AccountancyISCO 3312
Credit manager
A credit manager is a person who oversees the application of credit policy in a bank and heads its credit department.
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Rate 5 of the 27 essential skills of this occupation (European ESCO data). No account needed.
apply credit risk policy
strive for company growth
manage staff
create a financial plan
create credit policy
About credit manager
The credit manager sets the frame the advisers work in: credit limits, acceptable levels of risk and the payment terms offered to customers. The manager carries out financial analysis of credit applications, gathering financial information about a borrower and assessing it together with the security offered.
The second group of duties concerns repayment. The manager controls the collection of payments from customers, watches arrears and decides when to move to restructuring and when to recovery. The manager uses debt systems and knowledge of insolvency law, because some of what is owed gets recovered through an arrangement or through bankruptcy proceedings. The manager also manages financial risk across the portfolio: concentration by industry, by currency and by maturity.
The manager develops a financial plan for the department, observes the standards the bank has adopted, and leads the team: assigning tasks and checking results. Corporate social responsibility is taken into account as well, for example when judging whether a customer will be able to repay a loan. Lending is governed by banking and consumer credit legislation, under the supervision of a financial regulator.
Key Work Functions
Core areas of responsibility for a credit manager.
1
Credit Application Evaluation and Decision Making
- Review and analyse financial statements to assess creditworthiness of applicants
- Perform comprehensive financial analysis to evaluate loan viability
- Determine appropriate loan conditions and terms based on risk assessment
2
Credit Policy Implementation and Risk Management
- Create and enforce credit policies aligned with bank objectives and regulatory requirements
- Apply credit risk policy consistently across all credit decisions
- Set appropriate credit limits reflecting customer risk profile and bank exposure tolerance
3
Customer Portfolio Monitoring and Collection
- Monitor customer payment performance and identify early warning signs of default
- Trace financial transactions and enforce collection of outstanding debts
- Apply debt collection techniques while maintaining customer relationships
4
Department Management and Financial Planning
- Manage credit department staff, oversee workflow, and ensure operational efficiency
- Create financial plans and budgets for credit operations
- Maintain detailed records of financial transactions and credit decisions
5
Financial Advisory and Regulatory Compliance
- Advise senior management on credit matters, risk exposure, and market trends
- Ensure compliance with insolvency law and financial regulations
- Synthesise financial information to support strategic decision-making
6
Corporate Growth and Strategic Development
- Strive for balanced company growth while maintaining portfolio quality
- Apply knowledge of corporate social responsibility in credit decisions
- Obtain and analyse financial information on market opportunities and competitive landscape
European Skills Framework
Skills and knowledge areas required for this occupation based on European classification.
Essential (27)
corporate social responsibilitycorporate social responsibilityThe handling or managing of business processes in a responsible and ethical manner considering the economic responsibility towards shareholders as equally important as the responsibility towards envir...insolvency lawinsolvency lawThe legal rules regulating the incapacity to pay debts when they fall due.financial analysisfinancial analysisThe process of assessing the financial possibilities, means, and status of an organisation or individual by analysing financial statements and reports in order to make well informed business or financ...debt systemsdebt systemsThe processes needed to obtain goods or services before payment and when a sum of money is owed or overdue.credit control processescredit control processesThe various techniques and procedures applied to ensure that credit is given to the suitable customers and that they pay on time.apply credit risk policyapply credit risk policyImplement company policies and procedures in the credit risk management process. Permanently keep company's credit risk at a manageable level and take measures to avoid credit failure.strive for company growthstrive for company growthDevelop strategies and plans aiming at achieving a sustained company growth, be the company self-owned or somebody else's. Strive with actions to increase revenues and positive cash flows.manage staffmanage staffManage employees and subordinates, working in a team or individually, to maximise their performance and contribution. Schedule their work and activities, give instructions, motivate and direct the wor...create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.create credit policycreate credit policyCreate guidelines for a financial institution's procedures in supplying assets on credit, such as the contractual agreements which have to be made, the eligibility standards of prospective clients, an...maintain records of financial transactionsmaintain records of financial transactionsCollate all the financial transactions done in the daily operations of a business and record them in their respective accounts.obtain financial informationobtain financial informationGather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.determine loan conditionsdetermine loan conditionsCalculate the credit limit and decide on the conditions for the repayment.advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.manage financial riskmanage financial riskPredict and manage financial risks, and identify procedures to avoid or minimise their impact.analyse financial performance of a companyanalyse financial performance of a companyAnalyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external informati...analyse the credit history of potential customersanalyse the credit history of potential customersAnalyse the payment capacity and credit history of potential customers or business partners.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.liaise with managersliaise with managersLiaise with managers of other departments ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.follow company standardsfollow company standardsLead and manage according to the organisation's code of conduct.handle financial transactionshandle financial transactionsAdminister currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.financial managementfinancial managementThe field of finance that concerns the practical process analysis and tools for designating financial resources. It encompasses the structure of businesses, the investment sources, and the value incre...debt collection techniquesdebt collection techniquesThe techniques and principles used to collect overdue debt from customers.enforce financial policiesenforce financial policiesRead, understand, and enforce the abidance of the financial policies of the company in regards with all the fiscal and accounting proceedings of the organisation.financial statementsfinancial statementsThe set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statem...synthesise financial informationsynthesise financial informationCollect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.trace financial transactionstrace financial transactionsObserve, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanag...
Optional (21) — show
contract lawcontract lawThe field of legal principles that govern written agreements between parties concerning the exchange of goods or services, including contractual obligations and termination.securitiessecuritiesThe financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities whic...mortgage loansmortgage loansThe financial system of acquiring money by property owners or prospective property owners, in which the loan is secured on the property itself so that the property can be repossessed by the lender in ...property lawproperty lawThe law and legislation that regulates all the different ways to handle property, such as the types of property, how to handle property disputes and property contract rules.business loansbusiness loansLoans which are intended for business purposes and which can either be secured or unsecured depending on whether a collateral is involved. The different types of business loans such as bank loans, mez...investment analysisinvestment analysisThe methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to ...tax legislationtax legislationTax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.advise on credit ratingadvise on credit ratingProvide advice on the debtor's ability, be it a government institution or a business, to pay back its debt.analyse loansanalyse loansExamine and analyse the loans provided to organisations and individuals through different forms of credit such as overdraft protection, export packing credit, term loan, and purchase of commercial bil...maintain client debt recordsmaintain client debt recordsPreserve a list with the debt records of clients and update it regularly.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.prepare credit reportsprepare credit reportsPrepare reports which outline an organisation's likelihood of being able to repay debts and do so in a timely manner, meeting all the legal requirements linked to the agreement.examine credit ratingsexamine credit ratingsInvestigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.perform debt investigationperform debt investigationUse research techniques and tracing strategies to identify overdue payment arrangements and address them.perform clerical dutiesperform clerical dutiesPerform administrative tasks such as filing, typing up reports and maintaining mail correspondence.plan health and safety proceduresplan health and safety proceduresSet up procedures for maintaining and improving health and safety in the establishment or workplace.ensure proper document managementensure proper document managementGuarantee that the tracking and recording standards and rules for document management are followed, such as ensuring that changes are identified, that documents remain readable and that obsoleted docu...consult credit scoreconsult credit scoreAnalyse the credit files of an individual, such as credit reports which outlines a person's credit history, in order to assess their creditworthiness and all the risks that would be involved in granti...assess financial viabilityassess financial viabilityRevise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Asse...budget for financial needsbudget for financial needsObserve the status and availability of funds for the smooth running of projects or operations in order to foresee and estimate the quantity of future financial resources.banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...
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Frequently asked questions
What does a credit manager do?
Credit managers oversee the application of credit policy in the bank. They decide the credit limits to be imposed, the reasonable levels of risk accepted and the conditions and terms of payment made to the customers. They control the collection of payments from their customers and manage the credit department of a bank.
What skills does a credit manager need?
A credit manager needs 27 essential skills, including corporate social responsibility, insolvency law, financial analysis, debt systems, credit control processes.
Will AI replace credit manager jobs?
The AI disruption score for credit manager is 81/100 (very high risk). Skills most exposed to automation: financial statements, maintain client debt records, perform clerical duties. Most resilient: liaise with managers, follow company standards, strive for company growth.
AI Replacement Risk
81/ 100
Very High Risk
Low riskHigh risk
Skills most at risk from AI
Skills resilient to automation
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