Finance shapes the modern business environment and the economy at large. This field affects the financial health of major organizations and entire sectors. It also greatly impacts the daily lives of many individuals, families, and communities.
This field appeals to ambitious professionals, who view this as the ultimate opportunity to climb the career ladder and earn an excellent living. In finance, there are many ways to build a lucrative and powerful career driven by passion that feels personally meaningful. Extending from Wall Street to community banks, nonprofits, and beyond, this field can be surprisingly diverse, as we will reveal below:
Why Choose Finance?
When explaining their decision to enter the competitive field of finance, many professionals cite the desire for swift professional growth, along with clear financial incentives. For example, this may consist of the promise of a high salary and generous bonuses.
There’s more to finance than high pay, however. This field also offers considerable excitement and personal satisfaction. As one pleased finance professional explains (referencing his work in finance for the multinational retailer NEXT), “I really enjoy finance because the numbers tell a story…[finance] keeps you on your toes [and] keeps things fresh.”
Many finance professionals reference a love of working with numbers, while others hope to shape the financial side of strategic decision-making. These professionals are curious, passionate, and highly ambitious. Finance delivers on their desire to rise through the ranks while making a discernible difference for entire companies and communities.
The Value of a Finance Degree
In the vast field of finance, there is currently a strong demand for T-shaped professionals, who blend breadth of knowledge with targeted finance skills. These passionate individuals bring valuable perspectives to their work, and often, innovative ideas. They thrive when grounded in fundamental knowledge but must also develop a specialized skill set that draws heavily on emerging technologies and quantitative abilities.
This is where a finance degree can prove useful. From the bachelor’s degree in finance to the finance MBA, today’s most influential programs help students understand the big picture of modern financial markets while also introducing financial forecasting, valuation techniques, and other must-have skills. Meanwhile, immersive learning (available even while seeking an online finance degree) allows future finance professionals to get comfortable applying skills, thereby easing their eventual transition into a fast-paced workforce.
Types of Careers in Finance
Finance is a diverse field, encompassing a broad range of roles within numerous sectors and at all levels of the career ladder. That said, not all niches appeal to all professionals, so it is important for aspiring finance students to understand which areas they find most compelling and tailor their academic pursuits and career paths accordingly. Finance careers worth exploring may fall into one of these top categories:
Corporate Finance
Committed to boosting shareholder value while striking the ideal balance between risk and profitability, corporate finance professionals work extensively in budgeting and forecasting. Many are involved in high-level strategic decision-making initiatives and may enjoy the opportunity to collaborate with a range of departments, executives, or stakeholders. Promising positions in corporate finance could include roles such as financial analyst, treasurer, or controller.
Investment Banking
Crucial for helping companies raise capital and navigate difficult financial pursuits, investment banking represents an advisory-based field, relying on skilled finance professionals to act as intermediaries between corporations and investors. Investment bankers may provide targeted guidance during initial public offerings (IPOs) or mergers and acquisitions (M&As).
Commercial Banking
Often centered around small businesses, commercial banking typically focuses on lending products or services, such as credit lines or loans. This should not be confused with retail banking, which more frequently targets individual consumers. Many commercial banking professionals find work as relationship managers, loan officers, or treasury analysts.
Asset Management/Wealth Management
Encompassing advisory services meant to build wealth, asset management aims to maximize portfolio value without compromising risk levels deemed acceptable by clients. This calls for personalized strategies developed based on clients’ unique goals and preferences. Professionals within this niche often work as portfolio managers or wealth advisors.
Financial Planning
Working closely with clients to build targeted plans related to retirement or taxation, financial planners strive for holistic solutions that take both financial and personal goals into account. These professionals serve individuals and families, taking great satisfaction in their ability to guide clients through major milestones.
Risk Management
Every organization incurs some level of financial risk, which must be carefully identified and analyzed to protect assets or earnings. To that end, many finance professionals work as risk analysts or risk managers, taking a deep dive into complex financial data and developing risk models to help management make informed decisions.
Hedge Funds
Hedge funds pool money from investors aiming for high returns. They are managed by dedicated professionals who are often more willing than others in finance to pursue risky alternative investments. Hedge fund analysts may explore lucrative opportunities while delving into specialties such as derivatives or commodities.
Insurance
Meant to understand and mitigate risks, insurance plays a crucial role in the finance sector. Many professionals occupy the intersection between insurance and finance, drawing on their extensive understanding of financial management and risk management to ensure that organizations invest wisely while absorbing potential losses. Roles that blend insurance and finance may include claims analyst, underwriter, or actuary.
Fintech (Financial Technology)
Strategically integrating cutting-edge technologies into the fast-paced field of finance, fintech leverages cloud services, blockchain, and beyond to improve the consumer experience through innovation. Finance professionals who crave a fast-paced and dynamic work environment may be drawn to fintech startups, although there are also fintech opportunities with consulting firms and even some traditional banking institutions.
Public Accounting
Because finance students develop such strong quantitative skills, some can make the leap into public accounting, although some additional coursework or credentials may be required. Upon entering the field of public accounting, these professionals can help individuals or businesses navigate complex tax concerns. Those with a finance background may be well-suited to certain advisory services, with roles such as financial advisory analyst also within reach.
Real Estate Finance
Focused on funding for real estate projects, this unique branch of finance determines how real estate investments are pursued and may involve specializing in mortgages, valuation, or portfolio management. Finance professionals who enter this niche may work as real estate financial analysts, offering support for real estate transactions, including financial modeling emphasizing real estate investments.
Government and Nonprofit Finance
While finance is often associated with the corporate sector, government agencies and nonprofits can also benefit from the expertise of finance professionals. For instance, government agencies rely on budget analysts to confirm that funds are used appropriately. Financial examiners can find rewarding jobs with the Federal Reserve. In the nonprofit sector, roles such as financial manager and grant manager shape resource allocation, ensuring that funds support initiatives aligned with core nonprofit objectives.
5 Popular Career Paths for Bachelor’s in Finance Graduates
While many finance professionals go on to pursue graduate-level credentials, it is possible to gain a strong start in this field when equipped with a bachelor’s degree. Many entry-level roles facilitate a swift climb up the career ladder. Top finance major careers include:
Financial Analyst
Valued for their role in assessing organizations’ financial health, financial analysts interpret income statements, balance sheets, and other resources to help determine how companies fare from a financial perspective. By creating financial models, these professionals can also reveal how businesses might perform in the future, typically by forecasting potential revenues and profitability. They present their findings to clients and executives to help shape numerous decision-making initiatives.
Financial Planner/Wealth Manager
While financial analysts have a powerful role to play in shaping finance at the corporate level, financial planners bring much-needed insight to individuals and families. These professionals help their clients develop personalized financial goals, which are formed with specific risk tolerances in mind. Their advice may also encompass tax planning or retirement planning.
Budget Analyst
Like financial analysts, budget analysts leverage extensive data, but they tend to focus more on cost monitoring and internal resource allocation, often by contrasting actual spending against allocated budgets. This may involve variance analysis, with budget analysts expected to reveal spending discrepancies and propose adjustments.
Corporate Finance Associate
Typically working within corporate finance departments, corporate finance associates play a supportive role in financial analysis and reporting efforts and may also collaborate with accounting or legal teams. This entry-level role can provide valuable exposure to the realities of the finance world, helping to prepare future analysts for senior positions.
Commercial Banking Officer
Sometimes referred to as loan officers or relationship managers, commercial banking officers facilitate a wide range of financial services on behalf of commercial banks. They work closely with corporate clients, taking time to understand their unique needs and to propose banking solutions that satisfy key requirements. These officers may also need to assess creditworthiness to help manage banking risks.
5 Popular Career Paths for MBA Finance Graduates
The Master of Business Administration is an appealing degree for finance professionals, with many MBA programs including not only core courses covering financial management, but also, opportunities to specialize while taking fascinating classes such as International Business Finance or Investment Analysis and Portfolio Management. Upon graduating, ambitious finance professionals should be prepared to pursue these high-level roles:
Investment Banker
Enjoying the powerful opportunity to raise capital (typically via stocks and bonds), investment bankers offer valuable insights into market trends and investment opportunities, but in the interest of ensuring that leaders make informed decisions. Investment bankers may also offer advice on strategic initiatives, such as mergers and acquisitions.
Financial Manager
Tasked with optimizing the financial health of the organizations they serve, financial managers spend much of their time analyzing data and creating forecasts. Offering much-needed financial guidance for executives, these professionals may home in on specific areas such as risk management or cash management, especially as they relate to overall financial performance.
Chief Financial Officer (CFO)
Overseeing financial operations at the organizational level, CFOs are top executives who hold a great deal of authority. Their decisions can determine the financial health of entire organizations. To that end, they rely on high-level forecasting and risk management to shape large-scale financial strategies that align with overarching business objectives. They may also oversee resource allocation, financial reporting, and investor relations.
Hedge Fund Manager
Striving to maximize investors’ returns while also mitigating risks, hedge fund managers help shape trading strategies across numerous asset classes. They monitor funds’ portfolios and track performance metrics, relying on a wealth of data to drive optimized returns. This role requires extensive communication with investors, explaining why certain strategies are preferred and how to protect assets from market volatility.
Private Equity Associate
Employed by private equity (PE) firms, PE associates conduct in-depth research to identify potentially lucrative investment opportunities. These associates conduct due diligence to determine whether various deals should be pursued or passed over. Associates may also develop financial models for valuation purposes, assessing metrics such as discounted cash flow (DCF).
How to Get Started in a Finance Career
Are you eager to get your start in the finance industry? An exciting professional journey awaits — but first, you need the right skills, the right credentials, and the right contacts. These take time and effort to acquire and, depending on your career goals, you may need to dedicate several years before you’re ready to make your mark in finance. These steps should streamline the process and set you up for success:
Choose the Right Degree Program
As a future finance professional, you will need a tailored skill set, including financial modeling, data analysis, valuation, and more. Also important are tailored abilities that relate to your preferred niche. Ideally, you will pinpoint your goals early on and use them to guide you in selecting a degree and concentration, but with the right program, you can explore your interests before settling in on an area of focus. Capstone courses, for example, allow you to expand upon previously explored concepts that feel personally compelling.
When in doubt, opt for a dedicated finance degree. A bachelor’s degree in finance should be sufficient for breaking into many analyst and associate roles, but you will need a finance MBA if you want to score top jobs in financial management. Your program’s curriculum should be a priority. Verify that it covers all the fundamentals, along with relevant technologies that you are likely to leverage on the job.
Build Your Finance Skill Set
Your degree program should provide a thorough introduction to finance fundamentals, including must-have quantitative skills and a general understanding of corporate financial management. You can continue to expand upon these skills by seeking real-world learning opportunities, such as internship positions. In the classroom environment, take full advantage of active learning opportunities and reflect on the process to determine where your strengths and weaknesses come into play.
Network
Credentials make a difference, but there is no substitute for purpose-driven networking. These efforts can be initiated while enrolled in a finance program. Rarely will you enjoy such extensive access to ambitious individuals who share your passion and ambition. Get to know faculty members and fellow students while engaging in class discussions, case studies, and other meaningful experiences. Additional networking opportunities may be available while completing internships or by getting involved in professional associations.
Start Your Financial Career with Baker
Ready to embark on a high-powered career in finance? Look to Baker College to provide a strong start, complete with tailored skill development. We offer multiple opportunities to earn finance degrees, such as the Bachelor of Business Administration in Finance and the MBA in Finance. Get in touch today to learn more.