What is the financial services sector?

The financial services industry is far more varied than you may expect. Think everyone in finance is an investment banker? Think again.

We’ll give you an overview of the different roles in the financial services sector, the skills you’ll need, how much you can earn and much more.

We’ll cover:

• What are financial services?
• What financial services careers are there?
• What’s a working day like in the financial services industry?
• What kind of person enjoys the financial services sector?
• What skills do you need to work in finance?
• How to get into the financial services industry
• Financial services salaries

Financial services is the overarching term for organisations that deal with money.

Examples of the types of firms in the financial services sector include:

• Banks
• Building societies
• Insurers
• Pension firms
• Brokerages
• Financial planning service providers

The financial services sector gives businesses and individuals access to financial products (eg. mortgages, loans, credit cards). Plus, certain organisations will advise on investment and commercial decisions.

There are different types of finance, with each specialism requiring unique roles. In addition, some jobs are adjacent to the financial services sector, such as the role of financial news writer.

Some financial services career focuses include:

As an analyst, you collect and interpret information within your specialism. Your insights might give clients vital background knowledge on investments. Alternatively, your analysis could provide the basis for figures such as credit ratings.

In a compliance role, you’ll need to stay on top of changing financial rules and ensure that your employer is following them.

Want to be the person who enforces the rules? If you work for an industry regulator, you’ll police the guidelines. You could also inform new policies.

In financial technology (FinTech), you create the systems and applications that financial companies use. There are also customer service departments that help users troubleshoot systems and get the most out of tech, like banking apps.

Financial journalists report on the financial news of the day. It’s fast-paced and creative. You need a writing style that will turn a story about a business merger into a snappy article.

There’s no one typical day as an employee in the financial services industry as it varies depending on your role.

However, to get a flavour of what to expect, we’ll explore what it’s like to work as a data analyst.

In your first few years as an analyst, you’ll learn about your industry specialism and the principles of data analysis. You’ll also work on routine tasks – gathering data, updating spreadsheets and running financial models. How quickly you progress will depend on your employer and the speed you grow your skills. However, you’ll usually take on more responsibility for interpreting data and passing on insights to clients after about three years in the role.

Your exact duties will vary based on who you work for. But it’s typical for analysts to begin their day by looking at the latest industry news. If there’s anything that might impact investment decisions, clients need to know about it right away. Lots of firms will also have morning meetings to keep everyone in the loop on the latest analyses and predictions. It’s a great chance for the less experienced team members to learn.

Once daily admin is out of the way, analysts usually move on to their everyday tasks – monitoring, conducting analysis and working on longer-term research projects (such as writing special reports). More senior analysts will also work on marketing, mentoring and making industry contacts. On a busy day, you could work until late in the evening.

Wondering if the financial services sector will suit you? See how many of the following things you relate to:

• You’re interested in everything. Whatever you’re working on, you’ll need to be an expert, monitoring day-to-day happenings and understanding the latest financial products. It takes interest and motivation.
• You’re not afraid to have opinions. In some roles, you’ll need to give advice. If you get a position like that, you need to remember you’re not just setting information in front of your clients – you’re adding value with your interpretations.
• You play well with others. You’ll rely on insight from colleagues, just as they’ll rely on you. You can’t let competitiveness stop you from getting the job done.
• You’re analytical. Data doesn’t intimidate you. In fact, you can’t wait to get your hands on it and start searching for patterns.
• You’ve got a feel for business. When you think about a company, your mind conjures up its business model, target customers, competitors and opportunities.

Does the above sound like you? If so, a career in finance is something you might want to explore.

Different roles will require different skills. However, the following skills will help you in any finance job:

• Willingness to learn
• Commercial awareness
• Analytical skills
• Ability to work well as a team
• Communication skills (verbal and written)

You’ll also benefit from good numeracy, but it isn’t essential to have a maths or finance degree to enter the sector.

To learn more about the qualities that’ll help you thrive in finance, read our guide on the skills required for financial services jobs.

If you’re at university or already have a degree, the conventional way to get your break in finance is through an internship or a graduate scheme at a major company.

If you want to be an investment banker, having some form of prior work experience in the industry is usually essential. However, in broader financial services roles, you can apply straight to a grad scheme. For many positions, employers are assessing you based on your skills, personality, experience and interests – not just your degree.

To start your career, explore our listings for the latest financial services internships and finance grad jobs and schemes.

Ready to apply? You’ll likely need a CV for the first stage of your application. Check out our CV advice to get started.

It’s a competitive industry, so always tailor every application to suit each job you’re applying for. Make sure to show your enthusiasm too.

The amount you’ll earn in the financial services sector will vary depending on your role, experience, seniority, employer and location.

An entry-level salary for a financial adviser may be around £23,000 while an experienced investment banker could have a salary of £150,000.

There’s a wide variety of roles in the financial services sector and, therefore, a wide range of salaries. It’s also worth remembering that bonuses are common in the industry, so some people will earn more than their base wages if they hit their targets.

For more information and a role-by-role breakdown of earning potential, read our in-depth guide to financial services salaries in the UK.

The financial services sector covers any organisation that deals with money matters and financial products. It includes banks, pension firms, insurers and more. Each type of institution has distinct roles, so there are diverse opportunities across the finance industry. Some people also work in roles that regulate or report on the sector.

What you do in your working day and how much you’ll earn will depend on your specialism and role.

Whatever area of the financial services industry you’re interested in, having skills like commercial awareness, analysis and excellent communication will help you secure an internship or grad scheme – the typical way of getting into the sector after university.