Finance Jobs

With the recession of 2008 - 2009 and the collapse of many Wall Street firms, jobs in the financial sector are currently going through an extensive restructuring. While the need for qualified new hires in finance has not disappeared, expectations and requirements have certainly changed. To take advantage of the opportunities that remain in finance, today's finance degree graduates may want to concentrate on the areas of finance that traditionally tend to become stronger during periods of unemployment and recession. Graduates are also more likely to find better employment prospects at smaller organizations.

Certain finance jobs, such as accountants and auditors, budget analysts, personal financial advisors, and bill and account collections agents are expected to grow faster than the average for all occupations (between 14% - 19%) or even much faster than average (by 20% or more), according to the Bureau of Labor Statistics. The insurance industry is also expected by many experts to do well in the current economic climate. Because these occupations deal mainly with debt management, risk management, and compliance, they tend to be anti-cyclical and experience upturns when other job sectors experience downturns.

Since there are exponentially more small organizations in the world than there are large ones, finance job applicants should also focus their search for positions in small to medium-sized companies. Those in the areas of manufacturing, fast moving consumer goods, energy, healthcare, and insurance are expected to particularly need the expertise of those with a degree.

High-profile Wall Street investment banking positions such as trading, structured finance, and M&As (mergers and acquisitions) have undergone the most loss, but even here there are still opportunities if job applicants know where to look. There is still need for investment bankers in smaller boutique investment banks that focus their services on one particular industry, healthcare banking, restructuring groups, Asian and Middle East markets, risk management firms, and financial planning, private wealth management, or retail brokering for individuals. Mergers and acquisitions deals have slowed, but are still going on at the smaller boutique firms.

Overall, applicants hoping for jobs in the investment banking field will need previous, in-depth knowledge of a particular market in order to fill a specific niche. Those wishing to be traders, for example, should decide early on in their schooling what they want to trade (bonds, commodities, or equities) and in which particular industry.

Salary

Salaries for jobs in the financial sector, like the jobs themselves, can differ widely. Some people make maximum salaries topped off by commissions and bonuses, while others earn comparatively humble, yet happy, livings.

Following are average salaries for some of the most common jobs of those with a financial degree:

Accountants and Auditors – This is a field known for modest compensation, with an average starting salary of $48,993 in 2009 for those with a bachelor's degree and $49,786 for those with a master's, according to the Bureau of Labor Statistics (BLS). The bottom 10% earned less than $36,720 in 2008, while the top 10% made more than $102,380. The good news is that demand for these jobs is expected to grow much faster than average due to greater scrutiny of company finances and changing financial laws and regulations.
Commercial Bankers – In general, commercial banking is also not known for its high salaries, with starting salaries for those with a bachelor's degree ranging from $40,000 to $60,000 in 2009, according to the staffing and consulting firm Robert Half International. With an MBA, starting salaries can range from $70,000 to $100,000, while salaries can rise to $80,000 to $120,000 after five to ten years in the banking business. Exceptions to the relatively low salaries in commercial banking can include more than $500,000 for good portfolio managers and from $300,000 to $500,000, not counting bonuses, for chief financial officers at large money center banks.
Corporate Finance Professionals – Salaries for those in corporate finance jobs can vary according to the size of the organization, but most companies will eventually reward longevity and loyalty. Starting salaries for junior financial analysts with a bachelor's degree, according to Robert Half International, were between $35,000 and $50,000 in 2009, depending on the size of the firm. Experienced financial analysts with an MBA earned between $55,000 and $80,000. Assistant treasurers were paid $88,000 to $113,000, while tax managers earned between $92,000 and $130,000. Chief financial officers at smaller firms earned from $95,000 to $125,000, while those at larger corporations brought home $260,000 to $390,000.
Financial Planners – The salary range in this field also shows a marked variety, since financial planners can be compensated in a variety of ways, including salaries, flat fees, bonuses, and commissions. The average salary of a financial planner who worked for a financial services firm was approximately $70,000 (not including bonuses) in 2008, according to the BLS, with the middle 50% earning between $46,390 and $119,290. About 29% of personal financial planners are self-employed. Although the BLS does not keep figures for self-employed financial planners, Robert Half International estimates that those in the 90th percentile can make more than $200,000 based on experience, size of clientele, certification, and commissions.
Investment Bankers – This high-stress, high-risk financial field is traditionally known for generous bonuses paid in addition to salaries, usually 10% to 50% of salary to start with and rising to one to three times salary later on, according to Robert Half International. Although many investment firms paid low bonuses or none at all in 2008 due to the recession, total compensation (starting salaries plus bonuses) had re-bounded somewhat in 2009. Starting salaries for assistant or junior analysts with a bachelor's degree can range from $100,000 to $130,000 after bonus, while starting associates with an MBA earn from $90,000 to $180,000 after bonus. Average total compensation for those with more experience in investment banking can range from $800,000 for a director or principal with five to 10 years of experience to $3.5 million for a department head of more than 10 years.

Job Descriptions

A general overview of some of the many jobs available for those with a degree follows:

Commercial bankers safeguard deposits, provide banking services, such as checking and savings accounts and debit cards, and make funds available for loans to individuals, small companies, and large corporations.
Corporate finance professionals work within both large organizations and small businesses to plan a corporation's financial future, advance its financial growth, make acquisitions, and manage its cash assets. The corporate finance professional's main responsibility is to maximize the corporation's value while minimizing its risk.
Financial analysts provide predictions and recommendations for clients or corporations on how they can best meet their business goals, based on research into their financial status. They study the potentials and drawbacks of particular investments, assemble all of the data into a comprehensive report, and make “Buy,” “Sell” or “Hold” recommendations on the investment to their clients.
Financial consultants supply advice to both organizations and individual clients on how to meet financial goals through a variety of planning, management, investment, and budgeting techniques. Some financial consultants will also help in implementing a financial plan, monitoring its progress, and making any necessary adjustments.
Financial managers plan, direct, and coordinate all of the financial activities, including accounting, investing, banking, and insurance, of organizations in both the private and public sectors.
Financial planners help individuals meet their financial goals and prepare for their futures. They take a very broad, long-term view of financial data instead of focusing on one area. They most often advise on investment planning, retirement planning, tax planning, estate planning, and risk management.
Insurance professionals provide protection from financial losses through policies that reimburse individuals or businesses for those losses. They calculate risk, then transfer that risk from the customers to the insurance agencies.
Investment bankers help corporations or governments issue securities, help investors to manage financial assets and trade and purchase securities, and provide financial advice. They also help connect companies that are seeking funding with investors who are willing to provide that funding in exchange for equity or debt.
Money managers manage the securities portfolios for individual or institutional clients. Many money managers buy and hold fixed-income securities, such as corporate bonds, mortgaged-backed securities, municipal bonds, asset-backed securities, and agency securities. Others may deal in equities, such as small stocks and emerging markets.
Real estate professionals sell, manage, and analyze properties and land. This can also involve construction, mortgage banking, title insurance, appraisals, property management, real estate development, and brokerage and leasing.

Education Requirements

In general, a bachelor's degree is necessary for most entry-level positions in the financial sector, while a master's degree is usually required for those who desire management positions. Additional certification, in addition to your degree, is usually recommended for those who desire further advancement.

Commercial bankers – A high school degree is the minimum required education for most office and administrative positions in banking. For management and financial positions, a bachelor's degree in business administration or a liberal arts degree with business administration courses would be adequate preparation. An MBA (Master of Business Administration) is not usually necessary for commercial banking but can be helpful, especially if your bachelor's degree is in a field unrelated to business or finance. Banks typically encourage on-the-job training and promoting from within, and many times offer access to additional credentials such as the Loan Review Certificate from the Banking Administration Institute or the Certified Mortgage Banker (CMB) from the Mortgage Bankers Association.
Financial analysts – Financial analysts must have at least a bachelor's degree, preferably in areas such as finance, accounting, statistics, business, or economics. Many positions require a graduate degree such as an MBA or MSF (Master of Science in Finance). Additional certifications such as a CFA (Chartered Financial Analyst) are not always required, but are becoming more common and are recommended by employers. Analysts who wish to sell securities must obtain a license from the Financial Industry Regulatory Authority (FINRA).
Financial managers -- Most financial managers need at least a bachelor's degree in finance, accounting, economics or business administration, although many employers prefer a master's degree in these areas. Financial managers often expand their skills with CPA (Certified Public Accountant), CFA (Chartered Financial Analyst), CTP (Certified Treasury Professional) or CMA (Certified Management Accountant) credentials.
Financial planners – A bachelor's degree in any area of study is necessary for personal financial planners, but those concentrating in finance, accounting, economics, business, math, or law are preferred. A master's degree in finance or business administration is not required but often preferred. The Certified Financial Planner (CFP) designation, offered by the Certified Financial Planner Board of Standards, is recommended and helps to draw clientele. Financial planners who buy or sell stocks, bonds, mutual funds, or insurance policies will need licenses from their state or from FINRA.
Insurance professionals – Some office and administrative jobs in the insurance industry require no more than a high school degree, but bachelor's degrees in business administration or related fields are usually preferred for management positions. A master's degree is not required but is often helpful for those wishing further advancement. For actuary jobs, bachelor's degrees in actuarial science, mathematics, statistics, or a business-related field such as finance or economics are preferred. State licenses are required for insurance sales agents, brokers, claims examiners or adjusters, and investigators. Agents who sell securities must have a Series 6 or 7 license from FINRA as well. Additional certifications that many insurance professionals pursue include the ACU (Associate in Commercial Underwriting), API (Associate in Personal Insurance), CPCU (Chartered Property and Casualty Underwriter), CLU (Chartered Life Underwriter) and RHU (Registered Health Underwriter).
Investment bankers – Most positions in investment banking require a bachelor's degree in finance, business, accounting, or economics. An MBA is often a requirement for high-level positions in the securities field. Brokers and investment advisors must have a Series 7 license from FINRA in order to sell securities. The Series 63 or 66 exam from FINRA is also required in many states. Many investment brokers, advisors, and sales agents also obtain CFA (Chartered Financial Analyst) designations to enhance their professional status.

Personality Synopsis

Besides a degree, certain personality traits are also essential for those who want to be successful in a financial career. In fact, in some jobs within the finance sector, certain personal qualities are often considered even more important than academic credentials.

Commercial Banking – Those who wish to succeed in the commercial banking field need strong people and communication skills since they will be interacting with the public, as well as good written communication abilities in order to create understandable loan documents and credit analyses. They must also be detail-oriented, ethical, and conscientious. Since many banks are trying to build a brand image by offering more consumer-oriented product lines, they also value people with creativity and marketing flair who are not afraid to pitch a sale.
Corporate Finance – People in corporate finance need many different personal traits including problem-solving abilities, computer literacy, initiative, risk-management aptitude, interpersonal proficiency, good communication skills for dealing with the public, and a broad understanding of business. Since many corporations are now global in scope, it also helps to have an appreciation for different cultures and be fluent in a foreign language. Many manufacturing companies also often hire corporate finance professionals who have engineering talent.
Financial Analysis – Besides their analytical and math skills, financial analysts must also have self-confidence, maturity, and be able to work on their own. They must also be computer-literate, detail-oriented, and good communicators in order to explain complicated financial data in an understandable way. It is also helpful for the candidate to be inspired by hunting out obscure facts and information
Financial Planning – Probably the most important trait that financial planners need to be successful is the ability to make a wide variety of people feel comfortable, as well as be able to present financial concepts to their customers in easy-to-understand language. It also helps to have a streak of sales ability in order to persuade clients to accept a certain recommendation or financial product.
Insurance -- Above all, insurance professionals need to be people persons. They should enjoy being with, listening to, talking with, and helping other people. A bit of persuasiveness is also needed to convince clients which policy is right for them. Since insurance involves risk management, it also helps to believe in caution.
Investment Banking – Investment banking is another profession where personal qualities are almost more important than mathematic and analytical skills or academic training. Investment bankers need to have excellent interpersonal and communication skills, a strong work ethic, the ability to get things done and complete projects, the capability to work in a team, and a drive to succeed. The ability to bluff well also comes in handy during trading.