Career in Finance in 2023: What’s in Store for you?

The financial services and the banking sectors are extremely lucrative markets in India. Bank assets in the country across various domains were valued at $2.48 trillion during the fiscal year of 2021. Total assets in the private and public sectors were $878.56 billion and $1,602.65 billion, respectively.

Both corporate and consumer banking have grown exponentially. More people are being exposed to investing as well with the FinTech applications, making it easy for the common consumer to go ahead and invest in mutual funds or stocks. Similarly, banks also need to cater to more willing investors directly who wish to invest in start-ups.

The financial services industry has also experienced massive growth. The total valuation of assets under management (AUM) by the Indian mutual funds industry stands at INR 36.73 trillion, as of 2021’s September. The mutual funds industry manages 114.4 million accounts, catering to millions of Indian families.

Similarly, there was a massive expansion in the insurance sector as well, fuelled with insurance technologies and third-party FinTech services such as Policybazaar. In 2020, the total premium amassed by companies for the first year of life insurance was $36.73 billion in India. Finance professionals are not just needed for transaction-related financial services or analytics, but also for consultations, customer relationships, and portfolio management.

It is no surprise that the Indian FinTech market is estimated to reach a whopping amount of INR 6.2 trillion in valuation. India’s financial sectors are growing at an exponential pace. During the financial year of 2018, India’s digital lending was $75 billion. In 2023, India’s digital lending is expected to reach $1 trillion, which is a great leap in around five years.

With the rapid modernization of all other processes, there is a massive requirement for rapid financial services. Modern finance courses in India acknowledge this requirement by covering advanced technologies and tools that can be used for solving modern problems. There is a huge requirement for financial technologies, analytics, and data-driven operations. Let’s understand the finance career in more detail.

Overview of the finance industry:

The finance careers industry encompasses various sectors, including banking, investment management, insurance, and more. It plays a vital role in the global economy, offering financial services, managing investments, and facilitating economic growth. 

Importance of a career in finance:

A finance careers offers numerous benefits. It provides opportunities for growth, lucrative salaries, and the chance to make a meaningful impact on businesses and individuals' financial well-being. Moreover, it offers a dynamic and challenging work environment that rewards analytical and strategic thinking.

Finance professionals are required for all kinds of processes, for instance - auditing, accounts, investment banking, risk management, credit analytics, or market analytics. As the number of customers and users for companies increase, finance professionals will be in higher demand.

More than anything, finance is one of the core departments of a company. With more start-ups and medium-level companies springing up to cater to a growing population, financial professionals will always find themselves at home in companies that do not even directly offer financial and related services.

Finance Careers

A finance careers in India offers a wide range of job opportunities. Some popular roles include financial analysts jobs, investment bankers, risk managers, financial planners, and corporate treasurers. These finance careers roles require strong analytical skills, business acumen, and the ability to navigate complex financial landscapes. Also read about Financial Analysis, Valuation, & Risk Management and Financial Accounting VS Management Accounting.

Quantitative & Analytical Roles in Finance Careers: Exploring Key Job Opportunities

Let’s look at the different types of career options in finance in detail:

1. Financial Analyst: Financial analysts play a crucial role in analyzing financial data, assessing investment opportunities, and providing recommendations. They evaluate company performance, conduct market research, and create financial models to support decision-making. Read more on Financial Analysis: Meaning, Importance & Functionsand How Financial Analysis Plays an Important Role for Businesses. 
2. Risk Manager: Risk managers identify and manage potential risks faced by organizations. They assess financial risks, such as credit, market, and operational risks, and develop strategies to mitigate them. Their analytical skills and knowledge of financial markets contribute to effective risk management. It is one of the most popular financial analyst jobs.
3. Data Analyst: Data analysts collect, analyze, and interpret complex financial data to generate insights and inform strategic decisions. They utilize statistical techniques, data visualization tools, and programming languages to uncover trends, identify patterns, and support business strategies. It is one of the most popular financial analyst jobs.

These quantitative and analytical roles in finance careers require strong quantitative skills, attention to detail, and the ability to interpret and communicate complex financial information. Pursuing these finance careers can lead to challenging and rewarding career in finance in India.

Client-Facing Roles in Finance Careers: Exploring Key Job Opportunities

Let’s look at the client facing role in finance career:

1. Relationship Manager: Relationship managers build and maintain relationships with clients, understanding their financial goals and providing personalized advice. They offer a range of financial services, such as wealth management, investment planning, and retirement planning, tailored to clients' needs.
2. Financial Advisor: Financial advisors assist individuals and businesses in making informed financial decisions. They assess clients' financial situations, provide recommendations on investments, insurance, and tax planning, and help clients achieve their financial goals.
3. Private Banker: Private bankers work with high-net-worth individuals and provide personalized banking and wealth management services. They offer comprehensive financial solutions, manage investments, and facilitate access to exclusive banking products and services. It is one of the most popular financial analyst jobs.

These client-facing roles in finance careers require excellent interpersonal skills, strong communication abilities, and in-depth knowledge of financial products and services. 

Transaction-Focused Roles: Exploring Key Career Opportunities in Finance in India

Let’s look at the Transaction-Focused role in finance career:

Finance careers offers a plethora of transaction-focused roles for individuals seeking a career in finance. These roles provide exciting opportunities to work on critical financial transactions and contribute to the growth of businesses and the economy.  It is one of the most popular financial analyst jobs.

1. Investment Banker: Investment banking career in finance in India involve facilitating mergers and acquisitions, capital raising, and providing financial advisory services to clients. Investment bankers play a vital role in shaping the corporate landscape and driving economic growth.
2. Trader: Traders career in finance in India execute trades in various financial instruments, such as stocks, commodities, and currencies. They analyze market trends, monitor price movements, and make informed trading decisions to maximize profits.
3. Fund Manager: Fund managers oversee investment portfolios and make strategic investment decisions on behalf of clients or funds. They analyze market trends, manage risks, and aim to achieve optimal returns for investors.

A career in finance in India offers exciting opportunities to work in transaction-focused roles that contribute to the growth and development of businesses. These roles require strong analytical skills, attention to detail, and the ability to thrive in a fast-paced environment. By pursuing a career in finance in India, individuals can be part of a dynamic industry that plays a significant role in shaping the country's financial landscape.

What are the objectives of the financial sector in 2023?

Here are the primary focuses of the financial sector in 2023:

• Using data for making financial decisions
• Real-time financial analytics
• AI-driven financial services
• Automation in portfolio management
• New-age banking
• FinTech applications
• Advanced Risk Management
• Market monitoring and evaluation with AI and Machine Learning

What’s changed compared to, say, 5 or 10 years ago in Finance Career?

A lot has changed in finance over the last decade. The first big difference now is the availability of FinTech applications for all kinds of financial services. From investing in stocks and mutual funds to even cryptocurrency, you can do it all from the palm of your hands. The nature of these services has been designed to cater to thousands if not millions of users.

Loan disbursal, digital wallets, and digital investment portfolios are all faster and more accessible alternatives to the ‘in-person options’ that would satisfy the financial requirements of consumers. This is the same for companies and businesses. With advanced financial analytics and financial software, companies are finding it extremely easy to manage and monitor their financial performance.

Managing a department or a project’s finances is crucial for increasing revenue and cutting costs. Modern financial solutions help companies and finance professionals do all of this more effectively and efficiently. Especially with AI-driven systems becoming prevalent, finance professionals find it much easier to carry out their daily tasks.

Banking as a whole has seen a steady digital transformation in the last 10 years and more so in the last 5 years. The number of customers that the banks possess have significantly increased. Just as an example, the total amount of transactions through the IMPS or the Immediate Payment Service was INR 3.70 trillion in October 2021. This was made up of more than 430 million individual transactions.

Indian banks have expanded like never before and now consist of 22 private sector banks, 46 foreign banks, and 12 public sector banks. There are also 1485 urban cooperative banks, 56 regional rural banks, and 96,000 rural cooperative banks. Banking has also become very different, having transformed into a fast digital process.

With the help of biometrics and standardized identification documents, onboarding new customers is easier for bankers. Banks are also able to provide better services through digital mediums such as net banking and UPI payments. Investment banking has also started taking the help of analytics and Artificial Intelligence for identifying suitable investments and risks.

Based on RBI’s September 2021 documentation, the total bank credit in India stood at INR 110.46 trillion. 2021 was a great year for the banking sector as it touched $2.06 trillion. During the period between 2016 and 2021 (5 years), banking deposits increased at a CAGR of 12.38%.

What are the highs and lows of the job in Finance Career?

Here are the advantages and disadvantages of job role in finance career:

What are the expectations from finance in 2023?

Here are some expectations from finance in 2023:

• Hyper-automation: Banks and other financial processes are slowly being shifted towards hyper-automation. AI-driven systems are faster and do not make mistakes. Thus, companies are incorporating AI into their financial processes as much as possible
• Customized customer experience: By concentrating on each end-user with the help of AI and by recommending relevant plans, companies can retain their users better. Similarly, by providing additional services that their target audiences can use, they can get more people on board. New-age banking services have started providing additional services that give additional benefits such as change savings and holiday savings.
• FinTech Solutions: 2023 will definitely see more innovative solutions like the ones seen in previous years. This year’s FinTech solutions will focus more on AI and personalized services.
• Blockchain: According to many, blockchain is the future. Many blockchain development start-ups have started building their own blockchain networks, markets, and platforms for financial transactions, buying, selling, or investing. Polygon (MATIC), a layer 2 platform, is a more promising alternative to Bitcoin or Ethereum networks and it has been developed in India.

What will be the pay trend in 2023? What kind of salaries can we look at?

The average salary of finance professionals in India is INR 20,735, however, this includes many simpler part-time job roles such as financial data entry and tallying. When it comes to finance managers, the average national annual salary package is INR 11,54,030. Finance pays extremely well in India as well as all across the world.

Payscale reports similar numbers (INR 9,97,559 per annum) based on 2495 finance manager salaries. Based on 160 salaries, entry-level finance managers with less than one year of experience earn an average of INR 5,22,823 per annum. A certificate in finance also increases your scope for higher salaries.

Finance managers with one to four years of experience earn INR 7,37,338 on average per annum (based on 577 salaries). Meanwhile, finance managers with 5 to 9 years of experience under the belt and 10 to 19 years of work experience earn average salaries of INR 10,84,270 and INR 12,18,168, respectively. Similarly, other roles in finance also pay extremely well.

Financial analysts in India earn an average of INR 4,23,532 annually, while risk managers make INR 13,14,347 on average per annum.

What does the future look like for finance professionals?

Finance professionals can work not only in consumer banking, investment banking, financial analytics, and various financial services but in any other domain that is not related to finance. For example, any manufacturing company would need an accountant or any start-up would need a financial analyst.

Here are some financial analyst job roles that are great for finance career:

• Accountant
• Auditor
• Financial Consultant
• Financial Analyst
• Actuarian
• Insurance Consultant
• Investment Banker
• Risk Manager
• Risk Owner
• Credit Analyst

The sector will continue to grow as the purchasing power of people increases, and producers keep trying to satisfy the demand for products and services. Finance is the backbone of any company, thus always ensuring that this sector remains relevant and essential. The future of a sector like this is always secure, even with automation and AI taking over.

You can easily join this valuable sector after arming yourself with the help of a full-time finance program or other finance certification courses.

It is important to upskill in finance due to the fantastic opportunities currently available and will be so in the near future. You can use certifications for finance professionals if you are a working professional in this field or take help from other academic resources, tutorials, and online finance courses in India if you are a fresher.

Benefits of Having a Career in Finance: Unlocking Opportunities in Finance Careers

1. Lucrative Salaries: Finance careers often offer competitive compensation packages, including attractive base salaries, performance-based bonuses, and various incentives.
2. Diverse Career Opportunities: The finance industry provides a wide range of career paths, from investment banking and financial analysis to risk management and wealth management. This diversity allows individuals to explore different areas of interest and specialize in their chosen field.
3. Skill Development: Finance carrers hones essential skills such as analytical thinking, problem-solving, decision-making, and financial modeling. These skills are valuable not only in finance but also in other industries.

A career in finance offers numerous benefits, including financial rewards, diverse opportunities, global exposure, skill development, and the ability to make a meaningful impact. These advantages make finance careers appealing to those seeking a dynamic and rewarding professional journey.

Steps to Build a Career in Finance in 2023: Navigating the Path to Excel in Finance Careers

1. Education and Qualifications: Obtain a relevant degree in finance, accounting, economics, or business. Consider pursuing professional certifications like CFA, CPA, or FRM to enhance your credentials.
2. Internships and Networking: Gain practical experience through internships or entry-level roles in finance firms. Network with professionals in the industry to expand your connections and seek mentorship opportunities.
3. Continuous Learning: Stay updated with industry trends, regulatory changes, and emerging technologies. Attend seminars, webinars, and workshops to enhance your knowledge and skills.

Building a successful career in finance requires a combination of education, experience, networking, and a commitment to lifelong learning. By following these steps and staying dedicated to your goals, you can navigate the path to excel in finance careers and achieve long-term success in this dynamic field.

Key Factors Influencing Finance Careers in 2023: Adapting to a Changing Landscape in Finance Careers

1. Technological Advancements: The finance industry is rapidly evolving due to advancements in technology. Embracing emerging technologies like artificial intelligence, blockchain, and data analytics is crucial to stay relevant in finance careers.
2. Sustainable Finance Careers: The increasing focus on environmental, social, and governance (ESG) factors is shaping the finance industry. Professionals with expertise in sustainable finance will have an edge in their careers as companies and investors prioritize sustainability.
3. Remote Work and Digital Transformation: The COVID-19 pandemic has accelerated the adoption of remote work and digital transformation. Finance professionals need to adapt to virtual collaboration tools and demonstrate their ability to work effectively in remote settings.

In 2023, finance careers will be shaped by technological advancements, sustainable finance practices, remote work capabilities, regulatory changes, and global economic trends. By embracing these factors and proactively adapting to the evolving industry, finance professionals can seize new opportunities and excel in their careers.

Conclusion

Finance careers offer diverse opportunities for individuals seeking a rewarding and dynamic professional path. With the ever-changing landscape of the finance industry, staying updated and adaptable is key to success. By continuously learning, building strong networks, and specializing in specific areas, individuals can build successful finance careers. With the right skills, qualifications, and a proactive approach to professional growth, finance professionals can thrive in this competitive and evolving industry.