The finance industry is concerned with how individuals and institutions handle their financial resources -- how they raise their money, where they allocate it and how they use it -- and assesses the risks involved in these activities as well as recommends ways to manage these risks.
There are a number of exciting and rewarding jobs in the field of finance. What follows are just a few examples.
The commercial banking sector employs more people than any other facet of the financial services industry. Banks offer individuals the opportunity to interact with a broad spectrum of people and the chance to develop a clientele. People in banking usually start out as tellers and shift to other bank services such as leasing, credit card banking, trade credit and international finance.
As the name indicates, a career in corporate finance means you will work in a corporation and are mainly concerned with sourcing money for the company -- money that will be used to develop the business, make acquisitions and ensure the company's future. In a corporation, you are likely to start as a financial officer.
As a financial planner, you may also work for a corporation but will mainly be concerned with only one aspect of finances -- planning for the future. You have to have a firm grasp of investments, estate planning as well as taxes. Or you may serve as a consultant who provides financial planning for individuals, e.g., planning their retirement needs or how they can put their kids through college.
With annual revenues surpassing the trillion-dollar mark, the insurance industry looms as one of the most attractive areas for a career in finance. In 2005, there were an estimated 2.5 million people in the US who were employed in the insurance field, which is mainly considered with the business of managing risk and anticipating problem areas. Possible jobs in insurance include working as an underwriter, sales representative, customer service rep, asset manager or an actuary.
A career in investment banking means you will be concerned with issuing securing and helping investors buy, manage or trade financial assets. As a bonus, you get the chance to work on Wall Street in a leading investment banks such as Merrill Lynch, Salomon Smith Barney, Morgan Stanley Dean Witter .
Monday, 23 February 2009
Goal Setting in Financial Services
While it would be unrealistic for brand new financial advisers to have any sort of grand dreams and vision for their business until they have spent some time in the business, it's still important to set business goals and achieve them, because good results drives the passion in the beginning.
How should a new adviser go about their Goals Setting?
"You have your way. I have my way. As for the right way, the correct way, and the only way, it does not exist." Friedrich Nietzsche
There is no "Right" way, but your goals should answer your purpose, desired income level, skills and personal development and physical health.
Personal Vision and Purpose
You started off this career for a reason. For some, it's to pursue an interest, some to earn Financial and Time Freedom, others to challenge themselves. How it is going to go is sometime hazy.
The destination is not always easy to see at the beginning, like what Steve Jobs, the CEO of Apple, said looking back from success, "connecting the dots" every experience was valuable in getting to where he is today.
"Again, you can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something - your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life." Steve Jobs at Stanford University, 14 Jun 2005
Keeping it simple in the beginning, write down why you decided on this career and what do you expect to achieve in 2 to 3 years time.
Example: "My purpose of starting this financial advisory career is to achieve financial and time freedom and serving the community with what skills and knowledge I have. I expect to match my current income in one years' time and earn $150,000 per year in 3 years time. I'd like to be able to spend 1 month of my time for UNICEF work and enjoy quality family time while running my business."
Income & Activity Goals
Your income is determined by what you do and how you do it. Control the controllable: making the calls, getting the appointments. As your skill level improves you should close more deals.
Working backwards from your income goals, you should arrive at specific number of new prospects you should see a week. It is imperative that the goals you set weekly are being achieved weekly. Plan your calling time and appointment times as a priority.
Focus on the objective of seeing the number of new prospects every week, not on the eventual sale. As your skill level improves you should multiply your results very quickly.
Skills and Personal Development Goals
Commit to growing in your Communication and Persuasion Skills, whether it's fact-to-face or over the phone. This will be your most important ability to acquire. A "SMART" goal is to commit to a book or audio program (Specific) every month (Time-line), review it with your trainer/coach and use the skills taught (Measurable).
Another important aspect is to master basic predetermined presentations from your company, and role play it with your colleagues. Set goals to practice weekly to improve your Presentation Skills.
Also, make it a point to grow the inner-person to have a success mindset. Start with books recommended by your coach for personal Success Motivation.
Health & Physiological Goals
To accomplish great results, you'll need to be at your physical and physiological best. It's no secret that fitness makes you more alert and effective at work. On the other hand, an illness can knock you out for weeks, and break your momentum you need in the first 90 days.
Set fitness goals like weight loss targets and work out the schedule for physical fitness activities. Better yet, create prospecting opportunities while pursuing them.
Mental & Motivation Goals
Create some motivation for yourself by setting up a reward system for achieving weekly goals and milestone goals. Example: "I will reward myself with a fishing trip or other leisure time in the weekend for achieving my weekly goal of meeting 3 new prospects. And a spa visit for achieving my sales goals for the month"
How should a new adviser go about their Goals Setting?
"You have your way. I have my way. As for the right way, the correct way, and the only way, it does not exist." Friedrich Nietzsche
There is no "Right" way, but your goals should answer your purpose, desired income level, skills and personal development and physical health.
Personal Vision and Purpose
You started off this career for a reason. For some, it's to pursue an interest, some to earn Financial and Time Freedom, others to challenge themselves. How it is going to go is sometime hazy.
The destination is not always easy to see at the beginning, like what Steve Jobs, the CEO of Apple, said looking back from success, "connecting the dots" every experience was valuable in getting to where he is today.
"Again, you can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something - your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life." Steve Jobs at Stanford University, 14 Jun 2005
Keeping it simple in the beginning, write down why you decided on this career and what do you expect to achieve in 2 to 3 years time.
Example: "My purpose of starting this financial advisory career is to achieve financial and time freedom and serving the community with what skills and knowledge I have. I expect to match my current income in one years' time and earn $150,000 per year in 3 years time. I'd like to be able to spend 1 month of my time for UNICEF work and enjoy quality family time while running my business."
Income & Activity Goals
Your income is determined by what you do and how you do it. Control the controllable: making the calls, getting the appointments. As your skill level improves you should close more deals.
Working backwards from your income goals, you should arrive at specific number of new prospects you should see a week. It is imperative that the goals you set weekly are being achieved weekly. Plan your calling time and appointment times as a priority.
Focus on the objective of seeing the number of new prospects every week, not on the eventual sale. As your skill level improves you should multiply your results very quickly.
Skills and Personal Development Goals
Commit to growing in your Communication and Persuasion Skills, whether it's fact-to-face or over the phone. This will be your most important ability to acquire. A "SMART" goal is to commit to a book or audio program (Specific) every month (Time-line), review it with your trainer/coach and use the skills taught (Measurable).
Another important aspect is to master basic predetermined presentations from your company, and role play it with your colleagues. Set goals to practice weekly to improve your Presentation Skills.
Also, make it a point to grow the inner-person to have a success mindset. Start with books recommended by your coach for personal Success Motivation.
Health & Physiological Goals
To accomplish great results, you'll need to be at your physical and physiological best. It's no secret that fitness makes you more alert and effective at work. On the other hand, an illness can knock you out for weeks, and break your momentum you need in the first 90 days.
Set fitness goals like weight loss targets and work out the schedule for physical fitness activities. Better yet, create prospecting opportunities while pursuing them.
Mental & Motivation Goals
Create some motivation for yourself by setting up a reward system for achieving weekly goals and milestone goals. Example: "I will reward myself with a fishing trip or other leisure time in the weekend for achieving my weekly goal of meeting 3 new prospects. And a spa visit for achieving my sales goals for the month"
Finance and Banking Jobs
Modern banks have highly trained staff for delivering top quality service to customers. Other financial institutions like insurance companies now offer most of the services provided by banks. Owing to this intense competition, banks need top quality staff that is talented, reliable, trustworthy, and communicative. Many banking jobs are in specialist areas such as IT and corporate banking.
Entry-level jobs will probably involve processing checks so that the employee can meet the strict deadlines for overnight delivery to the bank's head office. These employees are also involved in answering customers' questions and are the bank's front line executives.
If the employee shows aptitude and initiative, he or she can become a supervisor, carrying responsibility for his or her own team. Once this employee passes their professional banking exams, he can be in charge of the whole branch. Graduates can expect to be placed on a fast track learning course, spending about two years moving through different jobs within the bank while learning how the bank works before being promoted to a management position. Managers need a wide knowledge of the financial services available and should know when to bring in specialist advisers from other areas of the bank.
All banking staff is expected to attend regular in-house training courses throughout their career to learn about new developments. Working hours of the staff are generally from 9am to 5pm, but working patterns can vary. Some branches will be opened on Saturdays and some are even open on Sundays.
Salaries depend on the roles and responsibilities of the employee and the location of the bank. Most banks operate on an annual appraisal system and salary increments are awarded according to the performance of the employee during the year. Profit sharing, subsidized mortgages, and non-contributory pension schemes form a part of their remuneration package.
There is a tremendous range of opportunities in commercial banking, starting at the branch level. Different job options are Credit Analyst, Loan Officer, Branch Manager, Trust Officer, Mortgage Banker, and other jobs in accounting, marketing and advertising, commercial card operations, securities transfer, wire operations, private banking, cash management services and operations and communications. In the case of investment banking, the job options are manifold in areas like corporate finance, merger and acquisition deals, project financing, derivative financing, international sales, and retail brokerage
Entry-level jobs will probably involve processing checks so that the employee can meet the strict deadlines for overnight delivery to the bank's head office. These employees are also involved in answering customers' questions and are the bank's front line executives.
If the employee shows aptitude and initiative, he or she can become a supervisor, carrying responsibility for his or her own team. Once this employee passes their professional banking exams, he can be in charge of the whole branch. Graduates can expect to be placed on a fast track learning course, spending about two years moving through different jobs within the bank while learning how the bank works before being promoted to a management position. Managers need a wide knowledge of the financial services available and should know when to bring in specialist advisers from other areas of the bank.
All banking staff is expected to attend regular in-house training courses throughout their career to learn about new developments. Working hours of the staff are generally from 9am to 5pm, but working patterns can vary. Some branches will be opened on Saturdays and some are even open on Sundays.
Salaries depend on the roles and responsibilities of the employee and the location of the bank. Most banks operate on an annual appraisal system and salary increments are awarded according to the performance of the employee during the year. Profit sharing, subsidized mortgages, and non-contributory pension schemes form a part of their remuneration package.
There is a tremendous range of opportunities in commercial banking, starting at the branch level. Different job options are Credit Analyst, Loan Officer, Branch Manager, Trust Officer, Mortgage Banker, and other jobs in accounting, marketing and advertising, commercial card operations, securities transfer, wire operations, private banking, cash management services and operations and communications. In the case of investment banking, the job options are manifold in areas like corporate finance, merger and acquisition deals, project financing, derivative financing, international sales, and retail brokerage
Financial Services for young people
Unlike other bank accounts with online features, however, Virtual Wallet is unique in that it was designed from the ground up to appeal to the needs of young account holders.From drag-and-drop account transfers to a calendar system that makes it easier for Virtual Wallet customers to view balances, visualize cash flow and monitor bills, Virtual Wallet is not your parents' 'clunky' online banking system.As BusinessWeek details, PNC never intended it to be. In 2007, it hired Palo Alto design firm IDEO and asked it to help the company develop a product that was tailored specifically for 18-34 year-olds.PNC found that the online banking platforms offered by most major banks were not cutting it for this target audience and that this target audience needed a lot of help managing its money.From this, Virtual Wallet was born.The most interesting part of this story in my opinion is the fact that, on the substance side, Virtual Wallet doesn't seem to be that competitive. Checking accounts earn 0.1% interest (compared to a national average of 1.25%), savings accounts earn 3% interest (not bad but certainly not the highest rate available either) and deposits are limited to less than $25,000.As an admitted miser who tries to save at every turn and who likes to ensure that his money is being put to work to the fullest extent possible, such an offer seems utterly uncompelling.Yet thanks to its focus on market research and its wisdom in selecting a solid outside firm to help it achieve its goals, PNC seems to be proving that Virtual Wallet has been designed and packaged well.PNC reports that it has signed up 20,000 Virtual Wallet customers and is signing up 130 new ones each day. 65% of them are new PNC customers. 70% of them are in the target demographic. PNC believes Virtual Wallet will break even in two years - one year less than a new physical PNC branch would take to reach break even.I think there's a lot to be learned from the PNC 'case study':
Knowing who your target audience is and building your product around their needs is crucial to success. Despite the fact that, substance-wise, Virtual Wallet seems lacking, PNC knew what was really most important to its target audience. One 24 year-old BusinessWeek spoke to was "sold on...getting balances by text message."
You can't assume that you know what your target demographic really wants. Although I'm more a fan of substance than style, style and packaging does count for a lot. Although I'd personally never use Virtual Wallet because the interest rates and deposit limits are lacking, Virtual Wallet does prove that sometimes the assumptions we make about what will attract customers are wrong. The research conducted by IDEO led to the creation of a product that is clearly attracting customers despite the initial assumptions I personally would have made.
Turning to outside help is often a good thing. A lot of companies think that new products can (or should) almost always be developed internally. In PNC's case, it instead found that a consultancy like IDEO could help it fill in the gaps and didn't hesitate to bring them on.
You can't forget marketing. Virtual Wallet is hardly the mythical 'we didn't spend $1 on marketing' viral success story - PNC is advertising Virtual Wallet on popular television shows and websites that reach its target demographic.
It will be interesting to watch over time how Virtual Wallet fares and whether other banks take PNC's lead and develop more specialized offerings for demographic groups that may typically be underserved or less appealing.
In theory, building up a base of young customers makes a lot of sense - at some point many of these customers will graduate to more sophisticated banking products that generate more substantial fees.
Knowing who your target audience is and building your product around their needs is crucial to success. Despite the fact that, substance-wise, Virtual Wallet seems lacking, PNC knew what was really most important to its target audience. One 24 year-old BusinessWeek spoke to was "sold on...getting balances by text message."
You can't assume that you know what your target demographic really wants. Although I'm more a fan of substance than style, style and packaging does count for a lot. Although I'd personally never use Virtual Wallet because the interest rates and deposit limits are lacking, Virtual Wallet does prove that sometimes the assumptions we make about what will attract customers are wrong. The research conducted by IDEO led to the creation of a product that is clearly attracting customers despite the initial assumptions I personally would have made.
Turning to outside help is often a good thing. A lot of companies think that new products can (or should) almost always be developed internally. In PNC's case, it instead found that a consultancy like IDEO could help it fill in the gaps and didn't hesitate to bring them on.
You can't forget marketing. Virtual Wallet is hardly the mythical 'we didn't spend $1 on marketing' viral success story - PNC is advertising Virtual Wallet on popular television shows and websites that reach its target demographic.
It will be interesting to watch over time how Virtual Wallet fares and whether other banks take PNC's lead and develop more specialized offerings for demographic groups that may typically be underserved or less appealing.
In theory, building up a base of young customers makes a lot of sense - at some point many of these customers will graduate to more sophisticated banking products that generate more substantial fees.
Requirements to become a Finacial Analyst
Obtain at least a bachelor's degree in finance, business or economics from an accredited college or university or an accredited business institute.
Pursue a graduate certification such as the (CFA) designation to increase your chances of success in finding employment and moving up in the field of investment management.
Gain experience in the financial field by working in a bank or in corporate finance. Become familiar with long-range and short-range returns, risk, diversification and investment styles.
Become certified through the American Academy of Financial Management. Meet all requirements, including education, experience and pass an examination for consideration. Certifications include Chartered Portfolio Manager (CPM) and Chartered Risk Analyst (CRA).
Seek employment in banks, investment firms, trust companies, insurance companies or corporate financial departments. Decide if you wish to manage smaller, personal portfolios or take on large investments such as corporate pension funds or mutual funds.
Pursue a graduate certification such as the (CFA) designation to increase your chances of success in finding employment and moving up in the field of investment management.
Gain experience in the financial field by working in a bank or in corporate finance. Become familiar with long-range and short-range returns, risk, diversification and investment styles.
Become certified through the American Academy of Financial Management. Meet all requirements, including education, experience and pass an examination for consideration. Certifications include Chartered Portfolio Manager (CPM) and Chartered Risk Analyst (CRA).
Seek employment in banks, investment firms, trust companies, insurance companies or corporate financial departments. Decide if you wish to manage smaller, personal portfolios or take on large investments such as corporate pension funds or mutual funds.
Working as a Financial Advisor
To become a financial advisor, the first step is to locate a Broker/Dealer that offers sponsorship to take the required licensing exams. There are two major exams required in order to become a financial advisor; the Series 7 Stockbroker’ s Exam, and the Series 66 Uniform Combined State Law Exam. A candidate must receive a passing score of 70%. If this score is not met, the exam can be taken again after a 30 day waiting period.
Step2Once the exams have been passed, a rigorous sales and product training class will begin. These training classes, offered at the broker/dealers expense, typically last anywhere from 17 weeks to 3 years. Most times, the trainee will receive a small salary during the training period. There are usually sales quotas to meet where commissions can be generated and added to the base training salary.
Step3Most Broker/Dealers will require all candidates that desire to become a financial advisor to work 50-65 hours per week. Although this seems excessive, once a book of clients is created, the financial advisor can commit to a regular 40 hour work week. As client accounts are opened; the trainee’s base salary will decrease, replaced by commissions and portfolio management fees.
Step4Broker/Dealers spend a considerable amount of money training and sponsoring a candidate to become a financial advisor. Because of this expense, the selection process is extremely competitive. All those seeking to become a financial advisor should adequately prepare their lifestyles for minimal money and long hours in the beginning years.
Step5Financial Advisors come from many different occupational backgrounds; determining success can only come from the drive and passion a candidate internally possesses before entering this demanding field. Dedication and determination are a required aspect of this career position. To become a financial advisor is to become a reliable source of information for others’ investments. Candidates must know what to expect before entering this occupation
Step2Once the exams have been passed, a rigorous sales and product training class will begin. These training classes, offered at the broker/dealers expense, typically last anywhere from 17 weeks to 3 years. Most times, the trainee will receive a small salary during the training period. There are usually sales quotas to meet where commissions can be generated and added to the base training salary.
Step3Most Broker/Dealers will require all candidates that desire to become a financial advisor to work 50-65 hours per week. Although this seems excessive, once a book of clients is created, the financial advisor can commit to a regular 40 hour work week. As client accounts are opened; the trainee’s base salary will decrease, replaced by commissions and portfolio management fees.
Step4Broker/Dealers spend a considerable amount of money training and sponsoring a candidate to become a financial advisor. Because of this expense, the selection process is extremely competitive. All those seeking to become a financial advisor should adequately prepare their lifestyles for minimal money and long hours in the beginning years.
Step5Financial Advisors come from many different occupational backgrounds; determining success can only come from the drive and passion a candidate internally possesses before entering this demanding field. Dedication and determination are a required aspect of this career position. To become a financial advisor is to become a reliable source of information for others’ investments. Candidates must know what to expect before entering this occupation
Working as a Finance Controller
Prepare to Become a Finance Controller
Step1Build a strong academic foundation for future career advancement by obtaining a bachelor's degree in finance or accounting and going on to earn an MBA or Master's in accounting. Make it a priority to get these degrees early in your career so that their pursuit does not hinder your advancement when your career practical performance otherwise merits it.
Step2Spend 3 to 4 years early on in your career in a preparatory position such as accountant or auditor with an objective to become an assistant controller later. Consider starting out as a small fish in a big pond, since working within a large corporation can strengthen your credentials while giving you important practical experience and a broad network of contacts.
Step3Become an assistant finance controller or finance director in a mid- to large-sized company within 5 years of finishing your academic work, and begin to strategize about whether to set your sights on the top job where you are or at another company.
Make Your Move to Become a Finance Controller
Step1Build a strong relationship with the external CPA who audits or reviews your company and discreetly ask him to keep you in the loop concerning finance controller openings or other career advancement opportunities at other companies he works with or knows of.
Step2Make your superiors aware of your goal of becoming finance controller in your company on a specific timetable and ask them to support your career goal by giving you opportunities for internal advancement.
Step3Keep an eye on appropriate job listings in the financial journals and newspapers such as the "Wall Street Journal" and the "New York Times" and circulate or send in your resume discreetly when you see a good fit.
Step4Make note of "headhunter" or employment firms that frequently list high-level finance positions. Make an appointment to meet with their specialists in the areas of finance and accounting jobs in order to share your resume, make a personal impression and inform them of your career objective
Step1Build a strong academic foundation for future career advancement by obtaining a bachelor's degree in finance or accounting and going on to earn an MBA or Master's in accounting. Make it a priority to get these degrees early in your career so that their pursuit does not hinder your advancement when your career practical performance otherwise merits it.
Step2Spend 3 to 4 years early on in your career in a preparatory position such as accountant or auditor with an objective to become an assistant controller later. Consider starting out as a small fish in a big pond, since working within a large corporation can strengthen your credentials while giving you important practical experience and a broad network of contacts.
Step3Become an assistant finance controller or finance director in a mid- to large-sized company within 5 years of finishing your academic work, and begin to strategize about whether to set your sights on the top job where you are or at another company.
Make Your Move to Become a Finance Controller
Step1Build a strong relationship with the external CPA who audits or reviews your company and discreetly ask him to keep you in the loop concerning finance controller openings or other career advancement opportunities at other companies he works with or knows of.
Step2Make your superiors aware of your goal of becoming finance controller in your company on a specific timetable and ask them to support your career goal by giving you opportunities for internal advancement.
Step3Keep an eye on appropriate job listings in the financial journals and newspapers such as the "Wall Street Journal" and the "New York Times" and circulate or send in your resume discreetly when you see a good fit.
Step4Make note of "headhunter" or employment firms that frequently list high-level finance positions. Make an appointment to meet with their specialists in the areas of finance and accounting jobs in order to share your resume, make a personal impression and inform them of your career objective
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