About 8,000 firms compete in the securities industry. Employment is predicted by the U.S. Bureau of Labor to grow by 37 percent, much faster than average through the year 2005. Employment in the securities industry is dependent on the state of Wall Street. Generally though, the number of securities sales workers will expand as economic growth and rising personal income increase the funds available for investment. With the strong economy today, the retirement planning of the huge mass of baby boomers, and the growth in number of institutional investors, the financial services field will require many new workers. Beginners must work hard to develop a client base but, once established, they are rewarded by even more clients and high earnings.
Competition for positions in corporate finance is somewhat greater than for positions in banking and financial services. U.S. Bureau of Labor Statistics predicts a growth of 24 percent in financial managers such as treasurers, controllers, credit managers, and cash managers through the year 2005. Approximately one-third of financial managers are employed by financial institutions; one-third, by services industries; and the remainder across every other type of industry. A premium is placed on expertise in global trade, new financial instruments, and the many changing federal and state laws.
Equal Opportunities
Although most bank employees are women, the great majority are in low-level clerical and teller jobs. Banking is a conservative, tradition-bound field. Successful sex discrimination suits against big banks have helped the advancement of women into management positions. Many women managers are locked into lower- and middle-management positions because they lack the educational background or end up in operations, personnel, or branch banks. Most top bank managers come up through the money-making side of banking-the trust department or commercial loans. In the past, big commercial lending was closed to women because of the philosophy that officers must move in elite social circles to solicit new business-private clubs, golf courses, and so on-and that women did not have the same kind of access to these as men. Now some banks have instituted affirmative action programs to give special commercial loan training to female officers.
Many successful securities sales representatives are women. Women have demonstrated that they can make it in every area of banking and finance. Muriel Siebert, the first woman to buy a seat on the New York Stock Exchange in 1967, went on to become the New York State Superintendent of Banks. Gloria Mark-field was director of money management for Revlon, Inc., at the age of thirty-five, demonstrating that women can also succeed in the corporate financial world.
Members of racial and ethnic minorities are being actively recruited by the banking industry these days. For job referrals, contact:
Bank Administration Institute
Chicago, IL 60606
Financial Women International Arlington, VA 22203-3728
Robert Morris Associates
Philadelphia, PA 19103
Minority Applicant Referral Service American Bankers Association Washington, DC 20036
For graduate fellowships in money, banking, and related fields, minority members can write:
Whitney M. Young, Jr., Fellowship American Bankers Association
Aptitudes and Attributes Needed for Success
The best way to tap into the many job opportunities in finance is to get a good education. Although it is claimed that people with a variety of college majors may enter the field of banking, it is probably apparent from what you have learned about mobility that those who successfully move up in bank professions have a solid background in the field of finance. In banking, the best "in" is an educational background in banking, finance, economics, accounting, marketing, or general business. Banks hire people with bachelor's and master's degrees in equal numbers, but an M.B.A. will increase your starting salary by several thousand dollars. In consumer credit, college graduates with business majors in the areas of finance, accounting, economics, statistics, and business law are readily hired. An M.B.A. is good but not necessary. Often the company will finance graduate education.
Although a bachelor's degree in finance, accounting, math, statistics, or economics will gain an entry-level position in the sphere of the treasurer or controller of a corporation, M.B.A.s with technical undergraduate degrees may have an easier time finding employment. A background in computer science or information systems in this climate of technological change and increased automation is particularly advantageous for undergraduates. Opportunities for advancement are good once you get into the mainstream of the corporate financial operation, but competition gets tougher the higher up you go, so it's wise to keep graduate school in mind. Credentials as well as experience will influence progress along your career path in finance.
Personal
Educational requirements for entry into the securities industry are about the same as for corporate finance, which in part explains the mobility between them. However, personality characteristics may differ somewhat between Wall Street and corporate professionals. For example, consider the move from a position as a security analyst into a corporation. The brokerage world tolerates the headstrong, independent thinker very well, but in corporations, individuals are more accountable for their actions and must have the cooperative and diplomatic personality required to play the corporate game.
In careers in banking, consumer credit, and the securities industry, human relations and communications skills are very important. For example, in banking and consumer credit such things as a sincere desire to be of service to others, an ability to be friendly but businesslike, tact, and enthusiasm are very important. In all finance-related fields, such characteristics as personal integrity, precision and accuracy, an ability to analyze facts and make intelligent decisions, an aptitude for math, an ability to work well under pressure, and an ability to handle heavy responsibility are all necessary for success.
Training
Essential for success in careers in finance is gaining the proper training. Your first job should be carefully selected, with consideration given to the kind of in-house training offered to you by the company as well as the training programs outside the company that will be made available to you through your job. Within the banking industry, consumer credit, and securities industries are institutes, workshops, and training programs for all levels of employees sponsored by industry firms and associations. For example, the New York Institute of Finance is the primary source of training for the securities industry. In banking, courses are offered to member banks by the Bank Administration Institute, the American Bankers Association, and Robert Morris Associates. Training is stressed by many of the successful people in the field of finance. Certification in those professions where it is available demonstrates commitment to the field and is a big plus in the job market.
Career Development and Compensation
Impressive success stories abound in the financial community, and advancement can be rapid for those with desirable attributes and educational background. For example, Howard Marks rose from trainee to vice-president at Citibank in five years. He had majored in accounting and finance at Wharton with master's work in accounting and marketing at the University of Chicago. While completing his master's degree, he became a summer trainee at Citibank. His specialty was trust banking, and his advancement was especially fast.
Some general career paths for careers in consumer credit, securities, and corporate finance are simply depicted. Considerable mobility exists between corporate America and the securities industry. If upward mobility in a corporation seems questionable to an individual, brokerage houses and investment firms offer salaries comparable to the treasurer range for well-qualified individuals. On the other hand, Wall Street has its own type of career crisis. Many financial planners peak early and feel a lack of opportunity for career growth and higher salary. Fund managers have exceptionally stressful jobs in that there is pressure to maintain or surpass a fund's performance despite fluctuations in the stock market.
Remember that it is not unusual any longer for corporations to recruit outside the corporation for key financial executives. An important consideration in any move to a corporation from Wall Street is whether or not entry into the main-stream or the company's long-range financial planning and acquisition programs is likely. Some analysts have taken a detour that has proved to be somewhat of a dead end into an investor relations position. It is harder to move into a key management position from investor relations. Also, investor relations salaries are substantially less than the salaries successful security analysts get.
The salary range for bank positions is dependent on the size of the bank and varies widely. Also, salaries within each individual bank may vary for the same job title depending on the amount of lending authority or scope of responsibility of the bank officer. Salaries vary greatly in the securities industry, where personal effectiveness and sales ability determine earnings.
Sources of Additional Information
There is a great deal of information available to you if you would like to know more about careers in finance. Such periodicals as Fortune, Business Week, Forbes, The Banker's Magazine, Banking, American Banking, Trust and Estates, The Money Manager, Financial World, Finance, The Journal of Portfolio Management, and, of course, The Wall Street Journal are just a few of the periodicals from which you can learn a tremendous amount about the field of finance. Listed below are sources to which you may write for information. For information on banking, write to:
American Bankers Association Washington, DC 20036
Bank Administration Institute
Chicago, IL 60606
For information on consumer credit, write to:
American Financial Services Association Washington, DC 20006
Credit Union National Association Madison, WI53701
International Credit Association St. Louis, MO 63141
National Association of Credit Management Columbia, MD 21045
For information on the securities, write to:
American Stock Exchange Information Services Division New York, NY 10006
Association for Investment Management and Charlottesville, VA 22903
Institute of Certified Financial Planners Denver, CO 80231-5942
International Association for Financial Planning, Atlanta, GA 30328-5364
Investment Company Institute Washington, DC 20005-2148
National Association of Personal Financial Advisors Buffalo Grove, IL 60089
National Association of Securities Washington, DC 20006-1506
New York Stock Exchange
New York, NY 10005
Public Securities Association New York, NY 10004-2373
Securities Industry Association New York, NY 10271
Be sure to check your college career information center. You will find many additional sources of information there.
