How to Compete in the Financial Service Sector?
The financial services industry focuses on linking those with surplus money to those who need money. Thus increasing the liquidity of cash flows and improving the economy. These entities could be companies, individuals, or organizations.
These entities are linked through banks which have the largest contribution to the financial services industry. They lend out loans, provide saving opportunities, and make investments. This allows for the circulation of wealth and flows in the economy.
Individuals may require a loan for starting a new business or buying property and competitive intelligence consultants give you the best services. Banks allow for them to be able to do so by providing them with large sums that can be returned on installment bases with interest.
Companies or businesses may require loans to expand or introduce new products and services in the market. This allows for them to be able to avail opportunities in the market and flourish economically.
Companies then repay those loans on installment with interest. The concept of interest is as follows. Entities with surplus money would proceed to the bank for savings which will earn them interest. On the other hand, the entities borrowing the money will pay their interests.
The difference between the interest received from the saver and the interest paid from the loan acquirer will be kept by the bank. This money will be used by the bank to manage expenses or maybe kept as profits by the bank.
Trading of Equities:
Trading of equities can also allow the flow of money from those with surplus to those in need. Equities, shares, or stocks represent ownership of the business. Hence equities can be sold or bought on the stock exchange.
The stock exchange can be understood as a marketplace for buyers and sellers. Where they can meet and trade their stocks. Therefore the stock market is a public platform accessible to all. Furthermore, stock markets are regulate by government bodies to ensure fair practices and transparency.
The stock market serves as a platform for companies to raise capital investments by issuing IPOs. Hence the public that invests gains ownership of the shares offered by the company. In the hopes that the share prices would rise and the investor could generate profits.
This serves as the backbone of an economy as it solidifies business and allows cash flow through trading and investments. Economies are often judge by their stock market standings.
Competition in the Financial Services:
Having a background understanding of what financial services are, now we can talk about what it takes to survive in the industry. How do we deal with competition? And more importantly, is financial services a viable option for a career.
Well, the simple answer would be yes. Financial services are always expanding and always introducing new prospects for the future. To be in a competitive environment you must first understand the position that suits you best.
And with the complications involved in understanding the different opportunities in financial services. You must be well aware of the type of jobs and their career paths. This would be the key to competing in the financial services sector.
There are six major segments in the financial services sector:
- Retail Banking
- Investment Management and Trading
- Wealth Management
- Leadership Management and Compliance
- Wealth management
- Business Banking
These can be considered as streams, each with different job prospects and requirements. These streams can be divided into stages. One can start at the bottom and make their way to the top based on one’s own learning ability.
So it is immensely important that one makes sure they are identifying the right path for them. This increases the chances of improvement and hence chances of success. One must aim to reach the salary bracket that they set for themselves.
For example, let’s look into the retail banking segment and its prospects. So you may have an idea of what these stages look like. You may begin as a Customer Sales representative where you will have to face clients for your services.
On doing well and gaining expertise you are promoting to sales team members where you must retain customers. Furthermore, you must be able to establish strong customer relationships. Which will allow you to become a personal banker.
This is a more specialized occupation where you will have to deal with clients on a personal level. Managing their accounts according to their needs and wants. And finally the senior personal banker with greater responsibility and more perks.
From here you will open windows of opportunities for yourself and take on more specialized roles for yourself. For instance, in this case, there are three more streams that you may unlock. Planning and advice, small businesses advisor and management, each with their own requirements for expertise.
It is a standard that you will have to spend 2-3 years in each role. But each promotion offers greater perks and opportunities.
How to win:
The most important thing is to show improvement and progress in your expertise. Moreover, you must showcase your education and training. this will improve your prospects against other candidates you will be competing against.
And you must Tailor your resume according to the position you are applying for. So do not assume you can type out a resume and use it everywhere. Study the job opening and cleverly figure out what makes you stand out and make your resume shine,
So, it is important for you to always be networking. Expand your horizons and remain in touch with people in your industry. This includes professional relations and personal relations. So if you are interesting in areas of banking, shadow the people who are involve.
So you may develop understanding and you might even be able to avail yourself of opportunities. Moreover, find mentors who would help you build skills and expertise. This is perhaps the most useful and powerful way to move forward. You can develop specific experiences that would empower you for difficult tasks.
Since experience is valuable and there is only one way to achieve it. Through mentorship and situation-based learning, you can deal with competition effectively.
