Opportunities in Banking – Expanding Actuarial Frontiers

Following the successful launch of the Banking Fellowship Education Program in 2024, the Actuaries Institute hosted an Insights Session titled “Bridging the Gap: Actuaries and Banking.” During this event, our panelists shared their incredible career journeys and learning experiences within the banking sector.

About the panelists

Susan Looi, FIAA

Susan is a forward-thinking and versatile executive leader with 25+ years of Australian and international experience in banking, insurance and superannuation. Susan leads ANZ Banking Group Limited’s Enterprise Risk Management function.

Previously, Susan held leadership roles in capital, finance product and strategy. Susan brings proven capability to build new functions, establish effective risk management framework and appetite, and forge new working partnerships. Susan is a former Chair of the Actuarial Institute’s Risk Management Practice Committee and alumni of Chief Executive Women.

Anthony Nguyen, FIAA

Anthony is the Product Area Lead in Pricing and Balance Sheet Management, Daily Banking at ING Australia. Anthony started his career in general insurance consulting then moved into a broader financial services role, building on his interest in financial services strategy working across banking products, operations and marketing.

Anthony is also a member of the Actuarial Institute’s Banking Education Faculty.

Mozammel Ali, FIAA

Moz has over 30 years of advisory experience across Australia, UK, Europe, Asia and South Africa. His transaction experience spans M&A, equity and debt issuance, capital management, structuring and acquisition financing.

Moz established Theorem Consulting in 2018 to provide independent consulting services to leading Australia corporate and financial institute clients. Moz also had 15 years with Deutsche Bank where he headed the bank’s Capital Solution teams for Australia & New Zealand, specialising in the design and execution of structured and acquisition financing transactions.

Moz also worked with Actuaries Institute to co-author and help develop its Fellowship Banking subject.

Sen Nagarajan, FIAA

Sen is an independent consulting specialising in quantitative risk management for banks. Sen has worked with a range of banks and non-bank lenders supporting credit risk modelling, stress testing, interest rate modelling, capital management and management, and model validation engagements.

He has worked with banks to quantify the impact of climate risk on residential portfolios and co-authored the Actuaries Institute’s report, Home Insurance Affordability and Home Loans at Risk.

Sen began his career in life insurance. He worked across pricing, valuation and consulting roles before making transition to banking.

From “traditional actuarial fields” to experienced bankers

While our panelists are senior actuaries with diverse experience in banking, including enterprise risk, investment banking, pricing and quantitative modeling, and capital management, they all began their careers in “traditional actuarial fields” such as general insurance, life insurance, and actuarial consulting.

Their journey into banking was not a single leap but rather a gradual transition driven by curiosity, leveraging cross-industry learning, and a continuous desire to explore new areas. Along this journey, our panelists noted several similarities between traditional actuarial roles and banking, such as the use of internal models for capital calculation (Solvency II vs Basel), scenario and stress testing, and the development of risk appetite.

Actuaries in banking sectors

“The banks do not fully know actuaries yet, but they are discovering actuaries and what they can bring to the table.”

Actuaries are highly regarded in banks for their technical competency. However, they compete with many other well trained technical professionals and they need to promote their additional actuarial capabilities to succeed. These include influencing stakeholders, applying commercial judgement and adopting a robust approach to making key decisions.

Although banks may not have a dedicated actuarial team, there are opportunities to collaborate in cross functional teams. Depending on their roles and responsibilities, our panelists regularly interact with lawyers, accountants, loan specialists, engineers and researchers.

For example, a loan underwriter may evaluate an application by reviewing profit and loss statements, which complements insights from data-driven portfolio analytics. There are also significant benefits to working with product development teams and engaging with regulatory sectors and industry associations.

Work-Life-balance in the banks

The workload in a bank is not necessarily greater or lesser compared to other roles as it largely depends on the team and its priorities. Each bank has its own operating rhythm and culture, and the workload can also be seasonal.

In investment banking, for instance, junior bankers might face challenging and unpredictable pressures at times. Our panelists advised working smarter, not harder sharing key advice that as you grow in the industry, you will gain more control over your workload.

Interested in Banking Industry?

“When moving into the banking sector, actuaries need to bring that something else (than just technical capability). The commercialism, pragmatism, and broader thinking that we might be looking for from a candidate”.

There are immense opportunities in the banking industry. Beyond major banks, smaller banks and non-bank lenders there are also consulting firms specialising in banking which require actuarial skills and experience.

The nature of work can vary significantly within different types of banks. A retail bank has different regulatory requirements and analytical approaches compared to a business or institutional bank.

Therefore, it is important to understand the area you want to expand into and study how to address relevant problems. Reading banks’ annual reports and consulting firms’ publications on banks’ results can be a great starting point. Our panelists also recommend the Banking Application Subject offered by the Actuaries Institute, which provides a unique and comprehensive summary of how banks operate.

For experienced and established actuaries looking to transition into banking, the panelists emphasised the importance of developing influencing skills, managing stakeholders effectively, gaining the attention from management, and the ability of leading a highly technical function.  

Promoting Actuarial Profession in Banking

The actuarial profession is continuously evolving, and the Institute remains committed to supporting members working in the banking industry.

The panelists encouraged actuaries in banks to promote themselves as actuaries while also bringing their knowledge and skills back to the profession. Actuaries can complement existing teams with their unique skills, enhancing the relevance of the actuarial qualification within banks.

The Actuaries Institute’s Banking Practice Working Group comprises of leading actuaries working in banks.

The Working Group meets monthly and develops CPD material, maintains the banking syllabus and creates networking opportunities for our members.

If you are passionate about leadership and advancing the profession, consider volunteering with our Banking Practice Working Group to help expand this practice area. Contact Clare Marshall from the Institute for more information.

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