Money matters
The finance industry took a bit of battering during the financial crisis. According to ACCA, vacancies fell by 23.3 per cent during the peak of the recession. However, the financial services industry and finance related roles are rapidly getting back on track. With new regulation in the pipeline it will make for a momentous time in financial history and an exciting time for graduates entering the market, especially as a range of alternative careers in finance will become more readily available.
Today’s climate
As the UK slowly emerges from the financial crisis of the past few years, financial regulation has been at the forefront of the government’s mind. Last year it announced that the UK’s main financial services regulator, the Financial Services Authority (FSA), will be replaced in 2013, by two new successor bodies to restructure the UK’s financial regulatory framework. This is major news for anyone working in the financial services arena. The new perspective on financial services is one that continues to evolve and, for graduates entering the industry, it offers a unique and valuable insight into this critical area of the UK economy.
The FSA’s remit currently covers four key areas: to maintain market confidence; to ensure consumers are protected; to contribute to the protection and enhancement of the UK financial system; and to target and reduce financial crime. The restructure of the regulator means new employment opportunities will arise in the financial services industry at a time when the industry is stable.
The City of London, whose main function is the local authority for the Square Mile, is also the representative body for the UK financial and professional services industry. James Abbott, media advisor for the City of London comments: “Even after the crisis, the financial services industry remains vital to the UK economy, paying £65 billion in direct taxation and employing more than one million people across the UK. London remains the world’s pre-eminent financial centre and, with a number of significant developments now fully funded and under construction, it looks well placed to retain this status for many years to come.”
Impact on grad roles
So what does this mean for graduates? Amrit Saroya, marketing officer for ACCA, explains: “The competition does remain tough as graduates entering the marketplace will be competing against graduates who left university during the height of the recession and who were unable to secure a role.” However, as James Abbott adds: “While there is no doubt that graduates are entering a highly competitive marketplace at the moment, there will always be opportunities for talented individuals. Thankfully, the banks and other financial and professional services institutions appear to be hiring again and we are certainly facing a more positive situation than was the case some 12 months ago.”
So it seems the hangover of the financial services industry is beginning to clear, with new roles in areas such as risk management coming to the fore and most financial service providers noticing an increasing number of graduate vacancies. LiverpoolVictoria (LV=) offers a range of savings, investments and insurance product lines and, like all companies in the financial services arena, it has felt the pinch. However, “LV= currently has a large number of opportunities available for ambitious individuals from entry level positions to more technical posts such as actuarial roles within pricing, which requires candidates with strong mathematical and statistical skills,” explains Vanessa Chance, Corporate Communications at LV=. Similarly, the future looks bright for the ‘Big Four’. “We are looking to recruit some 1,500 graduates and undergraduates for start dates in 2012,” explains Zoe Reilly at Deloitte.
A variety of positions, training and qualifications are still on offer from the financial institutions but competition is tough so you really need to show you have more more than a qualification under your belt. Elizabeth Faulkner, advisor at PwC says: “It is important that you are able to articulate the skills you have gained through your broader experiences and match them to the requirements of the role. Before applying, research the role thoroughly and be able to show how your skills are transferable to your chosen area of the business.” According to Zoe, Deloitte would suggest: “Students attend recruitment events to network and find out more about the firm before applying for intern schemes. Research the firm well, fill in the application form correctly and show a genuine interest in the company.”
Furthermore the application process for many companies in the financial services can be extensive. At PwC “all applications start with online registration. You will have to complete online tests and if you do well you will be invited to complete an online application in your chosen business area. The first interview is done either over the phone or face to face. Successful applicants will then attend an assessment day where numerical, logical and, for some areas, verbal reasoning skills are tested. After this, there is a second interview with a partner, director or senior manager; a group or individual exercise; and a written exercise. Some business areas also give you a case study or a presentation to do as well,” explains Elizabeth.
Perks of the job
Good starting salaries and the usual perks of annual leave, training, career progression, pension fund, etc, tend to be the norm in finance related roles. “People come to work at PwC because they know they will get a great experience of working with like-minded people. Graduates who join us work at the heart of UK business with some of the biggest household names worldwide, alongside our public and third sector work too. We are also recognised in the industry for investing in our talent, and the training and support that graduate trainees receive is second to none, and is seen by many as an extension of University,” says Elizabeth.
With fierce competition from a larger number of graduates searching for employment and tougher application processes, potential employees must be willing to go the extra mile.
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