CFA Institute 05 Dec 2023
How to Pursue a Career in Finance with STEM Qualifications
Overview
The dynamics of the finance industry are being transformed by emerging trends such as digitalisation, artificial intelligence, sustainable investing, and the delivery of increasingly customised client services. In turn, companies recognise the need for a more diverse employee base to adapt to this altered landscape. One such development has been to embrace graduates in the STEM disciplines – Science, Technology, Engineering, and Mathematics – who bring skill sets that correlate with the needs of tomorrow’s finance sector.
We should start by dispelling the belief that STEM graduates are exclusively recruited into financial technology – or ‘fintech’ – related roles. It’s true that these and associated industry segments now employ a sizeable portion of employees with STEM backgrounds. But as we observed in a previous article, Succeeding in Finance without a Finance Degreee, one of the attractions of a career in finance is that a role doesn’t always need to link directly to your field of study.
As such, science, technology, engineering, and mathematics specialists are in demand across the industry. Team leaders in areas spanning internal audit and compliance to customer relations or research acknowledge the value a STEM mindset can bring to their operations.
Follow the data for a career in finance
Data-driven investing is increasingly pervasive. Stakeholders, such as asset managers, are embracing the fusion of data science and portfolio management – a movement altering the skills demanded by fund managers and analysts. Therefore, companies are pursuing STEM graduates with, for instance, algorithmic expertise.
And within the hedge-fund segment, a STEM background with solid coding talents and data-analysis experience are considered minimum qualifications for investment analysts and managers. Firms are also integrating their data and decision-making teams.
Similarly, opportunities for graduates with engineering qualifications can often be found in the private equity sector, given their mathematical backgrounds are suited to analytical and quantitative-research roles.
Be part of the finance industry’s evolution
As mentioned, fintech, is already embedded at all levels of the finance industry. From digital wallets to mutual fund distribution and trade finance, digital solutions are now considered a standard service rather than a niche offering. The industry is welcoming for graduates who can thrive in fields such as machine learning, coding, data science, or quantitative analysis.
According to our research, almost three-quarters of members see the influence of data and technology as a significant driver of decision making in finance. Yet, these areas have some of the widest gaps between the supply and demand for capabilities.
Separately, a survey into the future of skills and learning found that only 3% of employees considered themselves proficient in artificial intelligence or machine learning, while 64% pursued or planned to cultivate those skills.
Given this growing need for scientific and mathematical mindsets, STEM professionals now play a crucial part in the industry’s technological evolution.
Enhance your existing qualifications
The good news is that the career door is also open for graduates with a finance or other non-STEM degree who want to boost their STEM appeal to employers. The first step is understanding the specific competencies required. These could include solving problems, thinking creatively, and having a logical and mathematical mindset.
If you possess these attributes, the next stage is to decide which industry segment you’d like to enter and learn more about the necessary expertise. Thereafter, you may need to augment an existing degree with qualifications in this chosen field.
For people already working in the finance industry, many employers will help you transition by offering to sponsor your professional learning and certification in a particular discipline.
Gain a deep understanding blended with wide knowledge
To become a financial professional of the future, you will also need to demonstrate an ability to develop your softer T-shaped skills. These involve combining core technical knowledge of your role with a broader understanding of different fields within a company. Then be able to branch out by making connections between each.
Specific high-demand skills include negotiating, persuading and influencing. Add to this effective direct communication and resourcefulness. In other words, employers want people with the capacity to push their professional and personal boundaries.
Be flexible and upgrade your skills
According to our study, a significant percentage of professionals in positions ranging from traders and investment consultants to sales executives and risk analysts expect their roles to be substantially different within the next five to 10 years.
For this reason, the finance industry offers multiple opportunities for STEM graduates who want to utilise their expertise across a diverse range of finance disciplines, acquire new technical skills and are willing to advance their T-shaped abilities.
Learn more about the future of skills with our resources on the Future of Work in Investment Management.