Financial services mini series: Part 1

By Ayoob Rawat

So, what are the career choices available to you in the Financial Services Industry?

Have you already researched the sector? Here I do not mean just reading the popular press and the markets about shares, bitcoin, etc. I mean really done your homework to eliminate the glamorous part to really focus on the practical aspects of joining.

The Financial Services sector is one of the largest and most important sectors in the world economy. The specific activities are generally structured under banking, investing, and insurance.  

You are among millions of people who need to decide what to study and what career to pursue. It is a very important and not a simple process. Your decisions are further clouded by your parents, friends, and teachers.

Building a successful career will lead to financial success but that is not what you should be obsessed with initially. You need to find the right job that matches you in the right organisation in a location that you will enjoy. Of course, you are still able to enjoy your families, friends, and neighbourhood while careering. Being happy will enhance your progress in your job.

To ensure your career decisions are YOURS!

To do so, you must understand yourself – your inner self – what you keep to yourself. Do not let your judgement be shaped by films, books, and well-designed advertising campaigns.

First, you need to know yourself:

• Who are you?
• What are you good at?
• What would you prefer to do instead of what you have to do?
• What legacy do you want to leave?

I have what is called a career road map that covers these specific questions. You can have access to it “free” if you send a message to [email protected] and just mention “career road map” or you can get it here: https://www.pwfo.org/offers/cmNng45n/.  

 _________________________________________________________________________________________

So let us begin!  

First what I champion – Wealth & Family Office Services.

The Private Wealth & Family Office - Swiss Certified, (PWFO) actively encourages to separate and distinguish ‘Wealth & Family Office Services’ from ‘Wealth Management’.  

Wealth Services starts with savings and credits to create Riches. Then it Protects, Grows and Passes on those Riches.  

Wealth Services is for everybody, even for private clients and families who have not yet created their riches but can still be considered Wealthy.  

"Private Banking and Wealth Management are investment advisory services that combine other financial services to address the needs of affluent clients.” (Investopedia).  

Wealth Creation comes before Wealth can be managed.  

Wealth Management is dedicated exclusively to affluent clients.  

Other jobs in Financial Services:

• Financial Planners and Advisors - The role of the financial planner is to optimise the client’s financial situation and assets. He also helps the client determine how to best meet his lifetime cash flow requirement through the proper management of his financial affairs.  

• Corporate Finance jobs involve working for a company in the capacity of finding and managing the capital necessary to run the enterprise. This is done while maximizing corporate value and reducing financial risk.  

• Commercial banks from large entities to local institutions offer a wide range of financial services, from checking and savings accounts to individual retirement accounts (IRAs) and loans. Positions in the commercial banking sector include bank tellers, loan officers, operations, marketing, and branch managers.  

• Investment Banking - Some of the most glamorous—and intense—financial careers are jobs in investment banking. Investment banking jobs facilitate new issuance of corporate securities and bring them to the market for investors to purchase. Investment banks also trade securities and advise both corporations and wealthy individual investors.  

• Funds - Hedge, Mutual Index, ETFs Hedge funds are regulated and unregulated private investment funds whose managers can buy or sell a wide array of assets and financial products. Hedge funds and alternative investments have an element of mystery that surrounds these types of entities and are also considered by many to be somewhat glamorous.  

• Investment Consultants, Advisors & Portfolio Manager - An investment consultant analyses a client’s current financial status and helps the client set reasonable and achievable financial goals. The latter can address a broad array of questions competently. Investment consultants also make strategic investment recommendations, provide objective advice, and help clients weigh the financial consequences of life decisions.  

• Private Equity, Venture Capital Private Equity Professionals help businesses find capital for both expansion and current operations. They also provide financing for several corporate business transactions, such as managed buyouts and restructurings.  

• Insurance - A job in the insurance sector could involve helping businesses and individuals anticipate potential risks, then try to protect themselves from losses. Most insurance jobs are with large insurance companies. You could begin a career in this sector working as a sales rep selling insurance policies, as a customer service rep working with existing clients, or as an actuary computing risks and premium rates according to probabilities based on historical, quantitative data sets.

• Public Accounting is a broad field with many opportunities. Chartered and Certified accountants and (CPAs) help businesses and individuals keep track of their finances according to generally accepted accounting principles (GAAP). Public accountants record business transactions, help prepare financial statements, audit financial records, prepare income tax returns, and provide related consulting services.

• Tax planning involves reviewing a client’s overall tax situation in collaboration with the accountant or tax accountant to ascertain that the client’s tax liability is minimised most cost-effectively. Often, this planning involves employing tax-saving strategies. 
•  
•  
• Estate Planning - Using all relevant up-to-date legislations and the client’s circumstances to ascertain that the heirs to an estate shall receive the assets in a fast and effective way.  

• Retirement specialists help design and implement benefit, savings, and pension programmes for clients. They will confer with clients in person as they design retirement plans.  

• A Family Office Professional controls investments and trusts for a family. The company’s financial capital is the family’s wealth, often accumulated over several generations.  

• Trust Professionals - The objective of a trust professional is to serve institutional clients and members of self-regulated organisations as an independent provider for the formation and management of trusts, foundations, and holding structures.  

• Trustees are those persons or firms that hold and administer property or assets for the benefit of a third party. A trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or certain types of retirement or pension plans.  

• Management Companies are service providers which act as intermediaries between their clients and are often regulated by the local Supervisors to control AML and reputational risk of the area. They are set up to manage and provide nominees or any other services to a corporation, a corporate trustee, or a qualified trustee under the Trusts Act 2001.  

Here is some further specialisation that you can consider:  

• Financial analyst
• Trader
• Regulatory compliance officer
• Quantitative analyst
• Marketing manager
• Portfolio manager

Data Analytics is now a growth area. You may need further training to be able to be considered for these technological roles. But they can be achieved.

Feel free to send us your questions by email to [email protected]. Our next post in this series will be about "where to go to improve your chance of landing the dream job.”

If you would like to further explore the blue ocean behind Private Wealth and Family Office Services have a look at our training course: Mapping your Career in Wealth Services and the Family Office sector.

_________________________________________________________________________________________________

To learn more about Wealth services and Family Office - CLICK HERE

The Swiss Association supports professionals to join, navigate, & succeed in the blue ocean of family office and private wealth solutions.

➡️ Join the Private Wealth & Family Office (PWFO) Association Community here: CLICK HERE

➡️ Do not forget to follow us on social media to have the latest updates 😀 Link here ⬇️