- Is It The Perfect Career For You?
- Nature of Work
- Skills Required
- Different Disciplines of Banking, Finance, Insurance
- After 10th
- After 12th
- Career Prospects & Job Opportunities
- Angels and Demons
Is It The Perfect Career For You?
Banking, finance, and Insurance sector is mostly about money. If you are a number cruncher fascinated with anything related to numbers, a career in this sector is right up your alley.
Banking is a sector that deals with money on a daily basis. It involves financial transactions that range from collection of money to disbursements of loans. The multifaceted nature of the finance industry is a big boon to students, since it offers a wide range of positions based on different skills sets and interests.
If you are finance and accounting enthusiast with a high aptitude for analyzing numerical data, you can opt to become a financial analyst. Corporate finance is another lucrative career option which includes several functions ranging from designing the company’s financial strategy to preparing the financial statements.
Based on your personality traits, qualifications, and your interests, there are several insurance jobs to choose from. You can begin your career in insurance as a sales representative selling insurance policies to individuals and businesses. The advent of foreign players in the insurance sector has opened up several job opportunities in the industry from sales to settlements to meet the demands of individuals as well as the business enterprises.
One of the best aspects of banking as a career is that it offers a number of opportunities to students from different streams of education, be it Commerce, Science, or Arts. For example, if you are a student of a non-finance discipline and blessed with excellent communication skills, you can easily find placement as a process executive with a banking BPO or in the sales division of a private bank.
India is fast emerging as a $2 trillion economy according to the latest data from the International Monetary Fund (IMF). It is currently ranked among the top ten largest economies in the world. According to KPMG-CII report, India’s banking and financial sector has the potential to become the fifth largest in the world by 2020. The Indian life insurance industry is estimated to grow at a compounded annual growth rate of 14.1 per cent, which would make India the third largest market for life insurance in the world by 2015. The insurance sector has been one of the few industries to offer job opportunities even during the economic downturns when other industries were laying off employees.
A career in Banking, Finance, and Insurance sector is highly rewarding and ensures fast career growth. For those of you who love to solve the mystery in numbers, this financial services sector is the perfect career-fit for you.
Overall there is a definitive boom in the financial sector with the country attracting robust global investment and several foreign players entering the fray in the banking and insurance sector.
Nature of Work
Money is all a mind game. The decisions you take affect your money and impact your firm’s financial position.
You will have to be aware of all the government financial policies and the rules of the various Investment sectors. You will work from a corporate house or the main branch of your organization. Sitting in your cabin, you will be expected to devise and suggest ways to the senior management about how to manage their money. Your role is of an advisor where you will be telling them when is the right time to invest , how much money to invest and where to invest and all this should lead to making gains for the organization. It’s the same advice you will have to give to your clients when you are taking care of their money as a Chartered accountant or an Investment Banker.
You must develop strategies for the financial growth of your organization /client. For them, you are the custodian of their money. You will be involved in the company’s annual budgeting meetings and dividend & share related annual general meetings.
Sometimes , you will also be required to move out for a meeting with the investors. When the financial year is around, it’s the finance guy who is most stressed, because it’s the time when every company/ person has to prepare the summary of their financial statement to know the financial position of the company.
Most vital of all the skills are listed briefly, for your reference:
- Strategic thinker.
- Market Updated to be aware of the the market and new policies.
- Analytical skills.
- Computer/ software proficiency.
- Negotiation skills.
- Ethical behavior and integrity.
Different Disciplines of Banking, Finance, Insurance
- Accounting & Finance
- Banking & Insurance
- Charted Accountancy
- Company Secretary
- Economics & Finance
- Financial Management
- Financial Planning
- Foreign Trade
- Insurance & Risk Management
Candidates after 10+2 of any stream can take up banking, finance and insurance as their career, but graduates specialized in Commerce, Mathematics or Economics; post graduates, MBA holders, Chartered Accountants and Financial Analysts get preference in the field. Many of the universities and B-schools like the Indian Institute of Banking and Finance provide specialized courses in Banking and Finance and the eligibility criteria will vary depending on the course. Diploma courses offer practical insights into the subjects of Banking & Finance and give candidates an exposure to the operational processes of the modern banking environment. After successful completion degree course of Bachelor of Commerce (Accts & Finance) students can opt for either higher studies in finance careers of different field of M.Com, MBA, CFA, CS or can apply for job vacancies in Auditing, Accountancy, Banking, Finance, Insurance in both private as well as Govt Sector.
A candidate should study 11th and 12th from any stream , but commerce will always be preferred or can also join diploma courses. After the 12th standard or diploma, he/she can either take up a job as a beginner or get a Bachelors degree. Diploma courses offer practical insights into the subjects of Banking & Finance and give candidates an exposure to the operational processes of the modern Banking environment.
After completing 12th or higher secondary preferably in Commerce stream but Science students can also join for a graduation course with commerce and finance courses called as Bachelor of Commerce ( B.Com) or Bachelor of Accounts & Finance(B.A.F).
After a successful completion of graduation degree course of Bachelor of Commerce (Accounts & Finance) students can opt for either post graduation studies in Finance with options of M. Com, MBA, CFA, CS, ICWA or can apply for job vacancies in Auditing, Accountancy, Banking, Finance, Insurance in both private as well as the public sector. Admission to some of these course like MBA, CFA and CS is through Entrance Exams , which are conducted at National/State or University level or by respective governing bodies.
To join reputed banks, in the clerical level or management trainees, there is an entrance exam along with an aggregate of 60% in graduation. In most of the banks the minimum age limit is 18 years and the maximum age specified is 28. Institute of Banking Personnel Selection, IBPS is one of the organization who conducts such entrance exams for all Public Sector Banks, Regional Rural Banks, SBI, RBI, NABARD and SIDBI which are its regular member organizations. The exam conducted by IBPS is for selection of clerical staff as well as management trainees or probationary officer.
An MBA in Finance offers opportunity to work in a variety of industries, including commercial and corporate banking, investment services and real estate. Students with MBA in Finance degree can work as a finance manager, budget analyst and finance head. It is the responsibility of finance manager is to plan strategies to raise capital from different sources for effective funding of projects, to assesses risks and benefits involved in projects and to make sure that organisation act on the basis of preset budget.
If you are inclined towards becoming a Charered or Cost and works Accountant, you can join for a professional course in the field of Accounting after completing graduation.The course involves learning about financial management, taxation and accounting. The minimum eligibility required for the foundation course for training as a Company Secretary is 10+2. Graduates or post-graduates in commerce, or any other discipline are allowed to skip the foundation course and enroll directly for the intermediate examination. This exemption is also extended to those who have passed out of the Institute of Cost and Works Accountancy or the Institute of Chartered Accountants of India. The role of a Company Secretary is that of an advisor for legal matters. All legalities involved with inter-corporate investments and loans are looked after by a Company Secretary. The bodies responsible for educating and training professionals in the respective fields are different, and work independent of each other. While a chartered accountant (CA) is trained by The Institute of Chartered Accountants of India (ICAI), a cost and works accountant (CWA) is a descendant of The Institute of Cost and Works Accountants of India (ICWAI). A separate statutory body, The Institute of Company Secretaries of India (ICSI), churns out company secretaries (CS).
Note: For details on these entrance exams, please visit the entrance exam page.
Career Prospects & Job Opportunities
Financial Planning is one of the fastest-growing professions across the world and with a huge demand-supply gap in India. The youngsters planning a career in Financial Planning have a bright future and can take advantage of many opportunities coming across in the Financial services sector. The globalization of banks, integration of banking activities, and the growth of emerging markets are ongoing trends and have huge scope in the times to come.
For the Business graduate, obtaining a degree is just the beginning. What's left is to take a closer look at available career options, measuring which industry sectors have the greatest need for new professionals. The Finance industry is multifaceted, offering a variety of positions catering to a number of different skills and interests. Else they can get a masters’ degree after gaining work experience with any financial company.
Financial services have multiple sub-industries encompassing niche opportunities. Here are some common career paths in the financial-services industry:
Accountancy & Finance - these types of jobs employ people who work in Audit, Tax and Accountancy businesses as well as in Financial functions within other organizations. Financial planning focuses on the provision of advisory services and supporting people and organizations to plan their financial futures.
Banks and building societies - is the largest employer in the Financial services sector, enabling individuals and organizations to manage money, access loans and conduct business in the country and overseas.
Insurance - businesses work closely with other professionals, such as doctors, lawyers and fire officers, to gather evidence to assess risk and resolve claims against Insurance policies.
Investments & pensions - research the likely performance of funds and advise asset managers. Key functions carried out by Investment companies are trading and stock broking, alongside performance measurement, investment support, valuation, risk assessment and data management.
Below is a sample of the types of positions that Finance graduates work as :
FUNCTIONAL AREAS IN BFSI SECTOR
• Branch Banking
Note: This is not an exhaustive list as there are many other careers available. Many positions require additional education or experience.
Angels and Demons
- Career in this sector offers many entry-level positions for high school graduates, with on-the-job training and the opportunities are varied and immense at various levels.
- Potential High Income
- Accountants are in high demand professionaly.
- You can work as a consultant for various firms at the same time.
- There are various options in Finance and Banking industry and you can also interchange your career.
- Most financial services industry positions are fast-paced and have high-stress
- Accounting may become a bit boring or monotonous.
- During the initial years you have to work under supervision.
- A lot of the struggle is involved while becoming a successful Finance professional
- Your reputation is at stake all the time.
- In the Financial industry you have to take risks.
- You have to keep your market knowledge up to date all the time.