So what exactly are financial services?

Financial services help with the making, investment and management of money for both people and organisations; for example, trading shares in the stock market, or helping people put money away for a rainy day.

Banks are places to keep your money but it doesn’t just sit there in a vault. Banks use that money and lend it to people who need it; for example, people who want to buy a house or a car. The borrower will then pay that money back to the bank, plus an additional cost in the form of interest.

Organisations other than banks also deal with money. Trust funds and stockbrokers may buy and sell commodities like coffee or oil. They aim to buy at a low price and sell at a higher one, much like a coffee shop, except they don’t keep the product in a warehouse.

The financial services sector also serves the public by giving out advice on how they might make the most of their savings.

It sounds easy, but it isn’t…

Financial services companies are competing against each other. When everybody wants to buy the same thing or the product is popular but in short supply, the price will rise. There may also be other factors that affect the price, such as production costs or events in the country where it is produced.

Let’s take the example of a country which is a large producer of coffee. It may have a bad harvest which will reduce the amount of coffee that is available. Because it is still in demand, but there is less of it, people will compete for it by offering more money to buy it.

But it’s not just about money…

Job roles within financial services are varied and not just about buying and selling. There are also roles to do with supporting the processes, such as analysts and economists.

The UK regulators are independent bodies which regulate the financial services sector in the UK. These regulators oversee the professional sector and make sure that customers are treated fairly.

Whether your ambition is to work in a highly charged and competitive environment of institutional dealing, or to build relationships with clients, or you want to support others… the finance sector has a place for your talents.

Are financial services for you?

A career in finance makes use of a variety of skills. You won’t need all of them but an interest or talent in one area may make you a valuable addition to a company or bank.

More than 2 million people in the UK work in financial and professional services

Computer Studies & IT

There is very little in the world that is not affected by computers and information technology. In a world that is changing all the time, it is important that people making decisions related to the buying and selling of products have all the up-to-date information at hand. Financial services is highly dependent on IT systems.

English

English is very suitable for many roles in the business sector. You will be required to think analytically and you will need to be able to communicate effectively and efficiently with people. Presentation skills are essential – you may be required to present a project to three people or 300! Job roles in financial services could include public relations, financial journalism, research and sales and marketing.

History

History equips you with good analytical skills. Financial services professionals are required to gather research and analyse trends to determine and evaluate the most suitable products in which to invest to ensure their clients receive the best rewards.

Economics

Economics is the study of the production, distribution and consumption of goods and services. Knowledge of how the world of finance works is essential to being successful in the industry. Understanding connections between what’s going on in the world and how that affects the price of goods and services and the needs of people can make the difference between success and failure.

Geography

Geographers have lots of skills that can be applied to a career in financial services including research, data collection and analysis and evaluation. Understanding the economy and its changing influences, possessing knowledge of urban planning to explain why financial services hubs are built in cities and how transportation and infrastructure impact upon the success of a business, will all be beneficial. All of the world’s resources are enveloped in Geography and those who know and understand this can make good use of their knowledge in wealth creation.

Maths

Numeracy skills are used for a variety of roles within the industry. Being able to count obviously helps when dealing with money but it is also used in the analysis of data; such as profits, margins (how much profit you are making on a product) and even predictions about the future!

Languages

Finance is a global industry and being able to speak other languages can help make sure everything runs smoothly. A good level of English is also required when dealing with a range of people in order to make sense of the technical language used. Even though a large proportion of people in financial services speak English, better relationships can be built by understanding the language and culture of other nations.

Citizenship

The global nature of financial services means employees need to be adaptable to changing situations and understanding of different work practices, timezones and cultures. Citizenship teaches you to be active, informed and responsible and knowledgeable about the social and political world. Financial services professionals must act ethically and responsibly and be honest, fair, open and transparent in all business practices.

Science

While not absolutely necessary for a successful career in finance, knowledge of specialist areas of investment, such as technology, and how they work, can often grant you an edge in what is a competitive area. For example, mobile phones use copper, silver, gold and palladium, all sold on the London Metal Exchange.

Introduction to Securities & Investment

This is a 10 part video series produced by the CISI to help you learn more about some of the key components of the financial services sector.

Financial Services

In this video you will learn about how the financial services sector links those with surplus money to those who need to borrow money.

Introducing Derivatives

In this video you will find out about derivatives, why they are used, what the advantages and drawbacks are, as well as the different types of derivatives.

Forwards and Futures

In this video you will find out about future implications of various scenarios dealing with money.

Options explained

In this video you will be introduced to options.

Bonds explained

In this video we dig deeper into bonds to find out how they work.

Government Bonds

In this video you will be introduced to the two types of government bonds.

Corporate Bonds

In this video you will be introduced to the three types of corporate bonds.

Bond Equity

This video focuses on presenting the advantages and disadvantages of bonds for investors.

Money Markets

This video is about money market instruments.

Risk & Rewards

This video looks at the relationship between risk and reward.

The services of a bank are generally broken into three areas...

Front Office 👈

Middle Office 👈

Back Office 👈

Front Office

Teams in the front office generally deal with customers, provide services, and are responsible for the production of revenue for the company. So, in a high street bank, front office job roles are the tellers, loan officers/mortgage specialists and advisers. In the investment banking area, the front office are the investment managers, investment advisers, traders and relationship managers.

Activities include: mergers & acquisitions, corporate e and professional investment management for or high-net-worth individuals, professional analysis of companies and markets, wealth management, private equity and investment strategy formulation.

Example Job Role: Investment Analyst

Hours: 40-50 per week
Starting salary: £20,000 + per year

Investment analysts provide information and reports to help stock market traders, stockbrokers and fund managers make decisions about investments. Working in this role, your research would highlight new investment opportunities or show when an investment is starting to lose some of its value.

In this job you will need to understand economics and business. You will need communication, maths and IT skills. If you enjoy research and analysis, and you are interested in financial markets, this job could be perfect for you. Most investment analysts start out with a degree at class 2:1 or above, in a subject such as economics or business. You would usually start as a graduate trainee in an investment bank or a stockbroking firm.

Select an area below for more information:

Asset Management

Asset management is the professional management of assets or investments for a wide range of clients including government agencies, pension funds and companies and collective or pooled schemes such as investment trusts, ISAs and mutual funds.

Retail & Corporate Banking

Retail Banks: More commonly known as high street banks, retail banks provide banking services, loan facilities and financial advice to businesses and members of the public through large branch networks. Jobs in retail banks are predominantly customer-facing, such as working as a cashier, financial adviser, small business or branch manager.

Corporate banking: Corporate banking provides financial services tailored to meet the needs of larger companies. Commercial banking requirements can be quite different when compared with small businesses, as the volume, size and complexity of transactions are significant and therefore potentially riskier.

Wealth Management

Wealth management is all about managing money. Investment managers advise people on where they should invest and help them get the most from their money.

Sales & Trading

The functions of sales and trading within an investment bank is to help large organisations, governments, commercial and non-commercial organisations - raise money through selling securities such as bonds and equities on the capital markets. Practitioners in this area can deal with anything from stocks and bonds to foreign exchange, while researching the market for the best opportunities.

Financial Planning

Financial planning involves interviewing a customer to discover not only their financial goals but also whether these are achievable given the estimated level of income and other factors or constraints such as debts owing, dependents to provide for, health, age, and tolerance to investment risks.

Insurance

Insurance brokers analyse clients’ needs and negotiate the best deal with insurance companies. This could be for individuals or for businesses. Within the insurance industry there are lots of opportunities. These range from highly specialised, analytical roles to general business management.

Middle Office

Services in middle office include treasury, compliance and risk management for professional clients.

Example Job Role - Compliance Officer

Hours: 40-50 per week
Starting salary: £18,000 + per year

Compliance with financial rules and regulations is an important responsibility of any business. Many of these positions concentrate on tax, focusing on efficient filing of taxes and carefully ensuring that firms don’t pay more than is needed. In more senior positions, compliance specialists are also responsible for overall strategies in ensuring that the business they are representing complies with government guidelines and making any necessary changes.

Some companies offer training schemes for compliance job application candidates. Many employers are open to receive applicants with any degree, but there are some cases where it is required to have specific qualifications in finance, accounting or law. Degree courses for this area require five GCSE’s (A*-C) and two A levels. Equivalent qualifications such as Advanced Diploma in Finance, Business and Administration is also suitable for courses´ requirements.

Legal & Compliance
Risk Management

Legal & Compliance

The financial services profession is highly regulated with local and international laws and regulations so legal experts are required to oversee projects and consult on issues which may impact upon the business. Compliance officers are responsible for implementing internal policies reflecting the ‘rules’ of the industry and also ensure the organisation’s practices are sound and ethical.

Risk Management

Risk management is about the identification, assessment, prioritisation and management of risks that can arise in an uncertain environment. Some risk managers work within trading and investment banking areas where statistics and financial modelling help to set trading limits and constraints, while others focus on risk management of new or large projects, planning for business continuity in the event of a disaster and managing technology risks.

Back Office

The back office is comprised of the areas that don’t directly generate revenue for the business, but provide vital support and administration and enable all of the bank’s services to run smoothly. The back office in an ivestment bank might encompass departments like IT, operations, HR, marketing, public relations and accounting and finance.

Activities include: processing, settlement and reporting of trades, investment portfolio valuation and performance analysis, technology support, project management and development.

Example Job Role: Accounting Technician

Hours: 30-40 per week
Starting salary: £15,000 + per year

As an accounting technician, you would deal with accounting and finance matters in all types of businesses. In larger companies you would work as part of an accounts team. In a smaller firm you might be responsible for dealing with all wages and invoices.

If you enjoy working with numbers, and you are interested in business and finance, this career could be ideal for you. To do this job, you would need GCSEs (A-C) including Maths and English, or equivalent qualifications. Once working you could do work-based training or a part-time college course to qualify as a technician.

Accounting

Accounting and finance is the reporting of financial information and is vital for the success of businesses. Job roles can include risk management, budgeting and planning internal finance, to ensuring that staff and suppliers are paid correctly.

HR & Training

HR and training teams are responsible for hiring, developing and rewarding employees to their full potential, as an institution is only as good as its staff.

Operations

Operations is the back-office function responsible for overseeing the life cycle of a transaction - from the initial preparations such as booking trades for traders to post-trade processes in settlements. Administrative roles are many and varied. Roles can include working in a call centre to support customers or supervising the administration and performance measurement of investment portfolios.

IT

Technology roles are critical in an industry which has grown through heavy investment in computing and communications. Roles are available in IT support, programming, project development and management, analysis and systems administration.

PR & Marketing

The financial services profession is a competitive market, so organisations need to ensure as well as maintaining their customer base, they are growing their business too. Public Relations, communications and marketing teams are tasked with projects which develop a strong brand for the firm and maximize awareness for the company.

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