Skills You Need to Succeed in Financial Services

Financial services

A career in financial services requires a wide range of skills. You may not necessarily need all of them, but those you possess may be highly valued. Computers and information technology are used in just about everything these days, including financial services. You must be able to stay up-to-date with this technology. IT systems are critical to the business of finance. Here are some other skills that you may need to succeed in financial services. Read on to learn more about these skills and how they can apply to your career.

Economic capital

Although the definitions of economic capital and regulatory capital are not entirely clear, they both measure the amount of risk capital that banks need to remain solvent. This article explains how these measures differ and explores their relative relevance to banks. Economic capital is a measure of risk capital that banks should build up in order to provide a variety of financial services to their customers. It is important to understand the relationship between EC and regulatory capital. This article will discuss the benefits of both economic capital and regulatory capital.

Financial risk management

Effective financial risk management is vital to the health of a financial services firm. The financial services sector entails a complex range of risks, many of which are not readily quantifiable. Consequently, financial managers are often dissatisfied with the tools and concepts available for managing financial risk. In order to effectively manage these risks, financial institutions must first understand the full range of risks in their business. This includes operational, credit and market risks.

Customer-centricity

Banks must adopt customer-centricity and re-imagine their businesses to meet the ever-changing expectations of customers. Increasing customer expectations have prompted a rethinking of the entire organization to better understand the customer and delight them at every opportunity. Technology has become a key enabler in customer-centric initiatives, but it is only window dressing without a clear strategy. To achieve customer-centricity, banks must first define what customer-centricity means to their organization.

Revenue sources

Among the various revenue streams for financial services, fee-based checking and bill pay are the two most popular examples. With the rise of the fintech industry, banks are facing increasing competition. While fees for these products are relatively stable, the number of customers in each category can change frequently. Fee-based checking is especially difficult to predict because customers’ behavior and spending habits fluctuate. Another revenue stream is project revenue, which depends on customer relationships and fluctuates with market demand.

Competition for talent

Recruitment is a constant struggle for organisations, especially those in the financial services sector. Despite the optimism in the sector, labour shortages have been a major issue. Some 22 per cent of financial services respondents have identified labour shortages as a main concern when looking to invest in the future. However, companies are turning to external recruitment partners such as executive search firms to meet their talent needs. These firms have an extensive network of potential candidates and special knowledge of talent acquisition.