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Modern Routes to Break into a Lucrative Finance Profession

Finance is a lucrative industry, but breaking into it is not a cakewalk. The article will inform aspiring PE professionals and investment bankers on the same

By | Ariaa Reeds

Gone are the days when doing an MBA in finance led to easy job pickings in the financial markets, especially banks. Finance profession has deeply evolved in the last decade with heavy disruption brought by the technology intrusion.

The traditional approach had been to start with an analyst position with a reputed bank, leave it after two years, enrol into an MBA program, come back to the industry while attaining a highly-paid associate designation, and then the career takes off with every job switch ever.

Familiarity with FinTech Advancements Is Critical

MBAs have become less valuable to enter private equity markets and investment banking. The key to secure jobs in the financial markets in the current times is the familiarity with technology advancements, and hands-onexperience working with the disruptive technology that is prevalent in the industry. Machine learning, AI, and data science are a few of those technologies ruling the finance domain at the moment.

Career Development in Finance Has Become Directly Proportional to Tech Compatibility

Since the banking recruitment has gone down considerably, especially commercial banking, the individuals once established there simply cannot switch to a different company, or career. They get forced to stay put. A little better is the position the investment banking professionals enjoy, as they can still move to a private equity job, given that they are top talents in their industry.

To kickstart your career in PE or investment banking, rather than going for an MBA after a college degree in finance, it’s better to opt for a certification course in finance technologies such as blockchain, data science, machine learning, and artificial intelligence. Or, one can choose to study a higher degree in a coding-related field.

Applications of Data Science (FinTech) in Finance:

Applications of Blockchain Technology (FinTech) in Finance:

  • Clearing and settlements
  • Credit reporting
  • Digital identity verification
  • Cross-border transactions

Applications of Artificial Intelligence (FinTech) in Finance:

  • Detection and analysis of brand sentiments
  • Identifying insights on investment trends
  • Risk management in banking
  • Fraud detection
  • Improving banking efficiency in totality

Electronic Trading is the Future

Aspiring PE professionals must realize that the future of finance as a profession lies in digital trading. And therefore, must prepare themselves for the same.

Last year, 75% of Citi’s trades were processed electronically. In fact, this year, we are about to see the digitization of bond trading.

And what skills will be high on demand in the future to facilitate electronic trading as it gets more popular with time? It will be statistical analysis, trading technologies, alpha signal generation, and data analysis.

The near future will see vacancies emerging formid-senior level and senior-level roles in compliance and risk management segments under electronic trading in finance.

Closing Thoughts

Finance happens to be among the highest paying industries in the US. As per the US Bureau of Labour Statistics, the average yearly salary for a financial manager is $128,000, and is expected to rise even further in the future years. While you will work long hours in a finance profession, but in return, the pay and incentives you get will make you bear the work pressure.

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