gradmalaysia Banking & Finance Careers Guide

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SECTOR SNAPSHOTS

Discover the main areas in the financial services, banking, and investment banking sectors, and think about where your skills, talents and interest would fit best before applying for graduate jobs.

FINANCIAL SERVICES

The financial world is demanding. Markets are becoming more volatile, regulatory changes are becoming more common, and competition—including competition for top talent—is ever-present. Related areas of work such as retail banking, insurance and actuarial work make up an important part of this sector while other sectors such as regulation and compliance ensure a safe and fair service for all consumers.

EMPLOYERS

Employers in financial services comprise retail banks, insurance companies, regulatory bodies, financial media companies and firms offering services such as underwriting or actuarial consulting.

Clients can be individual consumers or business of various sizes. Other organisations (such as those offering specialist services) also offer advice or financial services to other corporate clients.

BANKING AND INVESTMENT

EMPLOYERS

Employers in this sector typically includes large global investment banks, financial services organisations and investment management firms.

CLIENTS CLIENTS

Investment banking businesses generally provide services to corporate or institutional clients. Types of services include advice on mergers and acquisitions, trading, raising capital and asset management.

An expanding sector that focuses on customer service, the financial services sector is where you may gain management responsibility early on and still have a healthy work/life balance.

This sector covers corporate banking, investment banking, and wealth management services for high-net-worth individuals and corporates. The banking and investment sector engages in a wide range of activities such as raising equity capital and debt capital, issuing bonds or financial investment products and providing corporate finance advisory.

PERKS PERKS

Fast-paced and challenging work with early responsibilities and high salaries in many areas of work.

IS A CAREER IN FINANCE FOR ME?

From financial managers to corporate CFOs, a career in finance is often demanding and at times very stressful. So how do you know if working in the finance industry is the right choice for you? To get the ball rolling, here’s a quick introduction to the three sectors we will be focusing on.

The finance industry is an everpopular career pathway for graduates, offering fast-paced and challenging work, early responsibility, high salaries, and a global working environment. But it’s more than just about being good with numbers and making lines on a chart go up! If you have excellent people skills, can manage or work with teams, or have the guts to make decisions in the face of ambiguity, this might be the industry for you.

Careers in this industry are highly competitive, so you’ll have to be wellprepared if you hope to break into it as a graduate. To get you started, here’s a quick overview of what this industry covers and where you can expect to work.

FINANCIAL SERVICES

Financial services covers both consumer and corporate financial products to help individuals and businesses grow and manage their wealth, gain access to credit, make more informed financial decisions, or underwrite risks in business or dayto-day life.

Clients in this sector include both individual customers and companies of all sizes, who need a range of day-to-day financial services. Some organisations (e.g. those offering specialist financial consulting services) also focus on offering advice or financing access to corporate clients.

Employers in this industry can range from retail banks, insurance companies, financial media organisations, credit card companies, and financial technology (FinTech) firms.

Your exact job duties will depend on the job title and industry. For example, actuaries in insurance companies apply analytical skills and financial theories to assess risk and financial consequences. While on the other end of the spectrum, retail bankers assist and advice customers on how to manage their finances.

In most financial services jobs, you’ll likely be helping companies or individuals shape their financial futures. So while you do need to have strong data analysis, critical thinking, and problem solving skills, some of the most important skills to have in this line of work are customer management and relationship building skills. Robust services don’t mean much if you can’t convince clients to buy into them, after all!

INVESTMENT BANKING AND INVESTMENT MANAGEMENT

Investment bankers are dealmaking intermediaries that help corporations, government entities and other financial institutions raise capital. Investment managers help clients grow their wealth and reach their investment goals by providing financial consulting services.

Companies, individuals, and government entities hire investment bankers to facilitate financial transactions such as the issuance of bonds, mergers and acquisitions, and initial public offerings. Investment managers, on the other hand, provide complex financial planning advice, financial statement analysis and management of financial assets.

Employers in this sector can range from investment banks, specialist financial services organisations, and private investment funds. While almost all banks do provide investment services, full-service investment banks offer the widest range such as underwriting, mergers and acquisitions (M&A), sales and trading, equity research, asset management, etc. This is opposed to the dedicated investment division of a bank, which usually provides only underwriting and M&A advisory services.

Employees in this industry are known to work long hours around the clock. Global financial markets never sleep, after all, and things could change at any moment. In exchange, this industry is known for offering high salaries and commission-based incentives to staffs.

To work in this fast-paced industry, analytical, technical and numerical skills are key, as are communication and interpersonal skills. Meanwhile, commercial awareness, critical thinking skills, and a knowledge of financial markets are some of the other skills that most employers look for in financial media organisations, credit card companies, and financial technology (FinTech) firms.

FINANCE CAREER ALTERNATIVES

Alternative career paths in the finance industry also include working for financial regulatory bodies, inhouse financial planning divisions at non-finance firms, specialist firms focusing on specific financial products (e.g. socially-responsible or sustainable investments), or in one of the many niches in the FinTech industry.

The skills you gain in the finance industry can be transferred to other industries later on too! One example is management consulting, which involves working with businesses to improve their performance and maximise growth. The experience and competencies you gain as a finance professional will better equip you to advise companies on strategy, best practices in operations, and how to respond to the volatility of the open market.

HOW TO PURSUE A CAREER IN FINANCE WITHOUT A FINANCE DEGREE

Starting a new career can be difficult, especially if your current degree is focused on a different field. When it comes to a career in finance, it is possible to enter the industry without obtaining a finance degree.

Afinance degree may not be a hard prerequisite for most finance graduate jobs anymore – as finance employers now hire across all disciplines of study. However, there’s no denying that a finance degree does give you an added advantage in terms of understanding the overarching concepts of the industry itself.

However, if you are a graduate with a non-finance degree, that just means you’ll have to put in a bit of extra work to prepare for this career pathway! Here are five ways you can show future employers that you possess the skills they seek, as well the passion for a successful career in finance.

LEARN THE JARGON

If you are interested in a career in finance, make sure you’re familiar with financial terms. Do you know what the difference is between mutual funds and unit trusts? What about “AML” or “KYC”? Or what bull and bear markets are?

An interviewer will generally assume that an applicant for a finance position is knowledgeable about financial concepts, regardless of their educational background. You can start by browsing through Investopedia and World Finance to learn basic finance and investment terminology, then creating a finance vocabulary bank so you can keep up when speaking to interviewers or networking with industry professionals.

NETWORKING

No matter what industry you are in, networking is a crucial part of career development. This holds true as well if you’re planning on breaking into the finance industry.

Utilize social media platforms such as LinkedIn to connect and interact with finance professionals in the field you’re keen on. They can help you learn more about the field and maybe point you to opportunities that aren’t publicly advertised yet. You can also take advantage of industry networking sessions offered by your university, or speaking to finance employers at job fairs.

However, before you approach anyone, be sure to do your research beforehand and prepare intelligent questions. Networking is not going to help you if you can’t demonstrate to contacts that you’ve already out-thought into this and done your homework!

The bottom line is: the more people you reach out to, the more informed you will be regarding your options. So don’t be afraid to reach out to finance professionals no matter where you go.

FOCUS ON YOUR AREA(S) OF INTEREST

The finance industry is ever-growing and it offers a wide range of career opportunities. So it’s best if you figure out beforehand what areas you’re most keen on working in. That way, you can work on developing the skills needed to be successful in the role(s) of your choice.

For example, if you have a degree in the humanities, you’ll likely have strong research skills, and be able to offer a more macro perspective and critical analysis on global affairs. You can then think about how to focus these strengths into a financial analyst role, where your job will be to do research and advise stakeholders on market movements before they make investment decisions.

Narrowing yourself down to a shortlist of interesting finance pathways will help you be more focused in your preparation instead of spreading yourself too thin. And if you don’t know yet what pathways are available to you... well, that’s what this guide is for!

SCORE A FINANCE INTERNSHIP

The best way to gain experience and to test if a career in finance is for you is by doing an internship. Not only will it give you exposure to different finance roles, it also provides you with an on-the-ground perspective of the various skills required.

With how competitive this industry is, a relevant finance internship or two is a must if you hope to stand out as a graduate candidate. This will help you build your CV and gain professional references for future jobs.

You will also be able to build your professional network, which could help you land a job offer after graduation. Take note that some finance employers (particularly investment banks or small fund managers) do explicitly prefer to convert interns to full-time roles instead of hiring from scratch!

STAY UP TO DATE WITH FINANCIAL NEWS

Be it Business Insider, Financial Times, Bloomberg, The Edge, or other finance news sites, make sure you stay up to date on current financial and investment market news, both locally and globally.

Finance employers will expect you to prove your knowledge of current market trends during the assessment process, or ask you to solve specific finance case studies. The markets are always changing, so make sure you’re constantly up to date!

A useful tip is to sign up for Google Alerts or other news aggregators to deliver current trending finance topics right to your inbox. For example, if you are interested in the current market performance of mutual funds, you can have Google send you a daily summary of articles and videos regarding that.

5 CORE SKILLS YOU NEED FOR A JOB IN THE FINANCE INDUSTRY

The finance industry is more than just working with numbers! Here are the key skills you’ll need to have if you want to succeed in this industry.

There are many pathways that a career in finance can take you, and graduate jobseekers are encouraged to constantly update their skills to keep pace with the fastevolving workplace.

However, beyond hard skills like budgeting, knowledge of financial products, and your principles of investing, what employers really look out for are “core” (or “transferable”) skills which will carry you through the industry. These core skills are what show employers that you have the potential to keep learning and growing in the industry no matter how your responsibilities change or what job roles you take on.

Here are five core skills you’ll need to stand out as a graduate in this industry, and how you can demonstrate them to finance employers.

COMMERCIAL AWARENESS

Commercial awareness can be broken down into three components – an understanding of the business and what makes it successful, knowledge of the marketplace and who the business interacts with, and the ability to identify competitors as well as factors that can impact the employer’s business performance.

During the application process Develop your commercial awareness by researching your prospective employer(s). Visit the employer’s website to get an idea of what the company does and what it offers graduate recruits. You may also want to focus on the company’s mission, aims, values, strategy and structure. Stay up-to-date on financial industry news, market movements, and current trends as well.

How to demonstrate your skills to recruiters

Prove your commercial awareness during the recruitment process by discussing some issues that the company or the industry is facing,

and how your employer can leverage on it. One of the most common ways interviewers or recruiters gauge your commercial awareness is through questions that involve real industry examples.

Take the effort to prepare wellresearched examples beforehand and be prepared to talk about how these could impact the business or industry you’re hoping to work in. Be sure to discuss your potential role in helping the business respond to these market movements as well.

COMMUNICATION AND INTERPERSONAL SKILLS

In the banking and finance industry, you will be working with both finance professionals and nonfinancial stakeholders. You will need to be able to convey banking and finance concepts in simple terms – which makes communication and interpersonal skills vital in this industry. You will also be liaising with customers or clients more often than not.

During the application process

Your ability to communicate well in writing will be key in your applications to prospective employers. Your application needs to be well written, tailored to the particular employer, and easy to understand. Don’t forget to proofread all of your application materials before sending them to an employer. The same goes for emails or written texts exchanged with the employer as well.

How to demonstrate your skills to recruiters

Demonstrate your interpersonal skills during the interview process by actively listening to what your interviewer is saying. When answering, make sure to make eye contact and speak slowly and clearly. Use simple language to explain complex concepts whenever possible.

INTEREST AND ENTHUSIASM

You have probably heard the advice that you should show interest and enthusiasm in your application if you want to impress your prospective employer. And it’s true! Graduates who take the initiative to reach out to employers and recruiters first (over LinkedIn or career events) stand out even more!

During the application process Research the company and get a good understanding of what they currently do. Prepare to demonstrate your interest by thinking about your potential answers to interview questions like “Why do you want to work for us?” and “What do you like about this field?”. Interviewers will note your preparedness and take it as a sign you are genuinely interested about the job.

How to demonstrate your skills to recruiters

This actually starts long before you even get an interview! Showing your interest and enthusiasm is by attending networking sessions and career fairs to make yourself known to recruiters. And don’t be afraid to mention attending such events during the recruitment process. Talk about the research you’ve done and let recruiters know the things that excite you about the job.

Remember, being enthusiastic does not mean being cheesy and overthe-top. Enthusiasm works best when it’s sincere.

INNOVATION & PROBLEM-SOLVING SKILLS

Given how fast-changing the finance industry is, the ability to innovate – that is, to come up with potential solutions to new and unexpected problems – is one of the traits that most employers keep an eye out for. Innovation and critical thinking are instrumental in the continued growth and success of a business.

During the application process

Pinpoint a few different occasions where you used your problemsolving skills in the past, whether as part of your studies, extra-curricular activities, or past work experience. Demonstrate these by highlighting real examples in your application and CV, and ideally the outcomes you achieved as well.

How to demonstrate your skills to recruiters

Recruiters will often throw you complex problems with no clear solutions to test your innovative skills. It’s important to talk them through

your thinking process and how that leads to the solutions you would recommend.

It’s not getting the “right” answer, but more about showing them how you approach and tackle unfamiliar problems!

TEAMWORK

In the finance industry, you will usually work on projects or deals in teams. Teamwork skills are therefore critically important no matter which finance employer you apply to. Some specific examples of teamwork skills include conflict management, active listening, leadership, and communication.

During the application process

In your applications and CV, highlight past examples where you worked with teams on projects. You can also write about times where you resolved problems as a team, or how you helped resolve situations within the team itself.

How to demonstrate your skills to recruiters

Talk about your past experiences in school, at an internship or your past volunteer experiences that required teamwork skills. And remember to provide recruiters and interviewers with examples on how your actions helped the group work together, and the methods you used to interact with group members.

FINANCIAL REGULATORS: WHO THEY ARE AND WHAT THEY DO

A well-functioning financial system is vital for a robust economy. With financial regulations in place, it helps protect both businesses and consumers from risk and fraud. But who are these regulators and what exactly do they regulate? Let’s find out!

What is regulatory compliance? Simply put, regulatory compliance refers to the rules governing the financial industry that entities such as banks, insurance companies, asset managers and financial brokers must adhere to. The specific requirements may vary, depending on the industry section and the type of business.

However, financial regulation is more than just having rules in place – these rules must also be enforced. Poorly regulated financial institutions have the potential to weaken the stability of the financial system, harm consumers and could also damage the economy.

Malaysia operates a dual banking system, that is, a conventional banking system operating in tandem with an Islamic banking system. The federal government has a handful of regulatory bodies in place that regulates and oversees local financial markets and companies operating across both of these banking systems. Companies and financial institutions that fail to comply with regulators can be vulnerable to criminal charges or potential lawsuits from customers.

As a graduate, it’s important that you understand who the main regulators are before entering the financial industry. Finance employers may also require you to demonstrate a basic understanding of local financial law too, so knowing who the main players are is a good place to start your research. Let’s look at the following three regulators you should be aware of.

BANK NEGARA MALAYSIA

Bank Negara Malaysia (BNM) is a government-owned statutory body that was established under the Central Bank of Malaysia Act 1958. The BNM reports to the Ministry of Finance and keeps the ministry advised and informed on policies governing the local financial sector. BNM is also, most famously, in charge of setting national interest rates for banks and other financial firms.

As an overseer, BNM establishes regulatory frameworks and conducts oversight on the financial industry to promote sustainable growth of the Malaysian economy. The regulator also offers financial advice and counselling via the Agensi Kaunseling Dan Pengurusan Kredit. BNM is also in charge of various initiatives to ensure financial inclusion of various levels of Malaysian society, and to raise the level of financial literacy among consumers.

The local insurance and Takaful industries, like other financial sectors, are also regulated by BNM. The regulator only covers life insurance, non-life insurance, family Takaful and general Takaful product offerings.

SECURITIES COMMISSION MALAYSIA

Investment banks which undertake capital market activities on top of banking activities are also regulated by the Securities Commission Malaysia (SC). The SC is a selffunded statutory body established in 1993 which regulates all trades, mergers, and acquisitions on the local financial market.

The SC’s responsibility includes rule-making, enforcing regulations regarding the financial market, ensuring sustainable market growth and regulating all persons, companies, and financial institutions under the Capital Markets and Services Act 2007.

Employees of investment banks that deal with securities, fund management, investment advisory, futures broking, futures fund management and futures trading advisory are mandated to meet the licensing requirements imposed by the SC.

If you’re looking to work in any of the fields mentioned above, the SC will require you to pass relevant examinations and be licensed as representatives before you are allowed to undertake the said activities.

LABUAN FINANCIAL SERVICES AUTHORITY

The Labuan Financial Services Authority (Labuan FSA) is the supervisory and regulatory body for the Labuan International Business Financial Centre (Labuan IBFC). Companies and financial institutions operating in the Labuan IBFC are subjected to separate federal legislation specific to the Labuan IBFC. As you may surmise, this is obviously more relevant to East Malaysia specifically.

Labuan FSA licenses and regulates licensed companies and financial institutions operating within Labuan IBFC and ensures all such entities remain in compliance with Labuan laws and regulations. Labuan FSA also develops regulatory policies to ensure orderly conduct of business and financial services in Labuan IBFC.

Labuan is not only known for its strong regulations but also its favourable and flexible tax systems, as well as its low set up operational costs. As a result, Labuan has attracted many international investment bankers to set up operations (e.g. Credit Suisse, OCBC Bank and DSB Bank).

If you’re someone that is eyeing a career in the reinsurance industry, you should know that the Labuan LFSA regulates all reinsurance businesses in the country. Not to be confused with the insurance industry that is regulated by Bank Negara Malaysia – Labuan LFSA regulates the reinsurance industry, a type of insurance product that is purchased by an insurance company to manage its risk. Some of the notable local reinsurers include Malaysian Reinsurance Berhad, AFR Asia

Pacific, Malaysian Life Reinsurance Group and Principal Re.

BREAKING DOWN FINANCIAL LICENSES AND CERTIFICATIONS

Additional financial licenses and certifications may be required if you want to advance in a finance career. Here’s a quick overview of them so you can plan ahead!

Depending on your desired finance career pathway, you may need more than just a degree! Additional licenses and certifications may be worth pursuing if you plan on advancing down certain finance career pathways. These can help you increase your knowledge and demonstrate your value to future employers as well as clients. Employers may even require you to attain some of these certifications as you ascend to more senior roles too.

There are various licenses and certifications available in the banking and finance industry, and choosing the right one depends on your specialisation and goals. Here’s a quick look at the most common ones.

FINANCIAL LICENSES

Financial licenses are awarded by a financial authority in order to show that you are licensed to sell and provide financial products and/or financial services. The application process for a financial license can differ depending on each financial authority. Most will require you take certain classes, pass an exam, and meet the minimum requirements set by the financial authority. Here are two licenses you could consider:

Registered Financial Planner (RFP)

Offered by the Malaysian Financial Planning Council (MFPC), the RFP program has been approved by Bank Negara Malaysia in 2005 as the qualification to apply for a financial advisor’s license and/or a financial advisor’s representative license. These are key qualifications for the insurance industry specifically.

The program has also been approved by the Securities Commission Malaysia in November 2005 as one of the qualifications to apply for the investment advisors

license and the capital markets services license. These qualifications are best suited for graduates seeking a career as an investment advisor, financial planner, corporate finance advisor or fund manager.

The program has seven study modules, and offers two methods of study – self-study with examinations and a physical course with lecturers and examinations. Candidates will be tested on both the academic and practitioner’s aspects of each module to ensure that RFP licensees have both theoretical and real world experience when doing financial planning.

Shariah Financial Planner (Shariah RFP)

The MFPC also offers the Shariah RFP program as a practical professional programme for practitioners to equip themselves with Takaful and Islamic financial planning principles and knowledge.

This program is also recognised as an approved qualification for a financial advisor’s license. The Shariah RFP program offers both methods of study, similar to the general RFP program.

CERTIFICATIONS

Certifications are not administered by a government body, and can be obtained through either shortterm or long-term courses. You can consider them as a form of upskilling to prove that you have the knowledge for a specific line of work. Here are some of the more common certifications available for graduate jobseekers seeking a career in the financial industry.

Chartered Financial Analyst (CFA)

The CFA is a graduate-level program of the CFA Institute in the US which is designed to develop competencies and professionalism required in the investment management and advisory services.

The CFA certification is widely recognised by investors, employers and regulators globally and in Malaysia. This qualification will allow you to boost your career prospects in the highly competitive financial industry.

Certified Financial Planner (CFP)

The Financial Planning Association of Malaysia (FPAM) offers a professional certification program called the CFP which revolves around 4Es –dubbed as ‘Education, Examination, Experience and Ethics’, forming the cornerstones of the profession.

CFP professionals are valued in the industry as financial planners, quality trainers and financial intermediaries.

Islamic Financial Planner (IFP)

FPAM also offers the IFP program for jobseekers looking to serve the retail segment of the Islamic financial products market. The program offers four modules and requires candidates to have a bachelor’s degree in any field.

CFP professionals are valued in the industry as financial planners, quality trainers and financial intermediaries.

Certificate Examination in Investment-Linked Life Insurance (CEILLI)

The Malaysian Insurance Institute offers the CEILLI for candidates looking to pursue a career as a life insurance agent selling any investment-linked life insurance products.

In order to qualify for the examination, you will first have to be contracted as a life insurance agent. Then, upon passing the examination, you will have to register with the Life Insurance Association of Malaysia before conducting any insurancerelated business.

CRAFTING YOUR CV FOR

FINANCE JOBS

A good CV shows finance recruiters why you are suitable for the job. Here’s how to write one!

Given how competitive it can be to get a job in the finance industry, a well-crafted CV is key standing out. If you don’t know where to start, don’t worry! Below you’ll find our tips on how you can grab finance recruiters’ attention through your CV.

USE A CV HEADING

Your name and contact information should be the first thing that recruiters see when they view your CV. To help your personal information stand out, put it in a heading at the top of the page.

Your heading should include your name, telephone number, email address and your LinkedIn profile (if you have one). Don’t forget to double-check all of your contact information before sending out your application!

CHOOSE AN APPROPRIATE CV FORMAT

Most finance employers prefer the reverse-chronological CV format – listing your experiences and achievements from the most to least recent. You can also use other functional CV formats or customise your own CV if it allows you to showcase yourself as a good fit for the role. But regardless of the format you choose, make sure the document has a consistent structure throughout.

Avoid visual-heavy, unorthodox, or overly flashy CV designs and formats. Those won’t be very effective in this industry. Use bullet points, pick an easy-to-read font, and keep your CV to no more than two pages.

There is also another reason why choosing a simple, consistent, textbased format is important. Which brings us to the next point.

RESEARCH KEYWORDS TO GET PAST AN ATS

Finance recruiters can be processing thousands of applications on a regular basis. So most CVs often get screened through an Applicant Tracking System (ATS) first. The ATS will then shortlist CVs for human recruiters based on whether it can detect enough relevant keywords, phrases or terms linked to the job(s) applied for.

A useful tip when writing your finance CV is to refer to the job description of the role you are applying for, identify relevant keywords for the role, and then do your best to include as many of those as possible in your CV’s points.

For example, if a job posting for a financial analyst role lists proficiency with Microsoft Excel as a requirement, make sure you mention “Microsoft Excel” when describing your past experiences, along with other related function terms like “VLOOKUP”, “pivot tables”, or “macros”.

Because the first line of defence may be an ATS, this is why it is important that you customise your CV for every role you are applying for, instead of recycling the same one for multiple roles. Avoid putting information in visuals or tables within your CV too, as the ATS will not be able to scan those. Stick to plain text.

HIGHLIGHT YOUR ACADEMIC ACHIEVEMENTS

Although academic grades are not the most important thing recruiters look for, they do matter in specific roles with minimum GPA requirements. For example, management trainee programmes at banks, which have very stringent selection criteria and only accept top-performing students.

It’s not enough to just list down your academic qualifications in your CV. You need to highlight your achievements as well! State your GPA if it is strong, or if the role you’re applying for requires it. List any finance-related coursework/projects you have completed which are most relevant for the role. Highlight any scholarships or awards you won while in university. These will help you differentiate yourself as a candidate.

DEMONSTRATE SKILLS WITH MEASURABLE VALUES

While finance recruiters do look out for both hard and soft skills when hiring, simply listing your skills in your CV offers no real evidence of your abilities. You should demonstrate your skills in your CV by tying them to measurable successes instead.

Goals, targets, and ROI metrics are key parts of the finance industry. So when explaining your achievements and past experiences, use numbers to showcase how your skills added value to a company or organisation. For example, if you previously held the position of a treasurer in a club and helped them save money through cost cutting measures, you should mention the percentage of savings. Or if you contributed to growing client account values in a previous internship, list what the growth rate was.

A good way to structure your bullet points is to use the Context-ActionResult (CAR) format. For example: “Attended client meetings with relationship managers to help pitch equity products to clients; achieved conversion rate of 80%, leading to RM3 mil in trade executions.”

SHOW THAT YOU ARE AN INTERESTING CANDIDATE

Given the client-focused nature of the finance industry, recruiters are on the lookout for well-rounded, interesting candidates that people may enjoy talking to or working with. So to strengthen your application, you can also include additional sections in your CV on language skills, software skills, hobbies and interests, extracurricular activities, or volunteering experiences.

Avoid banal lists like “Hobbies: Watching Netflix, playing video games, running”. Focus on interesting experiences that added value to you or to others. Did you do volunteer work with an NGO? Run marathons? Go backpacking for a few months? Take part in a coding bootcamp? Join organisations like Toastmasters? Run a small e-commerce business in your spare time?

Choose points that show you have interesting stories to tell, as these help recruiters piece together a fuller picture of you.

Need more CV writing advice? Get it Here.

WRITING COVER LETTERS FOR

FINANCE JOBS

We know it’s not easy to write a cover letter. You spent a decade of your life in education, for some actively involved in school activities, clubs, associations and not forgetting your internship and part-time jobs. So how do you cramp all of that information in a one-page cover letter?

Though it may seem outdated, cover letters (or cover emails) still play an important role in the screening process for banking and financial services jobs! They showcase to recruiters your ability to communicate clearly and emphasise key selling points in writing – an important skill to have in this line of work.

Here are some tips on how you can write cover letters, emails, or statements that really stand out.

CHOOSE AN APPROPRIATE SALUTATION

Start with an appropriate greeting. A formal salutation includes words like “Dear...” and “Hello...”, and should be used when addressing the recipient of the cover letter. Avoid terms like “Hi” or “Hey” – those are too informal. If you can’t find a specific person to address your cover letter to, you can use ‘Dear Hiring Manager’ instead.

MENTION THE JOB POSITION YOU ARE APPLYING FOR

At the beginning of your cover letter, make sure to state the position you are applying for. It’s important that you do so as it helps personalise the cover letter and directs it to a specific employer. Identify where you saw the position as well. Recruiters post jobs on multiple platforms, so telling them where you spotted the post helps them keep track.

You can do this on a line by itself –for example, “I am writing to apply for the Finance Analyst position with Areca Capital, as advertised on gradmalaysia.com.”

DEMONSTRATE YOUR ENTHUSIASM

Make sure to research your potential employer, and use the information that you have gathered to briefly state why you’re applying for the position. You can talk about specific aspects of the business or their culture, and why they appeal to you. This can help employers determine your genuine interest in the job.

One way to stand out from the crowd is to mention events organised by the company that you have previously attended, or if you have visited the company’s booth at a career fair. By showing your enthusiasm through networking, you can score an advantage over other candidates.

SUMMARISE YOUR COURSEWORK, EXPERIENCE AND SKILLS

Since you are a fresh graduate, you should emphasise your university/ college coursework, internships and other experiences that showcases your suitability for the job. Only highlight relevant courses and experiences. Recruiters don’t need to know your entire academic history — just the parts of it which show that you have the knowledge and experience needed for the job!

Also explain how your skills can be put to good use in a specific role. For instance, if you worked part-time as a waiter or barista, you can talk about how the customer service skills you gained there have prepared you for a client-facing role with a bank.

SHOW, DON’T TELL

Be succinct and avoid falling into the trap of rambling too much about your personality, skills and qualifications – recruiters can assess these for themselves when they go through your application and CV. Likewise, avoid describing yourself with words such as “passionate” and “ambitious”. That just sounds cheesy, and these qualities are better exuded in person during an interview anyway.

Whenever possible, showcase results through quantifiable numbers.

Stating that you “Increased student club sponsorship revenue by 30 percent” sounds much more convincing than simply writing “Liaised with sponsors for student club events”.

hr@arecacapital.my

Dear Hiring Manager,

I am writing to apply for the Finance Analyst position with Areca Capital, as advertised on gradmalaysia.com. My conversations with current employees at a career fair in April this year reinforced my interest in your company and I am keen on starting my career with you.

Throughout my years of study at Tyler’s University College, I completed several courses including econometrics, financial investment, risk management, portfolio management and financial statement analysis. These have given me a solid base upon which I plan to build my career in the finance industry.

In addition, I participated in a three-month internship stint at Paybank where I developed a practical understanding of the local financial market. My team and I were assigned to conduct market research on investment options for a client portfolio. Our recommendations there put the portfolio on track for an average annual growth rate of 5%.

I also have additional part-time experience as a waiter at various restaurants. I am thus comfortable handling clients directly if need be. I have enclosed my resume for your review. I am keen to discuss any opportunity in person and am available for an interview at any time. I look forward to hearing from you soon.

Yours sincerely, Saraswati

a/p Shanmugam

Job Application for Finance Analyst Position - Saraswati

A QUICK CHECKLIST FOR FINANCE INTERVIEWS

Every job interview you attend is a new process. Here’s our fool proof interview checklist to help you get ready to impress employers!

Preparing for a finance job interview is often a nervewracking process and can leave you feeling a little lost. Don’t panic, though. Here is a quick rundown to make sure you’re well-prepped!

PRE-INTERVIEW PREPARATION CHECKLIST

PRINT MULTIPLE COPIES OF CV

In some interviews, you may be required to meet multiple members of the management team. Print at least two to three copies of your CV - on high-quality paper, if possible. This will come in handy when you are talking about prior experiences, since not everyone in the room may have a copy of your CV. It may also help to refresh the interviewer’s mind, especially if he/she has been interviewing several applicants in a row.

PREPARE A PORTFOLIO OF YOUR WORK

If the position you are interviewing for requires you to showcase your past work, gather your best work into one portfolio and bring it with you. Be prepared to share it with the hiring team and talk about your experiences working on those projects!

RESEARCH THE COMPANY

Showing employers that you have researched them is one of the best ways to stand out during an interview. Take a look at the company’s products, services, ownership structure, customer demographics and main competitors. You should also take a look at the company’s current press releases to know its latest developments and/or initiatives!

ANTICIPATE COMMON INTERVIEW QUESTIONS

Prepare a list of common finance interview questions and your potential answers to them. This can help you provide strong and articulate responses in your interview so that you’re not just thinking on your toes all the time.

Here are some sample questions that can come up in finance interview settings:

Why have you chosen to work in the finance industry?

What are the three financial challenges that you anticipate in our industry over the next five years?

Describe a tough financial analysis problem you faced recently.

What are the biggest challenges and opportunities that finance professionals face today?

How do you manage high-stress situations with account holders? How can a company show positive net income but go bankrupt?

What does working capital mean?

How has COVID-19 changed the way we think about banking and payments?

What are some of the biggest risks that affect investors in the current economic climate?

PREPARE QUESTIONS TO ASK YOUR INTERVIEWER

You demonstrate your interest and understanding of the position and the company when you ask thoughtful and well-researched questions during your job interview. Here are some of the questions you can ask during your interview:

What are the immediate priorities in this position?

What are the challenges a new hire faces in this job and company?

What are the skills required for successful performance in this job?

Can you describe what the dayto-day schedule for this role looks like?

INTERVIEW PREPARATION CHECKLIST

DRESS THE PART

If you’re preparing for an entry-level position in finance, be prepared to suit up in traditional Wall Street attire. After all, employers will usually be trying to visualise if they can place you in front of a client. Here are some guidelines on what to wear during your interview:

Formal: Dark-coloured suits with slacks or long skirts, tailored dresses, a tie to go with your suit and closed-toe shoes.

Business casual: Dark-coloured slacks or long skirts, blazers, button-down tops, and closed-toe shoes.

ARRIVE ON TIME

Showing up late to an interview will leave a bad first impression. So, make sure you know how to get to your destination and set aside enough time to get there so you will not be late.

BE COURTEOUS

Last but not least, greet anyone you meet at the interview venue. Everyone you meet could be your future co-workers; it never hurts to be polite to others!

BREAKING INTO A NEW CAREER

5 KEY TIPS TO HANDLE

FINANCE INTERVIEWS

Preparation is the key to a successful interview. Interviewers are looking for the best candidate to fill the vacancy, and your role is to persuade them that the person is you!

REVISE YOUR RESEARCH

As someone seeking a career in the financial industry, it is vital that you fully understand the company and role you are applying for. Research the company’s financial performance, past/present clients, values, and competitors.

Revisit the job description and your application materials as well. How much do the recruiters already know

about you, and how does your profile fit into what they’re looking? Do you, for instance, possess a specific language skill set which they hope to tap into to service certain markets?

If you have a related finance degree, go over the real-world applications of the technical knowledge you gained in your classes, specifically in the context of how that applies to the role you’re applying for.

preparedness for a career in finance. The best way to be prepared is to regularly read financial news such as The Edge Markets, the Star (Business) and The Economist, or watch daily markets coverage from CNBC, Bloomberg and Cheddar. An interviewer may ask what financial news you follow and ask you to discuss a recent news story that interests you.

If you don’t have a finance degree, make sure you’re able to demonstrate knowledge of how financial markets work, as well as display an understanding of the firm’s business objectives.

CUSTOMISE YOUR RESPONSES

2 BANKING AND FINANCE CAREERS GUIDE

BE PREPARED TO DISCUSS CURRENT MARKET TRENDS

3 24

Keeping abreast with the latest market trends and news is crucial for a career in the financial sector. As such, an interviewer will gravitate towards questions on current financial market conditions and big market movements, among others, to gauge the your level of interest and

Think from the recruiters’ perspective and customise your answers tailored to the specific role and corporation you’re applying for. For example, if you’re applying to a local bank like RHB Bank, be prepared to explain why you’re choosing a homegrown bank over a non-local one.

investment firm as a fresh graduate, try and figure out if they want you for an area of specialisation or as a jack-of-all-trades, and tailor your answers accordingly.

When asked about your strengths and weaknesses in your personality and professional behaviour, be prepared to list examples of prior work and study experiences which demonstrate your point.

For example, do you have internship experiences which taught you about client servicing skills? Participate in a finance case study challenge while you were a student? Research specific market segments as part of your prior internship? It’s always better to “show” rather than to just “tell”.

HAVE A CONVERSATION WITH YOUR INTERVIEWER

As a finance professional, you can’t just be good at crunching numbers, but you must also be able to communicate effectively. Be ready to show off your communication skills in an interview by asking thoughtful and articulate questions to your interviewers and get a conversation going.

For example, you can ask about how a recent industry trend has affected the firm, or how the company is trying to position itself against competitors in a similar space. Asking smart questions helps to end the interview on a high note and create a lasting impression.

Avoid cliché or generic questions such as: “How is a typical workday like?” and “What are the working hours?” It might work against you by signalling a lack of research or being overly self-interested. However, if recruiters take the initiative to share the benefits and perks of the role with you, take it as a good sign as they are attempting to entice you to eventually accept the position.

Your interviewers’ responses also give you a chance to evaluate them in turn. Use this as an opportunity to get a sense of the types of people you can expect to work with within the organisation, or whether the firm has a solid plan for the future ahead that you can see yourself being a part of.

FOLLOW UP AFTER THE INTERVIEW

Send an email to thank the recruiters for their time within the same day after the interview. You could highlight how the conversation helped in affirming your decision to join the organisation, or include specific references to topics you discussed with them to show your commitment and attention.

Take the initiative to keep in contact if there are no follow-ups within the next week. Call or email again to reiterate your interest in the job, and find out if there are further steps in the hiring process, such as attending an assessment centre, or taking aptitude tests.

Need more job interview advice? Get it Here.

FINANCE ASSESSMENT CENTRES

Prepare yourself for assessment centres and case studies with these tips.

KNOW WHAT TO EXPECT

Assessment centres are often used in the recruitment process to allow finance employers to examine prospective candidates in terms of suitability for the role, and to allow candidates to demonstrate their skills on-the-spot. You can expect to be involved in a combination of the following in most assessment centres: Group work exercises

Presentations

Aptitude and psychometric tests

Role-playing exercises

Case studies linked to the job function

DRESS WELL AND BEHAVE APPROPRIATELY

Keep in mind that you will be assessed in terms of your professionalism towards others throughout the assessment centre. Remember to be friendly and polite to everyone at the venue, including the fellow candidates. This is important since roles in banking and finance are people-centric. Choose proper corporate attire to look presentable and formal, and don’t forget to be punctual!

PREPARE FOR TESTS

At a finance assessment centre, employers may administer computerized tests to assess whether you have a suitable aptitude to work in the financial industry. You can expect to encounter verbal reasoning and numerical reasoning tests, or psychometric strengths profiling tests.

Verbal and numerical reasoning tests will assess your ability to interpret written statements or perform mathematical calculations. You can prepare for these in advance by searching for sample tests online to get a taste of the questions you can expect to encounter.

Psychometric or strengths profiling tests are designed to help recruiters better identify your current strengths and interests. Just answer the questions as honestly as possible — there’s no “right” or “wrong” here.

DO YOUR HOMEWORK ON CASE STUDIES

In a case study exercise, recruiters will task you to work with a group to analyse a complex business problem and propose a potential solution to that problem. There will often be no clear solution to the problem, so it’s up to you and your group to argue your case to the recruiter. When it comes to case studies, actual practice is best. Start by checking if your university career centre offers mock case study practice sessions. You can also search for sample case studies online and then try your hand at tackling them.

Keep yourself up to date on the latest finance industry news as well. Recruiters will most likely throw you a case study inspired by recent realworld events or developments.

EXPECT SUDDEN SURPRISES

Employers want a sharp candidate, so there’s a high chance that at some point recruiters may try to catch you off-guard to see how you respond. They may throw in an unexpected task, or add sudden

information in the middle of a case study which complicates matters further.

It’s all a test to see how well you work under pressure, so remember to keep your cool, think things through logically, and tackle the new information one step at a time.

BRUSH UP ON TEAMWORK AND PRESENTATION SKILLS

Work in the finance industry is very team-based, and recruiters will be observing how well you work with your fellow groupmates. Be polite and respectful to everyone, even under pressure. Do your best to contribute to the discussion and weigh everyone’s opinions fairly. Divide up the tasks among yourselves and coordinate with each other constantly.

For group presentations, try to give each team member a chance to speak on the topic/case study solution. Use simple, easy-tounderstand language when giving your presentation, using jargon only when absolutely necessary. Make eye contact with your audience as you talk instead of just reading off your slides!

Be prepared for questions from recruiters as well. If you cannot come up with a straight answer to the question, don’t panic. Take the time to talk recruiters through your thought process and how you would go about figuring out the answer to the question. The process of finding the answer often matters more than the answer itself.

TAKE EVERYTHING IN YOUR STRIDE

Even if you are not offered a position after going through the assessment centre, don’t be disappointed. Instead, treat it as a learning experience. You could also try to reach out to recruiters and ask for feedback on how you can improve in order to better prepare for the next assessment centre. Don’t be overwhelmed, as with everything, the more you do, the better you get!

Need more assessment centre tips? Get it Here.

SECTOR

FINANCIAL SERVICES IN A NUTSHELL

The financial services sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers. Here’s what you need to know.

ABOUT THE INDUSTRY

The financial services sector is comprised of a variety of employers including banks, finance regulatory bodies, insurance companies, and even non-financial employers such as real estate developers, consulting firms, or the government.

While monetary remuneration in financial services is typically not as high as those in the investment banking industry, they are still attractive. Working hours in this sector are also less demanding, allowing for a better work-life balance.

The Malaysian capital market continued to support the economy in 2021, with steady growth recorded in the financial services sector.

The financial services sector saw an increase in alternative financing for the year 2021. According to the Annual Report 2021 by the Securities Commission Malaysia, peer-to-peer financing increased to RM1.4 billion (2020: RM640.4 million) while the assets in the fund management industry increased to RM951.1 billion (2020: RM905.5 billion).

MUST-HAVE SKILLS

Because there are many different roles and positions in the financial services sector, the necessary skills can vary. However, a genuine interest in client service, analytical ability, the willingness to work with numbers and a good understanding of industry technology are all you really need to make a good start.

According to a local market survey conducted by recruitment firm Hays in 2022, financial services employers are also increasingly favoring candidates with a mix of finance and technology skills. Specifically, they are looking out for expertise with IT systems and automation, implementation, or migration projects. So even if you’re a STEM graduate, there might be plenty of opportunities for you in this sector too.

Working in the financial services sector allows you to build transferable skills that will prepare you for managerial roles across different areas of work in the future. Many aspects of this industry are client-facing and service-oriented, so communication skills, problem solving skills and interpersonal skills are also essential for a career in financial services.

GETTING IN

The financial services sector is generally open to graduates from a broad range of backgrounds. So even if you do not have a financerelated degree or relevant working experience, most employers will at least be willing to hire you as an intern to start off. Some employers will also offer structured on-thejob training to bring you up to speed with the necessary financial knowledge, on the top of working on your soft skills.

Some employers may also match you with a mentor or a senior ‘buddy’ to provide support and guidance and to help you the make the most of your opportunities. That said, additional qualifications may be required to advance in certain areas of work within this sector (e.g. insurance, actuarial work,etc.). So it’s a good idea to check in advance if your prospective employer offers study leave for any mandatory certifications.

AREAS OF WORK

If you’re interested in a career in financial services, there are various options you can consider during your job search. Here are some key paths:

Retail banking

Retail bankers work in banks and other financial institutions, where they provide the public with financial advice and access to banking services such as savings and checking accounts, personal loans, mortgages, and credit cards.

Insurance

Insurance professionals help both individuals and companies hedge against financial risk by selling them financial products to safeguard their assets in the event of unexpected complications or disasters.

Regulatory work

Financial regulations are all about maintaining trust in the economy by creating safe and fair financial services for all. You can either work as a consultant, advising clients on adapting and complying with existing and new regulations, or work for the government and play a role in supervising the implementation of such regulations.

Actuarial work

Actuaries use mathematics and statistics to estimate the financial impact of uncertainty and help clients minimise exposure to risk. They do this by assessing the risks of financial investments, insurance policies, and other potentially risky ventures before advising stakeholders on how to mitigate those.

FINTECH AS A CAREER: EXPLAINED !

Whether you’re purchasing coffee at your local shop or managing your finances, FinTech is all around us in 2022. But what is FinTech, and how is it being used?

If you are interested in a career in finance, you probably heard of “FinTech”. This is the segment of the financial services industry that leverages on new technology to create a better user experience for consumers and businesses. FinTech is used by all sorts of companies, ranging across asset management, payments, insurance, banking, and personal finance.

WHAT IS FINTECH?

FinTech, a combination of the words “financial” and “technology”, is used to describe providing financial services through software or other online technologies. FinTech helps companies, businesses, owners and consumers to better manage and facilitate their financial operations and processes by utilizing specialised software and algorithms.

FinTech is also used in the development of cryptocurrencies such as Bitcoin.But while that segment may see the most headlines, the big money in FinTech actually still lies in the traditional banking and financial services industry. Here are five active areas in FinTech:

Open banking

This is the practice of sharing customers’ banking data with third parties electronically. This could include apps designed to

help people keep track of their spending habits, messaging apps that enable people to transfer money to their friends, or centralised online payment gateways. The open banking segment in Malaysia is still in its early stage of development, though this is already widely implemented in many developed economies.

Artificial intelligence

This includes chatbots that can respond to customers’ queries or execute financial transactions more quickly and cost-effectively. Example of companies developing chatbots in Malaysia include XIMNET, Botsify, Chatbot Malaysia and PointStar Malaysia.

Insurtech

This area seeks to utilise technology to simplify and streamline insurance purchasing, claims, and payouts. An example is VSure.life which has leveraged its platform as a digital insurer by partnering with insurance companies such as Gibraltar BSN Life.

Regulatory technology or RegTech

This aims to help financial services institutions meet industry compliance rules especially those on anti-money laundering and Know Your Customer (KYC) due diligence protocols for fraud prevention. Some examples of companies offering KYC services are Lexis Nexis Risk Solutions, Shufti Pro and CTOS.

Robo-advisors

Digital platform that use algorithms to automate your investment portfolio, enabling execution of trades in response to market movements without the need for constant human intervention. Wahed Invest, StashAway, Akru and KDI Invest are some of the companies offering robo-advisory services in Malaysia.

CAREERS IN FINTECH

Getting a job in FinTech is dependent on your skill level and how well you can showcase that skill to your employers. FinTech graduate jobs vary depending on the companies that recruit for them, but here are some of the main entry routes into the industry:

Product Manager

Data Scientist

UI/UX and Graphic Designer

Product Engineer

Cloud Management

Back-End Developers

Learn more about the roles you are looking to apply for and narrow them down to a couple of options that interest you. Reach out to professionals within the industry if you can to hear their input on what a career in FinTech involves. This may help you plan your career journey better.

THE SKILLS YOU NEED FOR A CAREER IN FINTECH

FinTech is an evolving industry, and as new developments arise you will need to keep upgrading and reskilling yourself. Here are some of the skills you may need to be familiar with, depending on your desired entry role into FinTech: Working with application programming interfaces to synchronise multiple tech platforms.

Machine learning, data mining, and data interpretation (for data science roles specifically). Basics of software/app development— useful regardless of whether you are joining a technical or non-technical FinTech role.

Analytical and critical thinking skills— you will need to identify users’ pain points or predict their behavior and develop solutions in response to those insights.

Problem-solving skills— the FinTech segment is constantly evolving, so knowing how to address ambiguous or developing problems at work with no clear past precedent will be key to thriving in this line of work.

CHOOSING YOUR ROLE AND COMPANY

IN FINANCIAL SERVICES

Regardless of your field of study, jobs in the financial services industry are plenty and within reach. It simply takes some research into the different firms and roles available before you decide which one is the most suitable for you.

FIRMS IN THE INDUSTRY

Employers in the financial services industry include firms that provide specialised financial services such as actuarial consultancies (e.g. Aon), insurance companies like AIA, Tokio Marine and Allianz; and retail banks such as Maybank, CIMB Bank and RHBc Bank. Meanwhile, Bank Negara Malaysia and the Securities Commission Malaysia (SC) are regulatory bodies in this industry that ensure compliance is observed in financial transactions and activities.

The type of firm you join will depend on the role you choose to take on. If you choose to join a larger corporation, you will generally enjoy much more structured support and training. New hires in major financial services conglomerates can expect to undergo a comprehensive training programme that gives them a broad rotation across different areas of the business.

On the other hand, if you join a smaller financial services firm, you can expect a lot more flexibility and ownership over your own work. These firms offer a more personalised touch for staff, and you may end up working in interesting niches that larger firms may not cover or working with more highly-customisable financial products and services.

ROLES AVAILABLE

There are many career possibilities in the financial services industry, including but not limited to: Actuary

Commercial banker

Financial planner

Insurance broker

Insurance claims handlers

Product manager

Retail banker

Underwriter

THE IDEAL CANDIDATE

The financial services sector in Malaysia has undergone major changes in the last two years, with an increasing number of customers choosing to self-service personal financial products through online platforms. In addition, proliferation of e-payments and the issuance of new digital banking licenses to companies without traditional brick-andmortar banking operations has been another big change for employers within this industry. Candidates boasting strong IT and data analysis skills are in huge demand now as financial services firms look to navigate these major digital shifts.

Besides skills like teamwork and communication, employers are also seeking candidates with strong empathy and people skills who can guide clients through making major financial decisions at critical times. For example, having exemplary persuasion and negotiation skills aren’t enough for a financial services consultant. Candidates would also need to be able to see things from the client’s perspective, identify their needs, and then devise corresponding financial planning strategies that a client can feel reassured with.

The ability to innovate and provide fresh perspectives are also valued by financial services organisations who wish to stay relevant in today’s society. Other sought-after skills include market intelligence and analytical skills, which will help you find and offer value-added services to ensure customer satisfaction.

WORKING IN THE INDUSTRY

Compared to investment banking, the financial services industry has more regular (or flexible) working hours, and candidates may have an easier time maintaining a healthier work-life balance as a result. While basic salaries may not be as high as those working in investment banking or fund management, earning potential in financial services is still quite generous – especially for sales commission-based roles.

When applying for entry-level positions, the key is to identify the most rewarding entry-level jobs in terms of future career prospects and salary. Take the time to think if the job will be the best fit for your abilities and interests. Once you have narrowed down your search, you can begin applying!

Last but not least, if you decide to pursue a career as an actuary, bear in mind that employees are often required to balance full-time work and further studies to attain professional qualifications in order to progress in their careers.

JARGON BUSTER

A GUIDE TO FINANCIAL SERVICES TERMS

Here’s our A-Z jargon guide for graduates to understand key terms used in the financial services and banking industry.

AAMORTISATION

The reduce of a loan balance through regular principal payments.

Example: You have a RM5,000 loan outstanding. If you pay RM1,000 of the principal every year, RM1,000 of the loan has amortised each year. You should record RM1,000 each year in your books as an amortisation expense.

ANGEL INVESTORS

A high net worth individual who makes investments, typically in early-stage enterprises. Angel investors gain their largest profits when the company they invest in is sold to another company or goes public through an initial public offering.

Example: If an angel investor buys 10% of shares in a company that is sold for RM1 million, the angel investor would receive RM100,000. If the company goes public and the stock is trading at RM10 per share, and the angel investor still owns 10%, then the value of their stake would be RM1 million.

ASSET-BASED SECURITY (ABS)

A type of financial investment that is derived from a pool of underlying assets. To create asset-backed securities, financial institutions pool multiple loans into a single security which is then sold to investors.

Example: A collateralized debt obligation (CDO) is an example of an ABS. It is like a loan or bond, one backed by a portfolio of debt instruments—bank loans, mortgages, credit card receivables, aircraft leases, smaller bonds, and sometimes even other ABSs or CDOs.

ANNUITY

An insurance contract issued and distributed by financial institutions with the intention of paying out invested funds in a fixed income stream in the future.

Example: A life insurance policy is an example of a fixed annuity, in which an individual pays a fixed amount each month for a pre-determined time period (typically 59.5 years) and receives a fixed income stream during their retirement years.

BBANKRUPTCY

A legal action that stops creditors from trying to collect debts from an individual or company.

Example: Neiman Marcus is an American luxury department store chain. The corporation applied for bankruptcy in May 2020 due to enormous debt and economic impact from the COVID-19 pandemic.

BENEFICIARY

A beneficiary in the broadest sense is a person, or other legal entity, who receives money or other benefits from a benefactor.

Example: The beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.

BUDGET

A complete listing of income and expenses for a specific time period.

Example: A company allocated RM100 million for its operations departments in the beginning of 2021. At the end of the year, the company measured the actual spending versus the planned budget. The actual expenditure for the year 2021 was recorded at RM80 million, hence the company allocated RM90 million for the next year.

CCASH POSITION

The portion of an investment portfolio that can be quickly liquidated into cash. This includes securities with maturities shorter than ninety days and demand accounts such as money market funds.

Example: A company has RM300,000 in current assets and RM150,000 in current liabilities. By dividing current assets by current liabilities, the current ratio is 2:1. A ratio over 1 indicates a company has enough cash for continued operations. With a ratio of 2:1, they have a strong cash position.

CASH SURRENDER VALUE

The amount of cash a person can get when he/she cancels a whole life insurance policy.

Example: Suppose James takes out a whole life insurance policy for RM100,000. He makes 10 years of payments and builds up a cash value of RM10,000. However, the surrender charge will cost him 30% of the cash value. He will have to pay RM3,000 in charges, and he will only get RM7,000 out of the cash surrender.

CONVERTIBLE LOAN

A short-term debt that will either be repaid or converted into equity at a later date.

Example: A company needs a convertible loan for RM500,000. An investor agrees to loan them the money, but asks for a 20% warrant in return. At the start of the next financial year, the investor would receive RM100,000 in securities (stocks, bonds, cash) from the company.

COUPON

The annual interest rate due on a debt product, such as a bond or a loan.

Example: A RM1,000 bond with a coupon of 5% pays RM50 a year. Quite often, these interest payments are semi-annual, whereby the investor receives RM25 twice a year.

DDEDUCTIBLE

The present amount an insured person must pay before insurance claims will be paid out.

Example: The deductible on James’ car insurance was RM500 per incident.

DISCRETIONARY INCOME

The amount of money a person has left to spend on luxury or “nice-to-have” items after all necessities are bought, all the bills and taxes are paid, and savings or investment deposits are made.

Example: A family has RM90,000 of gross income each month. They pay RM20,000 in and an additional RM45,000 in necessities This leaves them with only RM25,000 in discretionary income at the end.

DIVIDENDS

Dividends are a sum of money paid out (typically annually) by a company to its shareholders out of its profits (or retained earnings).

Example: A company makes a net profit of RM300,000 for the financial year of 2021.They decide to pay 35% of that amount as dividends to their shareholders, while re-investing the remaining 65% into the business for the coming financial year.

EEXPECTED RETURN(S)

The estimated income and gains that will be produced by an investment.

Example: If an investment has a 50% chance of gaining 20% growth on its principal amount, but a 50% chance of losing 10% of the principal amount, the expected return would be 5% (50% x 20% + 50% x -10% = 5%).

FFACILITY

An arrangement whereby a lender provides monies to a borrower in exchange for interest on the amount lent. “Facility” is often used interchangeably with the term “loan”.

Example: Some examples of facilities offered by banks include overdraft services, deferred payment plans, lines of credit (LOC), revolving credit, term loans, letters of credit, and swingline loans.

FINANCIAL RETURNS

Financial return is the monetary surplus generated by an organisation on an investment.

Example: An investor buys RM1,000 worth of publicly traded stock, receives no dividends, and sells the stock two years later for RM1,200. The nominal return in dollars is RM1,200 - RM1,000 = RM200.

GGRANT

A grant is a conditional or unconditional gift of money with no expectation of repayment.

Example: Research funding, charitable endowments, and company stock options for staff are some examples of grants.

GROSS REDEMPTION YIELD

The annual compound return from holding a bond to maturity, taking into account both interest payments and any capital gain or loss at maturity.

Example: Take an initial capital loss of RM29.76 per share and divide that by the number of years left until the bond matures (31 years and 5 months or 31.42), we get an annual loss of RM0.947. This RM0.947 loss expressed as a percentage of the current price is 0.73%. So, a rough approximation of the gross redemption yield per share is the income yield of 3.27% less the average annual capital loss of 0.73% which gives 2.54%.

INDICATIVE NET ASSET VALUE (iNAV)

iNAV is an estimation of the net asset value of an investment across multiple days. It is calculated on a minute-by-minute basis, and is reported approximately every 15 seconds by exchange traded funds (ETFs) or third-party observers such as Bloomberg.

Example: The BLM ETF’s closing net asset value is 191 and if the BLM 50 index opens 1% up the next day, the iNAV will be 191 + 1.91 or 192.91. This value changes every 15 seconds based on movement of the BLM 50 index.

INDEX

A statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes.

Example: Some of the most important indexes in the global markets are the S&P 500 and the Dow Jones Industrial Average.

LLIABILITY

An obligation that legally binds an individual or company to settle a debt or a payment.

Example: Financial liabilities include debt payable and interest payable, accounts payable to other parties,; and rent and lease payable to the property owners.

LIQUIDITY

Liquidity refers to the availability of cash that an organisation has to meet short-term operating needs. It is the amount of liquid assets that can be used to pay expenses and debts as they become due.

Example: The following are common examples of liquidity – physical cash, restricted cash, marketable securities, cash equivalents, credit, and assets.

MMARKET

All exchanges are markets – electronic or physical forums where assets are bought or sold.

Example: Some examples of financial markets include the stock market, the bond market, and the commodities market. Financial markets can be further broken down into capital markets, money markets, primary markets, and secondary markets.

MORTGAGES

A mortgage, or more precisely a mortgage loan, is a long-term loan used to finance the purchase of real estate properties.

Example: An example of a mortgage is the loan you took out when you bought your house.

NNATIONAL DEBT

A government’s total outstanding borrowing resulting from financing successive budget deficits. Some investors trade in national debt because they view it as a stable investment option.

Example: Examples of national debt include debt securities (such as government/GLC bonds and bills), loans, and government employee pension obligations.

OOVERDRAFT

A form of borrowing from a bank where the lending bank can demand repayment at any time.

Example: If James had RM200 in his checking account and he bought an item worth RM300, the bank will clear the transaction, but charge him an overdraft fee immediately.

PPAYDAY LOAN

A very short-term loan that needs to be repaid on the borrower’s next payday, usually the end of the month.

Example: Suppose James is short on funds one month and can’t pay his rent, so he goes to a payday lender and apply for enough to help him make the payment. The lender approves the loan and charges him RM15 for every RM100 he gives James. James receives RM400 to help him pay his rent, so he owes the lender RM460 - which has to be paid when he receives his next pay check.

PERSONAL LOAN

A loan taken out by an individual where the precise purpose for which the money will be used is not detailed in the loan agreement.

Example: There are several types of personal loans including secured loans, unsecured loans, student loans, overdraft/lines of credit and debt consolidation.

PREMIUM

The regular payment made to an insurance company for financial protection against a range of risks.

Example: An example of a premium is a monthly car insurance payment.

RREGISTRAR

A registrar is an institution, often a bank or trust company, responsible for keeping records of bondholders and shareholders after an issuer offers securities to the public.

Example: When an issuer offers a bond to investors, the company works with an underwriter to create a bond indenture. The bond registrar then tracks the investors who own the bond and investors who should receive interest payments.

RISK CAPITAL

Risk capital refers to funds allocated to speculative activity and used for high-risk, high-reward investments.

Example: The most common example of risk capital is seed funding for a business. When a business starts operations, it requires a certain investment and this investment cannot always be secured through loans from banks. So it requires investors who believe the business will make money.

SSECURITY

Also known as “collateral”. A bank is required to take security from borrowers for a loan. The security usually holds equivalent estimated value to the amount of the loan.

Example: The most obvious example is where a bank takes security of your house in exchange for extending you a home mortgage. If you fail to service the mortgage, the bank can legally take possession of your house and sell it off to cover its losses from the mortgage.

SEED CAPITAL

Seed capital is money used to start a new business. This can be self-funded or come from external grants or investors.

Example: Some universities have seed funds that help incubate start-ups by its students and graduates. They can apply for small seed capital funding awards of up to RM20,000 to support their early-stage business or get a new venture going.

TTRADE FINANCE

Trade finance typically refers to all the different financial instruments and products that allow a company to trade internationally.

Example: Some examples of trade finance products and services include: letters of credit, bank guarantees, factoring, insurance, and export credit.

UUNSECURED DEBT

A loan made with no collateral to back it up in case of non-payment.

Example: Examples of unsecured debts include credit cards, medical bills, utility bills and other instances where credit was given without any collateral requirement.

VVALUATION

Is a process of determining the value of an asset or a portfolio of assets, including any accrued income.

Example: An example of valuation is a company’s market capitalization. If a company’s share price is RM10 per share, and the company has 2 million shares outstanding, its market capitalization would be RM20 million.

ZZERO-COUPON BONDS

A zero-coupon bond is a bond in which the face value is repaid at the time of maturity. Unlike regular bonds, it does not have so-called “coupons” (i.e. annual interest rates due on the debt).

Example: Examples for zero-coupon bonds include Malaysian Treasury Bills (MTBs). These bonds are short term securities issued by the Government of Malaysia and are used for working capital purposes.

ACTUARIAL WORK

Actuaries use mathematical and statistical models to predict and manage risks in financial investments.

OVERVIEW

Actuaries build and use mathematical models based on statistical data to predict the potential risks of a financial investment, as well as how to offset those risks on behalf of the investing company.

As an actuary, your work revolves around the prediction, evaluation, and management of risks using a combination of statistical/ mathematical models and commercial awareness. You may also be asked to advise clients and stakeholders about your findings, and to help develop possible solutions.

This type of work involves analysing data from the past and present to measure the probability of future events. Actuaries are involved in all types of business areas including planning insurance premiums and calculating pension plans.

STARTING OUT

The most efficient pathway into this line of work is to complete an actuarial science degree. This degree will allow you to enter the workforce, however, you will not be considered a certified actuary at this stage.

In order to achieve professional status as an actuary, you will need to further your actuarial studies by taking professional exams from certified bodies. The professional exams may take another three to seven years (part-time) to complete.

According the to Actuarial Society of Malaysia, the most common certifying bodies locally are: Actuaries Institute (Australia) Canadian Institute of Actuaries Casualty Actuarial Society (US) Make sure to check each institution’s list of accepted universities to ensure you’re getting your credits from a valid institution.

If you don’t have an actuarial science degree, you can still get certified as an actuary! A number of certified actuaries come from degree programmes like mathematics, statistics, or economics.

Furthermore, some employers may offer trainee actuaries financial assistance and ample study leave to lighten the load of attaining actuarial certifications.

CAREER PATHWAYS

Graduates typically start their careers as trainees, assisting senior actuaries in their duties as they pick up the necessary skills (and professional hours) required to advance. At this stage, you will likely spend of your time working with pre-constructed models to generate financial forecasts and risk assessments.

As you gain more professional experience, you may be assigned greater responsibilities such as leading projects, constructing, updating and analysing financial and forecasting models; or handling client relationships.

After gaining certification from an actuarial body, most actuaries tend to specialise in a specific area of interest, gaining in-depth knowledge, experience, and reputation as an expert in their field of choice.

There are many actuaries who have found also opportunities in other seemingly unrelated areas of management as well. For instance, actuaries have been known to venture into infrastructure and climate change projects, as well as the healthcare and cybersecurity.

REQUIRED SKILLS

Aside from possessing a high level of numeracy, you need to be good at critical thinking and problemsolving. Excellent communication, interpersonal and presentation skills are also important as you will be required to present data findings and potential solutions to your clients.

Actuaries should also be flexible and adaptable as the job scope can be very diverse, with ad-hoc tasks and projects interrupting your day regularly. Accountability is equally important as it’s crucial that you diligently follow up with stakeholders throughout the process of implementing a risk management solution.

FINANCIAL TECHNOLOGY (FINTECH)

With the adoption of technology in banking and financial services,this industry oversees countless transactions every day.

OVERVIEW

FinTech – a blend of ‘finance’ and ‘technology’ – has altered the way we make payments, take out loans and invest our finances. The core of FinTech is to leverage technological advancements such as smart algorithms and secure cloud-based apps to enhance financial services.

FinTech innovations include online banking, electronic payments and peer-to-peer lending. The aim of these technologies is to make financial services more efficient and easily accessible for organisations and consumers.

Below are some applications that utilise FinTech:

Robo advisors

Mobile payments

Crowdfunding platforms

Peer-to-peer lending platforms

E-wallets

Here are some examples of sectors that make extensive use of FinTech:

Retail banking

Investment management

Digital transactions

Digital loans

CAREER PATHWAYS

Though many universities in Malaysia now offer designated FinTech degrees, those are not a hard

requirement for entering this area of work. Although certain FinTech roles do require specific technical knowledge (e.g. cybersecurity, app development, etc.), there are also plenty of roles that graduates from other degree disciplines can apply for so long as you have the relevant skills.

You will, however, need to stay constantly up-to-date on the latest FinTech trends and industry developments. This industry is changing and evolving at an incredibly rapid pace, so you will have to supplement your career journey with external courses, seminars/webinars, conferences, and a general sense of commercial awareness.

There are various job roles that graduates can take up, like app development, investment consultants, or product managers. Other popular career pathways in FinTech include artificial intelligence, wealth management technology (WealthTech), and robo-advisory.

Beginning with an internship or graduate programme in a financial organisation’s IT or FinTech department will give candidates a good start if they decide to pursue a career in this field. In particular, job rotations under such programmes will

give you exposure to various parts of the banking and financial services industry and the role that FinTech plays within them.

REQUIRED SKILLS

FinTech is an evolving industry with new developments each year, so you will need to learn, unlearn and relearn skills frequently – especially technical ones.

Currently, blockchain expertise and development is categorised as one of the hottest job skills in FinTech, according to a report published by market research firm Meticulous Research. This is followed by machine learning, applied statistics, and cybersecurity.

For non-development FinTech roles, having up-to-date knowledge about international finance laws, stock market trends, and risk compliance will be key to help you come up with better solutions for your platform.

With that said, soft skills are crucial in this industry, especially given the team- and project-based nature of FinTech work. Some of the soft skills that are in demand include communication skills, adaptability, handling ambiguity, problem-solving skills, and teamwork skills.

INSURANCE

Insurance is a wide-ranging career helping clients hedge against personal and business-related risks in every aspect of life.

OVERVIEW

The insurance industry is a broad field that includes several types of coverage, including life, health, auto, property, and casualty insurance. However, they all ultimately involve safeguarding an individual or organisation’s financial assets in the event of unexpected mishaps.

The insurance industry also includes people from many different backgrounds, so it’s possible to seek suitable opportunities regardless of your education or experience level!

CAREERS

There are a wide-range of career pathways in the insurance industry, but here are some of the more popular positions that graduates can expect to start out in:

Graduate underwriter: As an underwriter, you assess the risks of insuring a person or company according to the likelihood of a claim being made.

Graduate insurance broker: More commonly known as insurance agents, insurance brokers advise clients about potential risks and then sell them insurance policies that can minimise those risks. As an insurance broker, you will work with both individuals and businesses, and you will have the option to specialise in one specific area of insurance.

Business development and sales graduate roles: By contrast to working at an external agency, you can also be working in an insurance company’s internal business development or sales division.

Claims management trainee: As part of the insurance claims department, you will be involved in assessing the validity of submitted claims, as well as liaising with policyholders to ensure that the repayment process is completed efficiently.

Trainee loss adjuster: Loss adjusters evaluate insurance claims by investigating cases and determining liability and damage, in accordance with the policies of the insurance company. Loss adjusters typically work as independent third parties and are attached to specialist practices instead of insurance companies.

Graduate product manager: Product managers at insurance companies are responsible for creating, testing and launching new insurance products for potential customers. Their responsibilities may include market research, sales forecasting and ensuring regulatory compliance.

Operations management: Operations can cover managing customer service teams, maintaining existing tech platforms or deploying new ones, and ensuring smooth workflow of processes within the different divisions of the company.

CAREER PROGRESSION

In addition to the above areas, insurance companies also require a wide range of support roles to support their core business, such as technology specialists, marketing and HR personnel.

Many large insurance employers offer training or graduate schemes to help new hires adapt to the new working environment. These schemes tend to rotate graduates across the different business areas of the company to help them understand the company better.

REQUIRED SKILLS

Recruiters value candidates who have good customer service and numeracy skills, the ability to react promptly, and an eye for detail.

Generally, most insurance employers state a preference for numerate, business or management-related degrees. While this is especially true for some positions with a more technical bent – such as underwriters, graduates from all degree disciplines are still welcome to try for other roles.

REGULATION AND COMPLIANCE

Regulation and compliance in financial institutions are all about ensuring adherence to both internal and external guidelines and laws.

OVERVIEW

New laws, rules, and regulations are being introduced to the financial sector all the time, even as existing laws and regulations have to be upheld.

This is where the compliance department comes in. A financial institution’s compliance department serves as an internal enforcement division for the firm, ensuring that it follows all the rules laid down by regulatory bodies.

Here’s a breakdown on some of the responsibilities a compliance professional will have to undertake:

Keep up to date with relevant laws and regulations

Monitor compliance with laws, regulations and internal policies

Investigate irregularities and noncompliance issues

Review marketing materials to ensure compliance with regulatory requirements

Collaborate with other departments to ensure compliance is a shared goal organisation-wide

CAREER PATHWAYS

Most companies require future compliance hires to have at least a bachelor’s degree in in law, finance, business management, or in a related field.

Compliance professionals usually take continuing education programs to stay up to date with laws and other information they need for effectively monitoring compliance. As such, most positions would require you obtain some sort of ongoing certification.

In Malaysia, the Securities Commission Malaysia (SC) manages licensing for capital market intermediaries including compliance professionals. Compliance professionals need to meet the following minimum entry criteria before seeking registration with the SC:

Candidates must possess a degree, with three years of relevant working experience in the capital markets or a diploma with five years of working experience in the capital market industry.

Candidates are required to pass Module 11 (Fundamentals of Compliance) and Modules 14 (Futures & Options) and 16 (Rules & Regulations of Futures and Options) of the SC licensing examinations.

After registration with the SC, applicants must also fulfill the following SC related qualifications: Pass Module 11 of SC Licensing Examination

Attend the relevant modules of the SC Licensing Examination Preparatory Courses ( i.e. Modules 14&16)

Complete at least three Industry Transformation Initiative (ITI) courses that are relevant to the regulated activity that they are supervising

It is not uncommon for compliance professionals to start off in retail banking, where the rules are more straightforward and concise, in order to gain experience. They can then move towards corporate banking and specialise in departments such as mergers and acquisitions, project financing, and international trade.

REQUIRED SKILLS

To work in the regulation and compliance industry, you will need to have:

The ability to analyse and interpret information quickly

Attention to detail

Critical problem-solving abilityyou will often have to make decisions on the information available which is not always in black and white

Project management skills

Communication skills – including the ability to stand your ground and convince others of your thought process

RETAIL BANKING

Retail bankers are responsible for assisting and advising customers with their daily financial needs.

OVERVIEW

Retail banking, also known as consumer banking and personal banking, provides financial services to individual customers rather than businesses. Retail banking allows customers to manage their money, have access to credit and deposit their money in a secure manner.

Retail banks offer a variety of financial products and services ranging from checking and savings accounts, mortgages, loans, personal credit products, as well as remittance services. Some retail banks also offer services such as stock brokerage, insurance, wealth management and private banking – although these are delivered through an affiliate of the bank or other divisions.

As a retail banker, you will work in a hybrid finance/customer service role to help individuals manage their money and access bank services. Depending on your role within the bank, this could range from being a bank teller, mortgage specialist, financial advisor, relationship manager, or even managing an entire branch of a bank, to give just a few examples.

CAREER PATHWAYS

There are diverse opportunities and functions available for graduates within retail banking. Many major retail banks run specialized graduate programmes to recruit potential candidates to their function of choice, and management associate programmes are especially popular.

Most retail banking graduate programmes will rotate you in different roles across the organisation, giving new hires the opportunity to experience different areas of work to gain an understanding of the bank’s business as a whole. Graduates may be put in charge of managing small-scale projects, be involved in creating new financial products and services, provide technical support to colleagues or other divisions, or even handle customers on the ground.

Due to the sheer variety of products offered by each bank, career paths can be very diverse. For instance, career advancement can take place vertically – where you climb up the corporate ladder to take on managerial positions – or horizontally, where you transition from managing products such as mortgages and personal loans to a different division, such as private banking.

KEY SKILLS FOR RETAIL BANKERS

Retail banking employers generally welcome candidates from any academic background unless the position requires specific technical skills. To be a standout applicant in this highly competitive sector, focus on developing soft skills, particularly:

Communication and people skillsYou will need to forge and maintain strong customer relationships as a retail banker. Most roles in this line of work involve handling customers directly.

Teamwork skills - Most retail banking work is done in supervised teams. Being able to collaborate and communicate effectively with your team members and supervisors will be key to success.

Attention to detail - As a retail banker, you will need to review customers’ finances, monitor financial trends, and keep an eye out for suspicious transactions.

Strong numeracy skills - Having strong numeracy skills in this line of work is essential as you will be handling the finances of your customers.

Leadership and project management skills - These will be especially important as you climb the ladder and start supervising teams of other bankers, or if you are assigned in charge of the rollout of new financial products and services within a bank branch.

Certifications like the Certified Financial Planner (CFP) are optional but they may improve your career opportunities later down the line and give customers assurance of your skills in solving their financial problems.

However, if you are looking to specialise in particular roles, you will need to get accreditation from specific bodies. For instance, if you want to specialise as a credit professional in retail banking, you will need to be accredited by the Asian Institute of Chartered Bankers.

RISK MANAGEMENT

Risk managers assess potential financial investment risks, and help clients and companies fully understand them before making investments.

OVERVIEW

Risk management is the process of identifying, analysing, and mitigating uncertainty in investment decisions. A risk manager identifies risks and evaluates their impact before either proposing ways to minimise those risks, or helping clients understand the risks involved before an investment is made.

As a risk manager, you will conduct detailed research and risk assessments for your clients or employer. A typical day may involve poring over documents, reports, and statistics. You will then consult and advise clients or stakeholders, ensuring that any investment decisions that follow matches their risk appetite.

Risk management within a company falls under a range of different job titles. Some entry-level risk management job roles include:

Risk analyst

Insurance analyst

Risk consultant

Risk manager

CAREER PATHWAYS

Although this area of work is open to all graduates, employers do tend prefer candidates with degrees in related fields, such as:

Finance or economics

Law Accounting

Management or business studies

New hires usually enter through risk management training programmes before striking out as part of a small team, picking up essential skills on-the-job. External training courses and additional professional qualifications may be required if you intend to specialise in particular areas of risk management, such as fraud prevention.

You could consider pursuing an MBA if you are keen to progress to senior risk management positions, as it provides more detailed guidance on subjects like statistics, corporate finance, accounting and analytics.

REQUIRED SKILLS

Some important skills for those interested in a career in risk management include:

Knowledge and understanding of regulations – ensuring that the company and its goods or services comply with all industry standards is crucial, so staying up to date on compliance and regulations is an ongoing commitment.

Analytical skills – you will be required to study data, identify and rectify gaps in data, draw conclusions, and use it to make strategic decisions.

Financial knowledge – risk managers need to have reliable financial skills to decipher investment portfolios or balance sheets.

Commercial awareness – you must be able to develop insights from market movements or current global affairs.

As a risk management professional, you will also need to have technical skills. Much of the work will involve using specialised modeling and prediction software. And sometimes, you may even encounter cases where the technology available can’t keep up with your risk modeling needs yet!

In these cases, you may then be involved in developing the necessary risk management frameworks, and then working closely with developers and technology vendors to implement the new framework into whatever software or systems your team may be using.

INVESTMENT BANKING

Take

a quick peek at the investment banking and investment management industry!

WHAT IS INVESTMENT BANKING?

Investment banking is, to put it simply, all about making money. This line of work is fundamentally all about generating returns for clients through investments across a wide range of businesses, countries, and financial products.

Investment banks also handle large, complex financial transactions such as mergers or initial public offer (IPO) underwriting. These banks may also raise money for companies in various ways, such as underwriting the issuance of new securities for a corporation or other institution. They may also manage a corporation’s

IPO, provide advice on mergers, acquisitions and reorganisations, or help corporations turn assets around for further profits.

Many local investment banks in Malaysia are affiliated subsidiaries of larger banking institutions, such as Maybank Investment Bank, CIMB Investment Bank, RHB Investment Bank, and Aminvestment Bank. There are also independent local investment banks like Kenanga, or Malaysian branches of foreign investment banks such as Citibank or J.P. Morgan.

Other potential employers in this industry include investment or fund management firms, private equity funds, or wealth/asset management firms. These may either specialise in specific types of investment products, help high net-worth clients manage and grow their investment portfolios, or provide specialized investment advice to clients in specific industries.

MUST-HAVE SKILLS

Investment banking is a datafocused role for those with excellent analytical, technical and numerical skills.

Interpersonal skills and teamwork are crucial here, as is resilience and time management skills. The industry is famous for its long hours, so the endurance to work round the clock and being on call to monitor changes in different markets is essential.

However, investment managers and advisors must also succeed in client service, dispensing valuable insights to clients and colleagues. Excellent verbal and written communication skills will therefore come in handy when presenting complex concepts to colleagues and clients who may not have backgrounds in finance. Being able to observe broader trends in the financial markets and interpret them for clients is also crucial.

You can expect to work in a very target-driven environment, with pressure to make the right decisions at the right time for strategic earnings. Being able to handle stress, and having the confidence to take ownership of the decisions you make while being fully aware of their implications is key to succeeding in this industry.

AREAS OF WORK

In the banking and investment industry, employees usually provide financial services to clients such as corporations, institutions, governments and high-net-worth individuals, and also assist them in meeting financial objectives and maximising returns. Here are some common areas of work:

Corporate banking

Corporate banking, or business banking, serves a wide range of businesses ranging from small-to mid-sized local businesses with a few million in revenue to large conglomerates with billions in sales. Some of the services that corporate banking offers include cash management, lending, private equity financing and trade resources.

Investment banking

Investment bankers help companies and governments with corporate finance needs, such as raising funds or capital. Some of the complicated financial transactions that investment bankers facilitate are debt issuance and bond offering, new securities underwriting and mergers and acquisitions.

Investment/fund management

Investment managers help clients reach their investment goals by managing their money. They analyse the market and predict trends, then help clients maximise their portfolios by investing in a variety of securities.. Investment managers work with bonds, equities and commodities including gold and silver.

Private wealth management

Private wealth management involves managing the assets of high-networth individuals or accredited investors. They may even offer discretionary services – that is, to make investment decisions directly on behalf of their clients. Services that PWMs offer includes portfolio management, estate planning, mortgage planning, asset protection and other financial services.

Stockbroking

Dealers working in stockbroking not only monitor and trade stocks, but also give financial advice to investors, thereby contributing to one of the most important functions that keep financial markets running. They can handle both high-risk, high-frequency investments with immediate returns, as well as lower-risk, longer-term investments where the returns take longer to materialise.

CHOOSING YOUR COMPANY AND ROLE IN

INVESTMENT BANKING

Here’s how to discover what niche in the investment banking industry is right for you!

FIRMS IN THE INDUSTRY

Investment banks underwrite new debt and equity securities for corporations, aid in the sale of securities, help facilitate mergers and acquisitions, and broker trades for institutions and private investors. These banks also provide guidance to public-listed companies on the offering and issuance of stocks.

Some of the services offered by investment banks in Malaysia include:

Mergers and acquisitions

Investment banks assist clients in domestic and cross-border mergers and acquisitions including buy-side and sell-side advisory.

Equity capital markets

Investment banks assist clients in listing Hong Kong, Singapore and India markets by structuring and arranging market transactions.

Financial advisory

Here, investment banks help clients in listing securities in stock exchanges in Malaysia by ensuring compliance with regulatory guidelines.

Debt capital markets

Investment banks assist clients planning to raise funds from the debt markets through originating deal structure, pricing debt offerings and underwriting.

Besides banks, there are also investment firms – such as private equity firms, asset management firms and fund houses. These may hire for specialised roles focusing on independent advisory services or the sales of securities like hedge funds or derivatives, among others.

There are also inter-dealer broking firms who act as intermediaries, helping clients negotiate and trade securities anonymously.

THE IDEAL CANDIDATE

The main criteria for working in this sector are to have a good understanding of the financial markets, and strong numeracy and analytical skills to think laterally and recognise market trends.

Having a finance-related degree is a plus, to be certain. And if you also have relevant professional qualifications, such as the Capital Markets Services Licence (issued by the Securities Commission Malaysia), that is also a definite advantage. However, those aren’t hard prerequisites.

Employers in this industry are generally willing to accept graduates from all backgrounds so long as you hold a genuine interest in banking and investments, as well as constantly keep up-to-date about the latest developments in the field.

This does not mean, however, that this is an easy industry to get into. Employers in this industry can be incredibly selective, with some only hiring for a few rare openings each year.

You will have to be very prepared and have the right amount of relevant past experience if you hope to break into this industry – finance degree or no.

WORKING IN THE INDUSTRY

If you are interested in a career in investment banking, it is important to consider your strengths and skills and how you would fit in with the organisation and the division you wish to apply to. Be sure to do your research on the different graduate programmes available.

A typical investment banking firm is split into front office, middle office, and back office divisions. Each division plays an important role in making sure the bank makes money and manages trades smoothly.

Front office describes client-facing roles that generate revenue for the bank/firm. In this division, you will be engaging with clients to trade and sell financial products, as well as manage client relationships with the firm.

The middle office directly supports staff in the front office. This is where you’ll find roles like analysts, risk managers, or underwriters who do the necessary groundwork to support investment and trading decisions. The back office mainly includes support services such as operations and technology. This may also include divisions such as human resources, office management and marketing. They provide the necessary infrastructure and processes to keep the business running smoothly.

In most investment banks/firms, teams are often put together based on areas of specialisation –teammates frequently work closely together and keep each other motivated. Expect plenty of early responsibilities and a fast-paced environment, which often translates to challenging and unpredictable work.

High salaries, hefty bonuses and other financial rewards are undeniably the biggest perks of working in this industry. However, keep in mind that working hours tend to be extremely long and staff are often expected to work on weekends and, on occasion, even round-theclock.

ROLES AVAILABLE

Common job roles in this industry include:

Asset manager

Inter-dealer broker

Investment banking analyst

Investment banking associate

Investment management analyst

Investment manager

IT manager

Operations manager

Private banker

Risk management analyst

UNIQUE SKILLS INVESTMENT BANKS LOOK FOR IN GRADUATE

EMPLOYEES

Looking to showcase the skill sets that investment banks are seeking? You will need to go beyond “good communication skills” and “team player” to stand out from the crowd.

Investment banks and investment management companies often have demanding lists of competencies they seek in graduates. Many characteristics that these firms look for in potential employees are obvious, but others are surprising.

If you have a specific employer in mind and want to catch their attention, you’ll need to know what they’re keeping an eye out for, and how to prove you have what they want!

INTELLECT

You clearly need to be a bright candidate to succeed in an investment banking career, but what specific intellectual skills do recruiters require?

British investment bank Barclays defines this as being an “agile learner” – someone who is sharp enough to thrive in new and difficult situations by grasping and learning new concepts quickly.

On the other hand, Deutsche Bank places a greater emphasis on intellectual curiosity – particularly the ability to deduce the right questions to ask when in doubt, and to quickly identify the most appropriate leads to pursue while conducting research.

RHB Banking Group seeks candidates who can demonstrate “good business acumen”. That is, being able to see the big picture and have a good holistic sense of the various internal and external factors that contribute to making an investment opportunity profitable.

How to prove you’ve got it?

Investment banking recruiters don’t judge intellectual skills by academic grades alone. They want to see that you can apply your knowledge to practical situations.

For example, perhaps you worked on a project during a past internship with a team of other interns. An agile-minded person wouldn’t just complete their assigned tasks –they’ll take the time to grasp how the project they’re working on affects their employer as a whole, and how the other interns’ tasks might influence that outcome.

Make sure you demonstrate your ability to act on your deductions too! In the above example, you would ideally take a broader interest in your teammates’ work, and do your best to help them find and achieve better outcomes in their tasks.

INNOVATION

The ability to create or identify new opportunities for the business is another highly-valued skill in the eyes of employers.

Maybank Investment Bank specifically seeks candidates who “embrace and value innovation and creativity at work.”

Morgan Stanley cites “entrepreneurial drive” as a key requirement in candidates. This means that their recruiters look for an applicant’s ability to spot areas in need of development, and opportunities to profit from such a process.

Interdealer broker ICAP defines being innovative as having the ability to not only produce new ideas or insights, but to also constantly seek chances to improve existing processes.

Likewise, UBS also lists an appreciation of the need to “challenge accepted practices” under one of their seven core hiring competencies.

How to prove you’ve got it?

Being innovative on a daily basis is not about coming up with some huge, ground-breaking new idea. Many firms use processes that have existed for years. However, these processes are frequently tweaked for improvements in accuracy and efficiency. Have you done something similar?

For instance, perhaps your student society was running a food stand to raise funds. If you decided that you could attract more people to the stand by running a social media marketing campaign and introducing discounts based on word-of-mouth referrals, then you’ve provided a basic innovation to help your society make more profits!

RESILIENCE

Because this industry is well-known for its high-pressure working environments, recruiters are on the lookout for graduates who are highly resilient. Having this skill will allow graduates to bounce back from setbacks, adapt quickly, and keep up with new developments as they emerge.

Standard Chartered Bank stresses a need for candidates with the ability to adhere to the highest standards even under intense pressure. This often comes in the form of changing deadlines and dealing with the next bit of new information that comes to light.

CIMB Bank defines resilience as “having the tenacity to move with the fast-paced rhythm of their work environment” while still being committed to success.

On the other hand, Barclays requires applicants who have the capacity to work under pressure, such as dealing with constant deadlines or catering to prominent – and often imposing –clients.

How to prove you’ve got it?

You may think that talking about how you juggled your studies with a parttime job/internship may do the trick. But the reality is that everyone else is likely going to say the same thing.

Instead, talk about a time when you failed at something or received constructive criticism over something you could have done better. Then, focus your story on how you worked towards improvement despite your initial disappointment.

INTERNATIONAL OUTLOOK

Given how investment banking work functions across time zones and borders, applicants with the ability to operate in an international context are often in high demand. UOB gives preference to candidates who are fluent in a second language.

Bank of America Merrill Lynch looks for candidates who can demonstrate a “global outlook”. Proficiency in various Asian languages is also required for certain roles in Southeast Asia. Japanese investment bank Nomura states that knowledge of a second language and its associated culture – though not essential – is considered a strong plus.

How to prove you’ve got it?

Having an international outlook is not just about speaking to a foreign client or colleague in their language. It’s also about being able to relate to them and understand how their market affects the world.

Show recruiters that you can identify a key event or socio-economic trend that will affect the markets in other parts of the world. More importantly, make sure you can explain why and how it will affect the firm’s business in Malaysia or Southeast Asia.

OTHER SKILLS

On the other end of the spectrum, don’t neglect the basics! Recruiters at Citi, for instance, point out that sometimes candidates who have strong applications end up letting themselves down by failing to demonstrate simple enthusiasm for the role, because they were far too fixated on the technical details instead.

Lastly, don’t forget that careers in this sector are all very much a client-facing line of work. So don’t forget to showcase the human touch, such as HSBC’s requirements for an “outgoing personality” and “good levels of diplomacy”, or CIMB’s requirements for “amazing people skills”.

A GRADUATE GLOSSARY OF INVESTMENT BANKING TERMINOLOGY

Here’s gradmalaysia’s A-Z jargon guide for graduates to understand key terms used in the investment banking industry.

Afamiliarity with investment banking terminology can impress prospective employers, but it is important that you use them correctly. Let’s take a look at some terms and what they really mean.

A ASSET

Property owned by a person or company regarded as having a value, and which can repay debts. Examples can include cash, property, securities, stock, gold, or art.

ANALYST

A person who studies a market or industry sector and makes recommendations to either “buy”, “hold”, or “sell”. It is also one of the most common entry-level career positions in the investment banking industry.

BBALANCED FUND

A diversified mutual fund with a mix of common stock, preferred stock, or bonds. The companies selected will typically be in different industries and different geographic regions. This mix of investment options helps hedge against risk.

BEAR

An investor who sells with the belief that the prices of the financial product they’re selling will fall.

BENCHMARK

A standard, often unmanaged, index used to assess performance of a portfolio or mutual fund.

The Dow Jones Industrial Average, the S&P 500, or the Russell 2000 are examples of benchmark indexes. These are standards that measure the performance of mutual funds, stocks, bonds and securities in the stock market.

BID PRICE

The price which a buyer is willing to pay for a financial product.

BONDS

Governments or companies can raise capital by issuing and selling bonds. Bondholders’ investments will be repaid with interest, also known as a “coupon”, once the bond reaches maturity. Bonds have low credit risk because the government can always repay the debt by raising taxes or printing money, but it does depend on a stable political system.

The difference between bonds and loans is that bonds can be further traded between investors, while loans cannot.

BROKER

An intermediary between a buyer and a seller. Brokers will receive a commission if the trade closes successfully.

BROKERAGE

The payment a client makes to a broker.

BULL

The opposite of a bear. A bull is an investor who buys, believing prices of the financial product they’re acquiring will rise.

CCAPITAL MARKETS

A financial marketplace for buying and selling mediumor long-term funding instruments such as bonds, debt, and equity.

CHINESE WALLS

A term referring to information barriers within investment banks. Such barriers exist to minimise potential compliance or conflict of interest issues.

For instance, merger and acquisitions teams and analysts are forbidden from communicating to ensure that potential takeovers will not be affected by analysts advising their clients to buy or sell shares in the acquired company.

CLEARING

The process for making transactions happen – matching the buyer with the seller, and making sure the buyer actually has the cash, and that the seller actually holds the securities.

COMMODITIES

Physical goods that are traded on a global scale. Examples include oil, petrol, rare metals, or grain.

CREDIT CRUNCH

The term commonly used to refer to a severe shortage of money or credit within a market.

CREDIT DEFAULT SWAP

An insurance-like contract for transferring credit risk. The buyer of the swap makes payment to the seller in exchange for protection in the event of a default. Banks and other financial institutions typically use credit default swaps to cover the risk of mortgage holders defaulting.

DDEBT CAPITAL MARKETS (DCM)

An investment bank division responsible for refinancing or restructuring a client’s existing debt, or raising a client’s debt for acquisitions.

Though increasing debt may seem counterproductive, the benefit of debt is that it grants a company a greater diversity of funding options, as opposed to relying solely on selling shares/equity.

DEBT FINANCING

The practice of raising capital for a company through selling fixed debt instruments (e.g. credit notes, bills, or bonds) with interest.

DERIVATIVES

The general term for financial contracts between buyers and sellers of commodities or securities including futures, options, forwards and swaps. The value of a derivative is determined by fluctuations in the value of its underlying commodity/security.

Since they allow profit from the asset despite its rise or fall, derivatives are typically used as instruments for hedging risk.

E EQUITY

Otherwise referred to as shares. Shareholders own a percentage of the company, and enjoy a share in its profits paid out as dividends. They may also have control of company management decisions via voting rights.

EQUITY CAPITAL MARKETS (ECM)

An investment bank division responsible for structuring and pricing the issuance of companies’ equities, such as at an IPO.

F FUTURES

A contract between two parties to trade a commodity or a security at a fixed price, on a fixed future date.

HHARD MARKET

A situation where a product or service is scarce for purchase within a market. The opposite is a “soft market”, in which the product or service is readily available.

HEDGE

A strategy where an investor acquires a portfolio of different financial instruments with contrary positions, in order to offset the possibility of loss.

HEDGE FUND

A private investment fund that uses a range of strategies to maximise returns while minimising the risk of loss. They are usually managed professionally.

IINITIAL PUBLIC OFFERING (IPO)

The first sale of a public-listed company’s shares to the public, also known as a stock market listing or flotation.

INSIDER DEALING AND TRADING

The act of trading using knowledge of non-public –“insider” – information in order to gain an advantage over other traders or investors. This is a criminal offence.

INTEREST RATES

Lenders demand interest on loans, and the rate hinges on future inflation projections as well as the “real interest rate”, derived by removing the cost of inflation from the interest rate in order to discern its actual value.

Borrowers might be asked to pay an additional percentage of interest in order to compensate lenders for the credit risk.

INVESTMENT TRUST

A collective investment structure where investors pool their money and then hire a fund manager to invest in a variety of securities on their behalf. A trust can also trade shares on the stock market, though the share price may not always equal the price of its underlying assets.

An investment trust’s value will fluctuate with demand for shares on the stock market.

LEVERAGED BUYOUT (LBO)

A corporate takeover funded mostly by high-risk bonds or loans. Though risky, this move allows the acquiring company to purchase a significant amount of assets in a short time while contributing only a small amount of real capital.

LEVERAGING

The act of taking out a loan or using debt to supplement investments. An institution that has borrowed heavily in addition to putting forward its own funds or equity to finance growth is called “highly leveraged”.

LIQUIDITY

The efficiency or ease with which an asset or security can be converted into cash without changing its market price. The most liquid asset of all is cash itself.

MMARKET MAKER

The bank or firm that’s obliged to quote “buy” and “sell” prices for a financial instrument, and stands ready to trade in said instrument on a regular and continuous basis throughout the trading day.

MEZZANINE FINANCING

The practice of using a combination of debt and equity to raise capital for a company. Lenders have the right to convert their debts to equity in the company in the event of a default.

MONEY MARKET

A marketplace for short-term funding, such as certificates of deposit and treasury bills. Money market securities typically have a brief maturity period – less than one year.

OOPTIONS

These are similar to futures, but provide the buyer with the right to choose whether or not to complete the contract before the fixed date. The buyer must pay a premium on the seller’s futures for this ability.

PRINCIPAL (PERSON)

A term referring either to an investor who trades on his or her own account and risk, or the owner of a private company.

PRIVATE EQUITY

Equity that’s not publicly listed on a stock exchange. Trading in private equity is considered a high-risk yet potentially high-return investment – the investor can hold large stakes in an organisation, but the investment will be largely non-liquid.

PROPRIETARY TRADING

Buying and selling securities with the bank/firm’s own money rather than a client’s money, to make direct profit for the bank/firm.

PURE RISK

A class of risk where the only outcome is the possibility of loss. “Speculative risk”, by contrast, offers the possibility of either loss or gain.

RRISK MANAGEMENT

The act of managing the pure risks an investor might be exposed to. This involves analysing all possible risks and determining how best to handle them, either through trading them out, or hedging risk with derivatives.

S SECONDARY MARKET

The trading of a company’s bonds and equities among investors themselves. The “primary market” refers to the direct sale of the company’s securities through the stock market.

SECURITIES

A generic term for tradable financial instruments used to raise capital, such as bonds and equities.

SECURITISATION

The act of turning something into a security, such as combining the collective debt from a number of loans to create a financial product that can be traded.

Banks may securitise debt such as homeowner mortgages to earn extra profit on top of the interest they collect from the loans themselves.

PPORTFOLIO

A collection of securities, financial instruments, and investment options held by an investor. It’s also known as a “fund”.

SETTLEMENT

The stage once a deal has been made and clearing has taken place, and where securities and cash are successfully transferred between the seller and the buyer.

SHORT SELLING

The investment strategy of borrowing an asset (e.g. shares) from another investor at low to no cost and proceeding to sell it on the relevant market, hoping the price will fall.

The aim is to buy back the asset at a lower price and then return it to its owner, allowing the borrower to pocket the difference.

SPREAD

The difference between the bid and offer price of a security. Pocketing this difference after a sale is one way that banks make profits.

STAG

A speculator who buys shares upon issue to sell them as soon as they begin trading on the market. They’re also called “flippers”.

STAGFLATION

A combination of stagnation and inflation, where economic growth slows even as prices continue to rise.

SUB-PRIME LOANS

High-risk loans to clients with poor or no credit histories.

SWAP RATES

Borrowing rates between financial institutions. The “lender” bank charges this to the “borrower” bank in order to offset risk.

TTOXIC DEBT

Debt that will very likely incur losses on an investor. This is typically debt that has a very low chance of being repaid with interest, has a phenomenally high default rate, or has grown too large to even be repaid.

UUNIT TRUST

Also known as a “mutual fund”. Investors pool their assets into the trust, and the trust issues “units” which represent underlying shareholdings. The trust’s units are traded on markets, and if there are profits, the unit holders will receive the profits directly.

This is in contrast to an investment trust, where profits must be re-invested back into the fund and can only be paid out as dividends.

VVENTURE CAPITALIST

An investor who specialises in lending capital to companies to fund business growth, in exchange for equity in the company. They do this in the hopes that the venture will succeed and the value of their equity will grow.

VULTURE CAPITALIST

This type of investor specialises in extracting value from failing companies. They purchase equity in troubled companies at rock-bottom prices, and will either attempt to aggressively revive the business or sell off company assets for quick profits before cashing out again.

YYIELD

The total return on investment for a security. This is usually expressed as a percentage of the security’s price.

BANKING AND INVESTMENT

AREAS OF WORK

CORPORATE BANKING

A corporate banker handles banking responsibilities for company accounts and offers the bank’s services to help the business grow.

OVERVIEW

Corporate banking is a subset of business banking and involves a larger range of banking services that are offered only to corporate entities. Clients that make use of corporate banking services can range from small-and-medium enterprises (SMEs) to large corporations, and even government agencies at times.

Corporations use banks for many purposes, including managing their finances and making transactions. However, corporate banking goes beyond just that. Some of the services that corporate banking divisions offer to clients include:

Credit

Treasury services

Fixed asset requirement financing

Trade financing

Advisory services (e.g. capital markets, fund management, debt structuring, etc.)

Much of corporate banking involves working with clients to develop customised banking solutions tailored specifically to their needs. This is especially important for big multinational companies or state agencies, which often have to work with very complicated financial processes internally.

CAREER PATHWAYS

Corporate banking is far more selective than regular commercial banking, so most graduates usually enter the field as analysts through dedicated graduate schemes.

As an analyst, you’ll start off by performing a supporting role for client-facing staff. By shadowing relationship managers to client meetings and providing research and analysis on possible banking solutions, this is how you will familiarise yourself with corporate banking services and pick up clientfacing skills.

After about a year or two as an analyst, you’ll typically move up to associate level. At this stage, you’ll be expected to start managing clients on your own and build relationships with them. You will get deeper into the details of what a client’s business does by analysing their financial data, making recommendations to clients, and then helping to implement them.

Corporate bankers usually work with a variety of banking products and services as opposed to focusing on just one. As such, professionals often get the chance to flex their intellectual and creative muscles as they look to successfully match and tailor the right products to different clients.

However, this also entails handling demanding and difficult cases, and the working environment is fastpaced and highly stressful. Expect to work long and unsocial hours, and to be on call by clients at all times of the day. Nevertheless, the prospect of lucrative upward mobility and the chance to develop your business

acumen by analysing companies and their processes in depth make this pathway a popular choice.

REQUIRED SKILLS

Although finance-related degrees aren’t necessary for this role, recruiters usually keep an eye out for applicants with skills in numeracy, negotiation, interpersonal communication, and the ability to analyse complex problems.

At the core of corporate banking is client relationship management. So you will need to demonstrate high emotional intelligence and the ability to manage unexpected situations and keep your cool even when clients are demanding.

Internships are one of the best ways to build a case for getting into this industry. Do your best to acquire a wide range of finance and customer management skills through relevant placements while you are still in university.

There is a lot of competition for roles in corporate banking, and banks typically recruit from a few targeted universities for those roles. Hence, your college, degree, and grades all matter. If you want to stand out among other applicants, take up different courses or additional certifications related to banking or corporate financing if you can!

ISLAMIC FINANCE

Islamic finance is about helping clients make money in adherence to the principles of Islamic law or Shariah law.

OVERVIEW

Islamic finance is a system of banking that complies with Islamic law, also known as Shariah law. Broadly speaking, it focuses on avoidance of “Riba” (usury), the prohibition of speculation and gambling, the encouragement of saving and investment for future generations, and the promotion of fair trade.

There are two major aspects of Islamic finance that differentiate it from conventional finance. First, traditional financial institutions charge interest rates - this is prohibited according to the Quran. Second, the profits of a business venture cannot be distributed among shareholders until after the company is profitable, which is different compared with conventional investments where profits are distributed before the venture is completed.

Through the use of various Islamic finance concepts such as Ijarah (leasing), Mudharabah (profit sharing), and Musyarakah (partnership), financial institutions have a great deal of flexibility, creativity and choice in the creation of Islamic finance products.

According to Bank Negara Malaysia, Malaysia’s Islamic banking assets reached US$254 billion as at December 2019, with total funds placed with Islamic banking products now representing 38 percent of total local banking sector deposits.

CAREER PATHWAYS

As with many other investment roles, graduates typically start out as analysts in this field, before eventually taking on more clientfacing responsibilities. If you are entering through a graduate programme, you can expect a general rotation across different departments - with a particular emphasis on Shariah banking principles.

Given the specialised nature of this field, you will have to attain Chartered Islamic Finance Professional certifications at some point if you intend to keep advancing.

Once you have acquired Chartered Islamic Finance Professional status, you can choose to specialise in areas of banking such as wealth management, Takaful, Islamic structured products, or regulation and compliance.

As Malaysia is a global Islamic finance hub, you can expect to work with international clients as well. Potential employers include the Islamic finance divisions of local banks, international banks that offer Shariah-compliant services or Islamic firms.

REQUIRED SKILLS

Though finance degrees or Islamic finance diplomas are advantageous, they are not a requirement. Demonstrating strong numeracy,

communication, and client-facing skills are more important, as is being able to demonstrate a broad knowledge of Islamic finance practices.

Foreign language proficiency is very useful, particularly languages from other countries with Islamic majority populations. Some examples include Arabic, Bahasa Indonesia and Turkish.

As Islamic finance has a responsibility to invest in products that are beneficial to society, many investors identify Islamic financial products as similar to SRIs (socially responsible investments).As such , a great deal of integrity and responsibility is necessary when working with strict rules and a very specific code of conduct.

However, the nature of Islamic finance is made complex due to the role of Shariah advisory boards. These boards, along with professional bodies and think tanks, pass judgements on existing products and advise on the development of new products.

Therefore, staying constantly upto-date on the latest developments in Shariah-compliant financial practices will be vital for an Islamic finance professional. Not just in Malaysia, but in other markets around the world as well.

INTER-DEALER BROKING

An inter-dealer broker is a specialist financial intermediary that facilitates transactions between broker-dealers, dealer banks and other financial institutions.

OVERVIEW

Buying stocks and other securities can be a confusing process. So individual investors usually engage a broker to advise them on the process and help them find the best investment opportunities.

Inter-dealer brokers (IDBs), however, specifically focus on facilitating trades of securities or other investment products between corporate entities. If large corporations, financial institutions, or even government bodies want to trade financial assets amongst themselves, they will usually engage the services of an IDB.

Inter-dealer brokers serve as neutral intermediaries for such clients, who may wish to trade under anonymous conditions in cases where direct contact between the parties may result in less-favorable prices being quoted (e.g. if two competing banks are trading with each other). Some corporate clients may also trade through IDBs because they don’t want to accidentally trigger market speculation, or if the trade in question is very large and complex.

Most inter-dealer brokers typically specialise in a particular product, and communicating with clients –whether electronically or over the phone – is at the heart of their work. Simpler trades can be done directly through dedicated terminals and online platforms provided by the IDB,

but more complex ones need to be done over calls between the client and the IDB.

Inter-dealer brokering can also significantly expand a financial organisation’s capabilities by allowing it to access new potential investors and suppliers. Thus, banks and stock brokerage firms also use inter-broker trading platforms to seek out new business opportunities.

CAREER PATHWAYS

Most candidates begin as junior brokers in a team, and are typically mentored by a senior member before becoming full-fledged brokers.

Managerial positions begin at the level of desk manager, and progress to director or division head. At this level, you will spend less time doing actual brokerage work, and more time instead making sure your “desk” or business area is running correctly and meeting its targets.

Incomes from inter-dealer broking are unlikely to be affected by market volatility because they are based on a percentage of the deal between two parties, regardless of whether prices rise or fall. In fact, inter-dealer brokers may earn even more during volatile market periods because clients tend to trade in larger volumes then.

Keeping up with instant market changes and facilitating trades in off-exchange (i.e. hidden) assets

between major market players is an exciting aspect of the job. Working hours are long, as they depend on the opening and closing hours of the market index an inter-dealer broker oversees; but that also makes the hours relatively stable as a result.

However, one of the toughest aspects about working in the area is the fast-paced and high-pressure environment. Moreover, it’s an interdealer broker’s responsibility to guide difficult clients who insist on making unfeasible transactions towards a recommended deal as diplomatically as possible.

REQUIRED SKILLS

While a degree in a financial discipline would be an advantage, it is not essential. a strong interest in working in the financial sector is more important.

A keen interest in financial markets is required, as well as good communication skills and a sociable disposition. Interpersonal skills and confidence are also required to establish rapport with clients, especially over the phone.

Patience, as well as the energy and endurance required to succeed in a fast-paced environment, is another important trait. As a result, the best inter-dealer brokers are composed, decisive, adaptable, and capable of performing well under pressure.

INVESTMENT BANKING

The investment banking career path attracts people who are high achievers, competitive, and willing to work long hours.

OVERVIEW

Investment banking is all about helping businesses, entrepreneurs, or governments raise funds to finance projects. They do this through issuing “securities” (such as shares or bonds) and selling those to investors.

Aside from raising money, investment bankers also provide advisory services to clients. For example, they may advise clients on mergers and acquisitions, as well as manage initial public offerings (IPOs) for clients looking to be listed on the stock market.

Other services offered by investment banks include:

Research to assist investors in deciding what securities to buy Brokerage services – helping companies to trade with each other

Private equity – investing the bank’s own money in projects to bring in new revenue for the bank

Investment banks also help countries plan economic growth and policy, by advising governments on fiscal and monetary matters. Their influence over government policy can significantly impact a nation’s economy as a result - from the price of daily commodities to annual returns on EPF investments.

CAREER PATHWAYS

Investment banking employers typically start newcomers out in structured training programmes to provide them with the necessary key

skills. The most common first step in this industry is starting out as an analysts, providing ongoing research and support for deal-making staff.

With experience, graduates can move up the ranks to become a junior investment banker or associate, liaising with clients as well as performing financial analyses for them.

In most organisations, investment bankers are grouped into teams based on specialisations, but can collaborate with members from other teams while executing a deal. You can expect to work with a wide range of specialists across different fields.

Investment work provides high levels of early responsibility, good promotional opportunities and impressive financial rewards for top-performing employees. However, this area of work is also infamously demanding with long working hours, sometimes up to 12 hours per day. Weekend work is the norm as well.

REQUIRED SKILLS

As applications from a range of disciplines are welcome, a financerelated degree isn’t a prerequisite. However, to be successful in this career, graduates need to demonstrate keen interest and a good understanding of business and financial markets.

Investment banking graduate schemes are incredibly selective,

so make sure you keep your CGPA sufficiently high enough to meet the entry requirements. Having a few quality finance and banking internships in your CV is a must as well – this is not an industry you can expect to break into with no relevant past experience.

Investment banking work requires a lot of financial modeling and valuation. Analysts and associations spend a lot of time using Excel to build and analyse financial models. They also use various valuation methods (e.g. precedent transactions, discounted cash flow (DCF) analysis, etc.) to advise clients and complete deals. You must be able to think laterally and discern trends and patterns through all this data.

Because investment banking is ultimately a client-focused line of work, excellent interpersonal skills are a must. You must also have the energy and readiness to deal with many different people while providing the best customer service possible.

Other key skills for aspiring investment bankers include:

An interest in current affairs

Ability to work effectively under pressure

IT skills (especially with Excel)

Analytical and problem-solving skills

INVESTMENT MANAGEMENT

Investment management involves the handling and growing financial assets and other investments—not only buying and selling them.

OVERVIEW

Investment management is the practice of cultivating and trading financial assets and securities, including stocks, bonds, commodities, currencies, real estate, and derivatives to generate returns. Such an allocation may be done for retirement purposes, to build wealth, fund charitable causes, or simply to make money.

There are three types of investments: active, passive, and index. Active investing involves actively trying to pick what options seem best ahead of current market trends and then act accordingly. Passive investing is not about attempting to predict the market, but to just invest and hope for the best. Index investing looks at historical data and attempts to follow past trends rather than try to outsmart them.

An investment manager (also known as fund managers or asset managers) does all this necessary legwork for clients. They help clients make the most of their portfolios by investing in a variety of potential profit-making securities and asset classes. They also make decisions about how much capital should be put towards each investment option, and how diversified a portfolio should be.

Investment managers work closely with investment analysts, and often depend on their data

and recommendations to make judgement calls with clients’ portfolios.

CAREER PATHWAYS

It is common for investment managers to begin their career as junior analysts working on stocks, bonds or other securities, often through entry-level graduate programmes or schemes.

They eventually advance to senior analyst positions, producing reports and recommendations for particular securities or investment options under the direction of an investment manager. Senior analysts often specialise in particular categories of securities instead of branching out too broadly.

You will eventually take on more and more client-facing responsibilities, until you transition the role of investment manager. As earning potential is typically proportional to the success of investment options, managers tend to remain hands-on to keep abreast of the latest market trends.

Some firms may require Certified Financial Analyst (CFA) qualifications before you can be promoted to investment manager statusespecially if they are servicing international clients.

Even in financially uncertain times, career prospects for investment

managers can remain largely stable since expert advice is valued even more by concerned investors.

However, market volatility often calls for managers to weigh the situation and come up with contingency plans if needed.

REQUIRED SKILLS

Having a finance-related degree is a plus, but not essential. Rather, having enthusiasm, relevant past internship experience, and the ability to comprehend the workings of financial markets are more valued.

Here are some of the key skills recruiters look for in new hires: High level of numeracy skills as you need to understand financial data Analytical ability to make sense of a wide range of information on investments

Ability to establish rapport and trust with clients

You will have to deal with ambiguity on a daily basis as investment options constantly shift, so cultivating an open mind and a tolerance for uncertainty will be key.

Staying a step ahead of competition through thorough research is also crucial. However, be aware that late hours are common in this line of work due to the sheer amount of research necessary, especially at the start.

OPERATIONS

Investment bank operations staff ensure bank transactions are cleared and settled efficiently, profitably, and risk-free.

OVERVIEW

Though the client-facing “front office” of an investment bank usually gets the most public attention, that’s only half the picture. Operations, also informally known as the “back office” is where the bank handles the money it makes - processing transactions from trades, keeping records, and ensuring compliance. It also ensures all the bank’s functions run efficiently on a daily basis.

Unlike client-facing staff, operations teams don’t actively generate revenue. However, they are recognised as key to a bank’s profitability. They play crucial roles in managing risk and minimising losses by ensuring that the bank’s business activities are carried out in an efficient, controlled, and timely manner.

The vast majority of banking processes utilise sophisticated IT platforms and systems. So an additional key task for some operations staff is to develop and implement new IT systems, as well as maintain existing ones and collate the vast amounts of data that flow through them each day.

CAREER PATHWAYS

Qualifications for operations roles vary greatly depending on the specific function you’re applying for. However, most typically require a bachelor’s degree or higher and at least some measure of relevant work experience within your chosen function area.

Most graduates begin their operations careers in training programmes before being assigned to an experienced staffer for mentoring and additional onthe-job training. Early-stage work may include working with more experienced team members to introduce a new investment product or improve an internal control process.

Operations roles usually focus on a particular function. This can include clearing or settling transactions, managing documentation, customer service, data analysis, compliance, systems integration, accounting, or risk management (in some organisations).

For example, securities operations may ensure that desks in linked markets have enough capability to communicate with each other and coordinate trades. On the other hand, risk management operations ensures that the bank doesn’t accidentally take on deals that it doesn’t have the capacity to underwrite.

Most graduates will have the chance to work in several different areas of operations. This will allow you to gain an overview of the various types of work available (e.g. process-driven vs. project management roles). As you advance in your career, you will be encouraged to specialise in a particular area.

REQUIRED SKILLS

Speed is key when it comes to operations roles. You can expect

to see thousands of time-critical transactions pass through a bank’s back office each day. The work can be very high pressure at times, so it’s essential to be on the ball.

However, technological developments have actually speeded up processes as well. For instance, transferring assets or clearing a client pay-out used to take up to several weeks, but can now take less than three working days.

Strong IT/technical literacy skills are key as well. As mentioned earlier, most - if not all - back office processes are now handled via complex IT platforms. Even if your role does not involve developing or maintaining the platforms themselves, you will still be making extensive use of them to perform your day-to-day duties. These systems may also be upgraded, replaced, or phased out at any time, so adaptability is important.

Other essential skills for operation roles vary depending on the kind of function that you are assuming. However, most of them will require a combination of the following soft skills:

Strong numeracy skills

Communication skills

Technical skills

Analytical and problem-solving skills

Organisational skills and attention

to detail

Critical thinking

Time management

Flexibility and adaptability

PRIVATE WEALTH MANAGEMENT

Private Wealth Management involves handling and growing the assets of high-net-worth individuals or accredited investors.

OVERVIEW

Private wealth management (also commonly known as private banking) services very wealthy “high-networth” individuals, along with the occasional small/medium-sized business owners. These clients typically look for specialised services that cater to their distinctive needs as they have a larger-than-usual amount of wealth.

These services include planning and investment management, along with advising on matters such as taxes, retirement funds, non-liquid assets, and family trusts. Highnet-worth clients tend to possess diverse portfolios across a number of industries, and thus servicing them requires customising and tailoring exclusive solutions just for them.

Private wealth management usually offers two types of services: advisory or discretionary. With an advisory service, the client’s private banker will advise them about investment opportunities, and the client will make the final decision on whether or not to invest.

With a discretionary service, the client will have a thorough discussion with their private banker about the strategy they want to take. The bank will then manage the client’s portfolio entirely on their behalf.

CAREER PATHWAYS

There are three broad types of roles in private wealth management – relationship management, investment, and support.

Relationship managers identify clients’ needs and problems and offer them solutions from the bank. Developing and maintaining a good relationship with clients is vital, and this line of work involves frequent travel and close contact with clients.

Investment specialists either offer expert advice to help clients with investment decisions, or invest clients’ money on their behalf. They may also liaise with other product specialists at the bank, who can provide expert advice on particular assets.

Support functions help investment specialists research new commercial ideas, and ensure key business functions are running smoothly and efficiently. It also includes compliance, operations, HR, and accounting.

You will need an undergraduate degree related to financial services, business management, accounting, economics, or financial planning to join a wealth management firm or division of a bank.

Given the sensitive nature of this work, you will need to gain sufficient experience on the job before you are allowed to handle clients’ assets. You can expect to start off in an analyst or support role, assisting investment professionals and relationship managers with putting together solutions for clients.

You will eventually transition towards speaking with clients yourself and handling client relationships. Though be aware that some firms may want staff to obtain specialised certifications – such as a master’s in wealth management – before allowing them to climb past a certain point on the ladder.

REQUIRED SKILLS

Language skills are highly sought after in private wealth management. In this international and clientfocused line of work, being able to communicate in several languages is a huge asset.

Other key skills required in this industry are:

Strong customer service skills

Strong numerical skills

Market awareness and the ability to spot investment opportunities

Discretion and trustworthiness

SPECIALIST MARKETS

Specialist market teams are experts in a specific niche or client sector, and can develop highly sought after expertise.

OVERVIEW

Sometimes an investment option requires a more targeted approach. It could be an emerging market segment with very little precedent available for it yet. Or perhaps it requires much more high-touch work in order for investments in it to be profitable. This is where a specialist market team might be called in.

A market specialist is an expert in a specific client sector or marketplace niche. They can cover a broad range of responsibilities, including providing research reports to investors, assisting clients in their specialist sector with investment and financing strategies, to mergers and acquisitions within one specific sector.

For example, a specialist team focusing on “green” investments may deal exclusively in products like solar energy futures and green bonds or do due diligence on investment options in alleged environmentallyfriendly companies.

Setting up specialist teams is a more common business strategy among smaller investment firms/funds, who may want to focus on specific market niches to give themselves a competitive edge. However, a bigger investment bank or firm may do this too, catering to a whole range of sectors or dominating several niches at one time.

In essence, understanding clients’ businesses and the industries they operate in in-depth, and then using that knowledge to connect them to potential investors or funding is what this job is all about.

CAREER PATHWAYS

As a fresh graduate, you probably won’t start off in a specialist market team right away. You will start by receiving training in the firm’s products and general investment banking services, while picking up specialist knowledge through onthe-job experience and learning from more experienced seniors.

Following that, graduates will typically move on to conducting research on their specialist sector, analysing clients’ businesses, and preparing presentations and models for client meetings. As you gain more experience, you will take a more active role participating in client discussions and pitches. Eventually, you will be assigned as the person in charge of account negotiations and trade executions themselves.

Depending on the size of your organisation and the number of sectors they cover, you may be rotated to service multiple sectors to give you a broad-based understanding of how things operate. If you’re working for a smaller firm that just services a handful of sectors/niches, then you may be expected to dig into them all and switch hats when needed.

Upon becoming a senior member of a specialist market team, you may even be called upon for expert consultation by CEOs or board members at client companies or investment funds.

REQUIRED SKILLS

One of the key skills required in this line of work is to possess sectorspecific knowledge and have a comprehensive and up-to-date understanding of your market segment’s inner workings.

Flexibility, enthusiasm, and the ability to sift through and interpret complex information are some of the other skills required of successful applicants, as are good communication skills to convey information clearly to clients.

Because employers want graduates who can absorb information quickly, be prepared to face a steep learning curve in the beginning of your career due to the sheer amount of highly specialised knowledge that must be picked up.

Teamwork and interpersonal skills are important as well, since you will be working in teams to service clients. Other key soft skills include strong numeracy skills, a broad sense of commercial awareness, and critical thinking ability to spot market trends.

STOCKBROKING

Stockbrokers buy or sell stocks and shares on behalf of private clients or businesses.

OVERVIEW

Stockbrokers act as intermediaries between investors (who want to buy shares) and companies looking to raise capital by selling securities.

There are generally three types of stockbroking services: advisory, where a stockbroker only offers advice on investments; executiononly, where they buy and sell securities solely on a client’s instruction; and discretionary, where full control is given to a stockbroker to trade and make decisions on a client’s behalf.

Stockbrokers typically specialise in certain fields such as equities or debt markets, and can be found in banks, financial firms, or specialist brokers. Their income is largely commissionbased, which means they get a percentage of the value of every trade they help facilitate.

Malaysia has two stock markets, the Kuala Lumpur Stock Exchange (KLSE) and the Malaysian Exchange of Securities Dealing and Automated Quotation (MESDAQ). Stock markets are regulated by the Securities Commission Malaysia (SC), and the activities of stockbrokers are licensed and regulated by the SC too.

CAREER PATHWAYS

While anyone with a graduate degree and the right experience can be a stockbroker, employers sometimes prefer numerate, business, financial, or management degrees.

You will be also be required to apply for the New Capital Markets Services Licence issued by the SC, which is necessary for professionals dealing in securities or derivatives.

You will typically start off as an associate at banks, wealth management firms, independent registered investment advisors, or broker-dealers. Your employer may require you to start out shadowing a mentor to gain on-the-job experience before allowing you to hit the trading floor yourself.

This line of work has infamously long hours - fourteen-hour work days aren’t uncommon. However, the financial pay-out from commissions on each trade you oversee can be very impressive. Additionally, ambitious individuals will be able to take on a lot of responsibilities early on, and enjoy good promotion opportunities.

Around the world, stockbrokers are diversifying their range of services to include financial consultation and planning. Where stockbroking in the past only dealt with the trade of high-risk, high-return securities, brokers are now more akin to financial advisors who offer full financial planning services.

REQUIRED SKILLS

Stockbrokers need numerical skills to crunch the numbers and make recommendations to clients. They must also demonstrate commercial awareness through a constantly updating knowledge of financial industry and market trends.

Stockbrokers have to serve multiple clients at once, so other key attributes include being detailoriented, patient and able to multitask effectively. They must have excellent communication, interpersonal and negotiation skills since they will spend most of their time interacting with clients.

Strong IT skills are a must, since stockbrokers will be doing a lot of work on specialised terminals or trading software. The ability to make tough decisions even in the face of ambiguity, and to thrive in a highstress working environment will also be crucial to ensuring you succeed in this line of work.

STRUCTURED FINANCE

Graduates in this area of work craft complex and bespoke financing instruments for companies in need of capital.

OVERVIEW

Structured finance is a broad term for the practice of creating bespoke financing instruments outside of mainstream loans or financial securities. This is important for clients (usually large organisations) with complex or unique financing needs that conventional balance sheetbased financial products cannot fill.

Structured finance works by combining risky standalone instruments (e.g. securitised debt, mezzanine financing, or equity capital) into a consolidated package that provides “safe” liquid assets for a client organisation. Practitioners start by rigorously analysing all the risks involved in a transaction. They then work out how to transfer the risks to different parties involved in the transaction in amounts that are acceptable to them, and with returns proportionate to the extent of risk a stakeholder is willing to stomach.

Professionals in this field will often specialise either in a particular business sector (e.g. oil and gas, telecommunications, infrastructure, etc.) or in a specific niche such as leveraged finance for buy-outs. This level of expertise enables structured financiers to customise instruments to the specific requirements of a transaction, asset, or project.

CAREER PATHWAYS

Careers in structured finance can be very challenging – jobs in this field require a deep understanding of the financial world and all its problems.

As such, recruiters usually fill roles by hand-picking candidates from graduate programmes who show an aptitude for this line of work in the course of their rotations.

Structured finance teams are typically small (between five to twenty members), with ad hoc deal teams formed under the supervision of an experienced deal leader for specific transactions. Individuals within a team may also specialise in a specific sub-sector.

For instance, in an oil and gasfocused team, one member may concentrate on the development of oil and gas fields and how to fund such projects, while others focus on raising funding for refineries, pipelines, or petrochemical plants.

Professionals in this line of work can become recognised experts in specific fields or sub-sectors over time. It’s an area of work for those who enjoy thinking out of the box, and coming up with creative combinations of debt packages and financing instruments to fit clients’ specific needs.

REQUIRED SKILLS

Recruiters filling structured finance roles look out more for a hunger to win, innovate, and find interesting solutions to complex problems, so graduates who showcase the raw aptitude requirements are

usually brought onboard for their attitude. Sector-specific or financial structuring knowledge will usually be learned on the job.

Analytical skills and a good eye for detail are crucial for this line of work. You will be thoroughly examining all the issues which might affect a transaction’s outcome and doing sophisticated modelling of its likely performance. For instance, how might external factors such as changing construction costs or commodity prices damage a project’s ability to meet its obligations, and how would you offset those risks in your proposed package?

Strong verbal and written communication skills are as must as well. Professionals in this sector work closely with a mix of team members from different specialisations, and will also have to break down complex financial concepts for clients and other stakeholders.

Other key skills in this line of work include having the entrepreneurial drive to see deals through to their completion, problem-solving skills to think out of the box, and strong client-facing abilities.