In this article, we will look at the 20 highest paying countries for bankers. We have also discussed the global financial services market along with the developments in the banking sector in the US. If you want to skip our detailed analysis, head straight to the 5 Highest Paying Countries for Bankers.
The global financial services market is experiencing significant growth, with its size reaching $25.51 trillion in 2022 and projected to exceed $58.69 trillion by 2031,with a 9.7% compound annual growth rate (CAGR) during the forecast period of 2023–2031. This expansion is fueled by the widespread adoption of digitalization among banks and financial institutions, coupled with the rapid growth of commercial lending activities such as loans.
A plethora of factors contribute to the market's growth such as the proliferation of digital financial services, particularly in developing countries, and the increasing demand for financial solutions across different sectors, from small and medium-sized enterprises to large corporations and government institutions. Despite these growth drivers, challenges such as privacy concerns and the need for strong and reliable regulatory frameworks persist, influencing market dynamics. Nevertheless, the financial services market offers abundant opportunities for both established players and emerging entrants, with innovations such as big data analytics and secure payment methods driving further advancements and enhancing consumer experiences, ultimately shaping the future trajectory of the industry.
While the CAGR paints a picture of tremendous growth in the sector, in 2023, global banks axed over 60,000 jobs, making it one of the worst years for layoffs since the financial crisis. Investment banks, struggling with dwindling fees within a slump in dealmaking, scrambled to safeguard profit margins by slashing staff. The merger of Credit Suisse by UBS Group AG alone resulted in at least 13,000 job cuts, with more anticipated in the near future. Major institutions globally cut over 61,905 positions, a figure reminiscent of the 2007-08 financial crisis.
Wall Street bore the brunt, with European lenders also feeling the heat. UBS Group AG (NYSE:UBS), undertaking a major restructuring, led the charge, followed by Wells Fargo & Co (NYSE:WFC). Big names like Citigroup Inc (NYSE:C), Morgan Stanley (NYSE:MS), Bank of America Corp (NYSE:BAC), Goldman Sachs Group Inc (NYSE:GS), and JPMorgan Chase & Co (NYSE:JPM) collectively shed 30,000 jobs. Factors driving the cuts were majorly the revenue declines, overexpansion, and political pressure for cost reduction. It is interesting to note that despite optimism for a rebound in dealmaking, banks brace for a challenging 2024, signaling that the trend of job cuts is likely to continue in the banking sector. To read more about banks, see 25 Largest Banks in the World by Assets.
Interesting, in recent reports, Wells Fargo & Co (NYSE:WFC) and Bank of America Corp (NYSE:BAC) diverge from the trend of declining bonuses, making headlines with their generous employee rewards. Wells Fargo & Co (NYSE:WFC) is granting a one-time $1,000 bonus to select employees, while Bank of America Corp (NYSE:BAC) plans to distribute restricted stock bonuses totaling $800 million among approximately 97% of its workforce. This is in contrast to findings that year-end bonuses decreased in 2023 compared to the previous years, with figures ranging from 3.8% to 36.2% decline depending on industry.
Both financial institutions attach conditions to their bonuses. Wells Fargo & Co (NYSE:WFC)’s $1,000 special cash awards target US employees earning less than $75,000 annually, with total compensation not exceeding $85,000. Similarly, Bank of America Corp (NYSE:BAC)’s restricted stock bonuses are for those earning under $500,000 in total annual pay.
While the recent bonuses have been a positive sign, the looming end of the Bank Term Funding Program (BTFP) in March 2024 has sparked concerns among investors about the potential for another banking crisis in the United States. The BTFP was initiated by the Federal Reserve in response to the failures of regional banks like Signature, Silvergate, and Silicon Valley and aimed to stabilize the banking system by allowing banks to borrow from the central bank using their bonds as collateral. This program effectively mitigated the panic triggered by mass withdrawals and declining bond values, preventing widespread bank collapses. However, as the BTFP comes to a close, banks may face increased borrowing costs, leading to reduced profit margins and possibly tighter lending conditions, which could weaken the economy.
In addition to the closure of the BTFP, the unwinding of quantitative easing (QE) poses another risk to the banking sector. Central banks' QE programs, initiated in response to the global financial crisis, involved injecting liquidity into the financial system by purchasing government bonds. The subsequent reversal, known as quantitative tightening (QT), could further strain banks by reducing liquidity and potentially increasing borrowing costs. Combined with other challenges such as heightened interest rates and geopolitical tensions, the end of the BTFP and QE programs could contribute to a scenario where banks become more risk-averse and the economy faces the threat of another liquidity crisis reminiscent of 2008.
20 Highest Paying Countries for Bankers
An iconic financial building in the background, with silhouettes of busy bankers walking past in the foreground.
Our Methodology
To list the highest paying countries for bankers, we made a list for 35 high-paying countries with the average salaries for banker managers by country. Of those 35, the 20 with the highest average salaries were selected and have been ranked. We acquired the data for the average salaries of bank managers by country from the ERI Economic Research Institute and World Salaries. The list is presented in ascending order.
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20. Spain
Average Salary: $62,509
The Bank of Spain recently warned of potential repercussions from wage increases surpassing collective bargaining rates due to challenges in filling specialized job vacancies. With vacancies requiring high levels of training or specific expertise, salaries are escalating at a yearly rate of 6%, contrasting the 3.4% increase agreed upon through collective bargaining.
Spain is one of the best countries for finance.
19. United Arab Emirates
Average Salary: $63,711
Demand for professionals have increased in the UAE's banking sector post-pandemic. Hundreds of positions are open, offering lucrative monthly salaries ranging from Dh5,000 to Dh7,000 ($1497-$1905). Candidates with 2 to 5 years' experience are specifically sought after, with strong communication and interpersonal skills.
18. Italy
Average Salary: $66,749
Italy is one of the highest paying countries for finance jobs. Milan, particularly, is a hub for high-paying banking jobs due to its status as a financial center. Milan hosts the Italian Stock Exchange and numerous multinational banks' headquarters. Italy's banking sector is vital to its economy, offering competitive salaries to attract top talent.
17. Denmark
Average Salary: $68,587
Denmark has a highly stable economy and well-developed financial sector that create a demand for skilled banking professionals. Additionally, Denmark's high standard of living and generous social welfare system necessitate competitive salaries to attract and retain talent. It is also considered one of the best countries for investment banking.
16. New Zealand
Average Salary: $70,467
Bankers should consider New Zealand for career opportunities due to its stable economy, sound regulatory framework, and growing financial sector. The banking industry is highly demanded globally due to its pivotal role in facilitating economic activities, managing financial risks, and providing essential services such as loans and investments.
Owing to the high work-life balance in the country, New Zealand is one of the best countries for bankers.
15. France
Average Salary: $73,056
While France is one of highest paying countries for bankers in Europe, it is not immune to job cuts in the sector.
In 2024, French bank Societe Generale plans to cut 900 jobs, representing a 5% reduction at its head office. This move is part of a cost-cutting strategy aiming to save €1.7 billion by 2026. The bank intends to achieve these reductions through internal transfers, support at year-end, or voluntary departures. Societe Generale currently employs 117,500 globally, with 56,000 in France.
14. Austria
Average Salary: $75,440
Austria offers high salaries for bankers due to its stable economy, strong financial sector, and high cost of living. Vienna, its capital, hosts numerous multinational banks, leading to intense competition for skilled professionals, driving up salaries to attract the most talented professionals in the field.
13. Finland
Average Salary: $76,230
Finland's economy is heavily reliant on technology and innovation, leading to complex financial needs for companies in these sectors. Additionally, the country's aging population requires sophisticated retirement planning and wealth management services.
12. Singapore
Average Salary:$77,496
Bankers are highly demanded in Singapore owing to its reputation as a global financial hub. The country's robust economy and strategic location attract numerous multinational corporations, driving the need for financial services. Additionally, Singapore has a stable regulatory environment and strong rule of law, fostering confidence in its banking sector. Two important banks in Singapore are DBS Bank and United Overseas Bank (UOB).
11. Norway
Average Salary: $78,766
Norway's banking industry plays a pivotal role in managing the country's significant oil wealth and diversified economy. With a stable political environment and strong emphasis on innovation, Norwegian banks require skilled professionals to navigate complex financial landscapes, manage investments, and facilitate economic growth.
10. Netherlands
Average Salary: $79,796
The Netherlands serves as a prominent financial hub in Europe, attracting businesses and investors worldwide. Dutch banks play crucial roles in facilitating international trade, investment banking, and wealth management services.
9. Canada
Average Salary: $82,765
The demand for banking jobs is expected to remain relatively balanced over the period 2022-2031, according to projections from the Canadian Occupational Projections System. With 23,700 new job openings anticipated, primarily due to expansion and replacement demand, and 22,600 new job seekers entering the market, including school leavers, immigrants, and those changing positions, the supply and demand dynamics are projected to be closely aligned.
8. Australia
Average Salary: $85,709
Australia's ANZ Group plans to slash 170 jobs in its commercial banking sector, as confirmed by a workers' union. Banks nationwide are automating operations, leading to layoffs. While ANZ didn't verify the exact figure, it emphasized adapting to digital platforms.
Owing to the high quality education in the country, Australia is one of the best countries for finance students.
7. Ireland
Average Salary: $83,430
Ireland is among the highest paying countries for bankers owing to its strategic position as a global financial hub, particularly in Dublin. The presence of major international banks such as Bank of Ireland and Allied Irish Banks contributes to the competitive compensation packages offered to bankers.
Dublin is also globally known as one of the best cities for finance jobs in the world.
6. Belgium
Average Salary: $84,714
Belgium's strong financial sector, centered in Brussels, offers high-paying opportunities for bankers due to its stability, global connections, and regulatory environment. The country hosts numerous multinational corporations, EU institutions, and headquarters of major financial entities.
With an average salary of $84,714 for bank managers, Belgium is one of the countries that pay the highest salary to banking sector.
Canada is also one of the countries with shortage of finance professionals.