Career in finance
In reality, the field of financial services and the people who work in it are far more diverse than these or other pervasive images would lead us to believe. It is a field that offers a wide range of career opportunities to many people who do not fit any of the stereotypes of financial wizards. People employed in finance affect almost every aspect of business indeed, life itself because money still does make the world go around.
Consider the impact these financial practitioners have made. Corporate finance officers help their companies raise capital that often funds new plants or new products, resulting in new jobs. Public finance professionals raise money to build roads, bridges, schools, and hospitals. Lending officers at banks, savings and loans, and credit unions help their customers finance homes or college educations. Portfolio manages invest the retirement savings of millions of people.
Those who pursue careers in finance in the coming years will find that their activities are increasingly global in nature. Economic events in the United States will affect the rest of the world, and vice versa. Technology will make cross border financing and investing easier and more common than they have ever been. Stock markets will be an exciting time to be involved in the wide variety of careers available in financial services.
Careers in finance are found in virtually every type of industry There are various careers in finance available, the duties involved, the skills and training required, and the outlook for growth or contraction in financial services employment. . Within the field are various categories and specific areas in which finance careers may opt to work. The careers in finance fields, to be explored in detail in the following:
- Banking. Operational efficiency, the emphasis
in the past, has given way to selling the banks services, which today are
many and varied. Competition from other banks, brokerage firms, and
insurance companies has posed new challenges for bankers. The accounts that compete directly with
bank products. Banks in turn are
able
to underwrite commercial paper, municipal revenue bonds and other securities. Large banks hire new college graduates as bank trainees to work in specific areas including corporate finance, sales and trading, retail banking, credit cards, mortgages, branch management, fee based services, operations and systems, and audit. Trainees are rotated through product and industry specialties within these areas. Managers determine the best permanent place for each individual after completing the training program. Many college graduates move to the line after training, to become bank officers.
- Chief
financial officer. The top
position in corporate finance is the chief financial officer, usually
titled vice president of finance. This executive is in line for the position of chief executive
officer of the company. In fact,
the large percentage of the chief executive officer of major corporations
today have risen through the finance or accounting ranks. Responsibilities include participation
and other key executives in developing company policy and implementation
of financial policy within the organization. Promotion to this position used to be
from within the organization and based on length of service and dedication
to the company. This is no longer
always true. More companies are
hiring professional managers with strong credentials and experience in
finance that, rather than moving up in a single corporate hierarchy, have
moved laterally from one position of financial management to another, even
across industries.
- Trading. Brokers
and traders execute portfolio managers orders to buy or sell stocks,
bonds, or other securities, such as commodities, futures, and
options. Brokerage firms generally
are affiliated with investment banking firms. Brokers also may offer research on
various securities or investment strategies. Security traders may be made through
private arrangements between investors, but more often they happen on the
many public stock and commodity exchanges around the world. These exchanges employ people to assure
that trading goes smoothly, to develop new financial instruments, and to
act as liaisons to the investment community.
- Corporate and Public Finance. People who work in corporate financial departments are involved in raising money through issue of stocks or bonds; investment of various corporate funds; collection of money owed to the company; and the disbursement of checks to employees, suppliers, and creditors. Workers in public finance offices handle borrowing, investing, collection, and disbursement for government entities including cities, states, counties, and school districts.
- Investment Banking. Corporate, public, and other financial officers often enlist the help of outside experts. Investment bankers help their clients create issues of stocks, bonds, or other types of securities; they also underwrite and help on mergers, acquisitions, and other actions that have a financial impact.
- Banks, Savings
and Loan, and Credit Unions. Commercial banks, savings and loan
associations, and credit unions offer loans, savings and checking
accounts, and other services to businesses, governmental bodies, and
consumers.
- Portfolio
Management. Portfolio management professionals invest money for
corporate and public pension funds, charitable foundations and educational
endowments, and individuals. Some portfolio
management firms are independently owned, either by their key employees or
a group of public shareholders ; some are subsidiaries of banks, insurance
companies, or non-financial corporations. Some firms specialize in one type of investment stocks, bonds,
real estate, or venture capital; others offer a variety of choices. Some cater primarily to institutions
pension funds, foundations, and endowments. Others are popular with individuals,
especially mutual fund companies, which pool the money of numerous clients
for greater investment clout. Some
individuals, however, turn to personal financial planners, who offer
custom tailored advice on investments, insurance, and other money matters.
- Profile of a
Valuable Job Applicant. Most
companies and nonprofit organizations that employ financial professionals
have no shortage of job applications. Faced with an abundance of potential employees, they can be highly
selective, giving many applications only cursory consideration. And even when this is not the case,
employers naturally seek the most highly qualified workers available. As a result, it only makes sense to
package your self to have as many attributes as possible that are valuable
to potential employer.
- Skills and Characteristics. One way job seekers can become competitive in todays business world is to have an international orientation. Mathematical and analytical skills are important, too. Many finance careers emphasize, however, that the technical aspects of the business without an extensive mathematical background need not shy away from finance, provided they have some interest and aptitude. With so many aspects of the business being computerized, computer skills are considered to be of great importance. Many companies are making individual ethics and integrity more of an issue than they have for some time. Possibly, this is in response to insider trading and other recent financial scandals. Employers are also interested in workers ability to build and maintain good relationships with their colleagues and clients. A lost client might be irreplaceable in todays financial climate.
Whether as employees of large organizations, individuals going into financial services have an enormous variety of careers options.
Other Articles
