The financial sector is one of the most competitive areas to enter, and people usually start at the bottom and work upwards. But that doesn’t mean you can’t change your career and get a job in the financial sector. For example, if you have many years of experience in another area, some of that knowledge may be transferred. Or you may need to enhance your resume. Here’s what you need to know to move your career into the financial sector:
- The financial sector is made up of consumers, businesses and companies that provide financial services to governments.
- Wall Street occupies most of the financial sector, but Main Street also has a lot of work to do.
- Most of the revenue in the financial sector comes from mortgages and loans.
- Entry-level jobs in the financial sector include analysts, tax associates, auditors and financial advisors.
What is the financial sector?
The financial sector is a segment of the economy consisting of companies and institutions that provide financial services to consumers, businesses and government agencies. This sector includes banks, investment companies, insurance companies, real estate companies and more. A significant portion of the revenue generated by the financial sector comes from mortgages and loans.
The financial sector is not limited to Wall Street and the institutions that operate there. Let’s take a look at some of the key places to work in finance, both on Wall Street and Main Street.
- Retail banking and commercial banking-Banks offer deposit accounts, mortgages, loans, credit cards, and debit cards. We also exchange foreign currency and remittances. Potential jobs include bank tellers, mortgage lenders, branch managers, credit analysts, auditors, and software engineers.
- Investment bank— Investment banks help corporate and government clients raise funds and complete M & A (M & A). Many jobs in investment banking follow a standard path, from analysts to associates, VPs, directors, and ultimately managing directors.
- insurance— Insurance companies help individuals and businesses assess and manage risk. It also helps investment bankers assess and undertake capital finance-related risks. Insurance operations include sales representatives, customer service representatives, adjusters, data analysts, underwriters, and actuarial scientists.
- Financial advisors and brokerage firms— FCMs help clients buy and sell securities, and some also offer financial advisory and cash management services. Careers include customer service personnel, software engineers, financial consultants, risk managers, portfolio managers, and trading specialists.
- Hedge fund— Hedge funds provide investment and cash management services to HNWIs and institutional investors. Typical hedge fund jobs include financial analysts, traders, quantitative analysts, portfolio managers, and regulatory compliance officers.
- Private equity and venture capital— Private equity (PE) and venture capital (VC) companies fund start-ups and other businesses in exchange for equity stakes or interest participation. Job titles include Associates, Product Managers, Financial Analysts, Software Engineers, and Business Development.
- Other financial services— Other areas of the financial industry include accounting, tax preparation, payment processing, and software development careers.
Business and financial jobs are projected to grow at 8% between 2020 and 2030, which is about the same as the average for all occupations.
How to break into the financial sector
If you spend years (or decades) in another industry, pursuing a job in the financial sector can be daunting. Still, career switching can offer long-awaited landscape changes, more rewarding challenges, and better salaries, among other benefits. Of course, the financial sector is so competitive that you may need to hone your resume and skills.
- Higher education— MBA or financial degrees do help you find employment in the financial sector, but they are not the only higher education degrees that businesses take seriously. Financial companies may also consider applicants with degrees in Computer Science / Information Technology, Physics, Engineering, Mathematics, Economics, Accounting, International Business, Corporate / Business Law, etc. Also, keep in mind that you can enhance any background by adding coursework in relevant areas.
- Professional certification— Earning designations (or two) can increase credibility, lead to better opportunities, and make your resume stand out. Chartered Property Casualty (CFP), Chartered Accountant (CPA), Chartered Financial Analyst (CFA), Registered Agent (EA), Chartered Life Insurance Companies (CLU), Chartered Financial Planners (ChFC), and Chartered Property Casualty Insurance Company (CPCU).
- Financial reporting and beyond— Most jobs in the financial sector need to know not only financial reporting, but also economic policies, business trends, social trends, labor issues and political events. The more you read, study and immerse yourself in these topics, the better you will be prepared for work in the financial sector. A good place to start is to read financial media such as: Investopedia, Bloomberg, The Wall Street Journal, economist, Financial Times, Forbes, When luck..
- networking— Whenever possible, network with people already working in the financial sector to find out what it really is and get inside information about what your employer wants from your applicants. To do. Find job-changing insights by looking for local networking events or connecting with acquaintances in the financial sector. You may even be able to find someone who has changed jobs in the financial sector.
- Soft skills— Many employers in the financial sector are looking for candidates with top-notch soft skills. For some jobs, the soft skills required include communication, decision making, leadership, problem solving, flexibility, team building, time management, persuasion, collaboration, dispute resolution, and the willingness to seek feedback. You may have some of these skills from your past or present career-and they move on to work in the financial sector.
Entry-level finance work
Unless you have a highly transferable (and desirable) skill set, you probably need to focus on entry-level financial work first. The most popular entry-level jobs in the financial sector are:
- Credit analyst— Credit analysts analyze the creditworthiness of investments and borrowers to determine potential risks for investors and lenders. They work for banks, credit rating agencies, investment companies and other financial institutions. Most credit analysts have a four-year degree, and many have industry qualifications to advance their careers.
- Tax Associate— Tax officials find ways to minimize individual or corporate tax obligations. Most Tax Associates have a four-year degree in accounting or finance. They often work as accounting firms, various types of companies, and independent contractors.
- auditor-The auditor ensures that the company’s financial statements comply with generally accepted accounting principles (GAAP). They may be employed by the company itself or they may work as external consultants. Most auditors have a four-year degree in accounting or finance.
- Personal financial adviser— Individual financial advisors help individuals make investment, budgeting, and savings decisions and develop strategies for short-term and long-term financial goals. They usually work for financial institutions such as banks, investment trust companies and insurance companies. Jobs in this area usually require a four-year degree, but employers usually do not require a specific course …