About financial services
Find out all about the financial services industry, and the career opportunities available.
What is financial services?
The financial services sector facilitates the productive flow of funds between sectors, companies and people. It deals in all types of financial assets, including cash, shares, short- or long-term debt, foreign exchange, derivatives and real estate.
Broadly speaking, the sector can be broken down to four broad categories, which contain the following roles and career paths.
Some industry professionals are also qualified as practising accountants, working in both traditional roles – such as accounting and auditing – and, in more recent years, branching into financial planning, tax advising and capital risk management. Many, but certainly not all, financial services career aspirants acquire an accounting qualification before pursuing careers in investment banking and corporate finance.
Why is the financial services industry a good career path?
Australia and New Zealand have diverse and developed financial services industries, offering a number of reasons to pursue a career in this field.
Impact of market developments
Enthusiam and interest in working in the financial services industry should not be unduly dented by the current turmoil in the financial markets.
Financial services plays a pivotal role in engine room of the global economy. As Glenn Stevens, Reserve Bank of Australia Governor, said in his address to the trans-Tasman Business Circle, "It is up to policy makers and private market participants to put the system back together, without the excesses the built up over the past years, so that it can serve its proper function: to facilitate trade and genuine investment flows, in the process of supporting economic growth".
While there is general consensus that both Australia and New Zealand will not escape the impact of a slowing world economy and resultant job losses, demand for skilled professionals will continue into the future – both in existing and emerging disciplines – especially as the outlook improves.
A stable platform to support future growth
The industry in Australia and New Zealand are well placed to recover from the current global financial crisis, thanks largely to the sound fundamental architecture of their financial services systems. The Australian banks, and their New Zealand subsidiaries and branches (which account for 90 per cent of the market for bank deposits and loans in New Zealand) have fared comparatively well in relation to their counterparts in the United States and Europe, with strong balance sheets and good asset quality.
Financial services is also one of the largest industries in both Australia and New Zealand, respectively representing 19.4 and 20.9 percentage share of GDP in 2007/081. In addition, while Australia has a population of just 21 million, its managed fund sector is the fourth largest in the world2.
A highly regarded, well regulated industry
The financial services industry in Australia is highly regarded, and regulation of the industry is world-class. The strength and integrity of the Australian and New Zealand financial services systems largely explains why we have fared better than our US and European counterparts in the wake of the global credit crunch.
The World Bank's Governance Matters report in 2007 suggested that the quality of governance in Australia and New Zealand is among the best in the world, with both ranked in the top eight countries.
Australian regulation
In Australia, a number of agencies work to maintain integrity in the financial services sector. These include the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and the Australian Consumer and Competition Commission (ACCC). In addition to its monetary policy role, the Reserve Bank of Australia (RBA) is
tasked with maintaining financial system stability and promoting the safety and efficiency of the payments system.
New Zealand regulation
In New Zealand, registered banks are the dominant financial institutions in the financial system and are subject to a licensing and supervision framework. Under the Reserve Bank of New Zealand Act 1989, the Reserve Bank has responsibility for the registration and supervision of banks.
Support from professional associations
The regulatory bodies in Australia and New Zealand are supported by a number of professional associations within the financial services industry that encourage good governance and ethical behaviour via advocacy work, codes of ethics and rules of professional conduct.
Finsia, the Financial Services Institute of Australasia, is the only professional association representing the entire spectrum of financial services throughout Australia and New Zealand, our reach extends to close to 20,000 professionals working across the broad categories of banking, wealth management and capital markets.
An industry that rewards its people
The growth in the financial services industry over the past two decades has ensured that financial services is a rewarding industry to work in. Those rewards can include the development of marketable skills, as well as an attractive remuneration packages and a range of other benefits, including product discounts, travel, financial advice and innovative career development programs.
Financial benefits
According to the 2007/2008 Hays Accountancy and Finance Salary Survey, salaries for finance professionals range from A$40,000 for entry-level/graduate positions to A$150,000 plus for finance executives – depending upon the industry and the specific role. More detailed financial services salary survey data, as well as general commentaries on a number of industry groups, is available online.
Lifestyle and family benefits
Many financial services organisations reward staff with enhanced lifestyle choices, including flexible leave, personal and carer's leave, study leave, volunteer leave and structured career breaks. Others offer benefits including paid parental leave, free or subsidised childcare and gym and health programs. Flexible working hours are increasingly popular and an effective way of dealing with today's evolving global marketplace.
Professional development benefits
A number of organisations provide education assistance with tuition costs, registration fees or HECS, and paid study leave. Organisations are increasingly keen to build staff skills via structured training and development and the use of mentoring programs that pass invaluable on-the-job experience onto younger staff.
A career with great variety
The size and sophistication of the finance industry means there is an incredible diversity of career roles available. Australian financial services companies employ around 392,000 people.
As a result, there are an impressive range of opportunities. For a more detailed examination of jobs in the financial services sector go to our 'A to Z of jobs in financial services' section.
At the forefront of information technology
Highly advanced communications and computing technology has been crucial to the explosive growth of the global financial services industry over the past 20 years. This technology has made financial services accessible 24-hours a day, seven-days-a-week, across much of the globe.
The financial services industry is at the forefront of new technologies. Retail and investment banks are big spenders when it comes to information technology as buyers of the leading edge computer systems, especially for the trading floor. As a result they are constantly searching for high quality information technology professionals and for those who can combine business intelligence and technological aptitude - such as business analysts.
A culturally diverse industry
Globalisation has been a powerful influence on the growth of the financial services sector. Successful companies in the sector understand the value of diversity in encouraging new ideas, a broader range of skills and in enhancing a company's ability to relate to a wider range of customers.
The financial services sector has been at the forefront of developing policies and procedures that are inclusive of difference.
An advocate for corporate social responsibility
Many financial services organisations are taking significant steps to develop and communicate policies on climate change, the environment, sustainability and corporate social responsibility:
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A number of organisations are now adopting corporate socially responsible reporting, such as the balanced scorecard and triple bottom line.
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Many have put in place sophisticated sustainability policies aimed at generating business and social benefits - from a greater emphasis on waste reduction, fair trade and procurement policies and sustainability practices that include monitoring the people, energy and environmental polices of suppliers. The practice of issuing sustainability reports that set and report sustainability performance is now becoming more prevalent.
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Each year, the Australia/New Zealand banking sector alone contributes around A$90 million to community organisations.
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Australian financial services firms are amongst the world's leaders in conforming to corporate social responsibility and greenhouse standards promoted by organisation such as the Dow Jones Sustainability Index, the Carbon Disclosure Project and the Corporate Responsibility Index.
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Quality industry associations
In a rapidly changing and highly competitive industry like financial services, membership of a quality professional association can enhance your career through access to a range of support services, education opportunities and network building activities.
Membership of a professional body also demonstrates that you are motivated and interested in your chosen field. It can therefore be of assistance when it comes to consideration for employment or promotion.
The industry's leading professional body, Finsia, plays a central role in the areas of career services, professional development, information resources, and policy and research for the financial services industry. To find out about the many benefits of membership, or to join,
visit the membership section of our website.
1 Glenn Stevens, Reserve Bank of Australia Governor, Address to the trans-Tasman Business Circle Business Luncheon, Sydney, 21 October 2008. http://www.rba.gov.au/Speeches/2008/sp_gov_211008.html
2 Invest Australia 2007, 'Australia: A global Financial Services Sector; Benchmark Report', August 2007, Australian Government http://www.austrade.com/