Career Opportunities for Freshers in Banking and Insurance Sector

First-time job seekers have a hard time deciding on their career options. Especially in the post-COVID world, where many industries have undergone massive transformations, the choice has even become tougher. Typically, the choice of a career by first-time job seekers is driven by two factors: 1) Availability of opportunities 2) Skills, knowledge, and interest of the job seeker. In terms of opportunities, the banking sector offers a lot of promise to first-time job seekers. Let us understand why first-time job seekers should consider banking as a career option. Based on official data, at the end of March 2018, there were around 1.38 million [MK1] bank employees and officers. In addition, the National Skill Development Corporation (NSDC) estimates that the banking sector will require 1.6 million skilled personnel (over and above the existing workforce) by 2022[MK2]. The demand for people in the banking sector is also proven by historical data. Based on 2017 data on sectoral employment, banks employed the highest number of people (around 21% [MK3] of total employees) in that year. Banks were among the few sectors that witnessed employment growth in both FY16 and FY17. The question is, who employs so many people? As of 2019, there were 27 Public sector banks. As part of banking sector reforms, this number will come down to 12 banks, so they are unlikely to be a significant generator of jobs. Learn MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. However, there are private sector banks (21), foreign banks (49), regional banks (56), and urban cooperative banks (1,500 plus). In addition, there are numerous rural cooperative banks (96,000) and non-banking finance companies or NBFCs (approximately 10,000), which are likely to require more staff in the years to come. Must Read: Job-ready Program in Financial Modelling & Analysis There are also various payments and small finance banks that are likely to require more employees. Then there is also talk of large corporates being allowed to run banks. An RBI panel has recommended that corporates should be allowed to control banks. If the recommendations are accepted, it is likely to give a big boost to the banking sector. However, there will be a massive difference between pre-COVID and post-COVID banking. In the post-COVID world, the adoption of digital banking is likely to increase. A lot of banking transactions, whether corporate or retail banking, are likely to happen digitally. While banks may reduce the number of branches, they still must serve their customers. They will require a young and agile workforce that is digitally savvy. They will expect employees to be data literate who can make data-driven decisions. Banking is expected to become even more smart and efficient and will require a smart workforce that is able to think out of the box. Digitization will open more opportunities in banking than in the pre-COVID world. Traditionally, banks required people with knowledge of accounting and finance. The banking sector was perceived as a career choice only for students of commerce or MBAs. However, with the rise in digital banking, the banking sector will require people with knowledge of artificial intelligence, blockchain, biometrics, advanced analytics, cybersecurity, and machine learning. Post-COVID, there will be more opportunities for first-time job seekers with knowledge of emerging technologies, in addition to those with knowledge of banking and finance. Apart from retail banking, the sector also offers opportunities in other sectors, such as corporate banking or investment. After all, banking is much more than retail banking. Investment banking offers many lucrative roles in mergers and acquisitions or sales and trading. Corporate banking offers exciting roles in credit analysis, trade finance, supply chain finance, and project finance. Then there is a whole gamut of opportunities in private equity, venture capital, and equity research. Apart from front-office roles, banking offers many back-office roles in internal audit, compliance and fraud, and risk analysis. FinTech is another sector that is expected to grow a lot faster in the post-COVID world. According to government statistics, the value of digital payments (at $65 billion in 2019) is expected to grow at a CAGR of 20% by 2023[MK4]. During the pandemic, a lot of customers moved away from traditional banks and moved to FinTech lending companies to meet their funding needs. [MK5] Even the retail consumers (both rural and urban) are expected to rely on FinTech lending companies to avoid documentation or to avoid getting exploited by loan sharks. Banks are expected to partner or even acquire FinTech companies to provide solutions for their customers. The rise of FinTech is expected to create a lot of jobs, both in technology as well as in customer service. FinTech will also create other jobs such as business analysts, risk analysts, product managers, and so on. One of the challenges in the banking sector is high attrition at the entry levels as a lot of candidates do not have the required skills. As compared to earlier, banks now employ more clerks and subordinates. Officers account for nearly two-thirds of the total working in banking while subordinates and clerks make up for the remaining one third. The ratio is even more tilted in private banks, with 95% of bank employees being bank officers. This is dramatically different from 15 years ago when there were subordinates or clerks and fewer bank officers. Modern banking has become highly specialized and requires technical skills as opposed to the earlier demands of basic clerical skills. Job seekers can overcome these challenges by investing in courses that are customized to meet the needs of the banking industry. UpGrad offers advanced courses in digital finance and banking. The curriculum of these subjects has been developed in close coordination with the industry. upGrad’s Job-ready Program in Financial Modelling & Analysis provides extensive training on different aspects of banking and digital finance. The course offers a blend of fundamental subjects related to finance, accounting, and economics and new-age subjects such as managing fintech ecosystems, data protection, financial criminology, etc. The focus on constantly updating the curriculum to match the demands of the industry has made upGrad a preferred choice of BFSI to find new talent. Sources  [MK1]Source: https://www.financialexpress.com/industry/banking-finance/banking-jobs-top-heavy-indian-banks-have-more-officers-than-clerks-how-the-situation-changed-in-just-15-years/1709026/  [MK2]Source: https://www.thehindu.com/business/Industry/bfsi-sector-set-to-offer-16-million-jobs-study/article29745726.ece  [MK3]I had to use old data because recent data on sectoral employment is not available Source: http://www.businessworld.in/article/Banking-Sector-Gave-Maximum-Employment-In-FY17/02-11-2017-130293/  [MK4]Source: https://www.investindia.gov.in/sector/bfsi-fintech-financial-services  [MK5]Source: https://www.smefinanceforum.org/post/partnership-between-bank-and-fintech-in-post-covid-period

Introduction The advancements in technology and the use of data analytics has changed the face of the banking industry. In the new decade, AI-driven operations would dominate the banking landscape. According to a report by McKinsey, 30% of the operations in the BFSI domain would be taken over by machines by the year 2022. (Source: https://bfsi.economictimes.indiatimes.com/blog/challenges-in-bfsi-skilling-and-reskilling/3904)  The year is not far away! While the tech-based revolution would do away with manual jobs, it would also open doors for new employment opportunities in the banking sector. Are you prepared to ride this revolution? A decade or two back, banking jobs demanded you to have the necessary degrees and qualifications. Things are not the same now. The banking sector has undergone a paradigm shift over the last few years—the reason—digital banking and its popularity. Today, banks demand employees with the necessary skill-set to adapt to the changing face of the industry. Do you have what it takes to sustain a bank job? Reskilling—The Tool to Sustain Reskilling is the modern-day mantra. It reinforces the principle of survival of the fittest, or rather, the survival of the most qualified when it comes to employment. If you think your existing degrees and qualifications are sufficient for job stability, think again. The employment landscape has changed. And you need to change your perspective accordingly. Today, banks demand employees with the latest skill-set. They need employees who understand the job’s changing demands and are equipped to meet such demands head-on. In a survey conducted by Randstad, only 11% of the companies surveyed wanted to reskill and train their existing employees; 59% of the organizations, on the other hand, wanted to go on a hiring spree. (Source: https://www.cognizant.com/perspectives/reskilling-in-the-digital-age). What do you think your company would do? Lose you or reskill you? The odds are stacked against your favor if the survey is any indicator. What you can do, instead, is reskill yourself. Reskilling is the need of the hour. Why take the risk of your qualification becoming redundant when you can do something about it? The employment market, especially in the BFSI segment, has become demanding. The only way to sustain in this demanding environment is to be better than others. And you can ramp up your qualifications through reskilling, i.e., learning new skills.  Learn Online MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. Also Check, Job-ready Program in Financial Modelling & Analysis from upGrad. Why Reskilling? If the importance of reskilling is lost on you, here are some reasons to blast through your ignorance: Reskilling = new learnings Every expectant candidate in a bank job has a graduation degree in finance or commerce and certifications in banking-related courses. What makes you different? When you re-skill, you learn new techniques and gain further knowledge of the financial sector. This unique learning boosts your resume and shows the employer that you know something that other candidates don’t. Would the employer lose you when you are more qualified than other candidates? Of course not! Reskilling, therefore, teaches you something new and helps you stand out in the crowd. Reskilling = updated knowledge As mentioned earlier, the banking landscape is changing. If you don’t keep pace with your job’s changing demands, you might have no future. Reskilling shapes you, helps curb redundancy, and upgrades your knowledge base with the industry’s latest changes. And what does it give you? A chance to adapt to the evolving job, which is what you need to sustain your job in the first place. Reskilling = promotions Improving your skills is adding more qualifications to your resume. When the time for appraisals come, a more qualified resume has better chances of being promoted. Don’t you agree? So, besides sustaining at your job, reskilling also improves your chances of promotions and helps in scaling your career.  Do you need any more reasons why reskilling is a must, especially in today’s age and time? Reskilling can be that secret ingredient that helps you survive the cut-throat competition in the job market. So, how do you do that? How do you re-skill yourself? Do you go back to school and take up another course?  Don’t fret! Reskilling is quite simple, actually. Yes, it is. There are online courses in the BFSI category that help you re-skill. If you are wondering where you can find the best online courses, think upGrad—your one-stop destination for different online courses in the BFSI segment. Still wondering! Have a peek into the courses offered by upGrad that can add a zing to your existing resume: The upGrad Edge  1. International MBA courses If you always wanted to study abroad, you can make your dreams come true with upGrad’s international MBA courses. upGrad has collaborated with the Deakin Business School and Liverpool Business School to offer you global MBA courses. International MBA certification can never be easier! 2. MBA courses in India  A number of premier MBA institutes of India have also made a tie-up with upGrad. They offer online MBA courses of different durations and in various fields. So, if you want to learn digital finance and banking, product management, insurance, or operations management, upGrad has a specialized program just for you.  3. Post-graduation courses  There are a variety of post-graduation courses available at upGrad. And that too in various fields. So, if you are tech-savvy and want to learn coding or computer science, there is a program just for you. If you are looking at specialization, like in insurance or product management, there are programs suitable for the same. With the array of programs offered by upGrad, you would be spoilt for choice. That’s for sure! Conclusion  Reskilling is not difficult. Neither is it hard to attain. All you need is the determination to learn something new and upGrad. And just like that, you are sorted. Opt for one or more upGrad programs and retrain yourself. Forget about sustaining in your current job. You might even land a meatier job in another bank and that too at a better salary. Keep your fingers crossed. Don’t leave everything to fate when you can do something about it yourself! Shape your future yourself. Reskill and improve your prospects. upGrad’s Job-ready Program in Financial Modelling & Analysis provides extensive training on different aspects of banking and digital finance. The course offers a blend of fundamental subjects related to finance, accounting, and economics and new-age subjects such as managing fintech ecosystems, data protection, financial criminology, etc. The focus on constantly updating the curriculum to match the demands of the industry has made upGrad a preferred choice of BFSI to find new talent.

According to estimates by the National Skill Development Corporation (NSDC), by 2022, the banking sector will add 1.6 million skilled workforces. That is in addition to the 1.38 million already employed by the banking sector as of March 2018. This is great news for those exploring careers in the banking sector or BANCA (bancassurance or selling insurance through banks).  The banking sector continues to grow and is providing exciting job opportunities even post COVID. And if you consider the benefits of banking jobs, such as job stability and loans at discounted interest rates, it is undoubtedly an excellent sector to make a career. A common question is how one gets a job in the banking sector. Let us try and answer this question in detail. Decide Whether Banking is the Right Choice for Your Career While the banking sector offers many opportunities, the first step is to determine whether banking is the right choice for your career. Some of the basic banking job requirements are excellent numerical skills, a high degree of attention to detail, and good communication skills. Also, one should have a keen interest in finance and banking related subjects. If you enjoy the subjects related to banking, it can be immense fun. If not, banking can be a wearisome career for some. Understand the Eligibility Criteria The starting point is to understand the eligibility criteria to get started in banking. In terms of educational qualifications, for public sector banks, graduation is a minimum requirement. Candidates need to have anywhere between 55-60% in their final year (depending on whether they fall under the reserved or unreserved category). Depending on the position applied for, candidates need to be between 18 and 30 years. Private sector banks tend to prefer MBAs with knowledge of finance and banking. Crack Entrance Exams (for Public Sector Banks) For employment in public sector banks, one needs to appear for a banking exam. These exams are conducted by the Institute of Banking Personnel Selection (IBPS) and State Bank of India. Some of these exams are as follows: SBI PO (Probationary Officer) SBI SO (Specialist Officer) SBI Clerk IBPS PO IBPS SO IBPS Clerk IBPS RRB (Regional Rural Banks) Reserve Bank of India Officer Grade B Reserve Bank of India Officer Grade C Each of these exams has a different pattern. Typically, these exams involve testing candidates on reasoning ability, quantitative aptitude, English language skills, and general awareness of the economy and banking. There are lots of books and courses available for preparing for these exams. Depending on your skills, you may need up to 6 months (6 to 8 hours per day) to prepare for IBPS exams. However, the actual preparation time may vary. For example, engineering graduates may require less time to prepare for the mathematics part of the exam. Must Read: Job-ready Program in Financial Modelling & Analysis Understand Requirements on Job Portals Private sector banks list their requirements as well as on job portals. Those aspiring to get jobs in the banking sector should spend a great deal of time on job portals and various banks’ career sections. Requirements vary by the role. For example, in a sales-related role, one would require a basic knowledge of products and excellent convincing skills. If it is a more technical role, such as an audit specialist, one needs technical knowledge of finance and accounting. One should also be able to make reports and presentations. Private banks also recruit through campus placements. Network with People from the Industry Like every other industry, networking is a great way to open new doors. One should leverage their network within family and friends and talk to people working in the industry. Even if they do not have a job, they may share insights about the skills required to enter the industry. One can also meet people from the banking sector in job fairs or through their alumni network. Make the Right CV The CV for a job in the banking sector will differ from one for a job in, say, a creative field. The banking industry places a lot of emphasis on professionalism. You should highlight your analytical skills and financial literacy, and acumen wherever possible (through test scores in finance-related subjects or if you have completed any finance-related projects). It will help if you highlight any extra-curricular activities related to communication (such as writing or speaking) or any projects related to quantitative skills or data analysis. Including a professional picture on your CV can be an added advantage. Update Your LinkedIn Profile You should update your LinkedIn profile with the right headline and right content suited for the banking industry. One should also join groups related to BANCA careers to know more about the requirements of this sector. Additionally, follow people from the leading banks’ HR departments to stay updated on any requirements from their side. Invest in Quality Banking Education One way to enter the banking industry is by investing in a professional banking course. For example, an MBA in banking is a lot different from a general MBA. Banking is a huge industry and has its unique educational requirements. upGrad offers advanced courses in digital finance and banking.  upGrad’s Job-ready Program in Financial Modelling & Analysis has been designed specifically for the banking sector. upGrad has developed the curriculum of this course in close coordination with members of the banking industry. The course covers all the essential banking and finance-related subjects. The course also covers the latest developments in banking and finance, including artificial intelligence in banking, digital finance, blockchain and cryptocurrency, and digital fraud. The course also covers case studies, real-world projects, mock interviews, peer-to-peer networking, and much more. The course is highly appreciated by leading players in the BFSI space who partner with education partners such as upGrad to provide jobs.

Ideally, learning should be a lifelong process for every professional. But the working populace often finds it difficult to search or manage the relevant learning opportunities. It is observed that the more qualified a professional is, the more is he/she inclined to seek learning experiences. On the other hand, newly appointed employees are not fully aware of the learning opportunities that can be availed conveniently. Whether you are working in the BFSI sector, IT company, education industry, or any other domain, there are many effective ways to learn while making a living. Given below is a glimpse of some smart learning options for newbie professionals: Enroll in Workplace Training Programs Most of the reputed organisations provide training programs for skill development and career advancement to their employees. These programs may be in the form of workshops, mentoring sessions, seminars, on-the-job-training, etc. This training can relate to any functional area like technical skills, soft skills, business management, marketing, project management, safety measures, leadership exercises, etc. While some companies make these programs mandatory for the employees, some others offer optional facilities for the same. If you have long-term plans to establish a career in your current workplace, it is a good idea to enroll in their training programs as it will not demand much of your extra time outside work. Besides, even if you switch from one company to another, but continue in the same field, your acquired knowledge will boost your chances of faster and better promotions. Take up Side Projects Side projects present an excellent way to infuse your interests with learning opportunities. It can be a personal project or a professional one. The purpose of taking up a side project is to stay motivated and grasp new skills simultaneously. This will be especially useful if your major source of income does not serve your ultimate career goals. For instance, some professionals work on their dream projects alongside their regular jobs. Similarly, some youngsters carry on remote work or internship projects besides their full-time jobs. These side activities may or may not lend monetary benefits, but will help in the accomplishment of your real aspirations. You can choose short-range or long-range side projects, but make sure that they align with your final career objectives. Also Check, Job-ready Program in Financial Modelling & Analysis from upGrad. Attend Local Events Industry events, conferences, and workshops are often conducted by organisations and educational institutes in various cities. Some of these events are also held online on video conferencing platforms. These sessions provide a valuable chance to learn from the top industry leaders, as well as strengthen your professional network. Here, the experts and experienced professionals discuss and teach about the latest trends and changes in the industry. Further, the connections you make at industry events can prove significant in the attainment of your career goals. You will get to know about these events from the local news channels, social media, and similar websites. You may also follow the local industry leaders and similar people on social media sites, as they frequently post about the important events they are going to address or attend. Hence, keep yourself updated about such events and attend the ones that dwell upon your chosen career path. Opt for a Work-Study Position Several first-time job seekers prefer to take admission in the universities or colleges that offer work-study programs. These programs are basically designed to let you attend classes while you are working in a flexible manner. In other words, if you have joined a work-study program, your class schedules will not conflict with your work timings. Thus, it will be really easy to manage learning and earning at the same time. Though the work-study positions are primarily meant for individuals who need financial aid for their education, they serve as great learning alternatives for all sorts of student learners.  However, you need to fulfill certain eligibility conditions to get into a work-study program. Pursue Online Courses Online learning is considered the most efficient way for working professionals to continue their education. Today, online courses are available for every field and specialisation. A number of renowned organisations and universities extend educational programs in alliance with e-learning platforms. For instance, upGrad, one of the best online education companies, offers post-graduate programs in collaboration with top companies like HDFC, PNB Met life, Sales Academy, etc. These programs belong to various in-demand disciplines like insurance, sales, marketing, etc. Post completion of these certification courses and internships, the students are wholly qualified to seek technical, sales, or banking jobs in high-ranking companies. In the case of paid internships like the PG program in Life Insurance with TATA AIA or HDFC, the learners are guaranteed full-time jobs with the respective companies. upGrad’s programs are equipped with fully interactive and live sessions, case studies, and one-on-one mentoring from industry experts. Use Your Time Productively When you are working and studying together, you must use your spare time productively. Apart from learning informal ways, you may also incorporate certain informal ways to build a regular learning habit. For example, spend your free time reading good books, articles, magazines, and newspapers. In addition, you can subscribe to newsletters and blogs relevant to your industry to stay abreast of the latest developments. Eventually, your enhanced knowledge and skills will improve your overall profile and secure your future career. While there is no dearth of jobs for freshers and experienced youth, yet if you wish to bag a lucrative salary package and witness a spurt in your career graph, inculcate learning as a way of life. Thereby, you open yourself to an enormous scope in all suitable sectors, including education, engineering, IT, management, and insurance jobs. Conclusion Further, you must always monitor your learning progress and test the related skills periodically. This will allow you to remain focused on your priorities and stay on the right track. Lastly, remember to keep your employer informed about your learning initiatives. Employers are generally appreciative of the employees who work towards upgrading their skills and hence, will extend cooperation in helping you balance work and study. With upGrad, aspirants can choose to pursue Job-ready Program in Financial Modelling & Analysis in association with PwC India.

Introduction Do you know that as per the Reserve Bank of India (RBI), the Banking sector is quite possibly the most developed and well-capitalised sector in India? It was discovered that between the financial years 2015-20, deposits accumulated at a CAGR of 13.93%, and arrived at US$ 1.93 trillion by FY20. In addition, the absolute resource estimation of this sector in India is almost US$ 270 billion. It mirrors the true potential of the banking sector in India. With such magnificent growth, Sales jobs in the banking sector are surging like never before. Sales jobs in banks offer high salaries and add-on perks like medical benefits, low interest on loans, safety, and old-age benefits to all their employees. It guarantees stability and security. Every year, many jobs for freshers are offered by Banks and Banking Institutions. However, for first-time job seekers, getting into sales might sound strenuous, but by imbibing some skills, you can easily get into it. Ways to Get Freshers Job in Sales in Banking Sector Here is the rundown of the ways to get freshers job in Sales in Banking Sector 1. Obtain a Degree The first and the foremost step for the fresher to get a job in sales is to acquire a degree in banking and finance. A degree will help you get a grassroots idea about the banking and finance industry. Moreover, upGrad offers finance and banking courses specially designed for first-time job seekers, where they get in-depth knowledge on various topics like data visualisation in finance, digital fraud and risk analytics, design thinking, and leadership essentials for the business that makes them industry-ready. All class content gets curated by leading faculty and industry leaders in the form of videos, case studies and projects, assignments, and live sessions. 2. Good Communication and Interpersonal Skills Have you heard the story of selling a comb to a bald man? Here, your communication and interpersonal skills come into play. Your communication skills play an important role, from your opening pitch to your closing statements. Communication style and the tone should not look like a sales pitch but should be full of empathy and trust. One has to learn the art of communication and excel at soft skills. Soft skills can be learned through various certifications and acquired through a life-long experience. If you professed communication skills, you get a job as a fresher in the banking sector.  3. Learn Relationship Management The role of the sales manager includes selling banking products to clients. Product means Credit Cards, Mortgage, Loans, Bancassurance, and cataloging and pitching the new customers. Selling these products might not be an easy task. Remember the number of times sales assistants from the bank have called to sell credit cards? Sales are all about building relationships.  It becomes cardinal to learn relationship management to acquire clients and fabricate a favorable relationship with them. You can refer to the marketing masterclass by upGrad that teaches how to market the products more efficiently. The knowledge of marketing acts as a foundation stone to build a staunch career in sales. 4. Apply For Certification Programs In this age of stiff competition, getting a certification can help you stand out in the market. Certification refers to the add-on skills that amplify your candidacy. With the latest trends and emergence of new technologies in the banking industry, it has become quintessential to update your skills to remain acclimatised with the changing scenario and rising competition in the market. upGrad offers many certification courses, like PG certification in Digital Marketing and Communication, that equips students about the digitalisation of various sectors, including banking, and imparts thorough knowledge about SEO, SEM, Social Media, Content Marketing, Branding, and Marketing/sales Analytics. Also Check, Job-ready Program in Financial Modelling & Analysis from upGrad. 5. Storytelling Storytelling has lubricated the hoop of humanity for ages. As a sales manager, you have to sell the story about the product. Learning to be a storyteller comes with an array of benefits, as it is the blend of emotions, motivation, and psychology. Today, you cannot sell products without narrating the perfect story that your target audience can resonate with and relate to. The best way to learn storytelling is to observe everything around you. As sales professionals, you should know the pain points of your customers and ways to gratify them using your storytelling skills. Every year lakhs of Sales jobs get announced, and many first-time job seekers apply for these jobs. Added skills can help you to turn the wind towards your favor. 6. Product Management User research, prototyping, and product analysis are a pivotal part of sales that every fresher should know. With the help of product management knowledge, sales professionals can assist in how much to invest in sales and enable the banks to reach their business goals. Today, this is one of the most underrated skills among sales managers. Financial institutions like banks need to have a full-fledged sales strategy to pitch the leads and convert them into clients. You can learn this skill through the Product Management Certification Program offered by upGrad that includes various nuances of product management in association with sales. Above mentioned stratum are some of the best ways for a fresher to get a job in Sales. Getting employment in the banking sector becomes feasible if you are confident about your skills and talent. Conclusion                         Sales are among the most rewarding and performance-based careers. The more you sell, the more you will earn. Anyone with a strong desire and the will to work hard can turn it into a successful career. Good sales managers respect their customers and never go against them. It is all about negotiation skills. People in sales jobs enjoy building contacts and meeting new people every day that ensures more exposure and growth. The biggest quality in life is to change the obstruction into a chance. ‘Now’ is consistently the best ideal opportunity to upskill yourself with the latest sales skills that you must possess as a fresher. upGrad offers the best in -class courses in Banking that can assure high paying jobs for freshers. So build your career with upGrad. Enroll today!! With upGrad, aspirants can choose to pursue Job-ready Program in Financial Modelling & Analysis in association with PwC India.

Finance and accounting are two exceptionally attractive career options for anyone who loves to play with financial and mathematical figures. While these two fields of study sound similar (since they’ve so many overlapping areas of interest), they have significant differences as well. As it is difficult for an onlooker to differentiate between finance and accounting from the surface, this is the source of prime confusion for aspirants – which to choose: finance or accounting?  If you are one of those aspirants, wishing to make it big in the finance sector, this article is just the guide for you! In this post, we’ve outlined the core points of difference between the two so that you can identify towards which field your interests incline and then make an informed decision.  Finance vs Accounting: Fundamentals The first significant difference between finance and accounting lies in their definitions. Both of them are separate disciplines even though their industries are similar. Basics of Finance Finance focuses on managing investments and money for companies, individuals, or government organizations. A finance professional would have to ensure that their client gets the required funds and achieves their financial goals. Financial professionals focus on creating value through capital management in such a way that produces higher than expected risk-adjusted returns.  Basics of Accounting Accounting focuses on reporting, maintaining, and recording an individual’s or company’s financial records. Accounting professionals have to ensure that all the transactions are recorded accurately and are organized such they can be accessed easily. They maintain ledgers and create financial statements which reflect the financial health of their client.  Thus, while finance focuses on managing funds, accounting focuses on recording its transactions. This is a key difference between the two disciplines that determine which skills and education its professionals require.  Learn MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. Finance vs Accounting: Branches Both finance and accounting are divided into their separate sub-categories which differ considerably.  Finance Categories Finance is divided into the following categories: Public Finance Public finance focuses on budgeting, tax, and spending of a government agency and how to handle the related policies.  Personal Finance Personal finance focuses on wealth management for an individual. This includes retirement planning, setting up funds, planning for mortgages, etc.  Corporate Finance Corporate finance is concerned with the financial growth of a company. It focuses on financial activities focused on investment strategy and management.  Accounting Categories Like finance, accounting also has three categories: Cost Accounting Cost accounting focuses on determining the cost of a product or service to help an organization decide the pricing of the same and strategies accordingly.  Financial Accounting Financial accounting focuses on creating financial statements such as balance sheets and cash flow statements which help one in gauging an organization’s financial position.  Managerial Accounting Managerial accounting uses the same data as financial accounting but instead of understanding the financial situation of the organization, they focus on using this data to make business decisions and solve problems. Also Check, Job-ready Program in Financial Modelling & Analysis from upGrad. Finance vs Accounting: Education The education requirements of both of these sectors are unique. You can certainly pursue a career in accounting with a finance degree as most of their qualities are similar, but if you want a lucrative role, you’d need to specialize in the field.  Education for a Career in Finance Financial careers require you to be adept at managing funds, financial analysis, and using data to forecast future earnings and results. Most finance professionals get a Certificate Program in Financial Modelling & Analysis . An MBA would teach you many industry-specific skills and is a must-have for plenty of financial careers.  Education for a Career in Accounting To pursue a career in accounting, you’ll need to get a Bachelor of Commerce (BCom) minimum. Most employers prefer candidates with an M.Com in accounting as they are better equipped to take on senior roles. Another popular pathway for an accounting career is by becoming a Chartered Accountant (CA). As a CA, you’d be responsible for handling a wide range of both financial and accounting responsibilities of businesses or individual clients. You can complete the Certified Public Accountant course and clear the final exam to become a CPA. Certified Public Accountants are one of the most in-demand and internationally-recognized professionals in the finance industry.  Thus, finance requires you to have a management or business degree while accounting requires you to have a commerce degree or an accounting certification. Finance vs Accounting: Employers Finance and accounting services are required by almost all companies/organizations, irrespective of their size. Naturally, there are a plethora of employment opportunities for both finance and accounting professionals across all parallels of the industry. Usually, large companies keep separate finances and accounting departments as they handle large-scale financial and accounting operations. However, when you look at industry-specific employers, there’s a huge difference between finance and accounting:  Employers in Finance Prominent employers in the finance sector include: Financial services providers Investment bankers Wealth management companies Banks Goldman Sachs, JP Morgan Chase, and Merrill Lynch are some of the biggest names in the finance industry. They all focus on providing investment management services and/or banking services.  Employers in Accounting In accounting, the primary employers are: Accounting firms Public accounting firms The most prominent employers in the accounting sector are accounting firms which include popular names such as Grant Thornton International, Ernst & Young, and Deloitte.  Finance vs Accounting: Careers When it comes to career prospects, there’s a huge difference in the kind of roles you can pursue in finance and accounting Careers in Finance Some of the prominent careers in the finance sectors are: Investment Banker Investment bankers assist companies in raising capital through various strategies and implementations. They analyze a company’s capital requirements, assess their financial position, and help them with achieving their funding goal through equity, issuing bonds, or getting a loan.  Fund Manager A fund manager is responsible for handling a fund’s performance. They oversee the fund’s trading activities and strategies while ensuring that the fund grows with time. A fund manager would usually manage a mutual fund or a pension fund. They receive their compensation by sharing a certain percentage of the fund’s profits.  Risk Analyst Risk analysts are responsible for reducing the damages done by a financial loss or a similar event. Companies entrust them with analyzing potential deals and transactions for risks and use their insights to determine whether they should proceed or not. Risk analysts help companies in reducing their potential harm and are among the most sought-after professionals.  There are plenty of other careers for finance professionals such as financial advisor, wealth manager, asset manager, venture capitalist, etc., apart from the ones we discussed above.  Careers in Accounting Some of the most popular career choices in the accounting sector include: Chartered Accountant Chartered accountant’s audit accounts, offer taxation advice and handle taxation for their clients. They might also handle forensic accounting, corporate finance, and insolvency, among other things.  Forensic Accountant A forensic accountant is responsible for analyzing the transaction records of a company or individual to find any traces of illegal activity. They might work with government agencies or accounting firms.  Certified Public Accountant A CPA is responsible for handling tax returns and preparing financial statements for their clients. They may work with individuals, companies as well as government departments.  As you may have noticed, the prominent careers in finance are focused on financial analysis and management whereas the prominent careers in accounting are focused on taxation and recording transactions.  Conclusion To conclude, while finance and accounting certainly have their differences, they complement one another quite well. This is mainly because, in the real world, finance and accounting operations largely go hand-in-hand. Also, both these branches offer lucrative career options to freshers and professionals, with plenty of scope for job growth.  With upGrad, aspirants can choose to pursue Job-ready Program in Financial Modelling & Analysis in association with PwC India.

The finance sector in India is replete with diverse options. It can get pretty confusing for someone to choose one particular role, but guess what, one of the best metrics to choose a role is the salary.  How much you can make in a role is certainly an excellent metric to determine whether it’s suitable for you or not. To help you with your decision, we have prepared the following article detailing the average finance salary in India according to various prominent jobs. Going through this list will help you make a much-informed decision:  Finance Salaries Based on Job Roles 1. Investment Banker Investment banking is among the most popular career options for finance professionals. investment bankers help government organizations and companies in raising public or private money through equity or debt. They have to create detailed and fully integrated financial models to facilitate M&A (Mergers and Acquisitions) transactions. Apart from M&A, they help companies with financial planning and analysis.  When a company or government organization needs to raise capital, they hire investment bankers. They act as a link between investors looking for potential opportunities and companies looking to raise capital. They are financial experts who evaluate a company’s capital requirements, financial status, and future goals. After careful evaluation, investment bankers offer actionable recommendations to the company on how they can improve their financial status and achieve their goals.  One of the primary responsibilities of an investment banker is to analyze a company’s requirements and goals and they usually do so through the retainer. Companies provide all of their financial information to the investment banker to assist them.  Investment Banker Salary in India The average pay of an investment banker in India is INR 9.66 lakh per annum. Freshers in this field can expect to earn around INR 2.48 lakh per year. As they gain more experience and skills, the pay also increases substantially. Experienced investment bankers can earn up to INR 70 lakh per annum.  2. Certified Public Accountant Certified Public Accountants are responsible for handling a company’s tax, accounting, audit, and reporting processes. Certified public accountants must be well-acquainted with the tax laws and regulations of their country. They are experts at financial analysis, tax compliance, and financial reporting.  CPAs may work with government institutions or individual clients. Usually, a CPA reviews the company’s financial data and prepare detailed reports and documentation highlighting important information on the company’s taxes, finances, and audits.  Apart from these tasks, a CPA’s tasks and responsibilities largely depend on their employer and the industry they work in. For example, you might work in a small accounting firm and assist multiple clients with their accounting needs. On the other hand, you might work with a large enterprise and overview of their financial reporting and auditing duties.  To become a Certified Public Accountant, you must clear the CPA exam conducted by the American Institute of Certified Public Accountants.  Learn MBA Programs from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. Certified Public Accountant Salary in India The average pay of a CPA in India is INR 6.99 lakh per annum. Beginners in this role make around INR 1.72 lakh per year. However, as they gain more experience and skills, their package can increase up to INR 20 lakh per annum.   3. Portfolio Manager Portfolio managers advise their clients and help them with developing investment goals. They are responsible for their clients’ investments. They might work as client-based advisors for both businesses and individual clients. Most of the portfolio managers working in large financial enterprises analyze the company’s risk and also manage their financial products/investments like mutual funds, equity bonds, etc.  Portfolio managers aim to meet their client’s long-term goals. For this, they need to identify profitable investment opportunities that recapitalize revenue to reduce tax load and enhance capital for the client.   Portfolio managers communicate with administrators and clients about their accounts, securities, and market trends. Since the profile involves analytical skills and expertise, an MBA with Specialisation in Business Analytics course is highly recommended for aspirants. Featured Program For you Job-ready Program in Financial Modelling & Analysis Portfolio Manager Salary in India The median pay of a portfolio manager in India is INR 10 lakh per year. Freshers in this field earn around INR 3.12 lakh per annum while experienced portfolio managers can get up to INR 30 lakh per annum.  4. Chief Risk Officer A Chief Risk Officer (CRO in short) is responsible for effectively managing and countering any risks that an organization might be faced with that could negatively impact its financial position.  They ensure that the company’s profits remain a priority while following all the regulations. A CRO checks and analyzes potential risks related to the company’s credit, investments, and financial assets.  CROs must be well-versed with the rules and regulations of their company and the market. They ensure that every department in the company adheres to those rules and regulations to mitigate risks.  Apart from monitoring and mitigating the financial risks of an organization, they also manage public matters to make sure that the company’s reputation stays unscathed. If a CRO finds any problematic areas, they would consult with the department in question and solve the matter as quickly as possible. They work closely with senior management to create, review, and implement multiple risk management policies.  This role demands strong analytical and research skills as much of a CRO’s job involves gathering information from various sources and analyze them for potential issues.  Chief Risk Officer Salary in India The average salary of a chief risk officer in India is INR 14 lakh per annum. New CROs earn around INR 12.2 lakh per annum while with sufficient experience and skills a CRO can even earn INR 1 crore per annum. 5. Chief Compliance Officer A chief compliance officer assesses the risks related to the product, compliance, and operation. They also create risk mitigation strategies for their organization and conduct internal reviews regularly. They are responsible for the operations and finances within an organization.  When a department wants to take a new initiative or implementation, which requires executive budget approval, the chief compliance officer makes the necessary decision of whether to approve or not. They ensure that their company’s operations follow all the rules, regulations, and laws.  A chief compliance officer creates and revises all the company policies to outline safe, ethical, and effective procedures. They review their organization’s codes of personal conduct to avoid any compliance issues and ensure the organization adheres to all the rules and regulations. In case any compliance issue arises, the chief compliance officer would investigate the matter with the department in question. They act as independent reviewers for company misconduct and similar matters.  Chief Compliance Officer Salary in India  A chief compliance officer must have a ton of industry experience. The median pay of a chief compliance officer in India is INR 33 lakh per annum. A new chief compliance officer earns around INR 8.17 lakh per annum while a more experienced and skilled professional in this role can earn up to INR 1 crore per annum.  Like CRO, it offers an astonishingly high finance salary in India. You’d need Certificate Program in Financial Modelling & Analysis to pursue this role as it requires a lot of skill and expertise.  Read: MBA Finance Salary in India Conclusion As you must have noticed by now, the finance industry in India is brimming with opportunities. You can pick any one of the above roles and focus on pursuing them. You might have noticed that a lot of these roles require high-level expertise and experience. With an MBA, pursuing these roles would be much easier for you. It will teach you the necessary skills and guide you to be job-ready. You’ll get to work on courses and test out your real-world knowledge while working on projects and assignments, which will help sharpen your skills.  With upGrad, aspirants can choose to pursue Job-ready Program in Financial Modelling & Analysis in association with PwC India.

A Financial consultant’s job includes providing personalized services to clients and investors in building wealth and taking profitable investment decisions. They assess their financial status and develop plans to help clients achieve financial objectives and goals. Financial consultants are largely self-employed or work as part of a firm, devising strategies for more than one client at a time. It’s also their job to guide insurance plans and buy and sell stocks on behalf of the client.  Let’s find out more about a financial consultant’s salary, what educational qualifications and skills are required to crack into the field, and which roles and responsibilities a financial consultant is expected to take up. What Does a Financial Consultant Do? Financial Consultants work closely with businesses, families, and individuals in devising long-term and sustainable wealth-building strategies. They guide people to make educated, detail-oriented decisions to achieve financial goals. This involves conducting a rigorous assessment of the concerned party’s financial status, analysis investment opportunities, and exploring capital expansion prospects to source loans or funding.   Here’s looking at the various roles and responsibilities of a financial consultant: Analyzing a client’s financial history which includes past investments and returns, asset allocation, tax returns, and estate and retirement planning.  Strategizing comprehensive wealth-building financial plans to achieve short-term and long-term financial objectives. Evaluating the effectiveness of action plans by assessing risk tolerance. Buying and selling financial products, and transforming complex financial concepts into actionable plans. Offering financial planning services by working in close association with investment bankers, accountants, insurance brokers, financial analysts, and other professionals in finance. Working on building productive relationships with clients by providing committed services, strategizing new and profitable financial plans, and offering a variety of options.  Educating clients by effectively communicating the risks and advantages of investment ventures, addressing concerns, and answering queries. Keeping a track of the client’s financial status by monitoring changes in wealth, analyzing market trends, keeping an eye on on-going financial plans, and evaluating circumstances to set new goals and objectives.  Providing detailed and accurate reports regarding a client’s financial status to better manage finances.  Staying up to date with the latest trends in economics and finance by pursuing upskilling opportunities, networking, reading top finance-based publications, and maximising exposure. Pursuing career development opportunities, internships, professional skill-building courses to attract new clients, and add value to operational capabilities. Marketing services by hosting seminars, professional meet-ups, obtaining referrals and testimonials from clients, networking, attending community functions, and more. A few other remarketing tactics include sharing finance pieces from reputed newsletters and publications, answering enquiries, and increasing online presence.   Financial Consultant vs. Financial Advisor The terms financial consultant and financial advisor are often used interchangeably. Most professionals assert that there is no difference whatsoever between financial consultants and financial advisors, and what their job roles entail. And this is true to a large extent. But others consider the respective approaches of the two professions towards financial planning to be the big distinction between them.  For instance, financial consultants work on time-sensitive and specific aspects of financial planning and remain available to clients only during that period. However, financial advisors tend to share long-term relationships with clients, giving them advice on finance management and investment over a long period. Financial advisors also have a deep knowledge of a client’s financial history. Be that as it may, both financial consultants and advisors are dedicated to helping families and individuals build wealth by making informed financial decisions. Furthermore, it’s not uncommon for financial consultants to pursue long-term relationships with clients, and for financial advisors to take up time-specific financial planning roles. Also Check, Job-ready Program in Financial Modelling & Analysis from upGrad. Financial Consultant Salary in India The salary of a financial consultant varies depending on the geographic location, level of experience, and skill set. According to PayScale, the annual compensation for a Financial Consultant in India is ₹627,776 /year on average. However, there is a steep rise in these numbers which comes with experience and advanced skills. Profit-sharing and bonuses are quite common in the field.  Here’s taking a look at the salaries of a potential financial consultant at different levels. 1. Entry-Level — A newly employed financial consultant with less than 1 year of experience can earn ₹229,428 per year on average.  2. Early-Career — 1 to 4 years of experience makes you eligible for an average salary of ₹507,524 annually.  3. Mid-Career — With 5 to 9 years of experience, a financial consultant stands to earn an average compensation of ₹828,164 annually.  4. Late-Career — If you have over 10 years of experience, you can easily earn ₹1,017,365 annually. However, these are just the base salaries of financial consultants at different companies. Adding bonuses, money earned from profit-sharing, allowance, commission, and overtime, it’s not uncommon for financial consultants to earn up to ₹2 million every year.  Educational Background for Financial Consultant  Financial consultants require a minimum of a bachelor’s degree in any one of the following disciplines: Accounting, Business Administration, Statistics, Economics, Finance.  However, the most sought-after financial consultants are those with a Master’s degree. This includes an MSc or MBA in Finance or an MBA in financial planning. Masters programs are the recommended options to enhance your expertise in investment management, asset management, tax planning, wealth management, financial planning, or retirement planning. Even after hiring, companies encourage financial consultants to join professional training, courses or programs to stay up to date with innovative products, relevant regulatory policies, and financial trends to serve clients better. Furthermore, financial consultants with a master’s degree have a better chance of transitioning into senior or managerial roles.  Apart from a master’s degree, there are highly regarded certification courses such as the Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) that open many doors for financial consultants.  A CFA credential is the hardest to earn and takes 4 years to complete. It has three exams and you require a bachelor’s degree plus a minimum of four years of experience, to apply for the certification. A CFP, on the other hand, requires 2 years of professional work experience.  Even though these certifications aren’t necessary for financial consultants, they can attract high-end clients and higher-paying jobs. For some corporations and jurisdictions, a CFP certification is an essential requirement to hire financial consultants. It’s also common for companies to overlook a lack of degrees in favour of experience and skills when hiring financial consultants and advisors. If you have a background in entrepreneurship or have ample experience serving companies and individuals who make financial decisions, you can land yourself a lucrative job in the field of finance. Learn MBA Programs from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. Financial Consultant: Skills Required 1. Financial Consultants Require Strong Communications and Interpersonal Skills As someone whose job involves face-to-face meetings with clients, potential investors, associates, and new business executives regularly, financial consultants require exceptional interpersonal skills and communication skills. The financial industry speaks a complex language that is often beyond the understanding of a layman. Therefore, they need to be able to simplify the technicalities of finance-related matters to effectively communicate with their clients and guide them towards informed decision-making. It also means listening intently to your clients, understanding their needs, and providing support as required.  Furthermore, networking is part of a financial consultant’s job description, therefore, it’s important to be able to develop and maintain relationships with industry professionals and potential clients.  2. They Should Possess Analytical Thinking and Problem-Solving Abilities Financial consultants have expertise in a range of financial products, which allows them to solicit effective and profitable financial counsel. However, despite the strong knowledge base, every client’s requirements are different and require a unique approach to achieve success. This can prove to be challenging and thus, requires problem-solving capacities, mathematical skills, and analytical thinking ability to tailor strategies for clients. They should be able to make data-driven decisions based on insights into client-specific stocks, insurance policies and investment opportunities.  3. Financial Consultants Should be Able to Handle Work Pressure Financial consultants have a rather stressful job. Any advice he/she solicits is expected to have major implications in a client’s professional and personal life. Most financial consultants are also self-employed and manage business operations by themselves, albeit with a team of hand-picked professionals. Handling multiple clients’ financial portfolio is certainly not an easy task. Therefore, they must be adept at handling stress, making sure it doesn’t affect their performance at work.  4. Financial Consultants Should be Enthusiastic, Passionate and Energetic  Providing financial counsel is not everyone’s cup of tea. It requires grit, courage, a strong knowledge base, confidence and a willingness to learn to succeed. More importantly, it requires passion and enthusiasm towards the job. The foremost challenge is to find a client who is a perfect fit which is possible through perseverance.  5. Financial Consultants Require Management Skills A financial consultant often works with a variety of financial professionals to help a client achieve monetary objectives. As someone whose advice is likely to have a huge impact on a client’s life, it is important for financial consultants to demonstrate due diligence and commitment to their job. Possessing organizational skills such as time management, decision-making, resource management, attention to detail, and an ability to delegate. Apart from this, they must possess a positive and proactive attitude, and stay motivated to achieve goals. Must Read: Job-ready Program in Financial Modelling & Analysis Financial Consultant Career Path There are several lucrative roles in finance that a financial consultant can transition into. Here’s looking at a few:  1. Personal Financial Advisor Average Base Salary: ₹368k /year Personal financial advisors work closely with companies or individuals in evaluating their long-term or short-term financial goals and achieving them. They help clients devise profitable strategies to build wealth and offer counsel on planning for retirement, marriage, kids, education, etc. They also assist in estate planning, and budget and investment planning. Most financial advisors also buy and sell stocks and assets on behalf of clients, and provide tax services. Typically, they directly or indirectly handle mutual funds, assets and investments for clients. Considering the rising needs of financial advisers in public or private sectors, and based on demographic trends, the field is expected to grow by 4% by 2029 (Bureau of Labor Statistics). 2. Financial Analyst Average Base Salary: ₹410k /year Financial analysts are employed by almost every large company to monitor cash flow, track transactions, and enforce budgets. Regardless of the industry, region or sector, a financial analyst plays an integral role in the capital management of a client. Their job is higher in prominence in non-finance agencies and corporations, where they may have specific job roles such as investment analyst, securities analyst, equity analyst, or research analyst. There are plenty of career advancement opportunities for financial analysts who can go on to assume executive roles in a company such as a chief financial officer, portfolio manager, or treasurer. 3. Investment Analysts  Average Base Salary: ₹634k /year Investment analysts have unique specializations with respect to the areas and sectors they operate in, industrial, automobile, or economic, and so on. Their job involves conducting industry-specific research and analysis of stocks, currencies, bonds, and commodities according to a geographical location. Investment analysts typically recommend buy and sell options of assets when employed by the sell-side, whereas buy-side companies employ them to work with portfolio managers to recommend securities.  4. Budget Analysts Average Base Salary: ₹650k /year Budget analysts typically have a bachelor’s degree in finance or a related field. They work closely with a company’s program and project manager to create budgets for a program or project respectively. It’s their job to review budgets prepared by managers, approve funding requests, ensure adherence to budgeting policies and regulations, etc. They interact with legislators, investors and stockholders to explain the funding operations, proposed project plans and ensure financial needs are met. It’s also their responsibility to track the progress of a project to ensure compliance with budgeting and offer suggestions to overcome financial challenges. Also Read: MBA Finance Salary in India 5. Portfolio Management Average Base Salary: ₹1047k /year Portfolio management requires a background in business analytics, commerce and mathematics. A portfolio manager does not work with individuals but with an institution or a mix of individuals guiding them in policy-making with respect to asset allocation. They conduct a Strength, Weakness, Opportunity, Threat (SWOT) analysis to assess markets trends and growth sectors to enhance the profitability of an organisation.  Apart from exhibiting exemplary interpersonal and communication skills, portfolio managers must be skilled in mathematics, financial asset management, statistics which would require a qualification in any of the following fields: Economics, Business Administration, and Accounting.  6. Investment Banking Analyst Average Base Salary: ₹1500k /year Investment banking is among the most thriving sectors of finance with companies like JP Morgan, Deutsche Bank, Citi, BA Continuum India offering salaries in the range of ₹15 lacs to ₹23 lacs per year. The job title entails assessing the capital requirements of firms, corporations and government agencies. If a company decides to go public, brokers a merger or trade, or makes an acquisition, the proceedings fall on an investment banking analyst to facilitate these financial reorganizations. There is a requirement of investment banking in nearly all industries and sectors including finance, non-finance, healthcare, manufacturing, and so on. It’s not easy to land an investment banking position in a top firm, however, Job-ready Program in Financial Modelling & Analysis can bring you a lot closer to your goals.  Conclusion  The world of finance is highly competitive; at every stage, there is relentless contention between finance professionals leveraging expertise in innovative tools and technologies to stay ahead of the curve and ensure sustenance. Therefore, it takes unyielding commitment towards learning and upskilling to get your foot in the door. However, the perks and benefits of the job match the struggle endured. To land a position as a financial consultant in one of the top firms or corporations, you would be required to pursue higher education to gain knowledge and experience. It also requires you to be proactive, unrelenting and knowledgeable of the latest trends in finance. It is recommended that you research the best course of action to achieve your career goals before you take up a certification course or decide to pursue a postgraduate degree. If you require any assistance, upGrad has all the resources to guide you and help you make an informed decision. With our Job-ready Program in Financial Modelling & Analysis, you’d get to study directly from industry experts and receive 360-degree career support. The course covers many technical skills including financial management, artificial intelligence in business, digital fraud and risk analytics, and data visualization in finance.

Introduction To Financial Management Financial management is the highly specialised wing of management that focuses on efficient financial planning for an organisation. Unlike the traditional approach that was merely restricted to fundraising, in the modern corporate world, the finance department is responsible for the organisation, strategic planning, direction, and control of financial undertakings in a company or an enterprise. It also includes fiscal management and coining the management principles for an organisation’s financial assets.  With the help of ERP software and finance management system with functions such as accounting information system, asset management, and revenue recognition, financial management empowers the company with a long-term insight. This business insight helps in crucial decision-making on matters pertaining to investment, profitability, liquidity, and business expansion. Financial managers are highly insightful and experienced corporate finance experts who maintain the financial health of an organisation. This is achieved by generating financial reports, planning and tracking investments, developing financial strategies, and designing short and long-term financial goals.  Importance of Financial Management For a sound fiscal execution in a company or an organisation, financial management plays a vital role. From strategising the capital structure, capital budgeting, dividend structure, and scenario planning to crucial decision making such as mergers, acquisitions, franchising, and business expansion – financial management is the backbone that manages the fundamental resource, i.e., Capital. Finance management also oversees budget allocation to each department and leads the way for the entire organisation to meet the short and long-term financial goals.  Nature of Financial Management  Financial Management demands core concentration on wealth maximisation, applying financial management principles to manage the company’s financial resources or the organisation.  Financial Management has a centralised and interdisciplinary nature with controllership function. It is the mainstay of commerce and industry as it essentially involves a risk-return trade-off. Risk management is also one of the vital functions of financial management.  The Nature of Financial Management can be explained as 1. Capital Requirement Estimation Anticipating fund requirements can be one of the most crucial aspects of financial management. Specialised finance managers estimate the capital requirement for a company or a project and prepare the budget considering all revenues and expenses. Accurate cost estimates are essential for the survival and success of a project or a company. 2. Capital Structuring Optimal capital structure needs crucial decision-making about securities subdivisional proportion and combination of equity and debt. The right balance between debt securities, equity securities, derivative, and hybrid securities reduces the cost of capital. Learn MBA Programs from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. 3. Funding Source Selection When it comes to choosing the source of funds, financial management again plays a vital role in determining the suitable sources, including owner investment, issuing of shares, bonds and debentures, venture capital, retained income, etc. The principle behind choosing the funding source mainly sticks to capital cost reduction, low-risk involvement, and accessibility. 4. Raising Shareholder Value To raise the overall value of shareholders, financial management works on cost reduction and profit maximisation to increase return on investment to shareholders. Finance management focuses on not only fundraising but also fund investments on behalf of the company they work for, not only for the company’s benefits but also for the shareholders who have invested in their company. 5. Cash Management The entire cash inflows and outflows are tracked, monitored, and supervised by financial management. This balances the cash surplus and deficit for the benefit and financial security of an organisation. Cost overrun is one of the primary causes of project failure, and financial management effectively maintains sufficient cash flow and reduces liabilities to meet the short and long-term financial goals and obligations. Must Read: Job-ready Program in Financial Modelling & Analysis Scope of Financial Management To understand the scope of financial management, these below mentioned factors are the crucial decisions taken by the financial management. It is applicable in finance and non-finance institutes, stock market, ministry, corporate houses, etc.   1. Investment Decisions Financial managers are responsible for choosing the right set of investments for an organisation. Short-term investment decisions are related to funds allocation in current assets in the short run. Investment decisions in the long-term are investment proposal selection based on various financial factors and is often referred to as Capital Budgeting. 2. Financing Decisions Another crucial decision that comes under the scope of Financial Management is the financing decision. Finance management is responsible for raising the capital for the company. Right from designing the company’s capital structure and choosing the funding source to accomplish the process, the financial manager takes the company’s financing decisions.  3. Liquidity Decisions When it comes to profitability and access to capital, financial management ensures that the company’s assets and securities remain liquid, i.e., accessible to the management as and when required. Finance managers ensure effective management of current asset investment and protect the company against illiquidity risks.  4. Dividend Decisions The financial manager decides the profit distribution policy for the company. Whether the company chooses to distribute the profit among shareholders in the form of dividends or focuses on profit retention, financial management plays a pivotal decision-making role.  Responsibilities of Financial Managers Financial managers work for building and maintaining the financial health of an organisation. Typically, a finance manager is responsible for maintaining and supervising financial reports, budgeting and statements, generating activity reports, and produce business forecasts. Along with monitoring the organisation’s financial details, revenue recognition, and cost reduction, the financial manager also looks after the legal requisites of each business activity.  Playing an active role in critical decision making, finance managers help the management with data analysis to maximise profit, minimise cost, explore expansion opportunities and meet the financial goals within the desired timeframe.  Having a stronghold on tax regulation, GST, and special tax laws (for certain sectors and regions), the financial manager maintains compliance with tax regulations and laws pertaining to the industry or sector they work in. Apart from taxation and excise, they also provide support during internal audits. The roles and responsibilities of a financial manager are sometimes altered to suit the requirements of their organisation in a particular sector. Also Check, Job-ready Program in Financial Modelling & Analysis from upGrad. A Career in Financial Management The financial management domain offers a range of career opportunities and has a vast scope for skilled professionals to occupy multifaceted corporate finance positions in different sectors. Companies, organisations, and governments hire passionate corporate finance professionals for internal operations of all financial management departments for profit maximisation, efficient budgeting, and cost reduction. From investor relations associates and investment analysts to financial auditors and finance managers, there are endless job opportunities in financial management with a great future. Banks, finance companies, brokerage, and insurance companies hire investment analysts and finance managers, auditors, and associates. Organisations in the Non-finance sectors such as Technology, Healthcare, Retail, Energy, Real Estate, and Industrials also provide lucrative job opportunities for corporate finance professionals.  The Salary Range for a Finance Professional The increasing demand for financial managers showcases an upward trend and positive outlook towards a career in this domain. Erratic financial challenges such as cash crunch, illiquidity, regulatory reforms, etc., faced by companies in various sectors and industries have boosted the demand for financial managers who specialise in fund management, risk management, and capital structuring.  The median annual wage for financial managers in India is ₹994667, but the salary varies based on various parameters such as credentials, experience, industry, position, and location. The salary of a finance manager is usually higher in finance sectors compared to non-finance sectors. According to PayScale, professionals with advanced finance degrees, particularly MBA Finance, earn better than finance graduates.  How to Become an expert Financial Manager? Financial managers typically need a bachelor’s degree in finance and extensive experience in a financial occupation. Although bright finance graduates can get a job in financial management, to get a lucrative job opportunity at the managerial level and build a steady career in corporate finance, you need a master’s degree in finance, economics, or business management from a reputed institute. Several certificate courses and advanced diploma courses combined with relevant professional experience can also help a candidate build a stable career in financial management.  Institutions in India conduct various financial management courses. Since the contents of a course and curriculum can differ significantly between different institutions, choosing the right institute for your advanced education to establish a rewarding career in financial management is crucial. Below mentioned are some MBA courses that can help a candidate pursue a successful career in financial management.  1. MBA Degree from Liverpool Business School with Specialization in Finance Give your finance career a head start with an MBA Degree from Liverpool Business School. This MBA program covers Working Capital Management, Accounting Statement, Enterprise and Risk Management, Marketing Management, and Project Evaluation. These subjects will open career prospects for you to work as Financial Analyst, Investment Banker, Finance Manager, Finance Controller, Auditor, and Corporate Finance Manager. Suitable for working professionals, entrepreneurs, and business owners who are planning to give their career a boost, this MBA degree gives you a chance to become a part of the global alumni network of Liverpool Business School, which is UK’s one of the Top B-School.  2. MBA (Global) with Specialisation in Digital Marketing Advance your career with MBA Degree from Deakin Business School (DBS) – Australia’s top B-School. This MBA program specialises in Digital Marketing and covers subjects like SEO, SEM, Content Marketing, Social Media, Branding, Business Growth Strategies, Marketing Analytics, Design Thinking, Strategic Thinking, and Integrated Business Strategy Formulation.  For working professionals planning to upgrade to Digital Marketing, this course is a great opportunity. Bag dual credentials from Deakin University and MICA and unlock job opportunities in Management Consulting, Operations, Business Development, Marketing, Finance, and HR Management.  3. MBA from Liverpool Business School with Specialization in HR MBA Degree in HR from a top-UK school, Liverpool Business School, enriches the candidates with marketing skills through top subjects like Human Resource Management, Organizational Behaviour, Workforce Planning and Recruitment, Market Research, Employee Engagement, and Retention, Business Communication, Accounting, Finance, HR and much more. Working professionals with 1-5 years of full-time work experience can pursue this MBA in HR to unlock potential job opportunities, including Human Resource Management, Talent Acquisition, Employee Training, Retention, and Engagement.  How upGrad Stands For Career Growth upGrad facilitates 360-degree career support to professionals planning to up their game. Breaking through the stigma of online education for meaningful education to an increasingly varied body of learners, upGrad caters to industry-specific demands of working professionals. With upGrad, aspirants can choose to pursue Job-ready Program in Financial Modelling & Analysis in association with PwC India. With 1:1 mentorship from industry leaders, placement support, mock interviews with experts, and resume feedback to a tech-savvy learning environment, upGrad provides a customised learning experience to working professionals and aspirants.