If you work in the investment banking sector, or you have your sights set on job there, you couldn’t possibly ignore the ominous, dark clouds that set over the industry in the last couple of years. But, despite the waves of layoffs and an overall retrenchment in the industry, U.S. News and World Report has identified the Financial Analyst position as one of the 10 best jobs of 2012.
Granted, the position is not exclusive to investment banking as the need for qualified financial analysts is exploding among other financial companies such as insurance companies, mutual funds, pension funds and securities firms; however, investment banking is expected to contribute significantly to the mushrooming job opportunities over the next ten years.
Labor experts are forecasting a nearly 25 percent increase in the number of financial analyst positions by the end of this decade. While that could mean as many as 55,000 positions to be filled, there is expected to be heavy competition for new openings. In an industry that has experienced a lot of volatility in the last few years, the financial analyst position is coveted for its relative stability and solid pay. The median earnings in 2010 were just under $75,000 with the higher paid positions pulling in just over $140,000 – not exactly in the iBanking stratosphere.
The position is still a big draw for college graduates, this despite some of the more recent bad press and the growing disenchantment with Wall Street. Graduates with degrees in finance, statistics and accounting, place the financial analyst position in the top three of their targets for a career pursuit. The heavy competition for these positions places a premium on those who earn an MBA or achieve advanced certification, such as a chartered financial analyst. Opportunities still exist for advancement into positions with greater responsibilities and higher pay and a path to portfolio management.
The financial services landscape is changing rapidly, and direct paths into investment banking positions are harder to find. Most recruiting specialists recommend that the pursuit of a financial analyst position begin with obtaining some real-world experience, either as an intern, or working in a related field to gain practical experience.
In either case, the quickest path into the investment banking field is through networking and relationship building, so it is important to work at raising your visibility, while rounding out your skill sets.
Effective communication is said to be a highly desirable skill for a position that must be able to translate numbers and statistics into something that people can understand.
Despite the headlines on executive pay cuts and headcount reductions, there are still a few areas where banks are looking to beef up their business and even add investment banking jobs.
One area is risk management, which will become a bigger priority for banks worldwide as they adapt to new and tougher financial regulations, reports the Financial Times.
In the UK, that means adapting to banking reforms introduced by Sir John Vickers’ Independent Commission on Banking. In the U.S., banks are already dealing with the repercussions of the so-called Volcker bill.
But on the job-search side, this means people who specialize in or have knowledge of liquidity risk will be in demand. So will those looking to fill internal audit and compliance roles.
In investment banking, some areas will still continue to grow in spite of widespread job cuts elsewhere. “We are likely to see demand rise within high-yield and investment grade fixed income teams across asset management as a result of current credit events,” according to Kay Senior, a director at recruitment consultant Badenoch and Clark.
There will also be greater demand for IT and digital media specialists, as the banks roll out new platforms to support mobile banking and trading services.
And lest you think all the bad news has scared off young people from working in banking, think again. Barclays CEO Bob Diamond told Bloomberg that in 2010, 107,000 university students sent in applications for jobs a Barclays. The number of positions open? Just 1,500.
“So there’s still a lot of people who want to come into the financial services industry, particularly for organizations such as Barclays that have a diversified set of businesses that are very focused on their clients and growing the business” said Diamond, as quoted in HereistheCity.
What about you? Are you as enthusiastic about pursuing an investment banking career today as you were, say, 12 months ago? Add your comments below.
When Warren Buffet is looking for a top investment professional, he looks for three distinct qualities. How well do you stack up against these three criteria, and communicate these qualities in your quest for an investment banking job?
The three criteria are intelligence, energy, and integrity, according to a recent story from CBSnews. Buffet says a leader having only 2 out of 3 of them can kill a business, or, as one might surmise, dampen your chances of landing that job.
High intelligence and high energy but without high integrity basically means you have a “smart, fast-moving thief.” Low energy but high intelligence and integrity means you have a “shop keeper,” not someone who is going to drive growth. And low intelligence but high energy and integrity means you have someone who will follow the rules, but not be great in the problem solving or vision department.
How well are you expressing these qualities in your job hunting materials? The article is written for the recruiter or person on the other side of the desk. But you could just as easily translate them for yourself. How well are you communicating your energy level? What sports or physical regimens do you have? Do you work out? Run? Practice a martial art or meditate? You need to demonstrate your capacity for hard work and endurance.
As for mental acuity, expect to be put through the ringer, taking various tests from games like “Connect Four” to making a presentation solving a financial or business problem. Shrewd interviewers may also ask you to give the same presentation over again, in half the time or cutting it down to one minute, to show your ability to think on your feet.
Demonstrating your integrity may be a trickier issue. They will likely perform a thorough background check on you. However, think of what you can do in terms of awards or service citations that indicate your strength of character.
Are you covering all these bases in your job-hunting efforts? How are you addressing the integrity issue? Add your comments below.
