrete answer, if your friend has one. Keep me posted, will you? :)
That's interesting. I have to say that's fairly foreign as someone from the US, for credit cards I just send in a brief application and usually get the approval the same day, actually being interviewed by a bank employee would be a new one.
Honestly I wouldn't even know if being a manager would be a good or bad thing. From a US tech worker perspective, it would in some way be a bad signal for a bank - managers get churned through way more than comparatively fungible ICs. But I can also see how it represents more pay and perhaps more stability in somewhere like Germany.
Interesting, I've been asked quite frequently about my job/job title. I had kind of assumed it was positive indicator but that could be biased by the businesses I work in. Generally I see lower turnover among corporate management, the business takes care of good managers. Though I expect management/IC might be positive or negative based on other indicators.
Edit: I have a distinct memory of getting a call when I was waiting for a student loan approval and they asked what I was studying and what my career plans were. When I told him math/grad school/industry he was like "great I'll get this approved for you in the next hour."
Even in the US, you still typically get asked what your occupation or job title is when entering income information. I always assumed that had something to do with risk management; if they were going to extend credit or not, and if so, how much. Though I imagine income, period, is the most important factor; less so how you get it (unless it's illegal).
I did get "interviewed" for a credit card once. Back in around 2005, when applying for one of my first credit cards. I applied online and got the dreaded "your application is pending further review." And a day or two later, someone from the bank did call me to do some verification and ask some questions. Funnily enough, I only wanted like a $2000 limit (I was still young), but they ended up giving me like an $8000 limit since that was the minimum they could extend! Anyway, that was the only time. Since then, the decision is either instant approval or rejection, or just am email/letter rejecting the my application some days later.
In some countries bank managers/branches are still responsible for credit cards they approve. It's not like the US where everything is practically automated. So it may basically be the bank branch covering their ass.