Loan Officer Job Market Trends

If you are planning on trying to obtain a loan officer job in the future, you need to understand what the job outlook for this career holds. Loan officers are a necessary part of the financial community and are in charge of helping individuals apply for loans and then aiding in the decision process of the lender. Here are the basics of loan officer job market trends. 

Growth

The loan officer field is expected to grow about as fast as the average for all jobs over the next few years. From the period of 2008 to 2018, the market for loan officers is projected to grow by about 10 percent. This is right in line with the average for every job, so this is a good sign for those that are hoping to get involved with a loan officer career.

What Drives This Industry

There are several factors that work together to help create loan officer jobs. Economic growth as a whole is one of the most important factors for this industry. As the economy grows, it provides more opportunities for businesses and individuals. When people want to borrow money for their business or for their personal use, they will need to see a loan officer to do so. More banks and financial institutions will be expanding and opening up in the coming years. Another factor that helps increase the number of loan officers that are needed is the population expansion. As the population continues to grow, there will be more people that need to borrow money. This bodes well for the lending industry overall.

Deterrents

A few factors could potentially hold back the job growth of loan officers. The most notable example of this is automated software that many lenders use to make lending decisions. With this type of software, you can simply input the borrower's information into a computer, and it will automatically generate a lending decision on behalf of the lender. As this technology continues to improve, more loan officers will become obsolete.

Another factor that could potentially hold job growth back is the expansion of online lending. There are many lenders that specialize in finding customers through their websites. These websites allow customers to apply directly from the website and get a very quick decision. With the automation of this process, loan officers will be needed less frequently.

Job Opportunities

The majority of openings in this field will come from the necessity to replace part of the workforce that is leaving. There will always be people retiring or switching careers, which creates a necessity for more qualified applicants. 

Individuals who want the best chance of getting jobs in this industry should obtain a college degree in banking or finance. If you can get a master's degree in a related field, this will improve your chances even more. 

Mortgage lending and commercial lending are two fields that will continue to grow and will produce several job openings in the near future.