Pathways to a career in financial services
The financial services industry offers a diverse range of career opportunities across the public and private sectors, both within Australasia and around the world.
The main industry entry points
There are two broad entry points into the financial services industry – direct employment and tertiary education.
Direct employment
Some entry level roles do not have strict educational requirements. These roles are often in customer service and back office/administration and can be a great starting point, as they provide a deep understanding of technical issues or client exposure. Subsequent career objectives can be achieved by undertaking further study and attending professional development events.
Tertiary level (or university) education
A common career path for secondary school graduates is to gain deeper knowledge in a relevant field of study through tertiary education. Around 60 per cent of people employed in financial services will have attained post-school qualifications.
A quality education and ongoing professional development is increasingly essential to a successful career in financial services. There are a number of options available to help choose the right education path and maintain your competitive edge in this ever-changing, competitive industry.
The major education pathways
Whether you are just starting out in the industry or are a seasoned recruit seeking professional updates or new skills, there are two major education pathways you can follow: university study and vocational education and training (VET).
University or VET?
Higher education providers and VET institutes offer courses in similar business disciplines; however there is a difference in the depth of study. Most university courses last at least three years, so your exposure to the skills and issues will be commensurately greater than in VET courses, which typically last two years.
While a degree may give you more options and accelerate your career, a VET course can be a good start to higher education in financial services and a way to test the water. VET courses can also serve as a bridge to getting into a university degree – many higher education providers (not all) will allow admission on the basis of a VET qualification or grant status for VET studies (up to one year out of three). Completing a VET course and then a degree will take more time, however this option provides a flexible alternative for aspiring financial services
professionals.
The key is to clarify your situation. Consider your own attitudes and aptitudes when it comes to study. Clarify your goals – what exact career are you pursuing? Do your research before committing to a particular stream of education. Talk to education providers and people working in the industry. And talk to students who have done or are completing the course you are interested in.
How much study should you do?
It is important to note, the level of education you attain will have a significant impact on your employment options in financial services. Statistics show the likelihood of being unemployed falls with increasing levels of educational attainment. For example, the May 2006 ABS Education and Work Survey indicates that people with a year 10 certificate have a much higher unemployment rate (8.6 per cent) than those who complete year 12 (5.9 per cent). In addition, those with higher education or highly skilled vocational qualifications tend to have lower unemployment rates (2.4 per
cent for bachelor degrees and 3.5 per cent for certificate III/IV) than those with basic vocational qualifications (six per cent unemployment for certificate I/II).
Your capacity to earn a higher income also increases relative to your level of study. The more qualified you are, the greater the range of jobs available to you in higher salary brackets. While future earnings should not be the only criteria when making a decision on your career and education pathway, today's fee-paying environment makes it an important consideration.
University pathways
Most universities offer a range of undergraduate and postgraduate courses that relate to the financial services industry. There are also combined courses such as Bachelor of Engineering/Bachelor of Commerce and Bachelor of Economics/Bachelor of Laws. Increasingly, people coming from an applied mathematics or information technology degree are using these disciplines as an entrée to a career within the financial services industry.
The goingtouni.gov.au website is a valuable resource for those considering a university pathway. An Australian government initiative, it provides a comprehensive suite of information ranging from what to study and where to the different types of financial assistance available.
Excellence in education
Finsia is a strong supporter of excellence in education. In the past year, we encouraged excellence in finance education by awarding 34 academic prizes to universities across Australia and New Zealand. These prizes recognise high levels of achievement in finance related subjects.
Career fairs and education expos
Many large tertiary institutions hold employer career fairs and course information days on their campus or at combined offsite career fairs/education expos. Career fairs are particularly helpful to undergraduate students wanting to gain specific information about potential employers as well as general information about the employment market. Medium to large employers, both government and the private sector, are represented. Many organisations also offer work experience programs for undergraduate students and career fairs often provide information on these opportunities.
Employers will often send employees with a couple of years of work experience to these career fairs as they can more easily relate to students. Career fairs are one of the first opportunities for you to start to practising your networking skills. For information about career fairs and open days contact the university’s student services or faculty information services.
Work experience internships and graduate programs
A number of financial services organisations offer structured holiday work experience programs to university students. Others offer highly prized internships or graduate positions. Most programs offer graduates experience in a number of different business areas. At the conclusion of the program, students are placed in an appropriate role/business unit.
While competition for these places can be intense, they offer an exceptional entry point to an organisation, as well as the advantage of exposing graduates to a broad view of the industry and the organisation.
What employers are looking for in financial services graduates
Organisations look for high-calibre graduates, however technical skills and academic results are not the only focus. Competencies that are highly valued include business acumen, customer focus and teamwork, planning, organisation and decision-making skills. Soft skills such as communication and negotiation skills are increasingly essential.
Most universities have a careers centre that can assist graduates with employment. These centres run courses, events and expos aimed at assisting graduates in their employment search. Graduate Careers Australia, the Financial Management Association of Australia and the Melbourne Centre for Financial Studies are three examples of bodies that may be of assistance.
Postgraduate study
Postgraduate study can further develop your career and employment prospects and there are a variety of specialist programs on offer. For example:
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Master of Banking and Finance Regulations
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Master of Applied Finance
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Master of Banking and Finance Law
The Master of Business Administration (MBA) is increasingly regarded as a core qualification for graduates aiming for an executive position. Many Australian institutions offer MBAs with an international perspective. There are a number of institutions that rate MBA courses and can help you choose the one that’s right for you. Australian-Universities.com and MBAGuide.com.au publish current and historical
rankings of Australian universities.
VET pathways
Vet courses are offered via organisations such as TAFE and by private colleges.
Depending on your career interests, TAFE and private training colleges can offer a number of financial services certificate- and diploma-level courses. To find out more, see the National Training Information Service (NTIS) site at ntis.gov.au. It provides contact details for all training organisations in Australia that are registered to deliver VET programs.
You can also log onto myfuture.edu.au, an initiative of the Australian, state and territory governments, for guidance on your career.
Regulatory and compliance training
The financial services industry has seen a wide range of regulatory changes over the past few years, the most significant being the introduction of the Financial Services Reform Act 2001 (C'th). The Act took effect in March 2002 but allowed for a two year transition period. The Act brought all financial services and products under one regulatory regime with the objective of increasing the level of compliance and competency within the industry. More information on the changing face of the industry is available in our timeline.
As a result, individuals that provide ‘retail financial product advice’ must have completed an appropriate PS 146 training course. ‘PS 146’ stands for ‘Policy Statement 146’, which is a document outlining compliance requirements under the Financial Services Reform Act 2001 (C'th).
There are a number of training organisations offering PS 146 related training courses. The ASIC training register at the ASIC training website (asic.gov.au/etraining/etrain.nsf) provides information about endorsed training service providers. Employers will often help new employees complete this course.
Finsia members are entitled to an exclusive 10 per cent discount from Kaplan Professional for regulatory and compliance training. The Kaplan Professional-Finsia partnership was forged through the sale of Finsia's education business in August 2007. To take advantage of the discount, log on to retrieve your discount code, and include this in your Kaplan enrolment or registration form.
Continuing professional development pathways
In house training
Many financial services organisations offer in house training to aid the ongoing professional development of their staff. Courses may focus on technical skills or soft skills, such as people management and negotiation. The training and development or human resources departments within organisations can assist with this.
Employer supported study assistance
A number of organisations provide education assistance with tuition and HECS costs, registration fees and paid study leave, especially if the study relates to the financial services industry and the individual’s role.
Professional and industry associations
Professional associations such as Finsia offer a range of professional development events, including company presentations, seminars, industry conferences and other networking functions. These events typically feature prominent speakers who present views on topical issues. Benefits include networking opportunities as well as the opportunities to enhance your skills, knowledge and industry awareness.
Finsia also runs special interest groups, including the Young Finance Professionals and Women in Finance forums.
Helpful links
Australia
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Job Ready Online: A website offering thousands of jobs from blue chip employers in the financial services industry in Australia, New Zealand and around the globe
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workplace.gov.au: A guide to the occupations and industries in which Australians work. Highlights jobs with good prospects
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dest.gov.au: Department of Education, Employment and Workplace Relations
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ntis.gov.au: Contact details for all training organisations in Australia that are registered to deliver VET programs.
New Zealand
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Job Ready Online: A website offering thousands of jobs from blue chip employers in the financial services industry in New Zealand, Australia and around the globe
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careers.govt.nz: Interactive tools and information to make work and study decisions easier
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worksite.govt.nz: Useful links and the latest information on work and training in New Zealand
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