Overview: Financial services include all aspects of the management, investment, and lending of money/assets. This can include asset, mutual fund, and retirement/pension management, to investment/commercial banking and financial forecasting.

Hiring Outlook and Trends:

·  More Financial Services Firms Offer Planning — The relaxation of regulations that separated brokerage, insurance, and banking has led to the creation of large financial services companies like Citigroup, Bank of America, and AXA that offer a large range of investment products. Such companies offer financial planning services to individuals in the hope of capturing all of the customer's financial business.

·  Moving from Commissions to Fees — More financial planners are changing their compensation models from commissions to fees. Advisers benefit from fee-based models that generate steady revenue, even if they're out of the office, and reduce the roller-coaster ride commissions generally create. Compared to flat fees or commissions that can easily cost hundreds, the hourly fee model (even though some advisers charge up to $500 an hour) could save clients’ money. Commission-based compensation has also come under scrutiny for abuse by advisers who may prioritize their own compensation over the needs of their clients. Regulators and lawmakers in the US are debating whether advisers should be able to charge commissions. In places such as the UK, there are bans on commissions for financial advisory services provided to individual investors.

·  Investment Management — Financial planning is increasingly being equated with investment management. More financial planners are managing investments in addition to just practicing financial planning, according to the Financial Planning Association. In the bull market of the 1990s, planners had difficulty distinguishing themselves from advisers, because clients wanted to discuss primarily how well their investments were doing and what new investments they should consider.

·  Multidisciplinary Practices — The multidisciplinary practice (MDP), a firm with several types of professionals working in-house (CFP, CPA, CLU, CFA, JD, etc.), is a slowly emerging trend in the financial advisory business. Americans are increasingly looking for one-stop shopping in financial services. MDPs, still in their early stages, must abide by strict ethical rules including restrictions on fee sharing and confidentiality requirements.

·  Coaching Services — More financial planners are becoming life planners and coaches to clients, a concept similar to one in counseling services. Financial planners use "values-based planning" to help individuals with complex financial and emotional decisions, such as marriage, loss of parents or spouse, parenting, or divorce. Coaching skills have become valuable during economic downturns by helping clients through stressful economic circumstances.

·  Advisers Team Up — A growing number of financial advisers work in a team structure. Teaming allows advisers to specialize in certain areas and broaden a firm's offerings to a growing number of wealthy clients who demand more complex services. Team structures also help clients with succession planning, especially at smaller practices. Younger advisers also can gain valuable experience and build reputations within a team structure.

·  Social Media Marketing — New regulations allow financial planners and advisers to publish links to third-party testimonials found on social media websites like Yelp! and Angie's List. The guidelines reverse a longstanding ban on advisers promoting client endorsements or testimonials in advertisements. The change was driven primarily by demand from investors who want to be able to research advisers the same way they evaluate professionals in other industries, according to On Wall Street. Firms are adapting to the changes by creating social media policies.

·  Industry Employment Growth - Bureau of Labor Statistics

What Employers are seeking:

·  Core Competencies Required to be successful in this industry are: Business knowledge communication skills, client service orientation, leadership, problem solving/critical thinking, productivity, team player, technical skills, personal resilience.

·  Skills and Experience MBA, BA/BS in finance or accounting, management, business, communications. Accounting and finance professionals must demonstrate everything from razor-sharp analytical ability and stellar interpersonal skills to a sharp understanding of industry-standard software. Handling and spending other people’s money commands a high level of responsibility and requires a certain type of person. So employers within the banking, accounting and financial services sector look for candidates who possess a number of key skills and qualities to ensure that their investment in you will be one of the best they make.

There are a number of key skills and personal attributes that are common to all positions, including:

·  excellent communications skills, both verbally and orally

·  good all-round IT skills

·  sensitivity and integrity yet assertive at the same time

·  an analytical and logical approach to problem solving

·  commercial awareness and interest in your chosen field

·  ability to work on your own initiative

·  motivated and ambitious

·  Certifications/Technical Skills

·  Certifications/Technical Skills

·  Chartered Financial Analyst (CFA) certification.

·  Financial Risk Manager (FRM) Certification.

·  Certified Financial Planner (CFP) Certification.

·  Financial Modeling Certification.

·  Certified Credit Professional (CCP)

·  Chartered Global Management Accountant (CGMA)

Sample Employers

·  Bloomberg

·  Morgan Stanley

·  JPMorgan Chase

·  Goldman Sachs

·  Liberty Mutual

·  M&T Bank

·  Bank of America

·  Wells Fargo

·  Citi

Sample Job Titles

·  Investment Consultant

·  Financial Planning Senior Analyst

·  Senior Financial Analyst

·  Finance Manager for Specialty Markets

·  Financial Analysis Manager

·  Financial Analyst

·  Investment Banking Associate

·  Risk Management

·  Global Capital Markets Sales and Trading

·  Financial Advisor

·  Financial Services Consultant

·  Member Relationship Specialist

·  Client Service Associate

·  Financial Services Representative

·  Business Development - Financial Services

Geographic Distribution / Global opportunities (Top 10 Firms)

Company / Location / Recruit MBAs?
SIG Susquehanna / Bala Cynwyd, PA / N
Goldman Sachs / New York, NY / Y
American Express / New York, NY / Y
GE / Boston, MA / Y
Merrill Lynch / New York, NY / Y
T. Rowe Price / Baltimore, MD / Y
Morgan Stanley / New York, NY / Y
BlackRock / New York, NY / Y
Capital One / McLean, VA / Y
Fidelity Investments / Boston, MA / Y

Resources

·  Center for Financial Policy (CFP)

·  Careers4Terps One-Page Industry Guide: Risk Management - https://drupal-base-s3-drupalshareds3-1qwpjwcnqwwsr.s3.amazonaws.com/careers/s3fs-public/FINAL_IND_Risk-Management%20%281%29.pdf?YyK.pg38N0iYhdW5Revwv2Vd0.xTXLhl

·  Smith UG Club - Community of Aspiring Shareholders (CASH) - http://www.umdcash.com/

·  Smith UG Club - Finance Banking Investment Society (FBIS) - https://www.umdfbis.com

·  Smith UG Club - International Economics & Finance Society (IEFS) - https://www.instagram.com/iefs/

·  Smith UG Club - Investment Banking Club (IBC) - https://www.facebook.com/umdibc

·  Smith MBA Club - Finance Association - http://clubs.rhsmith.umd.edu/finance/#_ga=2.61400620.1823861902.1495458884-1732657947.1473361742

·  Smith Specialty Masters Club - Master of Finance Association (MFA) - https://networth.rhsmith.umd.edu/smsa/clubs/master-finance-association-mfa

·  American Financial Services Association - https://www.afsaonline.org/

·  Financial Services Industry Organizations - http://www.iii.org/services/directory/company-categories/financial-services-industry-organizations

·  Society of Financial Service Professionals - http://www.financialpro.org/

·  Bankers Association for Finance and Trade - https://www.baft.org/

·  American Bankers Association - http://www.aba.com/

·  Monster.com https://www.monster.co.uk/career-advice/article/what-skills-are-finance-employers-looking-for

·  EDUCBA https://www.educba.com/top-finance-certifications-for-a-professional/

·  SIFMA.org http://www.sifma.org/services/career-center/core-competencies/

·  Robert Half https://www.roberthalf.com.au/blog/your-career-finance-10-skills-really-count

Hiring Timelines

·  The industry hires all year without a formal recruiting process. Programs identified for college programs typically follow the traditional fall/spring recruitment cycles.

·  College programs: Full time and internship recruiting takes place in September and October. Certain experiential and leadership programs recruit in the springtime during the months of February and March.

·  Wall street & Sales and trading roles are being sought for earlier and earlier. The positions are typically recruited for during the late spring months targeting the under classman. The demands and need to target younger students are expected to increase. Positions are being sought as for internships for freshmen and sophomores with hiring to be converted to full time positions for the senior positions.

Compensation:

MBA: / $116,395.00
Source: US News, reported March 23, 2017
Entry-level: / $55k-$60k
Source: http://www.payscale.com/research/US/Industry=Financial_Services/Salary