What do you mean by the financial sector?
The financial sector is defined as the section of the economy made up of firms and institutions that provide financial services to commercial as well as retail customers.
It comprises of a broad range of industries including public and private banks, investment companies, insurance companies, and real estate firms.
Career Opportunities in Indian Financial Sector
The broad areas for making a career in the financial sector are as follows:
1. Banking and NBFC
Banking sectors provide a host of services to individuals and businesses from savings and current account facilities to debit and credit cards to personal, home, education, and other loans.
- It also includes analysis of financial statements, competitive positions, and industries.
- There are several types of roles in the banking sectors: credit analyst, banking associate, account manager, trust officer, bank teller, mortgage banker, and branch manager.
- Primary duty of bank personnel: To maintain relationships with the bank’s existing customers and find new clients to keep the business running.
- It is considered an attractive career choice for many aspirants due to the decent pay packages and working hours.
- Financial services are rapidly evolving in current technology-led world and so, career choices need to be future-oriented.
- Some latest innovations in Fintech space:
- Payment banks are fostering financial inclusion and digital payments
- Artificial intelligence and cognitive analytics are powering data-driven decisions
- Blockchain implementations are set to transform banking and financial markets
- Robotic process automation or RPA has the potential to address case backlogs
- The need for cybersecurity solutions to eliminate intrusions and attacks has multiplied
2. Public Accounting
Accounting is a substantial field of study and practice, including a variety of financial services.
- It is concerned with recording and maintaining the flow of money for a public entity or private company.
- Apart from normal activities, a public accountant gives suggestions and delivers reports to cut down expenses, boost revenue, and improve financial health.
- Big Four firms: Deloitte, EY, KPMG, and PwC, collectively offer the largest share of professional services in public accounting, providing assistance in auditing and attestation, tax consulting, business advisory, internal control, and governance to their corporate and government partners globally.
3. Corporate Finance
It is a sub-division of finance that provides business activities funds. It deals with funding sources, capital restructuring, and investment decisions.
- Job functions:
- Balancing risk and profitability
- Analyzing and forecasting economic trends
- Reviewing company reports and suggesting improvement measures
- Maximizes value of stock
- Managing funds and selecting investment portfolios
- Performing tasks related to financial risk management
4. Investment Banking
- Investment banking is a lucrative path in terms of professional growth and salary package.
- Their nature of work involves working with data and numbers and introducing decisions that improve business operations.
- Other job profiles under this can range from trading and stockbroking to asset management to equity research.
5. Portfolio Management
- It is a fusion of commerce and science as it requires knowledge of business, mathematics, and analytics.
- A portfolio manager looks at the overall investment mix of clients (institutions or individuals).
- It is crucial in portfolio management that employed professionals work to maximize profits at a negotiated risk with SWOT (Strength, Weakness, Opportunity, Threat) analysis.
6. Risk Management
Professionals of Risk management are competent in identifying market risks and recognizing poor investment outcomes.
- Their primary work is to maximize returns and minimize risks strategically by applying their mathematical prowess and analytical reasoning skills
- Risk Management job roles can be divided into:
- Financial Risk Manager
- Enterprise Risk Manager
- Supply Chain Risk Manager
- Operational Risk Manager
- Digital Risk Manager
- Risk management is an in-demand profession in India with firms like SBI Life Insurance, LIC, Bajaj Allianz, and Policy Bazaar recruiting for various positions.
7. Financial Planning
- Individuals and companies require financial planners to secure their current and future financial stability.
- It entails reviewing financial statements and cash flows and creating methods for saving and investing in matching the clients’ needs.
- Here are few places that employ financial planners in India:
- Wealth management and financial services firms
- Knowledge Processing Organizations (KPOs)
- Non-Banking Financial Companies (NBFCs)
- Asset Management Companies (AMCs)
- Finance Journalism
8. Compliance and Internal Control
- Services related to compliance engage managers and administrative officials to ensure that all procedures and activities adhere to applicable laws, ethical practices, and standards.
- Their job functions directly contribute to the reduction of financial fraud and system risk.
The following exams are the career opportunities in the banking and financial sector of India:
Name of the exam
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