Why pursue a career in finance?: Analysing the demand for finance professionals

The finance industry is one of the most dynamic sectors in the global economy, constantly evolving and adapting to technological advancements, economic changes, and regulatory developments.

The demand for skilled finance professionals has never been higher, as all businesses from established financial institutions to large corporations to growing start-ups seek individuals with a diverse skill set to manage their financial resources, drive decision-making, and ensure effective risk management.

In this blog, we will analyse why finance is an attractive career path, the finance jobs offering the highest salaries, the factors driving the growing demand for finance professionals, and how the rise of fintech is impacting this demand.

Why is finance a good career path?

A career in finance offers a wide range of opportunities across various industries and sectors. Whether you’re interested in corporate finance, investment banking, financial planning and analysis (FP&A), or financial reporting, the finance industry provides numerous career paths to suit your interests and skill set.

Moreover, finance roles often come with high salaries and excellent job prospects. According to Reed, the average salary for financial analysts in the UK is £54,584, and the average salary for financial advisors in the UK is £74,246.

In addition to financial rewards, a career in finance can also be intellectually stimulating and challenging. Finance professionals are responsible for making strategic decisions that impact the future of their organisations, and they play a crucial role in managing risk and ensuring financial stability.

Lastly, a career in finance provides opportunities for continuous learning and professional growth. As the finance industry evolves, finance professionals must stay updated on the latest technological advancements, regulatory changes, and industry trends. This requires a commitment to lifelong learning and upskilling, which can open up new opportunities and career paths.

What are the highest paying finance jobs?

Several industries offer high-paying jobs for finance professionals, including investment banking, hedge funds, private equity, and corporate finance. Investment banking, in particular, is known for its high salaries and bonuses, especially for professionals working in mergers and acquisitions (M&A) and capital markets.

According to a report by Glassdoor, 16 of the highest paying finance jobs in 2022 were:

• Chief Financial Officer (CFO): £72,000 - £215,000

• Quantitative Analyst: £41,000 - £131,000

• Equity Research Analyst: £42,000 - £118,000

• Portfolio Manager: £32,000 - £120,000

• Actuary: £41,000 - £112,000

• Tax Manager: £43,000 - £78,000

• Commercial Manager: £33,000 - £82,000

• Investment Consultant: £28,000 - £95,000

• Investment Banking Analyst: £42,000 - £73,000

• Fund Accountant: £25,000 - £63,000

• Investment Analyst: £24,000 - £80,000

• Asset Manager: £30,000 - £85,000

• Financial Planner: £34,000 - £77,000

• Investment Banking Associate: £63,000 - £121,000

• Financial Consultant: £23,000 - £72,000

• Internal Auditor: £25,000 - £68,000

These salaries can vary depending on factors such as location, experience, and level of responsibility. However, they provide a good indication of the earning potential in the finance industry.

What factors are driving the growing demand for finance professionals?

Several factors are driving the growing demand for finance professionals, including technological advancements, regulatory changes, and the increasing complexity and globalisation of financial products and services. 

These factors are driving the growing demand for finance professionals and creating new opportunities for individuals interested in pursuing a career in finance.

Let’s examine each of these factors in more detail:

Technological advancements

The finance industry is experiencing a wave of technological innovation, with the rise of fintech, artificial intelligence (AI), machine learning, blockchain, and data analytics. These technologies are revolutionising the way financial services are delivered and transforming the financial sector. As a result, finance professionals with expertise in these areas are in high demand.

Regulatory changes

The finance industry is heavily regulated, with strict compliance requirements that govern how financial institutions operate and manage risk. In recent years, there has been an increase in regulatory scrutiny and enforcement, driven by events such as the global financial crisis of 2008 and the emergence of new risks such as cybersecurity threats and climate change. As a result, finance teams are hiring more compliance officers, risk managers, and regulatory experts to ensure compliance with laws and regulations.

Increasing complexity

The financial products and services offered by financial institutions are becoming more complex, requiring a higher level of expertise to manage and analyse the financial information they produce. For example, the rise of alternative investments such as private equity, hedge funds, and real estate investment trusts (REITs) has created a demand for finance managers with specialised knowledge in these areas. Similarly, the increasing use of financial derivatives and structured products has created a need for professionals with expertise in quantitative finance and risk management.

Globalisation

The finance industry is becoming increasingly globalised, with financial institutions operating across multiple jurisdictions and serving clients around the world. This has created a demand for finance professionals with international experience and expertise in cross-border transactions and regulatory compliance.

How is the demand for finance professionals changing with the rise of fintech?

Fintech (financial technology) refers to the use of technology to improve and automate financial services, including payments, lending, investing, and wealth management. The rise of fintech is revolutionising the modern work environment and creating new opportunities for finance professionals. 

The explosion of fintech has led to the creation of new job opportunities in areas such as data analytics, software development, user experience design, and cybersecurity. Fintech companies are hiring data scientists and machine learning engineers to analyse financial data for more accurate future forecasting and are developing predictive models to create a greater chance of higher success in their efforts. Similarly, they are hiring software developers and user experience designers to create intuitive and user-friendly apps and platforms.

On top of this, fintech has also opened doors for financial professionals to collaborate with technology experts and entrepreneurs. Many traditional fintech institutions are partnering with fintech start-ups to develop innovative products and services. This has created a demand for finance professionals who can understand both the financial and the technological aspects of these partnerships.

Further your finance career

A career in the finance sector offers numerous opportunities for professional growth, high salaries, and intellectual stimulation, making it a compelling choice for individuals who are passionate about finance, technology, and making a positive impact on the financial industry.

Be a part of the future of finance by studying an MBA with Accounting with St Mary’s University. Taught entirely online and part-time, you will hone analytical skills to become an efficient and sought-after data-driven finance professional, and will develop the communication skills and interpersonal skills that will put you in good stead for leadership positions.