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4 Key Roles in the Financial Services Industry

• 19 Apr 2022

If you’re considering a career in the financial services industry, you’re not alone: It currently employs over eight million people in the United States and is expected to grow eight percent by 2030 , adding over 750,000 jobs.

The financial services industry is multifaceted and encompasses a variety of job functions. It can be difficult to know which role you’d like to pursue based on your skills and aspirations.

“Many people find the world of finance very confusing,” says Harvard Business School Professor Mihir Desai in the online course Leading with Finance . “Who are these money managers, what do they do, and how does all this stuff work?”

The first step to entering the financial services industry is to demystify its key roles by exploring their responsibilities and how they work together to create a vibrant sector of the economy.

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What Is the Financial Services Industry?

The financial services industry encompasses all roles that deal with managing and exchanging money. Sometimes called the financial sector or financial services sector, this industry includes segments such as banking, investing, insurance, and financial analysis.

Because those who work in financial services each have a distinct relationship with money, the financial services industry can be thought of as a mosaic: Each piece contributes to the bigger picture of how money is managed and exchanged.

“Finance isn’t really about money but about information and incentives,” Desai says in Leading with Finance.

The wide array of jobs within the financial services industry can pose a challenge when deciding your career path. Here’s a breakdown of four key roles in the financial services industry to help you determine your ideal position.

1. Accountants

Accountants are professionals who create, keep, and interpret financial records. They can either work for companies in-house or as third-party services. Accountants know all the ins and outs of a company’s finances based on its balance sheet , income statement , and cash flow statement , and they provide key insights to leaders based on the holistic perspective those statements create when assessed in tandem. These insights can be used to budget , invest, and make decisions that are in the best interest of a company’s financial health.

To be an accountant, you need strong attention to detail, the ability to recognize patterns, and communication skills to present findings in an accessible, actionable way.

An accountant’s responsibilities include:

• Creating and maintaining financial statements, as well as ensuring compliance with current regulations
• Reporting financial performance to business leaders
• Preparing and sending tax documents accurately and on time
• Identifying issues and opportunities to maximize profit
• Acting as the bridge between business owners, lenders, and investors by providing a clear picture of an organization’s finances

Related: Why Learn Accounting? 6 Benefits

2. Advisors

Like accountants, financial advisors help identify issues and opportunities in an organization’s financial statements and strategize for the future. They aren’t, however, responsible for maintaining financial records, reporting on performance, or preparing tax documents.

Financial advisors are required to pass several exams to become registered. Companies or individuals typically hire them to shed light on their current financial states and provide guidance on how to best move forward. They may be hired specifically in times of financial distress or at pivotal moments that require financial care.

A financial advisor’s responsibilities include:

• Assessing a company or individual’s financial standing
• Providing informed advice and guidance on how to proceed
• Acting with a company or individual’s best interest in mind at all times (called the fiduciary standard )

If you aim to become a financial advisor, it’s encouraged that you work in the field of finance to gain experience first. A secondary benefit to this is that employers may sponsor your financial education or industry licensure.

3. Analysts

Financial analysts have a big-picture understanding of the financial landscape and use it to inform analyses of individual companies’ finances. Analysts can be hired to work in-house for one company or have multiple clients in an agency setting.

Like accountants and advisors, analysts use financial information to help companies strategize for financial success. Unlike accountants, analysts don’t create or manage financial statements. And unlike advisors, they create predictive models to assess companies’ financial futures and industry outlooks.

While much of an analyst’s work consists of crunching numbers and analyzing data, it also involves data collection, which is often achieved by having conversations with key players in the field. Analysts may interview anyone in a company—from its chief financial officer to factory employees—to assess a company’s financial state.

An analyst’s responsibilities include:

• Gathering data—both qualitative and quantitative—about companies’ financial positions and trajectories
• Analyzing industry data and contextualizing companies within the industry’s broader financial outlook
• Creating predictive models to identify upcoming trends to help assess investments’ potential risks or other financial activities

Certifications aren’t required for becoming a financial analyst, but they can greatly improve your skills and job prospects.

Related: 4 Financial Analysis Skills All Managers Need

4. Institutional Investors and Portfolio Managers

Institutional investors are companies that invest money on behalf of others. Examples include mutual funds, pensions, insurance companies, and hedge funds.

Individuals who manage investment portfolios at these companies are called portfolio managers . They buy and sell investment securities (such as stocks, bonds, and alternative investments ) on behalf of their clients. Their roles require a great deal of industry knowledge and market trends.

A portfolio manager’s responsibilities include:

• Constructing and managing investment portfolios
• Customizing investment plans for individuals, taking their preferred risk and diversification levels into account
• Deciding when to buy and sell investments to maximize clients’ returns
• Communicating portfolio performance to clients on a periodic basis
• Understanding the impact their investment decisions have on the market as a whole and acting accordingly

Becoming a portfolio manager requires years of experience in the financial services industry. Many portfolio managers begin their careers as analysts. They build their skills, fulfill registration and licensure requirements, and work their way up to managing client portfolios.

How to Get a Job in Financial Services

If you want to start a career in the financial services industry, the first step is building your skills through education. If you’re an undergraduate student, consider majoring or minoring in finance, business, economics, or statistics. If graduate degrees work for your schedule and budget, consider a master of business administration (MBA) with a focus in finance or analytics.

Additionally, explore online certificate programs that provide foundational knowledge and deepen your expertise. Courses like Leading with Finance provide flexibility to learn wherever and whenever fits your schedule and are more affordable than degree programs—while providing instruction from world-class faculty.

Furthering your education can set you up for success when applying for finance roles and shows dedication to lifelong learning.

Although your network is important when applying to jobs in any industry, it’s especially so in financial services. If you have connections that can vouch for your abilities and character, you have a greater chance of landing an interview and breaking into the field—especially as an advisor or investment portfolio manager.

Another way to enter the field is to apply for entry-level roles that enable you to develop skills on the job. This way, you can work your way up within the industry, building on your previous experience and education each time.

If you’re already a seasoned business professional aiming to make a career switch, focus on leveling up your financial education to supplement your existing skills and set yourself up for success.

Do you want to use key financial principles to drive business performance? Explore our six-week course Leading with Finance , one of our online finance and accounting courses . Download our free course flowchart to determine which best aligns with your goals.

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