Professional Guide
Most jobs in finance fall within the following 2 areas:
A. FINANCIAL SERVICES FIRMS
(Investment Banking, Corporate Banking, Investment Management, Fintech, Big 4, and more)
Financial Services firms (as described by the Unofficial Guide to Banking): “Put simply, banks provide services for people or organisations who want to borrow, lend and invest money. They are huge, complex organisations that play a part in the lives of people in every corner of the world, with clients ranging from individuals to businesses, and even the governments and central banks of entire countries.
Banks work with vast amounts of money, every single day. But it’s a common misconception that you need to be a financial prodigy to work at one: just as important are regulatory experts, who make sure that institutions comply with the law in every country where they do business. And there’s a broad range of other specialists, from HR and finance to technology.”
You’ll find a description of subareas in the next section of this pathway.
B. FINANCIAL DEPARTMENT OF ANY COMPANY
(Corporate Finance)
Corporate Finance manages a company. It can be a bit tricky to differentiate it from investment banking because, depending on the context, investment banking might count as a type of corporate finance. Likewise, an investment banking firm might have a corporate finance division.
A Financial Department of a specific company usually manages matters related to acquiring funds, managing funds, and planning the expenditure.
Larger organisations will have more specialised finance teams with many levels of management. In a smaller business, it may be the owner or a small team who have broader roles and greater responsibility. The best way to understand the responsibilities of an organisation’s finance team is to split the roles and responsibilities into:
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Strategic financial management:
The finance planning team or financial strategy team looks at the overall picture to assess organisational health and to plan short and long-term goals. Financial planning teams will also use current records and reports to predict the growth and future trends of the company. The strategic finance team creates forecasts and plans to ensure growth, manages and mitigates risk, looks at ways to increase capital, manages budgets and financing options, and liaises with investors.” (Source) -
Accounting and reporting:
The accounting team is the foundation of a finance department. It manages the preparation of balance sheets, financial statements, cash-flow reports, day-to-day record keeping, and reporting, including all payroll, accounts payable, and receivable. It also manages and conducts all internal audits and controls, and tax and reporting functions. It makes sure that the organisation is in line with regulations and is in good financial health.
SUBSECTORS OF THE FINANCIAL SERVICES INDUSTRY
Below the graphic, you'll find a brief definition of each main finance subarea.
