CFA Institute 2023
A Rewarding Future – Why You Should Consider a Career in Finance
Overview
Since the birth of the first mutual fund a century ago, the financial sector has rarely stood still. As its structures evolve, so does the need for a diverse range of professionals with the skills and flexibility to adapt to a restless but always rewarding industry.
Each decade presents new challenges. As we progress through the 2020s, you might think that finance is about to be subsumed by apps, bots, or algorithms, and humans replaced by something more artificial. It's true that the industry and its various roles are evolving, but the need for skilled professionals remains constant, with career opportunities that are more diverse and rewarding than ever. Here are some benefits of working in finance today.
Growing demand for financial skills
While job losses at banks and brokerages tend to dominate headlines, the finance industry is, in fact, growing hungrier for expertise. In the United States, for example, the Bureau of Labor Statistics1 forecasts that employment in finance will increase by 7% in the decade to 2031 – above average for all occupations. Indeed, some roles will grow at twice the national average.
This growth is not limited to the US. Trends such as fintech, rising incomes and an increased focus on environmental, social, and governance (ESG) issues are increasing demand for financial service professionals across the globe.
And our research shows that graduates in view finance as the most appealing sector for their careers. with those from Asia, Latin America, the Middle East ranking it higher than the global average.
Amplified earning power
This growing need for financial professionals translates into salaries that can be higher than other industries, and people entering the sector can look forward to diverse and well-marked career paths.
For Hong Kong, the average salary of an entry-level banking investment analyst is HKD427,460 a year2 . Meanwhile, a first-year compliance officer would expect to receive HKD581,7443 .
In India, a financial analyst with 1–2 years of experience could earn an average of INR4.5 lakhs per annum4 . And a US graduate starting their career as a financial analyst could earn USD50,585 a year5 . A similar position in Germany would pay EUR55,2606 .
However, with higher wages comes the potential for extended working hours and elevated stress levels. Also, the finance industry is vulnerable to changes in market conditions that can result in job losses.
Flexible career progression
For a graduate looking for a dynamic and well-rewarded career that contributes to social change, finance offers a variety of roles, from helping secure people’s retirement needs to assisting large corporations with mergers and acquisitions.
Job rotation is not uncommon, as it helps boost skill sets, provides variety and offers the flexibility to change career direction. Finance also offers excellent opportunities for continuous development, with many companies supporting professional certification programmes.
A passport to success
Finance has always been a highly mobile business, and opportunities are growing for job seekers who want to gain international experience. The financial services market worldwide expanded at a compound annual growth rate of 8.8% to USD28 trillion in 2023 and could reach more than USD37 trillion by 20277 .
Once, the opportunities presented by this growth existed primarily in financial hubs such as London, New York, Hong Kong, and Singapore. But the rapid growth of financial services in Africa, Latin America, the Middle East, South Asia and Southeast Asia offers the chance to participate in the industry's evolution across dynamic new locations.
Embracing new trends and developing skills
It’s an exciting time to be part of the industry. Developing trends are gaining momentum and altering the face of finance. For instance, digitalisation has introduced the cryptoassets and challenger banks, while emerging asset classes, such as fine art (investors own a share of an art work) or music royalties that offer an alternative source of income.
These emerging themes will demand new talents. In response, financial companies are increasingly focused on skill diversity – also known as the “T-shaped professional” who can balance specialist knowledge with broader perspectives.
A positive impact on society
By pursuing a career in finance, you can make a difference to society in several ways. For instance, as the investment universe expands and becomes easier to access, the need for reliable advice is increasing, not declining. With so much online information, it is harder for investors to identify quality advice, making risk management and financial planning far more complex. In turn, this boosts the value of a qualified finance professional.
Meanwhile, the fastest-growing asset management sector is sustainable investing, which balances traditional investing with ESG factors to enhance long-term outcomes. Worldwide, wealth managers are forecast to boost their ESG-related assets under management to USD33.9 trillion by 2026, accounting for over 20% of the global total8 .
Demand for specialists who can analyse, assess, and stress-test companies, funds, and other assets that advertise ESG credentials will therefore increase rapidly, offering professionals in this field the chance to define a new era in investing.
Follow this link to learn more about a career in finance. You can also discover more about investment industry career paths here.