Careers in Finance

Financial positions are prevalent in corporations as well as in financial institutions. They provide opportunities for strategic financial planning, quantitative analysis, investment management, and sales. Each of these positions requires different skills and provides different rewards. Below is a listing of some industries that offer employment opportunities for Finance graduates.

A major in Finance with a concentration of courses in Real Estate will prepare individuals for careers in the real estate industry. Opportunities include sales, management, development, and appraisal. Real estate agents work independently or for brokers. Appraisers generally work for banks or appraiser firms. Real estate managers and developers may work for apartment or housing communities, but many start businesses of their own. Positions in real estate require good negotiation and management skills, as well as an entrepreneurial spirit. Real estate sales positions will require licensing. Visit http://www.trec.state.tx.us, the web site for the Texas Real Estate Commission, to learn information about Texas requirements and to find links to web sites for other states and their procedures.

Real Estate

Insurance

Insurance agents assist clients, both individuals and corporations, in protecting themselves against losses. Communication skills are essential, as agents must explain the risks involved and the details of a diverse group of products. Many insurance agents are also licensed to conduct financial sales, such as annuities and mutual funds. They work closely with their clients to plan for all aspects of their future. Entrepreneurial and management skills are important for these positions, as many agents build their own clientele and manage their own office staff. Positions in Insurance require state licensing. Visit http://www.naic.org/state_web_map.htm for links to the State Insurance Commissions web pages. Actuarial positions provide another career opportunity within the insurance industry. These individuals conduct the statistical analyses to predict the risk associated with writing insurance policies. Analytical skills are required for this position.

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Investment Banking

Investment banks assist companies and governmental entities with their financial needs. Career opportunities in investment banking can be divided into the following general categories: Corporate Finance: These individuals determine the funding needs of their clients and analyze the best alternatives to meet these needs, such as debt or equity issuance. Typical clients include corporations and public institutions. Other duties may involve working with investors interested in financing these ventures. Sales & Trading: Positions in this area involve analyzing stocks, bonds, and other securities for potential trading. This information is then shared with institutional investors and corporations. These positions require an in-depth knowledge about financial markets, as well as the ability to make quick decisions that may involve a great deal of risk. Mergers & Acquisitions: Companies utilize investment banks when they want to sell all or a portion of their corporation. A career in this area involves analyzing the value of assets and negotiating the sale. Analysts: These individuals follow the economy and key indicators of market stability. They may research individual companies and industries or the overall market. Forecasting future activity and risks involved are their key responsibilities.

Financial planners assist clients in financially preparing for their future. They provide advice on investing and conduct investment transactions. These individuals may work as independents or for money management firms. Financial planners must be knowledgeable of tax law, financial markets, and investment strategies. A Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) designation may be required for the position.

Financial Planning

Commercial Banking

Banking offers a variety of positions, some more broad in scope and others more specific. A branch manager, for example, is responsible for the overall success of the branch, including personnel issues, customer relations, and loan quality. More specific positions include credit analyst, loan officer, trust officer, and mortgage banker. Each of these jobs requires the ability to review financial statements and project future performance. Many of them also require sales and customer service skills.

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Corporate Finance

The main goal of individuals working in a corporate finance department is to maximize shareholder value. This is done through a variety of activities, including managing cash flow, negotiating terms with lenders and suppliers, monitoring liquidity, managing risk, and raising funds. These individuals are sometimes also responsible for sharing financial information with investors to influence the purchase of stock. Typical job titles in this area include treasurer, credit analyst, cash manager, investor relations officer, and controller. These opportunities are available in both large and small companies in diverse industries. Most positions require analytical and negotiation skills.

Skills Needed for a Career in Finance

Ability to deal with change Computer skills Leadership experience Willing to take risks Competitive spirit

Analytical skills Communication skills Problem-solving skills Strategic thinker

Ability to work well with others, especially as a member of a team

Typical Job Titles for Finance Majors

Bank Manager Commercial Loan Officer Consultant Financial Planner Investment Banker Lending Coordinator Management Consultant Money Manager Portfolio Manager Real Estate Broker Securities Analyst Trader Treasury Officer Cash Management Analyst Credit Analyst/Manager Financial Analyst Insurance Broker Land Developer Loan Officer Market Analyst Mortgage Officer Real Estate Analyst Risk Manager Statistician Trust Administrator

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Average Salary Average salary for the 2006-2007 school year Texas A&M University Finance undergraduates:
Bachelors Degree: $48,424

Chartered Financial Analyst (CFA)

Individuals in the financial services industry may choose to complete the Chartered Financial Analyst (CFA) examination. The CFA program focuses on fundamental knowledge of investment principles. There are three levels of examinations that individuals must successfully complete to earn the CFA title. For more information on obtaining a CFA, visit the web site for the Association for Investment Management and Research at http://www.cfainstitute.org/cfaprogram. Likewise, the Certified Financial Planner (CFP) Certification Exam is a case exam which tests an individuals financial planning education. For more information on the CFP, visit the Certified Financial Planner Board of Standards web site at http://www.cfp.net/.

Student Organizations at Texas A&M include:

Aggie Investment Club: You will need more than a degree to be financially free. Created to educate college students on investing regardless of their experience in the financial services industry. http://aic.tamu.edu Aggie Global Interaction: Created to promote hospitality among Business Exchange Students at Texas A&M but also focuses on study abroad and international career opportunities. http://wehner.tamu.edu/agi Financial Management Association: Developed to promote knowledge of and form networks in the finance industry. http://wehner.tamu.edu/fma There are numerous organizations for students in Mays Business School. To learn more information about any and all of these organizations, visit the colleges web page: http://studentactivities.tamu.edu/orgsearch.

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Job Outlook

The financial industry is cyclical in nature, depending on the health of the economy. According to the 2008-2009 Occupational Outlook Handbook, employment of financial managers over the 2006-16 decade is expected to grow by 13 percent, which is about as fast as the average for all occupations. Regulatory reforms and the expansion and globalization of the economy will increase the need for financial expertise and drive job growth. As the economy expands, both the growth of established companies and the creation of new businesses will spur demand for financial managers.

Sample of Employers Recruiting Finance Majors at Texas A&M

Accenture American Airlines Applied Materials Bank of Texas Capital One Corporation Chevron Citigroup Constellation Energy Deloitte & Touche

Ernst & Young Fidelity Investments JPMorgan Chase & Co KPMG Lockheed Martin Merrill Lynch Payless Shoe Source Protiviti Wells Fargo

Helpful Web Sites for Researching Careers in Finance:

Professional Associations: Financial Management Association International Certified Financial Analyst Institute Certified Financial Planner Board of Standards American Insurance Association The Association for Financial Professionals Securities Industry Association Society of Actuaries American Bankers Association Financial Women International http://www.fma.org http://www.cfainstitute.org http://www.cfp.net http://www.aiadc.org http://www.afponline.org http://www.sia.com http://www.soa.org http://www.aba.com http://www.fwi.org

Produced by the Texas A&M Career Center 209 Koldus http://careercenter.tamu.edu (979) 845-5139

Occupational Outlook Handbook: Actuary Budget Analyst Financial Manager Insurance Underwriter Insurance Sales Agent Loan Officer Real Estate Agent and Broker http://stats.bls.gov/oco/ocos041.htm http://stats.bls.gov/oco/ocos003.htm http://stats.bls.gov/oco/ocos010.htm http://stats.bls.gov/oco/ocos026.htm http://stats.bls.gov/oco/ocos118.htm http://stats.bls.gov/oco/ocos018.htm http://stats.bls.gov/oco/ocos120.htm http://stats.bls.gov/oco/ocos122.htm Other Relevant Sites: http://www.careers-in-finance.com/ http://www.saludos.com/cguide/bguide.html http://www.careerjournal.com http://careercenter.tamu.edu

Securities, Commodities, and Financial Services Sales

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