Future of Career in Finance: Analyzing the Investment Job Market

People good in numbers have a biased inclination towards financial & investment market. However, the clarity on in-demand jobs is still missing and should be tackled.
By Amanda Siemson - May 26 2021 10:16PM - 2465 Read
Want to Make a Career in Finance? Understand the Jobs in-Demand

The finance and investing market is more significant today than ever before and is growing with each passing day. It is creating opportunities for everyone daily. Not only professionals from commerce or finance but also people from science and humanities are showing impressive interest in the field. Further, the finance field also welcomes everyone now with both hands open.

Technology has played an essential role in it and bridged a large gap. The development of technology and the internet created a vacuum that financial people were unable to fill. Today, in this write-up, we'll try to understand the financial job market and a brief introduction of popular positions.

Finance Job Market: Old Opportunities – Before the Internet

The traditional career scopes in the finance and investment market were very limited and small. The job specifications and work were also meager, and people were not aware of the profession. The stockbrokers were bound by a telephone due to the non-availability of the internet. Also, the broker was in direct contact with all its traders or clients.

Further, the other operational job fields have also expanded in the finance market. Roles like an HR manager, marketing executives, operational heads, and many more were not present in a broking firm. But with time and the increment in the finance world, the needs of different jobs have evolved. Back then, the top financial jobs were:

  • Finance Manager Every company has finance managers, and they are in the top-paying positions in the financial industry. They are liable for all the business's monetary aspects, including risk management, outlining, bookkeeping, and financial recording.
  • Accounts Manager The accounts manager is answerable for the general accounting function and supervises the fulfillment of ledger accounts and financial statements. Some businesses may require individuals to have a Certified Public Account (CPA) label and at least seven years of expertise in the accounting field.
  • Risk Management Risk managers stayed on top of a broad range of pitfalls in businesses, including credit risk, market risk, operational risks, and liquidity risks. Organizations are increasingly investing vast sums of cash on sophisticated technology and people to assist them measure, manage, and lessen these risks. The field has earned tremendous interest in banks and financial institutions in the aftermath of the Great Recession, as numerous scandals and breakdowns have led to tighter government and industry laws and higher accountability standards.

One way to get started on a career as a risk manager is to become certified by PRMIA or GARP, the risk management certification bodies.

Fun Fact: Financial industry is likely to generate employment at 28% growth rate till 2028.

Finance Job Market: Current Scenario

There are many career opportunities in the online stock trading market now. The numbers of traders, who want to invest, have risen at an unprecedented rate. All this has happened because of the internet revolution. The market has also expanded. These are some of the most common career opportunities we have in the investing market today.

  • Broker A broker is a person who buys and sells financial instruments, usually for their client traders. The financial assets can be of several types, and so can be the types of brokers. Some kinds of tools are stocks, commodities, futures, FOREX, fixed-income products, proprietary trading, and derivatives. All of these are different fields, and one can be a broker in any of the markets.
    Also, a trader needs to choose the right and genuine broker for him.
  • Analyst This job field has risen significantly in the last few years. The boom in the everyday people becoming stock market traders for side incomes has helped these professions grow. Big firms hire several kinds of analysts to research and examine the different products and help them make better decisions. These analysts observe the past data and then make predictions about the future of instruments.
    The various types of analysts are research analysts, fundamental analysts, equity analysts, financial and risk analysts.
  • Financial Advisers When a person who doesn't have any advanced knowledge of the financial trading market, he takes the help of advisers. Nowadays, more novice traders are in the market than any time before, so this profession is also in high demand because people want to take professional help.
    A financial adviser provides consultancy services to his clients on wealth management and growth. However, there are specific educational requirements to be an adviser. But there are also several job openings in big firms for consultants who can hire you on your skills.
  • Portfolio Manager A portfolio manager handles money in crores. The mutual funds and asset management firms you see are handled and managed by these portfolio managers. The job as well as a career in this field are rewarding but require many professional, emotional, and mental skills.

Finance Job Market: Future Prospects

The future of the financial market looks lucrative. It would be like a combination pair, not competition, of technology and human power. Fields like AI, algorithm trading, and automated systems are developing, but these would not eat up the jobs. Instead, these would open new opportunities for us.

Further, the dominance of finance degree holders in the finance world shall reduce, and professionals like engineers would come into the game. The reason is simple – Investing and finance adopting technology at every level. So, a person with a technological background can only handle it. Here are some job profiles that might encounter a boom:

  • Underwriting Raising capital is one section of a bank's underwriting department. Underwriting specialists usually focus on debt or equity and often have an industry-based locus as well. These bankers generally serve in client-facing roles, operating with outside contacts to ascertain capital needs while at the same time working in-house with traders and security salespeople to get the best options. Underwriting is not limited solely to investment banks and has spread to more considerable universal banks to a large degree in recent years.
  • Private Equity Several investment banks have private equity arms, although private equity jobs are typically found at more trivial, specialist firms. Bankers in this area raise funds for non-public businesses and companies, keeping a part of any profits they can generate through deals. It's natural for private equity professionals to have prior expertise at investment banks and outstanding educational credentials.
  • Venture Capital Venture capital firms specialize in providing fresh capital to beginning companies, often in fast-developing industries, including tech, biotech, and green technology. While many of the target companies ultimately fail, venture capitalists often benefit by getting their financial stake in and then out at the early stages of development, producing huge returns on investment. Employees of venture capital firms are typically adept at number crunching and deal-making and clued to new technologies and concepts. They ordinarily get a sense of thrill from the prospect of finding "the next new thing."
See You Thought: Technology Eating Jobs

Jobs of technical and fundamental analysts might be in danger because of AI giving more accurate results. Thus, a person with overall knowledge of finance and technology has a bright future. Still, it might be risky for a person who is only dependent on a single field. Remember, new & cheap alternatives are available.

Amanda Siemson
Amanda Siemson

I am a literary journalist whose stories on human behavior and public policy have appeared in Slate. I am writing a book about family issues and is about to get published next year. Apart from this, I like skiing, and other snow adventure activities. I live with my kids in LA, US.

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