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Home > Students > Explore Majors & Careers > Career Profiles > Finance Finance - What You Need to Know Overview What is a finance career? Finance embodies a variety of different fields and areas, including commercial banking, corporate finance, financial analysis and personal financial advising, insurance, investment banking, commercial banking, loan counseling, money management, real estate, as well as securities, commodities, and financial services sales agents. In general, though, finance “studies and addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects.”1 Finance may incorporate the study of money and assets, the management of those assets, as well as the profiling and managing of project risks.2 Finance positions “provide opportunities for strategic financial planning, quantitative analysis, investment management, and sales.” Each position in the finance field requires different skills and provides the employee with different rewards.3 Generally, finance is considered one of the most encompassing of all business fields; it requires immense knowledge of business and the economy. 4 The finance industry is known for its long work hours. In 2006, about 1 in 4 employees worked 50 hours or more per week. Financial employees do not stop working once the workday is over; when they are not working they keep abreast of market events. In return, most workers in the finance industry enjoy comfortable office environments and, depending upon the field, large salaries.5 Who They Serve:
Areas of Specialization: Commercial Banking: Banks are responsible for safeguarding money and valuables, as well as for providing loans, credit, and payment services. They may also offer investment and insurance products.8 “Banking offers a variety of positions, some more broad in scope and others more specific. A branch manager, for example, is responsible for the overall success of the branch, including personnel issues, customer relations, and loan quality. More specific positions include credit analyst, loan officer, trust officer, and mortgage banker. Each of these jobs requires the ability to review financial statements and project future performance. Many of them also require sales and customer service skills.”9 Commercial banks tend to serve large corporations, small businesses, as well as the general public.10 These banks range in size from a large global bank to a community bank. Most commercial bankers have a Bachelor’s degree in an area related to economics or business administration, or a Master’s degree in business administration. Advancement is achieved through additional training.11 Commercial banks are now looking to employ those who have accounting and written communication skills, a strong work ethic, international skills, as well as marketing expertise.12 Aside from commercial banking, those looking for a career in banking may look for jobs in savings banks and loan associations, credit unions, and Federal Reserve banks.13 Financial Analysts and Personal Financial Advisors/Financial Planners: Both of these professions include providing analysis and guidance to businesses and individuals in making investment decisions. They “gather financial information, analyze it, and make recommendations.” Their job descriptions vary in that they provide different types of investment information and serve different groups. Financial analysts “assess the economic performance of companies and industries for firms and institutions with money to invest…they work for investment banks, insurance companies, mutual and pension funds, securities firms, the business media, and other businesses, helping them make investment decisions or recommendations. Financial analysts generally focus on a specific industry, region, or type of product.” “Personal financial advisors assess the financial needs of individuals. Advisors use their knowledge of investments, tax laws, and insurance to recommend financial options to individuals. [They] usually work with many clients, and they often must find their own customers.” Both financial analysts and personal financial advisors must have a Bachelor’s degree, preferably in accounting, finance, economics, business, mathematics or law. Many also have earned a Master’s degree. Strong math, analytical, and problem-solving skills are considered essential to the profession.14 Financial Managers: “Financial managers oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. Managers also develop strategies and implement the long-term goals of their organization.” Some specific job titles in this field include controller, treasure or finance officer, credit manager, cash manager, risk and insurance manager, and manager of international banking. “Financial managers play an increasingly important role in mergers and consolidations and in global expansion and related financing.” A Bachelor’s degree is a prerequisite in this field, and many financial managers have a Master’s degree or professional certification. To some employers, experience is more important to them than formal education for their financial manager positions. Required skills in this field depend upon the position, but interpersonal skills, the ability to work as part of a team, think creatively, and solve problem, are all very important. 15 Financial Sales Agents/(Stock)Brokers: Investors seek out financial sales agents when buying or selling stocks, bonds, shares in mutual funds, insurance annuities, or other financial products. Brokers also provide many other services, such as financial counseling or “advice on the purchase or sale of specific securities, explain stock market terms and trading practices, or design an individual client’s financial portfolio including securities, corporate and municipal bonds, certificates of deposit, life insurance, annuities, mutual funds and other investments.” Some financial sales agents serve institutional investors, yet most serve individual investors. Brokers must have a college education, with a special focus on gaining familiarity with economic trends and conditions. While a degree is important, most employers focus on brokers’ personal qualities and skills rather than their academic training. Stockbrokers must meet state licensing requirements. Many college graduates are hired as sales agents in banks and other credit institutions.16 Money Management: “Money managers work on the purchasing end of Wall Street deals and act as custodians for the investments of institutional customers.” Specific jobs in this industry include portfolio manager, portfolio management marketing, investment advisory, mutual fund analyst, and hedge fund principal/trader. While it is difficult to get jobs at the leading management firms, money managers also work at insurance companies, government pension funds, and bank trust departments. Employers look to hire money managers with outstanding interpersonal, sales, analytical, and communication skills.17 What Employers Want: Job prospects for finance careers are heavily impacted by the state of the economy. Competition for these careers is always great, and is currently on the rise. Therefore, students interested in finance careers should have at least one internship in finance. Networking, relevant coursework and extracurricular activities are very important in securing an entry-level position. Extracurricular activities with a strong finance focus, such as the Marshal Salant Student Investment Team, or that provide experience working on teams, are very beneficial. Students should begin connecting with professionals in the industry, as early as possible, by utilizing Hopkins alumni and other personal contacts so that they can learn more about the industry, its structure, and the major employers. What They Hire Undergraduates to Do: Executive Director, Frontpoint Management Barry Uphoff, Partner, Capricorn Investment Group Mark Basch, Director of Product Development, Interactive Data Matthew Zaft, Vice-President Investments, Merrill Lynch Networking: Internships, research positions and summer employment are highly effective ways for you to try out a field, gain experience and skills and make professional contacts. inCircle - a professional and social networking site for Hopkins students and alumn where you can identify alumni by career field, major and orgnaization. Resources: Internships Interview Guides: Industry /Professional Organizations: Industry Websites: Related Career Fields Want to know more about these career fields? Click on them to view their profiles. If you would like to talk about how your search is going, we invite you to make an appointment with a Career Counselor by calling 410-516-8056. Endnotes: |
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