What Finance Skills you need to thrive today
Today we want to talk to our finance whizkids. Are you a finance professional looking to return to work in the near future? Want to know what skills are in vogue today? Read on.
Today morning we posted a blog about the broad finance space, where it is going and how to upskill yourself. Now let’s talk about what these skills are. Below are some of the ones that we come across on a regular basis. We will give you a very short teaser of each, and you can do your own research on them too.
Industry-agnostic Hard Skills
Accounting: It continues to see demand, and while the basic principles of Accounting won’t undergo significant change with time, the Accounting environment keeps changing in line with mostly Regulatory changes - like Accounting Standards, Introduction of Goods & Services Act etc. A brush-up on those would be mandatory.
Taxation: If you specialise in filing I.T returns for corporates, a simple brush up of the changes in the segment would help you get back to work. However, if you offer more specialized skills like consulting on Indirect taxes, it would be important to update yourself on the latest case laws, and legal judgements before starting work post-break
Financial Modeling: Once you have understood how to build models uniquely for any business or industry, it’s unlikely you will lose it in your break. However the best way to refresh in this segment is to practice - on free assignments, with friends or family and via online courses that provide hands-on experience.
Valuation: A deep knowledge of the industry is important to be able to value a company. To brush up after a break, be in touch with past work colleagues and industry connects, follow macro economic trends that influence particular industries and changes in work approaches around valuation
Investment thesis: It is applicable for any role where there is a need to evaluate businesses and companies from the point of view of a buy or a sell. The same brush-up techniques for the above two skill-sets should work here, apart from monitoring trends, new entrant and new lines of business for existing players, that might help identify the right companies.
Credit-risk Assessment: It helps decide lending and financial exposures that should be given to any entity. Large banks usually have algorithms for it, but a good amount of human judgement is involved in computing metrics that reflect the paying capacity of the prospective borrower. Following macro economic indicators and the banking regulatory environment would be key to keeping yourself updated. And don’t forget to keep your ears open for the new-age Fin-tech that is disrupting all finance skills including credit-risk assessment!
Financial Services Skills
The Financial Services industry centres around core finance products and needs deep financial knowledge. Preparation needed to return to work for such roles entails keeping up-to-date on the macro-economic and financial environment, keeping in touch with industry connections, and most importantly, hands-on practice that comes from doing courses, taking up projects, and investing yourself. Let us see what some of the roles in the Financial Services Industry are -
Commercial Banking: Commercial banks are what most people think of when they hear the term "bank." They accept deposits, make loans, safeguard assets, and work with clients of all types. Top Finance skills needed here comprise Credit Risk, Lines of Credit, Financial Analysis, Trade Finance, Liquidity and cash management.
Investment Banking: It is the act of raising capital for firms, through either issuing debt or selling equity. It also includes the peripheral tasks of managing M&A, advisory, and other corporate finance services. Some of the top roles in IB are Banking Associates, Capital market analysts, Research associates, Traders, and require skills such as financial modelling, valuations, pitch books, and due diligence among others
Private Equity: PE firms are investment management companies that acquire private businesses by pooling capital provided from high net worth individuals (HNIs) and institutional investors. Associate work consists mainly of research, due diligence, financial modeling, and report writing. Senior rung skills include producing ideas for investment opportunities by identifying companies to acquire
Fin-Tech: We have heard a lot about Fin-Tech in recent times, but simply put, it’s function is to help companies, business owners and consumers better manage their financial operations and processes via specialized software that are used on computers and smartphones. All hard finance skills come into use in Fin-Tech depending on the actual product or service being offered or industry being disrupted
Specialist Assurance: These are provided by Certified Accountants or Accounting Firms to meet Local or International Compliances. These include Statutory Audit, Global Accounting reporting and conversions, Information Security, Forensics and other specialist engagements.
Equity Research: Equity research professionals are responsible for producing analysis, recommendations, and reports on investment opportunities i.e. whether to buy, hold or sell, that investment banks, institutions, or their clients may be interested in. The Equity Research Division is a group of analysts and associates at an investment banking (sell side), an institution (buy side), or an independent organization.
Credit Research: Credit Research or Rating is an opinion of a particular credit agency regarding the ability and willingness of an entity to fulfill its financial obligations in completeness and within the established due dates. It represents the credit risk carried by a debt instrument – whether a loan or a bond issuance.
If you have these skills, or have some of them and want to build some others, give yourself avenues to practice by applying for jobs and projects. It’s the best gift you could give yourself! And don’t forget to sign-up with FlexiBees to explore flexible jobs in some of these.
We at FlexiBees have placed such talented career returners like you across a variety of functions & skill-sets like Marketing, Digital Marketing, Public Relations, Investment Banking, Inside Sales, Business Development, Technology, Content Writing, Graphic Design, etc. We are committed to creating meaningful options for you. Go to https://jobseeker.flexibees.com/ and register with us, so we can reach out to you when we get any requirements that match your skills.