Careers in the Finance Industry

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  1. 1. Bentley College Careers in the Finance IndustryMiller Center forUndergraduate Career ServicesLaCava Building, 270781-891-2375
  2. 2. As a finance major, the possibilities are endless. Here, we havebroken down some of the more popular areas that BentleyCollege students pursue. An Overview of the Finance IndustryCommercial Banking Commercial Banks differ from InvestmentInvestment Management Banks because, generally speaking, they Or Asset Management as it is commonly are known for their retail banking referred, involves a client who gives services, that is, the local bank on the money to an asset manager, who then corner.You deposit invests it to meet the clients financial moneyinto a bank and objectives. Who is the client? Well that the bank loans thatvaries dramatically. Asset Managers that money to consumers work for mutual and/or companies infunds manage need.However, with money for retail the rapid disintegration of the Glass- clients, while Asset Steagall Act, the distinction betweenManagers at Commercial Banks and Investment Banksinvestment banks has become less obvious. Well knownoften invest money for companies or Commercial Banks include Bank of municipalities. Lastly, Asset Managers America, and, more locally, Citizens orcan also work for hedge funds, which Sovereign Bank.typically combines outside capital withcapital contributed by partners of the Investment Banking fund. That money is than used in high Investment risk but high return investments. Banking is an umbrella term covering a range ofFinancial Services activities that areThis category is used to capture virtually typically bucketed everything else that does not neatly fit into one of three categories: investment into the categories above. Some familiar banking, which includes public finance, examples might be Credit corporate finance, and mergers &Card issuers like Capital acquisitions; sales and trading; andOne and MBNA or even research. I-Banks offer these services to quasi-governmental businesses, governments, nonprofitorganizations that institutions, and individuals. Goldman oversee student loans or home mortgages Sachs, JP Morgan and Merrill Lynch are such as Freddie Mac or Sallie Mae. examples of some well known I-Banks.
  3. 3. Typical Opportunities for Bentley Undergraduates Account Executive/Account Coordinator:Business Development: Account Executives manage the relationshipThe job is pretty much exactly what it sounds with the client and help to develop like: helping to identify ways to build or grow appropriate strategies. In sales, the account a business. Most often your job objective is to executive will not only sell products to theexpand the market, generate revenue, or build customer or client but will be the first point- the membership base of your company. It is of-contact should the client have any the perfect blend of sales and strategy. questions or concerns.Nowadays, you will find many business developers working hand-in-hand with the Actuarial:Marketing team. Keep in mind, an entry-level Really like number crunching? Actuaries position in this arena might be as an analyst analyze the statistical probability of particular or even an assistant. types of risk. The data you generate is used to identify economic and social trends, developCash Management: insurance pricing models, developThis group ensures that its company has programs for clients, and represent enough cash on hand to meet its companies with state anddaily needs. They make sure regulatory agencies. any excess cash is invested overnight by picking the Broker:best short-term One acts as middle- Here is a sample ofinvestment options. man between buyerspositions/titles that Finally, they negotiate and sellers. Brokers companies might recruit with local banks to offer advice to theirget regional business for on Bentleys Campus. clients and customersunits the banking and then facilitate the Visit eRecruiting to obtainservices they need at deals. It is commona complete listing of the best price for a broker to excellent opportunities forpossible. specialize in oneFinance majors. particular area, for Claims Adjuster: examples bonds. You will investigate insurance claims, assess Business Advisory Services:damage, and decide whether Assist clients in strategyand how much a company will formulation, market-driven feasibility pay claimants. For example, if a studies, process re-engineering, cost house burns down, the claims adjuster would management, operational processes investigate and determine what level to pay alignment, information systems planning,out. One might also inquire into fraudulent technology implementation program claims. management, and change enablement. The practice aims to provide clients with Commercial Credit Analyst integrated solutions to enhance performance These individuals, like a loan officer, reviews through the synergy of strategy, processes, credit data to evaluate commercial loan people, and technology. Business Advisorys requests in order to approve or deny Infrastructure Advisory Group also assists in applications. They analyze sources of tackling issues brought forth by liberalization financial information, such as reporting redefinition of the roles of the central andservices, credit bureaus, other companies, state governments in infrastructure building; main office files, and branches to determine shift in focus from being service providers toprofitability of loan. being facilitators and policy makers; and managing the privatization process.
  4. 4. Commercial Loan Officer expand their business from three to four You will be responsible for soliciting andoffices. Should you lend them the money? servicing a variety of commercial loans. YouWill your company receive a reasonable will interviewreturn on its investment? These are questions applicants and providethat the credit analyst works to answer. It is recommendations toimportant to note that many credit analysts approve customerare first hired into an organization through a applications fortraining or development program. commercial loans. The approval is also determined by your analysis of the applicantsDesk Trader: financial status and credit to determineSimilar to Floor feasibility of granting loan. Traders except, as the name would suggest, you are at Compensation Analyst: your desk as opposed Falls under the umbrella of Human an exchange like Primary duties include working with the NYSE. These department managers to determine pay scales traders typically and bonus structures for the organizations trade on the employees.NASDAQ. Corporate Development and Strategic Financial Analyst: Planning: While this is a rather ambiguous term, Like Management Consulting except the clientcovering a range of possibilities, one typically is typically the company for which you work.performs various financial or budget analyses Corporate Development involves both in the areas of profit planning, capital corporate finance and business development. expenditures, investments, cash flow One might study potential targets for budgeting and acquisitions. In addition you acquisition,could work with the various divisions or investment options, practice areas to prepare financial plans, or even licensing make projections, and analyze comparisons of deals. For example, itactuals versus projections. was the Corporate Strategy and Development department at Fleet Financial that completed the due diligence and later recommended that that the firm merge with BankBoston.Many firms hire undergraduateFinancial Analysts into Corporate Corporate Finance, Investment Bank:Developmental Programs. This Provides financial and business advice and isusually involves a combination of primarily in charge of pricing and purchasingcorporate finance and accounting. stocks and bonds for an initial public offeringSome programs are rotational, (IPO), a secondary offering, or a debt which could mean that you receive insurance. classroom training coupled withhands-on experience, rotate througha variety of divisions, and ultimately Credit Analyst:end up in one specific area withinthe company. You will perform the background work supporting a banks lending decisions. Caitlin Blasco, Director Responsibilities can vary from evaluating a borrowers credit worthiness, to reviewing a potential clients current state of financial affairs, to anticipating ones future earnings. For example, a middle market company comes to your company looking to borrow 10M to
  5. 5. Financial Representative/Planner/Advisor: Financial Planners and Advisors strive to meet their clients financial planning needs. Financial planners market their business and build a client base. They identify and set financial goals, develop plans of investment, and assess a clients net worth.Financial Securities Research Associate: A research associate will spend their time supporting a Senior Analyst. In order to support these individuals the individual will conduct fundamental valuation and financial research leading to the formulation, publication and presentation of investment recommendations with concentrations in Loan Officer: more than one industry. They will also assessBased on a banks criteria, extensive formulas, capital structure arbitrage opportunities andand basic intuition, loan officers decipher develop trading recommendations, among which businesses and/or individuals get loans other duties. Individuals in this position are and which do not. required to successfully complete four licensing exams by the end of the first threeManagement Consulting: months of employment: Series 7, 63, 86 and Management consultants typically work on 87.projects or assignments relating to strategy orreengineering. On a very high level, Floor Trader:consultants are helping clients to solve Do you excel in frenetic situations? Floor Trvarious business problems they may face: aders are responsible for locating the buyersfrom