WHICH INSTITUTIONS EXIST IN THE FINANCIAL SECTOR?
When you look overall in the financial sector, it can be divided in three parts:
- Financial institutions, such as banks
- Pension funds and insurance companies
- Mortgage credit institutions
Therefore, the financial markets mostly take place through financial institutions such as stockbrokers, stock exchanges, pawnbrokers, savings banks, insurance companies and so on. Every nation has its own financial institutions, that is looking more and more alike because of the internationalisation and increasing competition.
WHAT DO YOU DO IN THE FINANCIAL SECTOR?
There are many different work tasks in the financial sector. The most common ones are among others mediation of payments, mediation of trades, keeping of values, receiving of deposits, execution of bonds, insurance and so on. A financial company can often help with the transformation and targeting of the financial demands for the individual client.
The work tasks in the financial sector includes:
- Handling of payment systems
- Collecting resources to a financial company
- Moving of financial resources through time and different businesses
- Creation of methods to control risks
Most of the financial functions are conducted by a financial company, but they can also be conducted by individual persons or companies. Some big companies have their own financial departments. This could be an internal bank. In that way they can control their financial functions themselves.
WHAT DOES IT REQUIRE TO WORK IN THE FINANCIAL SECTOR?
If you want to work in the financial sector you have to be happy with changes. Changes mean a lot in the financial business, because it’s characterized by big continuously changes. The big changes emerge because of the market’s ups and downs. Therefore, you need to be adaptable to changes, if you want to work in this business.
The changes happen in the job itselves, but it also means that you need to be prepared to have a job one month and lose it the next. This can change do to organisational changes, political initiatives or that the whole market has been changing. This often means that you only have short time in every company and position. On the other hand, you can learn a lot in the financial business while getting challenged.
There are several factors that are creating new tendencies in the financial business. This is the tendencies, that you should be aware of, if you want to become a part of the financial sector. First and foremost there has arrived a lot of new technologies and increased demands from customers and authorities have created new need new competencies. This also applies to the digitalization, that has become a very important part of the financial business. Therefore, it’s essential that you know a lot about the digitalization and new technologies.
The digitalization and the new technology is also responsible for the branches and offices’ constant drop in number, while the online banking and other digital solutions get bigger and bigger. This require a development of new concepts and market analysis, which especially requires academic competencies. Furthermore, the whole business is characterized by sales - including sale of new products to clients. More companies also ask for international language skills because of the increased internationalization.
Positions in the financial sector
There are many different positions in the financial sector. Because the business is characterized by change and digitalization, there are many new positions and they are in constant change.
Some of the positions in the financial business are:
- Bank adviser
- Business analyst
- Finance manager
- Risk analyst
- Finance director
This is positions that exist in the overall categories in the financial business that were mentioned earlier - The financial institutions, pension funds and insurance companies and mortgage credit institutions.
The most common kind of employee in the financial business is the bank adviser. A bank adviser works in a bank and is hired to counsel the bank’s customers about their current and future economics. A risk analyst is on the other hand an employee that analyze and keep and eye on the risks that the company can be exposed to - including credit, market and liquidity. You can also work in economics, where you control a company’s economics.