Career Path in Finance: What you need to know
The finance industry is thriving, and job opportunities abound. Finance is a broad term that encompasses many industries. There are numerous career paths in finance, and the best way to find the one that is right for you is to explore what each career entails.
A career path in finance can be an excellent choice for people who enjoy working with numbers and want to help businesses and organizations make sound financial decisions. New technologies, new markets, and business practices emerge daily. As a result, the demand for skilled professionals fluctuates regularly. If you’re thinking about a career path in finance and figuring out how to get started, this is for you!
What Does a Career in Finance Entail?
A career path in finance can mean different things depending on your chosen path. If you decide to pursue a career in accounting, you will be responsible for managing the financial records of companies and organizations. If you make the decision to become a stockbroker, on the other hand, you will help clients buy and sell shares. Beyond this, we can break every path in finance down into three key areas.
Firstly, you will need to have strong analytical skills. You will need to be able to analyze trends in the marketplace so that you can make informed financial decisions.
Secondly, you need to be a strong problem solver. There are bound to be instances when the market throws up unexpected challenges. You will need to be able to solve these quickly.
Finally, you need to be able to communicate effectively. You will be working in a team-based environment, so you will need to be able to communicate with your team members. You must also communicate well with your clients to provide them with the best service possible.
Why Should You Explore a Path in Finance?
There are numerous reasons why a career path in finance could be ideal for you. Some of these are as follows: Finance is a lucrative industry. Many people are concerned about this. Compared to other industries, you will be able to secure a higher salary if you work in a well-paid industry. Salaries in the finance industry vary greatly, with some sectors paying more than others.
Finance is an excellent career path for problem solvers. Finance may be an excellent choice if you enjoy problem-solving and a challenge. There will be times when the market throws unexpected challenges that you must overcome quickly. A career path in finance is a Good Place to Begin.
What To Do Before Following a Career Path in Finance
- Get your bachelor’s degree: A finance degree can help you understand the key concepts used in the industry, allowing you to excel in your career. While you are not required to have a degree to work in finance, your additional education could help you stand out from the other candidates for a specific role.
- Search for internship opportunities: An internship allows you to gain more knowledge about the financial sector while working for a business that can show you the direction your career may take. The best way to truly understand the finance industry is to complete an internship. Your hands-on learning, references, and networking opportunities are all enhanced by finance internships. They also aid in the development of strong work ethics.
- Enrol in relevant courses: Credible institutions’ certifications enhance your credibility and demonstrate your suitability for challenging jobs. Additionally, they can greatly improve your skill set, enabling you to advance in your current position or even change careers! Since they are typically pursued for a shorter period, you can acquire several certifications in the relevant field. RKY CAREERS COURSES
- Begin with entry-level positions: If you want to work in finance, you might want to start out at the entry-level. Even if the position doesn’t involve finance, you might discover that you can advance and then apply for the position you’re most interested in.
5 Required Skills and Tools in Finance
Professionals in finance require various skills, from an aptitude for math to the mastery of FinTech tools and concepts. Here, we look at a few competencies increasingly being considered for top finance job roles.
1. Data Analytics
Financial management deals a lot with numerical data and different kinds of structured and unstructured data. For years, the finance department has provided stakeholders with historical data to report company performance. These days, while on a career path in finance, you also need to be able to forecast costs, cash flow, and revenue results. Excel, MySQL, DevOps, and Oracle are top data analytics tools.
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2. Business Intelligence
Businesses prefer finance professionals who know how to use enterprise resource planning software. ERP software is excellent for managing inventory, planning future purchases, and allocating labour hours. You must also be familiar with business analytics software, such as Tableau. Knowledge of these tools enables you to communicate data-driven insights more effectively.
3. Financial Modeling
Financial modelling is the process of abstractly representing a real financial situation. You could use them for strategic planning purposes, such as calculating the cost of a new project. Companies almost always expect you to be proficient in financial modelling if you apply for senior-level positions. It can help you estimate the value of a business or compare multiple businesses.
4. Data Management
The process of gathering, storing, managing, and maintaining an organization’s data is known as data management. Data management enables businesses to consolidate relevant data to comply with laws and regulations. This is yet another reason why it is in high demand among finance professionals.
5. Financial Reporting
The process of disclosing financial results and related information to stakeholders and upper management is known as financial reporting. In financial reporting, you’d create financial statements, balance sheets, and income sheets. Financial reporting, like accounting skills, is another necessary skill to advance in finance.
Top 10 Career Paths in Finance in the United Kingdom
The finance industry is one of the most popular sectors, with a demand set to increase. You can pursue several roles with a career path in finance, from risk analyst to investment manager. Here is our list of the UK’s top 10 career paths in finance.
Management Consultant
Management consultants advise companies to increase profitability and productivity and change the business model. Consultants can specialize in a particular industry or geographic region or may advise on a variety of industries. People who work as management consultants need to be analytical, excellent communicators and have good people skills. Management consultants earn an average salary of £59,884/yr.
Tax Accountant
An accountant focusing on managing and organizing taxes is referred to as a tax accountant. Tax accountants can create tax management plans that minimize or postpone tax payments, and schedule audits with taxing authorities, and prepare documents for filing during tax season. A tax accountant can find employment with businesses, nonprofit organizations, government agencies, and individual clients, in addition to the accounting firms where many tax accountants work. The highest salary for this role is £68,000
Risk Analyst
A risk analyst is a position within a financial institution that monitors and manages risk on behalf of the organization. To minimize risk, systems and controls are implemented by risk analysts using. Risk analysts need the technical skills to understand financial data and identify and quantify risk, as well as excellent communication skills to communicate their findings and work with various people. Risk analysts earn an average salary of £45,333 /yr.
Investment Banker
Investment bankers provide guidance to businesses on mergers and acquisitions (M&A), initial public offerings (IPOs), and other equity or debt transactions. There is no doubt that investment bankers are well paid, but they must work long hours and frequently relocate. You will need extensive experience and relevant qualifications as an investment banker, such as an MBA. The average salary for an investment banker is £50,731 /yr.
KYC Analyst
An analyst of KYC (know your customer) primarily examines new customer account documentation and assesses high-risk finance and accounts. KYC analysts typically work for banks or lending institutions but can be hired by manufacturing, technology, or consulting companies. They review new product proposals and evaluate risk and compliance issues. The average salary for a KYC Analyst is £52,392 /yr.
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Data Analyst
Data analysts work with large amounts of data and information to generate reports and visualizations and prepare databases for others to use. Data analysts employ various skills, including statistics, computer programming, and communication. The average salary for a data analyst is £39,479 /yr.
Financial Accountant
Financial accountants use financial data and records to guarantee that a company’s finances are accurate. They often focus on a particular area of finance, like taxation or financial analysis, and they produce financial reports for the management group and shareholders. Financial accountants must be passionate about working with numbers and possess strong communication skills. On average, financial accountants make £51,890 /yr.
Financier and Underwriter
An underwriter who works in insurance and reinsurance is known as a financier. A financier assesses a business’s risk exposure before determining whether to provide insurance. An underwriter manages all aspects of insurance, including pricing and setting aside money in case of future claims. The typical annual salary for a financier and underwriter is £47,597 /yr.
Economic Analyst
Experts in economics and economists frequently collaborate with financial institutions to develop economic models and predict future trends. Economists combine data analysis, statistics, and economic theory to predict economic trends. Economists typically possess computer programming skills, strong mathematical abilities, and excellent communication abilities. The typical salary for economists is £66,325 /yr.
Finance Analyst
A financial analyst needs to be adaptable and continually learn to identify and forecast investment opportunities in the market. Companies employ them to provide a wide range of services, ranging from financial analysis to assist with tactical and strategic decisions while using past and present information to develop solid financial plans for a business. A senior financial analyst in the UK earns £56,954/yr.
5 Finance Certifications and Licenses in the UK
Chartered Financial Analyst (CFA) Certification®
As a globally recognized professional designation, chartered financial analysts (CFAs) are certified by the CFA Institute (formerly AIMR (Association for Investment Management and Research). A candidate must pass three levels of exams covering areas such as accounting, economics, ethics, money management, and security analysis.
Financial Risk Manager (FRM) Certification®
The Financial Risk Manager (FRM) qualification focuses on effective risk measurement and management, which is essential to businesses such as banks, asset management companies, insurance companies, consulting firms, and hedge funds. FRM is ideal if you work in or are looking to work in risk management.
The Institute of Chartered Accountants of Scotland (ICAS)®
ICAS serves as a thought leader and the professional business community’s voice. Although the title Chartered Accountant is utilized by several British accounting organizations, the CA designation is exclusive to them. The Institute of Chartered Accountants of Scotland (ICAS) is the world’s first Chartered Accountant professional body (CAS). It serves as a regulator, an educator, an influencer, and a thought leader. ICAS in the UK.
Chartered Alternative Investment Analyst (CAIA)®
The CAIA® Charter is regarded as the pinnacle of achievement in alternative investment education and is valued by leading employers worldwide. The advantages that come with the CAIA designation have expanded along with it.
Financial Data Professional®
The Financial Data Professional (FDP) designation highlights your value to the world and recognizes your financial savvy and data. FDP® is a designation that professionals in the field of finance who manage, analyze, translate, and distribute data can earn.
Getting Into the Finance Industry: Some Proven Strategies
Consider the following tips to improve your chances of a successful career path in finance:
- Skill And Career Audit: A skills audit evaluates the skills you have acquired and developed during your career. Doing this will help you to reflect on and improve your professional abilities.
- Optimize Your CV and LinkedIn: Find your dream job by looking at the part online, making your CV and LinkedIn online presence perfectly synchronised to increase your exposure. you must establish a strong personal brand that positions you as the perfect fit for any career path in finance.
- Training & Upskilling: You can advance via training and upskilling, which teaches you new skills to complement and improve your present skill set. Upskilling and training are excellent ways to advance in a career path in finance.
- Networking & Positioning: It will be simple to network with people in your target field if you have previously worked in relevant finance industries. If you’re a recent graduate, it can be worth asking your lecturers if they have any links to mentors in the industry to guide your career path in finance.
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