Financial Services Sector
Entry to an investment bank or other financial services company can be through a variety of routes. Relevant audit experience can help, but banks are more interested in your academic record, training, career achievements and communication skills.
Internal audit
Banks use auditors for a variety of tasks including value-for-money analysis, risk management, projects, investigations and strategic reviews. These roles can be high profile and involve liaison with senior directors, traders and front and back office staff.
Audit provides a valuable insight into the banking business, structures and markets while recognising potential improvements. An entry point in this sector will open doors further down. Global travel is very common.
Product control
You will work on or close to the trading floor (the front office), liaising daily with directors and specialist traders of financial products such as swaps. Daily, weekly and monthly analyses of trading activity and performance is involved.
Mathematical risk analysis and strategy is involved - financial products are continually evolving and these roles provide a unique insight to the business front line. The intensive training attracts dynamic, high-calibre accountants who thrive in a pressurised environment.
Two years' experience will enable you can transfer to other areas such as risk management, financial control, fund management, equities analysis or trading. Competition is fierce: a good academic record and financial services experience are advantageous, but investment banks are seeking committed individuals with audit experience of non-banking sectors.
Financial reporting
Opportunities within an investment bank differ considerably from those in other sectors. In an environment where vast sums are traded daily and multi-million pound transactions are the norm, financial control is crucial for monitoring and reporting, involving substantial exposure to senior managers and directors.
The work can be pressurised, due to strict reporting deadlines but can is also highly rewarding. In addition to monthly and quarterly reporting of results, you may be involved in analysis, products and systems development. New products are constantly being developed and banks need to react quickly to economic changes.
Financial control represents the traditional route to financial directorship within banks and enables easy cross-transfer to commercial non-banking roles.
Equities analysis
Equities analysts provide specific market sector information for banks and their clients. The work encompasses economic sector analysis or companies within a sector; it involves established long-term relationships. This is a popular route for many newly-qualified accountants.
Such roles can be immensely challenging and rewarding but opportunities can be scarce and competition is intense. Entry into such high profile, frontline careers may be more easily attained via internal audit or product accounting.
Compliance
Compliance functions of financial services are crucial in the current evolving regulatory regime. High calibre accountants can enjoy a high degree of responsibility, taking charge of regulatory reporting and ensuring the company’s adherence to strict standards.
You would liaise heavily with authorities such as the FSA, the Bank of England and with senior and operational staff within the company. Opportunities to cross-transfer are numerous and maximised by the high profile nature of the role.
Risk analysis
A risk analyst uses sophisticated modelling and spreadsheets to assess inherent risk involved in trading positions. Responsibilities include monitoring daily limits, advising traders, reviewing daily profit and loss and liaising with systems, frontline and managerial staff.
Risk is a growth area - opportunities exist within both major investment banks and smaller finance houses. A career in risk should appeal to those with strong mathematical backgrounds; however, it may not leave as many career paths open as alternative options.
Corporate finance
Opportunities with investment banks and smaller finance houses are highly sought after and popular with individuals from a variety of backgrounds. Key qualities needed include:
- proven aptitude for hard work
- first-class interpersonal and sales skills
- strong academic record
Working in this field is demanding but financially and personally rewarding. The corporate finance department is a merchant bank’s engine room - it advises on anything from mergers and acquisitions and management buyouts to cross-border finance transactions and privatisations.
Regulatory reporting
Regulatory reporting is a new and dynamic area closely linked to senior managment and business areas looking at risk exposures. Other responsibilities include advisory work, reporting review and analysis.
The high degree of liaison with front office and senior management facilitates movement into other business areas. In such a role, you will look at the 'big picture' and be involved in less routine accountancy.
