Is a Career in Finance Right for Me, and What Skills Do I Need to Succeed?
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For ambitious professionals seeking careers with both high growth potential and strong earning prospects, finance is a key pathway to consider.
Top banks and major financial institutions recruit thousands of talented new hires each year to work as associates, analysts, and in supporting roles. Fortune 500 firms regularly seek skilled individuals for corporate finance positions, while there are also lucrative and highly desirable opportunities in areas such as private equity and venture capital.
Working in the sector can also bring with it a whole host of benefits. Though it’s an industry that’s renowned for challenges including high pressure and difficulties with work-life balance.
So, how do you know if a career in finance is the right option for you? And what skills and qualifications are required to work in the industry?
What are the Pros and Cons of a Career in Finance?
Finance is a career path that carries a few associations: high stakes, high earnings, and high work-rate being some of the most common. Depending on what subsector of the industry you work in, all of these can be true to some degree.
Investment banking, for example, is often equated to ‘drinking from the fire hose’, with associates and analysts regularly required to work long days as they manage projects and refine presentations, and sometimes into the early hours of the morning when closing deals.
However, investment bankers are rewarded with strong compensation packages—average associate salaries and bonuses each tend to exceed $200k after three years—and benefits such as gaining access to prestigious clients and dining at top restaurants. There’s also typically a clear, linear progression structure that provides an element of career stability.
Those who choose to enter corporate finance roles, which are available across a wide range of companies and sectors, will usually have less intensive days than their banking counterparts. Roles tend to focus on forecasting an organization’s outcomes, evaluating investment opportunities, and managing risks.
Corporate finance career paths are less clearly defined, with opportunities within organizations to go into more general management roles or to advance into senior financial positions with a view to becoming a chief financial officer (CFO). While generally a less lucrative path than investment banking, corporate finance professionals at mid to large firms can still earn strong salaries.
Some of the less common roles that are available in finance are within areas such as private equity and venture capital. Here, leaner teams and more manageable working practices mean competition is high; not to mention the existence of profit-sharing arrangements which can result in million-dollar payouts when big deals close.
As highly desirable roles that typically require prior experience in consulting or investment banking, working within these sub sectors is particularly difficult and often a route for graduates of elite institutions such as Harvard Business School and The Wharton School.
Whichever financial career path seems desirable, it’s important to consider whether the lifestyle is a good fit, says David Capaldi, director of the Career Management Center at Cornell University, SC Johnson College of Business.
“Some graduates do get burned out, so it’s important to make sure you pursue a career in finance because you want to do it—rather than because your peers are doing it or you think you can make a lot of money.”
What are the Top Technical Skills for Finance Professionals Today?
Technical skills in finance encompass knowledge of financial and data-based concepts, and understanding of tools that are widely used throughout the industry.
Financial modelling is a fundamental skill for finance professionals, allowing them to forecast the performance of a company and in turn assist with scenario planning and investment decisions.
Likewise, finance professionals must be adept at handling large datasets and extracting information that can inform key strategic decisions. This requires an advanced knowledge of key tools such as Excel as well as visualization tools including Tableau.
“Financial professionals often have to draw conclusions from large volumes of data, so being able to manipulate and analyze that is important,” David explains.
A key area where data skills are relied upon is within financial reporting. Increasingly, reporting also requires knowledge of sustainable finance and the evolving regulations driving ESG (environmental, social, governance) reporting standards.
Similarly, an understanding of the wider context such as economic and market changes, as well as regulations, is also important for those working in the industry, allowing professionals to spot opportunities and mitigate potential risks.
Like many career paths, knowledge of artificial intelligence (AI) and machine learning (ML) are increasingly becoming important within the financial sector as organizations strive to leverage the technology to automate processes and enhance key tasks such as financial reporting and data handling. Though not essential, programming skills are also valued within particular pathways in finance.
Are Soft Skills Like Communication Important in Finance Careers?
Many of the core technical skills for finance are considered table stakes for entry into the industry. However, for those seeking to succeed within the financial sector and elevate to higher positions, soft skills are perhaps even more important.
Communication is paramount with financial roles requiring you to engage with a variety of both internal and external stakeholders on a regular basis. This may involve relaying highly technical information to a non-technical colleague, or presenting an investment opportunity to a client.
“I think something that’s very important for every job is to have an understanding of who you’re talking to, and what the person knows, and what you need to explain to them,” says Paul Schweigl, portfolio analyst at Fisch Asset Management and finance master’s graduate from EDHEC Business School in France.
Similarly, having the ability to adapt to the pace of change within the fast-moving industry is essential for longevity. As are being organized and able to manage deadlines and multiple tasks occurring simultaneously.
"I think what is underappreciated is the level of multitasking that goes on in the role,” says Conrad Lochovsky, a vice president of investment banking at Morgan Stanley. "There's also a lot of self-organization and management because the hours are long, and it takes a lot of concentration.”
Courses to Build Financial Skills for a Banking Career
If you’re seeking to embark on a career in finance and develop your financial skills, the ideal route to take will vary depending on your previous education, experience, and current career position.
A master’s degree in finance or a related field such as accounting, financial engineering, or financial management could help enhance your knowledge of financial fundamentals, develop your skills, and gain opportunities to get experience in the field through business simulation exercises and internships.
Studying a graduate degree will also provide networking opportunities and career support that can create a platform to take steps into the industry after graduation.
If you already hold a graduate degree or aren’t seeking to commit to a full program, you could take a short course or certificate with a reputable institution to develop key skills in a short time frame. Harvard Business School, for example, offers a six-week Leading in Finance certificate teaching financial principles to help those seeking corporate finance careers.
Alternatively, if you already hold experience in the field and are seeking to upskill in a particular area or fill a skill gap, you could undertake a relevant microcredential via an online course provider such as Coursera.
With a wealth of options available, finding the right one can be challenging—it’s worth comparing programs and certifications considering key factors such as cost, time commitment, and the potential outcomes you may achieve.
