Careers in Finance

Introduction

The financial industry offers challenging, diverse and lucrative career opportunities for self-
motivated, diligent candidates. Change is constant in the field of finance careers, requiring
continued education in technology, government regulations and the globalization of the
marketplace

A person can start at an entry level job and work his way up the career ladder over time.
Positions that don't require advanced education are bank tellers, call center support, and new
account representatives. What banks are looking for in these entry level candidates are friendly,
outgoing individuals who have a college degree. Candidates must be bondable, meaning they
must not have a bankruptcy or any felony convictions.

If you enjoy working with numbers and solving problems, then a career in finance may be right
for you. You can have the satisfaction of helping individuals and companies achieve financial
goals, as well as enjoy the responsibility that comes with handling large sums of money. To be
successful in finance, strong analytical and people skills are usually required. A degree in finance
or business is often required to gain entry into the various finance-oriented careers.

Banking

Banking could be a rewarding career if you enjoy working with people and have a desire to
deliver strong customer service. There is often a high level of job satisfaction in banking, You
can get your foot in banking by working as a teller, then move into positions such as loan officer,
credit analyst or branch manager.

Working in the banking industry requires responsibility. Those employed in the banking industry
have a fiduciary responsibility to customers, regardless of their level of employment. Customers
expect that the people they are trusting with their hard-earned money are not criminals, are
themselves financially responsible, and understand the concerns that customers have with
investing money, paying debts and working toward retirement. Beyond the responsibility,
banking and finance are service industries that require a friendly demeanor.

Bank management ranges from operations and branch management to executive management. It
is possible for an employee to work his way to the top, starting as a teller and moving into an
operations manager who oversees the tellers. He can then work his way to branch manager, and
even executive management. While this is possible and does happen, most branch managers do
have a college education and are recruited into management training programs out of college.
Most operations supervisors move up from teller positions. Executive management ranges from
the best and brightest branch managers to highly recruited corporate executives who hold well-
respected business and economics degrees from major universities.
The majority of loan officers work for commercial banks and savings institutions. A loan officer
guides a client through the entire process of applying for a loan, from the initial information
gathering to setting up a repayment schedule. Loan officers sometimes function as salespeople,
and usually specialize in business, commercial, mortgage or consumer loans.

As credit checkers or credit clerks, these positions are generally concerned with verifying credit
and authorizing and processing credit requests from consumers or small businesses.
Additionally, they update credit information for credit reports. An experienced clerk with proven
abilities may move into a supervisory or management position.

A mortgage officer is responsible for soliciting and closing mortgages and refinances for bank
customers and new prospects. These individuals often work on a commission, or a draw on
commission, meaning they receive a small salary that is paid against any commissions they earn.
Being a mortgage officer requires good people’s skills, and extreme attention to detail when
going over paperwork.

Financial Services

Stock brokers, commodities broker, securities sales representatives or account executives

The work is to represent individuals or organizations that wish to buy and sell stocks, bonds and
other financial products. Financial services brokers analyze companies offering stocks and advise
clients on investment strategies. The most important aspect of this position is developing a client
base with which to work. Depending on skill, brokers may advance quickly, and may become
branch managers, or partners in their own firm. This is a commission-based career, so salaries
can be vastly different. There is an examination to get a license to practice the profession.

Brokerage clerks are employed by commodities and securities firms and banks, brokerage clerks
support brokers in processing transactions, taking phone calls from clients and maintaining
records on client accounts. Some firms may offer on the job training or formal training classes
and may assist a clerk in preparing for exams to get a license. Licensing will make an employee
more valuable to the firm, and allow for advancement to a broker position. A brokerage clerk
should have strong sales and customer service skills, be comfortable working under pressure and
have an aptitude for numbers

As a money manager, you have to analyze financial trends and attempt to determine the future of
financial instruments like stocks and bonds. Money managers often work for mutual fund
companies and have the responsibility of determining how funds are allocated. This type of
position can be difficult to attain, as a proven track record of investment success is required.
Working for bank trust departments or insurance companies is a way to gain experience
The role of private equity is to raise funds from large investors and invest the money directly into
businesses. The usual manner is to raise money from overseas investors and then find businesses
in the growth stage. Most private equity funds 'exit' the investment after a period of time by
selling their holding in the business to some other investors or doing an initial public offering of
the shares of the business

Investment banking comprises two major businesses. One is the advisory/ corporate finance role
which entails mergers and acquisitions. This would entail understanding valuations, finding
targets, negotiation and compliance with legal regulations. The second role is what is more
popularly called equity capital markets role. This entails helping corporates raise funds from
investors or the public. So it may entail working on IPOs or Institutional Offerings.
As a fund manager, one is an important decision-maker typically at a mutual fund. The fund
manager has a good overall understanding of the macro factors which affect the markets as well
as the micro factors about which company to invest in. He invests money in stock market, debt
market, directly into companies, etc depending upon his fund mandate.
The role of equity research is to find out the correct value of the stock which is trading on the
stock exchange doing various types of research namely fundamental and technical analysis.
There are two types of ERs though. One is the sell-side research which belongs to a brokerage,
the aim is to do research and sell investment ideas to investors so as to earn commission on
trading by the investor. The second is buy-side research, which is a part of usually a buy side
fund like a mutual fund. They analyze the research results of various brokerages in addition to
their own research on investment ideas for the fund manager.
This role entails arranging for long-term finance for infrastructure and industrial projects which
will take a long time to pay back. The first step is to understand the project, conduct a feasibility
study, risk assessment and a detailed financial model. This is done with the purpose to rope in
equity partners (known as sponsors) and lenders. Generally the lending part is done by multiple
banks under leadership of the syndicate bank.

Financial planning is another way to put your people and money skills to work. You will be
meeting with clients to help them plan their financial future, including preparing an insurance
program, developing an investment strategy and planning for retirement. You could begin by
working for an insurance company or investment firm, then achieve a professional designation
such as Certified Financial Planner (CFP) and branch out on your own.

Financial advisors can work for a bank or a brokerage firm. To become a financial advisor, an
individual must be sponsored to take one of the FINRA administered exams, such as the Series 6
or Series 7. The series 6 allows the advisor to solicit and sell mutual funds and annuities (with an
insurance license), while the Series 7 allows the advisor to sell the gamut of securities. Most
financial advisors work on commission, or a draw on commission, the same as mortgage
officers.
Corporate Finance
Financial Managers design and direct investment and cash management strategies, and oversee
financial reporting for their organization. Financial managers can be employed in different
positions, such as controller, finance officer, credit or cash manager, and international
banking manager or risk manager. They may be influential in mergers and global expansion or
other related finance projects. Banks often fill branch management positions by promoting
employees, such as loan officers, from with in their existing organization. There are also
professional certifications that can be obtained, which is helpful for advancement in this highly
competitive field. Financial managers in the securities and commodities field are the highest
paid, while those employed by local governments earn the least.

Financial Analysts evaluate and study financial information, and provide investment
recommendations based on their research. Additionally, they analyze a company’s financial
statements, sales and tax rates to project earnings and determine value. Financial Analysts are
also known as investment analysts, security analysts or ratings analysts. Banks, mutual funds,
insurance companies and securities firms primarily employ financial analysts.

Budget analysts estimate the financial needs of their company or organization and analyze and
develop a budget accordingly. They evaluate ways to increase profits by efficiently distributing
available funds. They may be involved in the implementation of the budget, the analysis of
related policies and exploration of alternative funding.

Clerical positions are available in various types of businesses, providing ample opportunities for
financial record keepers. Some of the tasks performed by bookkeeping and accounting clerks
include maintaining accurate records, tracking accounts payable and receivable and profit and
loss reporting. Auditing clerks verify records of transactions performed by other employees, to
ensure efficiency and accuracy. A clerk in this field must be a proficient in use of spreadsheets,
although many businesses offer on the job training.

With a career in corporate finance, you can attain the satisfaction of helping a corporation plan
and achieve its financial goals by designing financial policies, planning and implementing
financial programs, managing resources and working with the financial community at large.

Financial risk management is the practice of creating economic value in a firm by using financial
instruments to manage exposure to risk, particularly credit risk and market risk. Similar to
general risk management, financial risk management requires identifying its sources, measuring
it, and plans to address them. Financial risk management can be qualitative and quantitative. As a
specialisation of risk management, financial risk management focuses on when and how to hedge
using financial instruments to manage costly exposures to risk. In the banking sector worldwide,
the Basel Accords are generally adopted by internationally active banks for tracking, reporting
and exposing operational, credit and market risks.
This role entails the entire plethora of banking services required by corporations. Corporate can
be divided into largely two sections Large Corporates and MSME which is Medium and Small
enterprises. A corporate banker would thus have companies as his clients and service them.
Within corporate banking some of the departments are:
 Credit Borrowing to companies for their expansion and working capital requirements.
Would entail doing a credit evaluation on the company and sanctioning the loan
 Treasury Help companies manage various types of risks such as foreign exchange,
interest rate fluctuations. Treasuries also take proprietary positions to make profit in the
'forex' and bond markets.
 Cash Management Solutions: As most companies have a large number of customers,
distributors or branch offices across the country it becomes a huge challenge to deal in
money. Banks offer cash management solutions to help streamline this entire operation
for its corporate customers.

A career in corporate finance means you would work for a company to help it find money to run
the business, grow the business, make acquisitions, plan for its financial future and manage any
cash on hand. You might work for a large multinational company or a smaller player with high
growth prospects.
The job of the financial officer is to create value for a company. As a corporate finance
professional one is typically involved in four main activities to meet its objectives: 1) designing,
implementing and monitoring financial policies, 2) planning and executing the financing
programs, 3) managing cash resources, and 4) interfacing with the financial community and
investors.
Jobs in corporate finance are also relatively stable. Performance in these jobs counts, but your
job is not going to depend on whether you're selling enough this week or getting good deals
finished this quarter. Rather the key to performing well in corporate finance is to work with a
long view of what's going to make your company successful. Many would argue that corporate
finance jobs are the most desirable in the entire field of finance. Some of the benefits of working
in corporate finance are:
 You generally work in teams which help you work with people
 It's a lot of fun to tackle business problems that really matter
 You'll have many opportunities to travel and meet people and
 The pay in corporate finance is generally quite good
Personal Finance
These advisors work with individuals to assess a financial situation, make investment
recommendations, and formulate a plan for long and short-term interests. They can assist with
estate and retirement planning, provide tax advice, and develop strategies for saving for college
or for retirement. Some advisors also sell life insurance. A large portion of a personal financial
advisor’s time is spent on marketing and sales tasks to establish a client base, and therefore
increasing their income.

Strong communication skills are needed to effectively assist clients in comprehending financial
markets. A bachelor’s degree is strongly preferred and licensing is required to advise on
securities investments and insurance sales. A professional designation, such as Certified
Financial Planner is also helpful for advancement. Advancement opportunities include working
with a larger client base or moving to a management role.

Wealth management is an investment advisory discipline that incorporates financial planning,

investment portfolio management and a number of aggregated financial services. High net worth
individuals, small business owners and families who desire the assistance of a credentialed
financial advisory specialist call upon wealth managers to coordinate retail banking, estate
planning, legal resources, tax professionals and investment management.
Wealth managers can be independent, certified financial planners. One must already have
accumulated a significant amount of wealth for wealth management strategies to be effective.
Wealth management can be provided by banks, brokerages, independent financial advisers or
multi-licensed portfolio managers whose services are designed to focus on high-net worth
customers. Also known as consumer banking, it entails dealing with products / services for
individual customers. So the scope encompasses getting business for products such as credit
cards, savings accounts, personal loans and auto loans. Operational roles would entail teller,
authorizing, clearing, remittances and customer service.
Insurance
An insurance underwriter considers a wide variety of factors to determine the risks involved in
an insurance application, and whether that risk is acceptable or will likely result in a loss. A
bachelor’s degree is preferred (with concentrations in finance or law) for these types of positions
and continuing education credits are necessary for advancement. Candidates must possess strong
communication skills and be proficient at using related technologies. Opportunities for
advancement include senior underwriter and management positions.

Actuaries assess risks and create policies to minimize the financial impact of such risks to the
company. Pension actuaries evaluate and report on the financial soundness of pension plans.
Actuaries are employed primarily, but not exclusively in the insurance industry. Actuaries are
also employed in the financial service industry to assist in pricing securities offerings and
devising investment tools. Advancement as an actuary will depend greatly on performance
record, in addition to the number of examinations passed. Possible advancement tracks include
management and executive level positions, like Chief Risk Officer or Chief Financial Officer .

Claims adjusters and examiners authorize payments, investigate claims filed, and negotiate
settlements with policyholders. Insurance companies and firms that specialize in adjusting and
appraisals are the largest employers for these positions. Claims are investigated by interviewing
the claimant and any witnesses, consulting official records from hospitals and law enforcement
authorities or inspecting damage. Adjusters, examiners and appraisers usually have an area of
specialty, such as auto, health, property or life insurance.

Real Estate

This career field offers opportunities in finance such as property appraising, mortgage banking
and property management, to name a few. There are also corporate real estate jobs available,
such as working in commercial real estate for a bank. Sales and people skills are important
attributes for success in real estate.

Financial Intermediaries such as pawnshops, money brokers, and lending investors are also
careers areas in finance.

Thus, a budding financial wiz should look at understanding which area interests him/her the most and
build skill sets which can help take the leap into financial sector.

References:
http://www.hubpages.com/finance
http://www.ehow.com/about_5172591_careers-finance-industry.html

http://www.shell.com/home/content/careers/current_campaigns/finance/index.html&promo=jobs
eeker

Mortuza rohawala http://getahead.rediff.com/slide-show/2009/nov/06/slide-show-1-careers-ten-

great-career-options-in-finance.htm