Finance Career Paths Explained

Summary

Ned, CEO of 365, discusses finance careers, sharing his experience as a forex dealer, analyst, and consultant. He covers various fields like corporate finance, investment banking, and consulting, detailing roles and progression. Ned promotes 365's Financial Analyst Program for practical skills, emphasizing the gap between university education and real-world challenges. He highlights the appeal of M&A and the importance of financial analysis in building a finance career.

Takeaways

• 🎓 Ned, the founder and CEO of 365, has a finance background with experience in forex dealing, financial analysis, and M&A.
• 🌐 365 has helped over 3 million people worldwide to acquire career-enhancing skills.
• 💼 Finance careers are diverse, including corporate finance, investment banking, investment management, traditional banking, financial services, and consulting.
• 🏢 Corporate finance roles involve financial analysis, cash flow management, treasury operations, and more.
• 📈 Financial analysts in corporate finance play a key role in analyzing performance and engaging with stakeholders.
• 🚀 Investment banking offers dynamic career opportunities, including M&A, capital markets, and trading.
• 💼 M&A analysts are crucial in mergers and acquisitions, handling financial modeling and business valuation.
• 💵 Private equity and venture capital are part of investment management, focusing on client funds and investment strategies.
• 🏦 Traditional banking involves deposit taking, lending, forex, corporate banking, insurance, and wealth management.
• 🔍 Risk management in traditional banking involves evaluating financial models and exposures to mitigate risks.
• 🌐 Financial consulting firms assist businesses with M&A, restructuring, auditing, tax, compliance, and performance improvement.

Q & A

What is the primary focus of the company 365?

The primary focus of the company 365 is to help people worldwide acquire career-enhancing skills, with a particular emphasis on finance careers.

What roles has Ned held in his finance career?

Ned has held various roles in his finance career, including forex dealer, financial analyst, M&A advisor, in-house M&A analyst, and financial consultant.

What are the diverse fields in finance careers mentioned by Ned?

The diverse fields in finance careers mentioned by Ned include corporate finance, investment banking, investment management, traditional banking, financial services, and consulting.

What is the main difference between financial accounting and financial analysis roles?

Financial accounting roles involve maintaining and analyzing financial records to ensure accuracy and regulatory compliance, while financial analysis roles involve studying financial performance and providing insights and reporting to management for internal decision-making.

What are the typical positions in accounting roles within a company?

Typical positions in accounting roles within a company include Accountants, Accounts Receivables, Accounts Payables, and the Internal Audit team.

What is the role of a financial controller in a company?

A financial controller is responsible for uncovering the cost of producing a company's products or services.

What does the Financial Planning & Analysis (FP&A) team do?

The FP&A team forecasts revenue, costs, and balance sheet items, and shares these insights across the organization to enable budgeting and planning efforts.

Why might someone choose a career in investment banking?

Someone might choose a career in investment banking for its dynamic career development opportunities, which include assisting firms with raising capital, mergers and acquisitions, and trading activities.

What are the potential career progression paths for an investment banker?

Potential career progression paths for an investment banker include roles like associate, VP, Director, and Managing Director.

What is the difference between a venture capital analyst and a private equity analyst?

A venture capital analyst focuses on sourcing potential deals with early-stage companies, looking for revenue growth potential and great entrepreneurs. In contrast, a private equity analyst works on larger deals, often aiming for majority stake or full ownership of the firms they invest in, and provides significant post-deal support.

What are the key functions of traditional banks in the modern finance landscape?

Traditional banks offer services such as digital banking, forex, corporate banking, insurance, and wealth management. They also employ credit analysts to assess creditworthiness and have risk management staff to mitigate potential risks.

How does financial consulting differ from other finance fields?

Financial consulting involves assisting businesses with issues like M&A, restructuring, auditing, tax, compliance, risk management, and performance improvement. It often requires a deep understanding of business strategies and the ability to provide technical and accounting expertise.

What is the typical career progression in a Big Four consulting firm?

The typical career progression in a Big Four consulting firm includes roles such as consultant, executive, assistant manager, manager, senior manager, director, associate partner, and partner.

Outlines

00:00

🎓 Introduction to Finance Careers

Ned, the founder and CEO of 365, introduces the topic of finance careers, sharing his personal journey through various finance roles such as forex dealer, financial analyst, M&A advisor, in-house M&A analyst, and financial consultant. He emphasizes the diversity of fields within finance, including corporate finance, investment banking, investment management, traditional banking, financial services, and consulting. Ned also highlights the importance of specialized skills in each area and promotes 365's Financial Analyst Program, which aims to bridge the gap between university education and real-world work challenges. He encourages viewers to explore the platform and take courses to excel in their finance careers.

05:03

💼 Corporate Finance and Investment Banking

The video delves into corporate finance roles within companies like Coca-Cola and Nike, detailing positions such as accountants, accounts receivables, accounts payables, internal audit teams, financial analysts, financial controllers, and FP&A teams. Ned shares his preference for the financial analyst role due to its varied responsibilities and career growth potential. He then transitions to investment banking, discussing the dynamic opportunities it offers, including capital raising, M&A advisory, and trading. Entry-level roles like equity or debt capital markets analyst, M&A analyst, trader, and investment researcher are highlighted, with a focus on the exciting aspects of M&A deals and the career progression in investment banking.

10:03

📈 Investment Management and Traditional Banking

This section covers investment management, including private equity and venture capital, where asset managers and investment funds aim to maximize returns based on client risk profiles. Venture capital analysts are responsible for identifying early-stage companies with growth potential, while private equity analysts handle larger deals and majority stakes. The video then explores traditional banking, which involves deposit taking, lending, digital banking, forex, corporate banking, insurance, and wealth management. Credit analysts and risk management staff are crucial in this field, with roles such as risk analysts focusing on financial models and risk mitigation strategies. The segment also touches on the corporate divisions of banks and the role of relationship managers in fostering client relationships.

🏢 Financial Services and Consulting

The final part of the video discusses financial services and consulting, with a focus on the Big Four auditing firms—PwC, KPMG, EY, and Deloitte. These firms offer services in M&A, restructuring, auditing, tax, compliance, risk management, and performance improvement. The role of an auditor is emphasized, involving the verification of financial statements for accuracy and compliance. The video also mentions career paths in transaction services, tax advisory, and other consulting roles. Ned shares his personal experience starting at PwC's Transaction Services unit, where he gained valuable technical skills and insights into business strategies. He concludes by encouraging viewers to visit 365financialanalyst.com to build the necessary skills for a successful finance career and to continue learning.

Keywords

💡finance careers

Finance careers refer to a broad range of professional roles within the financial sector, including investment banking, financial analysis, and corporate finance. In the video, the speaker discusses different finance careers, emphasizing their importance and the diverse skills they require. Examples given include working as a forex dealer, financial analyst, and M&A advisor, showcasing the variety of opportunities available in this field.

💡corporate finance

Corporate finance involves financial activities within a company, such as financial analysis, cash flow management, and treasury operations. The video mentions that corporate finance roles are essential for global companies like Coca-Cola and Nike, where finance specialists are needed for various financial tasks. The script also distinguishes between financial accounting-related and financial analysis roles within corporate finance.

💡financial analyst

A financial analyst is a professional who performs financial analysis, studies financial performance, and provides insights to management. The video script highlights the role of a financial analyst as a favorite entry-level position in corporate finance, where they engage with key stakeholders and perform various analyses, preparing them for more advanced roles.

💡investment banking

Investment banking is a field of finance that deals with the raising of capital by corporations, governments, and other entities, as well as mergers and acquisitions. The speaker in the video describes investment banking as a dynamic career path with roles such as equity or debt capital markets analyst, M&A analyst, trader, or investment researcher.

💡M&A analyst

An M&A analyst is a professional who specializes in mergers and acquisitions, identifying potential targets, and handling financial modeling and business valuation. The video script emphasizes the appeal of being an M&A analyst, such as the thrill of closing high-stakes deals and the opportunity to work on transformative transactions.

💡private equity

Private equity refers to investment funds that acquire stakes or ownership in companies, typically with the aim of improving their operations and then selling them for a profit. The video mentions private equity as part of the investment management industry, where analysts work on larger deals and look to acquire majority stakes or full ownership of firms.

💡venture capital

Venture capital is a type of financing that investors provide to startups and small companies with perceived long-term growth potential. In the video, the speaker describes the role of a venture capital analyst, who is responsible for sourcing potential deals with early-stage companies and evaluating their business plans.

💡traditional banking

Traditional banking involves activities such as deposit taking, lending, and offering services like forex, corporate banking, insurance, and wealth management. The video script mentions that traditional banks require credit analysts to assess the creditworthiness of loan applicants and risk management staff to evaluate and mitigate potential risks.

💡financial consulting

Financial consulting involves providing expert advice to businesses on matters such as M&A, restructuring, auditing, tax, compliance, risk management, and performance improvement. The video discusses financial consulting as a career path, mentioning the Big Four accounting firms (PwC, KPMG, EY, Deloitte) as major players in this field.

💡365 Financial Analyst Program

The 365 Financial Analyst Program is a course mentioned in the video that aims to teach practical skills to help individuals land jobs in finance. The speaker recommends this program as it addresses the gap left by university education, which often does not prepare students for real-world work challenges.

💡career progression

Career progression refers to the advancement of an individual's career through a series of roles or positions, typically moving from entry-level to more senior roles. The video script discusses career progression in various finance fields, such as starting as a financial analyst and potentially advancing to CFO in corporate finance or moving from analyst to managing director in investment banking.

Highlights

Ned, the founder and CEO of 365, discusses finance careers and shares his professional experience.

365 has helped over 3 million people worldwide acquire career-enhancing skills.

Ned has worked in various finance roles including forex dealer, financial analyst, M&A advisor, and financial consultant.

Finance careers span diverse fields such as corporate finance, investment banking, investment management, traditional banking, financial services, and consulting.

365financialanalyst.com is recommended for learning practical skills to excel in finance careers.

Corporate finance involves roles in financial analysis, cash flow management, treasury operations, and more.

Financial accounting roles ensure accurate financial statements and regulatory compliance.

Financial analysts provide insights and reporting to management for internal decision-making.

Financial controller role focuses on uncovering the cost of producing a company’s products or services.

FP&A team forecasts revenue, costs, and balance sheet items, sharing insights for budgeting and planning.

Ned's favorite entry-level Corporate Finance role is financial analyst due to its analytical and stakeholder engagement aspects.

Investment banking offers dynamic career opportunities with roles like equity or debt capital markets analyst, M&A analyst, trader, or investment researcher.

M&A analysts play a crucial role in identifying potential targets, financial modeling, business valuation, and due diligence.

Private equity and venture capital are part of investment management, focusing on client funds investment and returns.

Venture capital analysts source deals with early-stage companies, evaluating their growth potential and entrepreneurs.

Private equity analysts work on larger deals, often seeking majority stakes or full ownership in the firms they invest in.

Traditional banking includes roles like credit analysts and risk management staff, offering insights into business and risk assessment.

Financial Services and Consulting firms assist businesses with M&A, restructuring, auditing, tax, compliance, and performance improvement.

The Big Four auditing firms offer career paths in transaction services, tax advisory, and more.

Ned's career started in PwC's Transaction Services unit, where he gained valuable technical and strategic evaluation skills.

The video provides insights into diverse finance careers and encourages viewers to build necessary skills for success.

Transcripts

Hey everyone, my name is Ned.  I’m the founder and CEO of 365. 

We’ve helped more than 3 million people  worldwide acquire career-enhancing skills. 

Today, I want to discuss one of my  favorite topics: finance careers. 

I’m a finance graduate, and throughout my  professional development, I’ve worked as  

a forex dealer, financial analyst,  M&A advisor, in-house M&A analyst,  

and financial consultant. So, I've held various roles  

and gained valuable experience that  I'm eager to share with you. First,  

it's essential to understand the diverse fields  in finance careers—including corporate finance,  

investment banking, investment management,  traditional banking, financial services, and  

consulting. Each area demands specialized skills  and provides numerous placement opportunities. 

In this video, I’ll explore various finance job  roles, highlight the most intriguing career paths,  

and share my insights. I hope you’re  excited because I certainly am!

But before we continue, I want to say a few words  about our platform, 365financialanalyst.com. 

Given that you’re interested in a career  in finance, I can confidently say that  

this is one of the best places where  you can learn practical skills to help  

you land a job and excel from day one. Unfortunately, university education often  

fails to prepare students for real-world work  challenges. Our 365 Financial Analyst Program  

addresses this gap by teaching practical  skills that my colleagues and I possess. 

Check out the link in the description—I  highly recommend taking our courses.

OK. First,  

we'll begin with corporate finance, which involves  working within a typical company's finance team. 

Coca-Cola, Nike, Starbucks, and thousands of  other global companies require finance specialists  

for financial analysis, cash flow management,  treasury operations, working capital management,  

financial planning, accounting, and more. We distinguish roles into two main types:  

financial accounting-related  and financial analysis.

In accounting roles, individuals maintain  and analyze financial records—ensuring  

the company's financial statements are  accurate and meet regulatory standards. 

The typical positions in most firms include: 

• Accountants • Accounts  

receivables—responsible for payments to clients • Accounts payables—who monitor  

payments to suppliers and • The internal audit team

The internal audit team ensures that the finance  team adheres to regulations and safeguards the  

company from fraud, errors, and inefficiencies. These roles manage the firm’s financial  

accounting—primarily generating  reports for external stakeholders. 

Of course, companies also need financial analysis  expertise for their internal decision-making. This  

is why they hire financial analysts who  study financial performance and provide  

insights and reporting to management. Another noteworthy role is the financial  

controller, who is responsible  for uncovering the cost of  

producing a company’s products or services. We also have the Financial Planning & Analysis  

(FP&A) team, which forecasts revenue, costs,  and balance sheet items. This team shares  

these insights across the organization to  enable all budgeting and planning efforts. 

If I had to pick my favorite  entry-level Corporate Finance role,  

it would likely be a financial analyst. As a financial analyst, I relished analyzing  

financial performance and engaging with  key stakeholders who valued my insights. 

A fundamental benefit of being a financial  analyst is that, in most cases, you don’t  

specialize in just one or two types of activities.  You must perform various analyses—enriching and  

preparing you for more sophisticated roles. In corporate finance, career progression  

typically starts at an entry-level  position—such as a financial  

analyst—advancing through roles like finance  manager, director, VP, and potentially CFO. 

Ok. Great! In addition  

to traditional corporate finance roles, finance  graduates can pursue the challenging and rewarding  

field of investment banking, which is frequently  favored by top candidates for its dynamic career  

development opportunities. Investment banks  assist industrial and financial firms when  

they need to raise capital or financial advisory  for mergers and acquisitions or restructuring. 

Additionally, many investment banks  operate active trading desks that  

buy and sell shares for themselves or clients. Securing an entry-level position in investment  

banking could lead to roles like equity or  debt capital markets analyst, M&A analyst,  

trader, or investment researcher, which focus  on detailed research and analysis of financial  

markets and traded securities. Becoming an M&A analyst is  

the dream of many finance graduates. The thrill of closing high-stakes deals,  

working on transformative transactions  that hit the headlines, and deepening  

one’s understanding of business strategy and  financial structuring is highly appealing. 

M&A analysts are crucial in mergers and  acquisitions. They identify potential targets and  

handle financial modeling and business valuation. Once a deal is in the pipeline, M&A analysts are  

heavily involved in due diligence—investigating  and verifying the target’s financial,  

operational, and strategic aspects  to identify risks and opportunities.

An investment banker's career progression  often includes roles like associate, VP,  

Director, and Managing Director. But,  due to the industry's rigorous demands,  

fewer individuals stay at each level. Many  analysts and associates opt for opportunities  

in private equity and venture capital (VC). Private equity and VC are part of the  

investment management industry, which  is an essential branch of finance. 

Asset managers and investment funds  aim to invest client funds and make  

more money. Depending on a client’s preferred  risk-return profile, asset managers choose an  

optimal investment portfolio combination. Typically, clients can invest in stocks,  

bonds, mutual funds, real estate investment  trusts, venture capital, private equity,  

hedge funds, and alternative investment asset  classes, such as art or cryptocurrencies.

If you become a venture capital analyst, you’ll  be responsible for sourcing potential deals with  

companies in their early development stages. VC analysts' primary objective is to scout  

for revenue growth potential and great  entrepreneurs. They evaluate business plans,  

focusing extensively on deal  structuring and communication.

Private equity analysts, on the other hand,  work on significantly larger deals and  

typically look to acquire a majority stake or  full ownership of the firms they invest in. 

A private equity analyst works on financial  models, evaluates companies, and researches  

potential targets. This role requires significant  post-deal support from portfolio companies.

All right. Let’s switch to the next finance field. Most people associate finance with traditional  

banking, which historically involves deposit  taking and lending—familiar since ancient times. 

Today, traditional banks offer digital  banking, forex, corporate banking,  

insurance, and wealth management. Concerning job roles, traditional  

banks need credit analysts to assess the  creditworthiness of individuals and businesses  

applying for loans. They analyze financial  statements, credit reports, and other data to  

determine the risk involved in lending and whether  the bank should be involved in this transaction. 

Considering the large amounts of money  a bank uses, they need significant  

investments in risk management staff. The entry-level risk management position  

(Risk Analyst) involves developing financial  models, evaluating bank exposures, and proposing  

strategies to mitigate potential risks. Most banks have corporate divisions that  

offer tailored services to corporate clients  and hire dedicated relationship managers.  

These managers get to know their clients well  and foster the relationship with the bank. 

I find this role highly stimulating because  working with corporate clients offers significant  

insights into their business and enhances  soft skills through direct interaction with  

top executives. All right. 

Finally, let’s consider Financial  Services and Consulting. 

Thousands of financial consulting firms  worldwide assist businesses with M&A,  

restructuring, auditing, tax, compliance, risk  management, and performance improvement issues. 

In the auditing world, remember the  names Pwc, KPMG, EY, and Deloitte,  

which collectively employ over 1 million people. An auditor collaborates with client companies to  

verify that their financial statements  are accurate and truly reflect the  

business's financial status—thereby developing  outstanding technical and accounting skills. 

Besides auditing, the Big Four and  financial consultants also offer compelling  

career paths in transaction services, including  due diligence for M&A, tax advisory, and more. 

The standard career progression in the consulting  

arm of a Big Four firm typically  includes consultant, executive,  

assistant manager, manager, senior manager,  director, associate partner, and partner. 

(This illustrates the variety of position titles  across consulting firms' corporate hierarchies.)

I began my career in PwC's Transaction  Services unit—an enriching experience  

that allowed me to work on many deals, hone  my technical skills in Excel, accounting,  

and financial analysis, and, crucially, evaluate  the business strategies of numerous companies. 

Having the opportunity to engage with  entrepreneurs and finance directors and inquire  

about their businesses was truly invaluable. Thank you for watching. I hope this video has  

provided valuable insights into diverse  finance careers and their opportunities. 

Please check out 365financialanalyst.com  to start building the skills you  

need to succeed in your finance career. Until next time, take care and keep learning!