Financial examiners ensure compliance with laws that govern institutions handling monetary transactions. They review balance sheets, evaluate the risk level of loans, and assess bank management.
Financial examiners typically do the following:
Financial examiners typically work in one of two main areas: risk assessment or consumer compliance.
Those working in risk assessment evaluate the health of financial institutions. Their role is to ensure that banks and other financial institutions offer safe loans and that they have enough cash on hand to manage unexpected losses. These procedures help ensure that the financial system as a whole remains stable. These examiners also evaluate the performance of bank managers.
Financial examiners working in consumer compliance monitor lending activity to ensure that borrowers are treated fairly. They ensure that banks extend loans that borrowers are likely to be able to pay back. They help borrowers avoid “predatory loans”—loans that may generate profit for banks through high interest payments but may be costly to borrowers and damage their credit scores. Examiners also ensure that banks do not discriminate against borrowers based on race, ethnicity, or other characteristics.
Financial examiners held about 66,900 jobs in 2019. The largest employers of financial examiners were as follows:
| Credit intermediation and related activities | 41% |
| Securities, commodity contracts, and other financial investments and related activities | 16 |
| Federal government | 11 |
| Management of companies and enterprises | 9 |
| State government, excluding education and hospitals | 7 |
Financial examiners typically work in offices. They frequently have to travel to inspect a bank onsite.
Most financial examiners work full time.
Financial examiners typically need a bachelor’s degree that includes some coursework in accounting. Entry-level examiners are trained on the job by senior examiners.
Financial examiners typically need a bachelor’s degree. Although a specific major is usually not required, examiners generally need some coursework in accounting, business, finance, or a related field.
Although it is not required, professional certification indicates competencies for financial examiners who have it. The Society of Financial Examiners (SOFE) offers the Accredited Financial Examiner (AFE) and the Certified Financial Examiner (CFE) designations. Both may be earned after completing extensive requirements and passing a series of examinations. Continuing education is required to maintain these designations.
Some financial examiners become Certified Public Accountants (CPAs). CPAs are licensed by their state’s Board of Accountancy. Becoming a CPA requires passing a national exam and meeting other state requirements.
Once hired, financial examiners receive on-the-job training. Entry-level workers learn their job duties while supervised by senior examiners. The length of training varies but typically lasts more than 1 year.
After a few years of experience, financial examiners may advance to a senior examiner position. Senior examiners handle more complex cases and may lead examination teams. Requirements for these positions vary, but employers often prefer candidates who have a master’s degree in either accounting or business administration or who are Certified Public Accountants (CPAs).
Analytical skills. Financial examiners need to evaluate how well the managers of financial institutions are handling risk and whether the individual loans the institution makes are safe.
Detail oriented. Financial examiners must pay close attention to minutiae when reviewing balance sheets in order to identify risky assets.
Math skills. Financial examiners must do calculations and monitor balance sheets to ensure that a financial institution has available cash.
Writing skills. Financial examiners regularly write reports on the safety and soundness of financial institutions. They must be able to explain technical information clearly.
Median annual wages, May 2020
The median annual wage for financial examiners was $81,430 in May 2020. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $43,890, and the highest 10 percent earned more than $159,120.
In May 2020, the median annual wages for financial examiners in the top industries in which they worked were as follows:
| Federal government | $124,070 |
| Securities, commodity contracts, and other financial investments and related activities | 92,930 |
| Management of companies and enterprises | 87,810 |
| State government, excluding education and hospitals | 74,500 |
| Credit intermediation and related activities | 72,560 |
Most financial examiners work full time.
Percent change in employment, projected 2019-29
Employment of financial examiners is projected to grow 7 percent from 2019 to 2029, faster than the average for all occupations. Employment growth for financial examiners will vary by industry group. Financial examiners will be in demand as financial institutions seek help with federal regulatory compliance.
Demand for these workers has risen in the financial industry because of the need for financial institutions to effectively comply with federal regulation. More financial institutions are hiring financial examiners to help navigate the regulatory environment and reduce the cost of compliance. Financial examiners’ employment is projected to grow 8 percent from 2019 to 2029 in the finance and insurance industry.
At the federal level, the creation of the Consumer Financial Protection Bureau (CFPB) has increased employment of financial examiners in recent years. However, changes to this agency and overall budget constraints in the federal government may limit employment growth. Employment of financial examiners in the federal government is projected to decline 4 percent from 2019 to 2029.
About 4,900 openings for financial examiners are projected each year, on average, over the decade.
Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
Jobseekers with work experience in banking, insurance, or accounting, for example having worked as accountants and auditors or financial analysts, should have the best prospects.
| Occupational Title | SOC Code | Employment, 2019 | Projected Employment, 2029 | Change, 2019-29 | Employment by Industry | ||
|---|---|---|---|---|---|---|---|
| Percent | Numeric | ||||||
SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program |
|||||||
Financial examiners |
13-2061 | 66,900 | 71,800 | 7 | 4,900 | Get data | |
For more information about financial examiners, visit
Federal Deposit Insurance Corporation
Consumer Financial Protection Bureau
For more information about the certification, visit
Society of Financial Examiners
For more information about the Certified Public Accountant (CPA) license, the Chartered Global Management Accountant (CGMA), and other designations, visit
American Institute of Certified Public Accountants (AICPA)