A job in finance could have many benefits from high pay to good job security. However, before pursuing a career in finance, it’s worth making sure that this is truly the right industry for you. This includes making sure that you have the knowledge and skills to make it work, as well as being able to adjust to the work culture. This guide explains more.
What are some examples of finance careers?
Finance is a large sector made up of many sub-industries including banking, insurance, tax and investing just to name a few. In almost all cases, it involves managing the money of other people. A few examples of careers within finance include:
- Accountant
- Banker
- Financial advisor
- Financial analyst
- Insurance broker
- Mortgage advisor
- Pensions advisor
- Stockbroker
- Tax inspector
- Treasurer
What personal skills do you need to possess to work in finance?
When working in any area of finance, a certain degree of financial literacy is essential. The type of terminology you’ll need to know will vary depending on the area of finance you’re focusing on. On top of being able to grasp these terms, you need to be willing to constantly learn new terms and financial processes, as finance is constantly evolving.
One of the biggest soft skill you will need is analytical skills. This is of course essential if you’re going to be working as a financial analyst, however in most other areas of finance being able to quickly deconstruct financial information from various documents and come to conclusions could be equally important.
Communication skills are essential in any industry and are equally important in finance in which you may have to communicate things in laymans terms to customers while keeping team members in the loop. A certain level of negotiation skills are necessary in most finance jobs too in order to help sell products/ideas or simply manage people’s expectations.
What qualifications do you need?
Finance is an industry in which you’ll almost always need a degree. Usually this will need to be some kind of Finance or Business degree to prove that you have the suitable level of financial knowledge. There are more specific finance courses that you can take if you want to get into specific finance careers (such as Investment Management and Green Finance), however a general Finance degree may still be all you need.
Don’t want to study a course at university? There may be apprenticeships that you can look into instead as a way of learning the knowledge you need and getting experience to help you get your foot in the door. This is a common entry option for accountants. Just be wary that there are not apprenticeships available for all finance positions.
Obtaining some kind of qualifications is often needed for providing accreditation. For example, you can become an accountant without a degree, but you can’t claim to be a ‘chartered’ accountant without taking some kind of course or apprenticeship.
Are careers in finance well paid?
It should come as no surprise that finance-related companies know how to manage money and therefore are often able to pay their employees generously. Some finance positions are likely to be better paid than others, but generally speaking you will get a higher-than-average starting salary and plenty of opportunity to up your pay.
When working for large companies, you’re likely to benefit from many financial perks too. This could include good health insurance cover, discounted travel and a paid gym membership.
What is the work-life balance like?
If there is one big downside to working in finance, it’s the fact that your work/life balance may not be as great as in many other industries. Studies have found that 91% of finance workers end up working outside their contracted hours.
In many low level corporate finance jobs or banking jobs, the average is about 40 to 60 hours per week – so not too bad. Investment bankers on the other hand sometimes regularly work up to 100 hours per week or more. It’s worth looking into companies that have protection in place to prevent this (such as protected weekends or protected Saturdays). If you have kids, you will generally be able to negotiate less hours and may not be expected to work as much overtime. However, given that work is often deadline-based in finance, most workers often end up voluntarily working overtime.
How competitive is the job market?
Landing a job in finance was easier a couple decades ago when many banks and firms were calling out for more talent. But nowadays, finance is a highly competitive market, where you often have to go the extra mile to get hired. Job security and good pay is what attracts so many people to finance. In one study, finance was voted the number 1 industry that Gen Z wants to work in (more so than healthcare or tech!).
This is something to seriously consider if you are thinking of pursuing a job in finance. Expect to send off your application to a lot of companies and be prepared to put a lot of work into your resume and interview preparation.
Many people find that focusing on a niche helps. By building up knowledge in that niche and pursuing related qualifications, you can become highly sought after within that niche. Some examples of niches include retirement planning, nonprofit funding, crypto investment advice, real estate accountancy and music royalty tracking.
Should you pursue a career in finance?
A career in finance is ideal for those who have strong analytical skills and a certain level of financial literacy. You need to be willing to put in a lot of hours, and should be prepared for a competitive job hunting process. However, your efforts will be rewarded with good pay and other perks.
Getting a degree in finance or business could be the first step to guaranteeing a job in finance. Alternatively, you should be willing to pursue an apprenticeship. Some form of official training or education will be necessary in all cases.
