Introduction to Career in Finance
Finance, an evergreen word. Finance is a word which is associated with everything as nothing comes for free in this world, and hence it has a great scope. Finance is a field that is concerned with the allocation (investment) of assets and liabilities over space and time, often under conditions of risk or uncertainty. Finance can also be defined as the art of money management.
Two of the main types of finance include:
- Debt finance – Money borrowed from external lenders, such as a bank.
- Equity finance – Investing your own money, or funds from other stakeholders, in exchange for partial ownership.
Education Required for finance
A financial analyst needs a minimum of a bachelor’s degree – preferably in a finance-related major, such as accounting, statistics, or economics. As in every field, masters is beneficial likewise in finance sector masters would be useful. So, Analysts who want to enjoy greater opportunities for jobs and salaries might consider pursuing a master’s degree in finance or a Master’s of Business Administration (MBA).
The 10 skills that count for your career in finance are:-
1. Communication Skills
- As in any other industry, communication plays a vital role likewise in Finance Industry, it is one of the very important aspects which is seen in a candidate while making a judgment.
- Sound knowledge of the subject and good communication is a perfect choice for recruiters.
2. Basic Accounting knowledge and a minimal accounting degree from a recognized institution
- Sound knowledge with some real-time work experience will land to the dream job.
- A Career in finance means a candidate should have demonstrated practical knowledge of the subject, just mentioning in the resume will not work.
- Candidates who have a basic degree with some fair knowledge of the subject can easily be back up in the organization they are hired.
3. Interpersonal skills
- Finance professionals are no more just bound in the cubicles; they play a dynamic role in today’s era.
- In today’s era, we require a good number of resources to work in the finance sector as we need to deal with the clients on a regular basis and for this Interpersonal skill is an added advantage.
- As in every field, finance also has a lot of competition in the market so for building a good relationship with different customers all over the world it is important to excel.
- When we compare two equally qualified hires, interpersonal skills are the most common point of difference which means a lot.
4. Financial reporting
- Financial reporting skills are a requisite requirement, particularly in growing areas such as super forecasting.
- However, it is difficult to find a candidate with strong financial reporting skills.
5. Analytical ability
- Candidates with high analytical abilities are the most preferred as they have the ability to implement their thinking and analyze the scenarios and draw definite conclusions.
- Candidates looking for a successful career in finance must demonstrate their analytical abilities with real-world examples and also with some of their demonstrated work.
6. Problem-solving skills
- It is not just essential to have the complete knowledge of the system but the ability to learn is what really matters, it is important to stay calm and have the ability to tackle the complex problems.
- The record of solving the problem and bringing it to closure is the thing which makes the candidate stand out.
7. Knowledge of Information technology
- The main focus in today’s era is on the digitization and automation. It has encouraged the managers to look not only for financial domain knowledge but also look for knowledge of IT skills.
- Automation, Predictive analytics, SAP are some preferred IT skills in the market.
8. Managerial level experience
- It is always good to have managerial skills as it will help to own the things in a much better way.
- If one has proven his ability to manage teams during his career in any field, he is bound to excel in a leadership position in the future.
9. Commercial data
- Professionals must be well versed with the company’s fiscal data and market standards.
10. Innovation in the Finance sector
- Finance and accounting may be associated with a monetary system but that doesn’t mean innovation doesn’t have its place, there is always a lot of scope of innovation in every field.
Career Path In Finance
The finance sector includes the following major sectors:-
- Investment Funds
- Insurance Companies
- Real Estate
Finance sector can fetch you any kind of job one desires to get into – from being an accountant in a small firm to be an investment banker in a giant MNC.
It’s up to the person what kind of city, salary, post, etc he wants.
Job Position or Application Area
The Different Areas of Work in Financial Services
- Careers in Retail and Commercial Banking.
- Commercial Finance.
- Corporate Finance.
- Financial Accounting.
- Financial Planning & Wealth Management.
- Specialist Markets.
- Structured Finance.
As mentioned above, Finance is an evergreen field so there is no way that a person with sound knowledge and adequate degree is not able to get a good salary. The median annual wage for financial analysts was $84,300 in May 2017.
Below is the graph where the salary of various posts in Finance is shown:-
Career Outlook in Finance
Employment of financial analysts in this domain is projected to grow 11 percent from the year 2016 to 2026 which is faster than the average for all the other occupations.
Conclusion – Career in Finance
When monetary things are involved then an extra step of precaution is required, the same applies in the Financial sector. It is sometimes stressful and one needs to stand out to get lucrative salaries in this sector in terms of domain knowledge and communication abilities. Successful people show a distinct passion for their work and that is very much evident to their colleagues and seniors and it makes them shine like a star and they become the asset to the company.
This has been a guide to Career in Finance. Here we have discussed the Education, Career Path, Job Position, Salary and Career Outlook in Finance. You may also look at the following article to learn more –