The specific set of skills and knowledge that a particular finance role require can be very different from other finance roles. Therefore, it is necessary to conduct an in-depth analysis of various finance roles and understand the requirements of every major area such as investment banking, corporate finance, risk management, etc., for building a career in finance. In general, all finance careers have high entry barriers, require high levels of education and excellent academic achievements. Career in finance are great for highly motivated individuals who like challenging and competitive work environment. These career prospects are highly rewarding in terms of salary and recognition.
We are providing a brief introduction of major finance careers to help you understand the job roles, growth prospects and requirements and decide the field of financial services that interests you the most.
Investment Banking is one of the most sought-after careers in finance. Investment bankers manage corporate-level transactions of large companies. These transactions usually comprise of finding potential acquisition targets, working with management teams for mergers and acquisitions, executing the deals and helping companies in acquiring capital. Investment banking requires great negotiation skills along with sound technical knowledge of finance domain. Mostly people get attracted to investment banking because of the recognition it provides and rewards in terms of high pay scales. It is suitable for highly confident and competitive individuals. Along with the high salaries, exposure, career advancement and networking opportunities that it provides, there are some challenges like fierce working hours, terrible work-life balance, limited exit opportunities in the mid-levels. Getting into an investment banking role is quite difficult. MBA in finance from top B-schools or CFA designation can help you get an entry level investment banking role.
Investment Banking career path:
TCorporate finance deals with funding, capital structuring and investment related activities with an aim to maximize shareholders value. The job roles ranges from managing current assets, current liabilities, inventory, etc. to taking decisions on the viability and capital sourcing of various projects. It also deals with capital budgeting and short-term financial management. Corporate finance professionals work in several roles and the skills and knowledge required for each role varies. For corporate finance roles such as financial analysts, CFA can be a very beneficial designation. CA can be a useful designation for accounting and tax related roles like Financial Planning & Advisory, tax advisory, controller, etc.
Equity research professionals collect and process relevant information about a company and advise investors in growing their wealth. Main job functions include performing fundamental analysis, tracking the performances of companies and sectors, and employing various financial models to determine the true value of the companies. MBA in finance from top b-schools or CFA can help you land as an analyst in the equity research division of top investment banks, asset management companies, investment advisory firms, insurance companies and other financial services firms globally. This field requires sound knowledge of financial concepts, sound presentation skills for effectively communicating insights from your analysis, strong understanding of various sectors and economy, and great quantitative skills. Equity researchers can eventually build their career as fund manager in various asset management firms, mutual funds, and large hedge funds.
Asset management refers to the management of financial investments of high net worth individuals and institutional clients such as pension funds, mutual funds, etc., to provide better returns at minimized risk. It involves entering right investments and sales of assets on behalf of the clients to maximize their returns. Better return you generate for your clients, higher will be your revenue. Management skills along with sound technical knowledge of all asset classes like equities, derivatives, fixed income, alternative investments, real estate, etc., is a must for asset management roles. Asset managers need to have great networking skills to attract and retain high net worth clients. MBA with specialization in finance may be helpful in entering an asset management job. During your career, you may be required to pursue CFA to advance your career prospects as CFA curriculum is specifically focused on various technical knowledge and tools of asset management. Asset managers generally specialize in a particular class of investment and are expected to be updated with all the developments in the industry as they need to manage huge investments which are impacted by factors that change rapidly.
Risk management deals with identification, assessment and elimination or reduction of risk to prevent losses. Risk management professionals have strong analytical skills that help them analyze various information to ascertain the likelihood of an event that may affect the operations and profitability of an organization. They also ensure effective utilization of resources and timely completion of projects while reevaluating the strategies based upon performances and results. Risk management has gained immense popularity in recent times. Companies are focusing on risk management to make their organization ready to deal with uncertainties in the market and to minimize losses in adverse situations. The different types of financial risk management include liquidity risk management, market risk management, credit risk management, operational risk management, inflation risk management, etc. FRM course offered by GARP, USA is a great certification to pursue if you want to build a career in this field.
Commercial banking services range from loans, credit, investments, and brokerage services to financial planning for businesses, large corporations, and individuals. Commercial banking managers provide financial advice to the clients by offering suitable products and services provided by their banks. Maintaining client relationships is very crucial as a commercial banking manager. Some of the common job responsibilities of a commercial banking manager includes managing loan accounts, promoting banking services, preparing credit reports, formulating policies, managing bank projects, ensuring legal and regulatory compliances, training staff and assisting clients with their financial needs. These roles require exceptional communication, management, and leadership skills. Attracting and retaining customers is the most important part of their role. Commercial banking offers decent pay packages with good career advancement prospects. Credit analysts, mortgage bankers, branch managers are some of the common job roles in commercial banking.Building a career in finance require sound technical knowledge and ability to apply that knowledge in real life scenario. There are various courses like CFA, FRM, NSE, CFTe, etc., that will train you for specific roles in the financial services industry. click here. to know more about these courses and embark on your career in finance.