gradsingapore 'Finance' Career Guide 2023

CAREER GUIDE 2023

FINANCE

The complete guide to graduate careers in Business, Finance and Accountancy MCI (P) 031/09/2022

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INTRODUCTION

INTRODUCTION Finance Career Guide 2023

A comprehensive guide featuring descriptions of graduate jobs in the Banking and Investment, Financial Services and Accountancy and Financial Management fields.

Career advice and emerging industry trends that help prepare students for their future careers are also featured here.

Finance Career Guide 2023

CONTENTS

5

Banking and Investment

29

Sector Essentials At a Glance: Banking and Investment ................. 30 Choosing Your Role and Company in Banking and Investment........................................................ 32 Unique Skills Investment Banks Want in Graduate Employees......................................................... 34 A Graduate’s Guide to Investment Banking Job-Speak.......................................................... 36

Areas of Work Corporate Banking .............................................. 39 Economist............................................................ 40 Finance IT............................................................ 41

CONTENTS Sector Overview

Financial Markets................................................ 42 Inter-Dealer Broking............................................ 43 Investment Analyst ............................................. 44 Investment Banking............................................. 45 4

Industries in the Financial Sector.......................... 8

Investment Management.................................... 46 Operations .......................................................... 47 Private Wealth Management ............................. 48

Is a Career in Finance for Me?............................. 10

Risk Management and Control............................ 49

How to Pursue a Finance Career Without a Finance Degree .............................................................. 12

Specialist Markets............................................... 50 Stockbroking........................................................ 51

Postgraduate Pathways in the Financial Sector... 14

Structured Finance.............................................. 52

Survival Guide to Applying for a Job in the Financial Sector................................................................ 16 Pros and Cons of Pursuing a Career in the Finance Industry............................................................. 18

Application Tips

19

Crafting Your Resume.......................................... 20 Preparing Your Cover Letter................................ 22

Financial Services

53

Sector Essentials At a Glance: Financial Services ........................... 54 Choosing Your Role and Company in Financial Services.............................................. 56 Different Ways to Get into the

Acing Your Interview............................................ 24

Finance Industry................................................ 58

Tackling Assessment Centres............................... 26

The Financial Service Alphabet........................... 60

A Quick Checklist................................................. 28

Finance Career Guide 2023

CONTENTS

6

Areas of Work Actuarial Science................................................. 63 Insurance............................................................. 64 Insurance Underwriting....................................... 66 Retail Banking...................................................... 67 Statistics.............................................................. 68 Wealth Management.......................................... 69

Accountancy and Financial Management

70

Sector Essentials Financial Management..................................... 72 Choosing Your Role and Company in Accountancy and Financial Management............................... 74 Getting a Graduate Job in Accounting................. 76 Why is it So Important to Qualify as a Professional Accountant?...................................................... 77 A Graduate’s Guide to Accountancy Jargon........ 78

Areas of Work Assurance............................................................ 81 Commercial Finance............................................ 82 Corporate Finance............................................... 83 Corporate Recovery............................................. 84 Corporate Treasury.............................................. 85 Financial Accounting........................................... 86 Forensic Accounting............................................ 87 Internal Audit...................................................... 88 Management Accounting.................................... 89 Risk Assessment.................................................. 90 Tax....................................................................... 91

Finance Career Guide 2023

GTI Media Singapore would like to thank everyone who has contributed to the 2023 issue of gradsingapore’s Finance Career Guide!

Chief Editor Elliyani Mohamad Ali Editor & Editorial Sarah Si, Dawn Yip

At a Glance: Accountancy and

Employers

GTI Media is the world’s largest careers and graduate recruitment publisher. Founded in the UK in 1988, GTI publishes and distributes more than 100 careers and recruitment products around the globe.

92

Design & production A’liah Abdul Rahim, Allysha Puteri Harfaz Advertising Ron Ong, Shenna Ng, The GTI Media sales team Marketing & distribution Henry Ng, Kelly Chin, Aisyah Sani Publisher Isaac Hee GTI Asia Pte Ltd (Company number: 200301978M) 2 Sims Close #05-07 Gemini@Sims Singapore 387298 T+(65) 6294 6505 F +(65) 6294 1043 Printer Times Printer Pte Ltd 16 Tuas Ave 5 Singapore 639340 © GTI Asia Pte Ltd, October 2022 All rights reserved. No part of this publication may be reproduced by any means including, but not limited to, photocopying or storage in a retrieval system in any form without prior written consent of GTI. The views expressed in the articles are those of authors and their publication, and do not necessarily imply that such views are shared by GTI. Whilst every care has been taken in the compilation of this publication, the publishers cannot accept responsibility for any inaccuracies, or for consequential loss arising from such inaccuracies, or for any loss, direct or consequential, arising in connection with information in this publication.

Sectors Overview

8

INDUSTRIES IN

The Finance Sector What are the major sectors supporting Singapore’s thriving financial arena? Who are their clienteles? Let’s explore the main pillars supporting the nation’s financial hub and find out which industry resonates with you the most.

Financial Services Spanning the provision of consumer and corporate financial products to retail banking and insurance, this field also encompasses compliance and regulatory work that ensure safe environments for fair transactions.

Employers

Clients

Perks

Financial service providers range from large establishments, such as retail banks, insurance companies and financial media organisations, to smaller firms offering related services, such as actuarial consulting or underwriting.

The clientele of this sector includes both individual consumers and enterprises of various sizes. You may also find yourself providing specialist consulting and key business information to corporate clients.

Because Singapore is a regional and global financial hub, the everexpanding, dynamic and vibrant scene welcomes individuals from different backgrounds – thus making it a good entry point for even nonfinance graduates. Moreover, a focus on client service and opportunities to gain specialist knowledge has ensured that a career in financial services offers early managerial opportunities and a healthy worklife balance.

Finance Career Guide 2023

Sectors Overview

9

Accountancy and Financial Management Accounting and auditing go far beyond bookkeeping or bean counting. Instead, it involves high-level analysis to help enterprises manage their cash flow and financial position. Accountants and auditors are also expected to identify patterns to assess business risks and analyse companies’ financial data to provide strategic insights.

Employers

Clients

Perks

Working in large multinational accounting bodies, like the Big Four, means specialising in a chosen area, such as audit, assurance and taxation. But if you’re looking for more varied exposure, you can consider working as an in-house accountant in small and mid-size firms, or in public service, such as the Inland Revenue Authority of Singapore (IRAS).

The likes of the Big Four cater to large clients like listed companies and multinational corporations (MNCs). They meet their financial accounting needs and provide important financial information publicly to investors, creditors, customers and regulatory bodies.

Meanwhile, managerial accounting helps small businesses make sound financial decisions and comply with governmental regulations.

The accounting profession is known to be almost recessionproof and promises good exposure for entrepreneurial pursuits. Long hours can be common during the tax reporting period during the end of the financial year. But at the same time, due to the seasonal nature of the industry, lull months can be predicted ahead of time.

Banking and Investment This sector covers corporate banking, investment banking and wealth management, serving both corporates and high-net-worth individuals. Singapore’s banking industry also includes foreign and local banks with career opportunities in the front office, sales and conversion, relationship management, corporate affairs and even positions in the back office.

Employers

Clients

Perks

Banks and investment bodies are always on the lookout for diverse, dedicated and skilled talents to drive expansion. Positions are available in both generalist and specialist roles much like research analysis, data trading and financial communications in banks, brokerage firms, fund houses and private equity institutions.

Investment bankers typically raise capital for enterprises and handle listings and mergers, while asset managers help affluent individuals grow their financial portfolios.

The constant pressure to produce revenue promises fast-paced and challenging work, early responsibility and rewarding remuneration. The banking and investment field also denotes numerous opportunities to work alongside resourceful and motivated individuals.

Finance Career Guide 2023

Sectors Overview

10

IS A CAREER IN

Finance for Me? Wondering if you have what it takes to build a career in the world of finance? Here are some personality traits and skills that can give you the upper hand in the industry.

Financial Services Although different types of clients and their needs generally result in hours of financial services for either retail-based or flexible work, client-oriented talents tend to be highly valued.

This is due to them having more opportunities to expand their knowledge in specific markets and industries.

Retail banking professionals serve people from all walks of life at bank branches and call centres, and will likely work shifts, including on the weekends. Graduates can also be trained to manage a retail bank branch, even as they continue their professional development in other aspects of banking.

Meanwhile, in the insurance industry, observation, communication and negotiation skills are needed alongside emotional intelligence and fluency in product knowledge.

Professionals in this area tend to be driven by performance, client satisfaction and a commitment to deliver innovative products and good customer service.

Actuarial careers in insurance companies, on the other hand, require numerical and problem-solving strengths, calling for degrees in maths, applied maths, or statistics. To provide expert advice to organisations and clients, actuarists gain specialist knowledge through training to build their credentials.

Finance Career Guide 2023

Sectors Overview

11

Accountancy and Financial Management

Banking and Investment

Accountants help organisations manage finances to comply with legal regulations and plan for the future. An ability to fulfil business interests while maintaining strong moral principles is key in this area. On top of that, accountants should enjoy working with people, numbers and concepts, be able to communicate effectively and have an interest in the business world.

By understanding how companies function and make money, accountants handle new projects and clients by asking the right questions and following the right leads. Moreover, an ability to convey complex information in a professional and jargon-free manner to clients and work well with colleagues at all levels is crucial.

The first few years in accountancy can be intense as most work towards professional qualifications while holding a full-time job, though employers typically provide support by granting study leave.

Investment banking is a data-focused role for those with excellent analytical, technical and numerical skills. Client management and teamwork come in handy here, as does resilience, the endurance to work round the clock and being on call to monitor changes in different markets. This also makes time management skills and accountability to shareholders essential.

Investment management firms generate returns for clients through investments across a wide range of businesses, countries and products. As a result, investment managers and advisors must make intelligent investment decisions apart from succeeding in client service, dispensing valuable insights to clients and colleagues. Thus, the environment is generally target-driven, with pressure to make the right decisions at the right time for strategic earnings, particularly for the trading division.

With specialist knowledge and extensive research in financial markets, professionals are always keenly aware of implications that may arise from certain decisions made. Confidence in client servicing is also needed, especially since investment decisions are made on their behalf.

Finance Career Guide 2023

Sectors Overview

12

HOW TO PURSUE

A Career In Finance Without A Finance Degree You don’t have to give up your financial-industry aspirations just because you don’t have a degree related to finance!

1

Get a relevant internship and excel at it

The best way to get a glimpse of the financial sector is to experience it for yourself.

An internship allows exactly that. Not only does it offers abundant exposure to different departments, it also provides a better understanding and clearer perspective of the various roles and skills required.

Besides gaining valuable learning experiences and knowledge, internships also give you the chance to score an excellent reference from your mentor, and provide something tangible to highlight when you gun for a full-time role in the future.

Finance Career Guide 2023

2

Find your advantage

Business and finance graduates may make up the bulk of any company in the financial sector, but graduates with non-related degrees are just as important too.

For example, if you have a degree in the humanities, you’ll likely have strong interpersonal and communication skills, be able to offer a more macro perspective and can derive different insights and approaches to problem-solving.

M o re o ve r, g i ve n t h e global nature of the industry, competency in languages is a highly valued and desirable quality in client relations and financial market research.

Identify the transferable skills you possess and highlight them during your interviews.

3

Keep up-to-date with financial news

An acute interest in financial news and macro trends in both local and global markets is vital to enter the financial arena. One of the easiest ways to do this is to make reading financial news part of your regular routine to understand what’s happening in markets around the world.

Get to know what moves and shakes the field through top publications like the Financial Times, Business Insider, Wall Street Journal, The Economist and Forbes. On top of that, build relevant industry knowledge by keeping abreast of market developments.

Sectors Overview

13

4

Network and reach out

Hop onto LinkedIn or other social media networks to find people who are already in the financial sector, and are in careers you want to pursue. They can help you learn more about the field and possibly open doors to opportunities that aren’t publicly advertised yet.

The more people you reach out to and speak with, the more well-informed you’ll be regarding your options. But before you approach anyone, be sure to do your own research beforehand and prepare intelligent questions while demonstrating your knowledge!

All in all, the bottom line is to take the initiative and reach out to as many as possible, so don’t be afraid to approach, and connect with, alumni from your alma mater and even mentors from internships.

5

Learn the lingo

If you don’t know the difference between mutual funds and unit trusts, or what AML and KYC mean, it would be useful to browse through Investopedia, an encyclopaedia for all things finance-related.

More importantly, inculcate an eager-to-learn attitude, challenge yourself to read up and understand concepts fully, look up jargon and build a bank of finance vocabulary so you don’t feel lost during networking sessions and interviews.

6

Get a foot in

7

Adopt lifelong learning

If you’re still in school, consider doing a minor in economics, business, or accounting. If you don’t want to pick up a minor in these areas, consider taking them up as electives instead. This can serve as your introduction to the world of finance, and also allow you to practise your numerical competencies.

If you’ve graduated, you can still pursue part-time courses that lead to the relevant certifications. To reinforce your commitment towards a career in the industry, self-studying, taking up relevant courses and immersing yourself in financial publications is essential.

Aim for a position, even in generalist roles that don’t require specialised financial and numerical skills – these include human resources (HR), corporate communications and client servicing.

By doing so, you can build a network in the industry and gain training opportunities to equip yourself with the relevant qualifications along the way.

Finance Career Guide 2023

Sectors Overview

14

POSTGRADUATE

Pathways In The Financial Sector If you want to specialise in an area of finance but don’t have a related degree, consider taking up postgraduate study.

O

n top of helping to secure employment in the competitive finance sector, postgraduate studies can take you down your desired career path of specialisation. But before you make your move, conduct thorough research to consider your options:

• Do you have the commitment to complete the course?

• Do you meet the prerequisites?

• Where do you foresee yourself going after your studies?

1

Do it at the right time and for the right reasons

Going back to school is typically for those who want to make a switch to finance after having pursued an unrelated first degree, or others who wish to specialise in a particular area of finance.

For these reasons, a postgraduate degree is an investment in yourself. But it doesn’t come without risks and costs; for instance, you’ll have to spend time away from the workforce, especially if you choose to study full-time.

2

Speak to recruiters

If you’ve already decided on a certain career path, your best option would be to speak to recruiters first. They can advise on recommended courses and where you should take them. At the end of the day, though, you’ll still need to show that you have both the hard and soft skills to get the job done.

3

Know your options

Postgraduate options in the financial sector range from a Master of Business Administration (MBA) to Finance, Accounting, Management and Economics (FAME) degrees, as well as professional qualifications for the technical aspects of accounting and financial management.

Finance Career Guide 2023

Sectors Overview

4

15

Consider alternatives

If you’ve just started out in a finance career, an MBA would be the traditional option for investment banking pathways.

However, it’s not focused on technical foundations, unlike the Chartered Financial Analyst (CFA) qualification, which costs less and suits early career investment bankers dealing with fund management.

Enrolling into an MBA programme is still prestigious, feasible and offers a wide network of contacts into industries beyond finance. Make it a point to look into the syllabus before registering for a programme, though! Make sure that you understand exactly what you’ll get out of it, and that it offers the right balance of management and technical knowledge you’re looking for.

Other short-term courses include the Certified Treasury Professional (CTP), Certified Professional Risk Manager (CPRM), Corporate Finance Qualification (CF), Certified Valuation Analyst (CVA) and the Certificate in Quantitative Finance (CQF).

A Master of Science in Finance (MSc) is another viable option. Popular choices include the MSc in Applied Finance offered by the Singapore Management University (SMU), the MSc in Financial Engineering awarded by the National University of Singapore (NUS) and the University College Dublin’s MSc in Finance found in Kaplan Singapore. Some prefer an MSc in Finance over an MBA because it doesn’t require much work experience in a related field – a vital criterion for entering an MBA programme.

5

Do it at the right time and for the right reasons

In finance, you’ll need a strong understanding of theory, business and industry practices on top of knowledge of markets, trade and investment. Skills in research, numeracy, statistics, analysis and communication are also needed.

On the other hand, degrees in FAME subjects usually include accountancy skill certifications. This is because accounting calls for quantitative skills, specialised accounting knowledge, an understanding of generally accepted accounting principles (GAAP) and regulation and industry knowledge.

So, if you’re interested in entering the accounting sector but hold an unrelated degree, consider a Master of Accounting (MAcc), Master of Professional Accounting (MPAc), or other certifications, such as the Certified Public Accountant (CPA) and Chartered Accountant (CA).

In short, choose the right course for yourself after looking carefully at the costs and possible returns. Don’t forget to consider your end goal(s), too, whether it’s specialisation, advancement, or something else!

Finance Career Guide 2023

Sectors Overview

16

A SURVIVAL GUIDE

To Applying For A Job In Finance Taking your first step into the financial sector can be daunting, especially when surrounded by stiff competition.

B

ecause thousands apply for jobs in finance every year, it’s important to stand out by preparing to face rigorous recruitment processes – like employers screening hopefuls with various psychometric tests.

Ability tests assess general, numerical and verbal reasoning skills, while personality tests help determine whether the candidate is suitable for the position and able to fit into the company culture.

Shortlisted applicants will then have to impress recruiters and prospective bosses in interview sessions, and would likely have to participate in assessment centre exercises on top of that.

With so many aspects of the application to prepare for, here are five ways you can be both efficient and effective.

Tips for psychometric tests • Get sufficient rest the night before • Familiarise yourself with the types of questions in ability tests through online practices • Don’t overthink for personality tests, as there are no right or wrong answers

Finance Career Guide 2023

1

Focus on your job search

While there are countless employers you can apply to, the time used to send generic applications to 50 companies can be better spent focusing on a few preferred firms which you’re interested in. Be as selective as possible.

A good method to go about this is by doing some general research – list down potential employers, compare them, come up with a shortlist containing about five to 10 “priority” companies and finally conduct in-depth research. This way, you can make better sure your skills and expertise match what these companies are looking for, thus increasing your chances of landing your ideal job in the financial sector.

2

Don’t procrastinate

Although many organisations accept applications all year-round, it’s still necessary to check out the processes and closing dates for the companies and positions you’re most interested in. Keep in mind that in the banking and investment industry, application deadlines also tend to be earlier.

Apply early because some companies may already be making offers before the closing date, even as applications continue to come in.

Sectors Overview

17

3

Attend career events

Whether they’re conducted physically, virtually, or both, career fairs, industry events and open houses for banks and accountancy firms are usually held yearround in Singapore. Seminars and trade shows, such as the Accounting & Finance Show Asia and the Singapore Universities Recruitment Fair (SURF), provide exposure and networking opportunities with numerous participating firms, such as PwC and Deloitte.

Be proactive in approaching people and making an effort to get to know them while asking intelligent questions.

After all, recruitment fairs provide an excellent setting for you to speak to recent graduates and find out what their working lives are like. Moreover, they also give you the opportunity to discuss any concerns you might have with recruiters, and access a wealth of information only insiders can give.

Other than keeping yourself up-todate with the latest news and trends in the industry, it’s important to find out which companies would be present at the event as well. Prepare specific questions for them, and bring a notepad to jot down useful information such as contact details and application deadlines.

As opportunities present themselves at unexpected times, always keep an open mind and welcome any professional exchanges.

Last but not least, remember to show a genuine interest in the people you meet!

4

Embrace technology

In this digital era, information is widely available on the internet – reviews of prospective employers and interview questions they’ve given applicants can even be found. Take the reviews with a pinch of salt, but look out for tips and suggestions on how to tackle interviews with specific companies.

Besides using the Internet to understand developments and trends in the financial sector, compare various sources to learn about each prospective employer’s business structure and history. In addition, do some background research to get a good grasp of the environments different potential employers operate in. It’s imperative to understand how each big and small player in the industries of banking, investment, accountancy and financial services portray their positions compared to key competitors.

5

Get involved

If you’re an undergraduate, think about what competencies and skills are required for your roles of interest in the financial sector. From there, take part in extracurricular activities to develop transferable skills much like leadership and communication.

While you don’t necessarily have to join the Math Club or the Investment Club, having a strong record shows that you are a well-rounded individual and a team player, making yourself an attractive candidate that can be trusted to work with different groups of people in order to achieve desired targets.

Finance Career Guide 2023

Sectors Overview

18

PROS AND CONS

Of Pursuing A Career In The Finance Industry It can be tough to pave your way in this industry, but success in this business can lead to a fulfilling and rewarding career.

Financial services Globalisation has been behind much of this area’s growth, and as a result, there are now more options than ever before.

PROS • Potential to bring in a high income • Good working conditions • Regular business hours

CONS • Fast-paced and highly stressful • A cyclical industry

Accounting and financial management When you’re considering a career in accountancy and financial management, assess not just your working style, but your personality as well.

PROS

CONS

• A stable industry • Clear career path • Many opportunities to develop professionally • Flexibility in choosing where to work – accountants can be found everywhere

• Work can come off as routine and dull • During peak season, large amounts of stress and long working hours are the norm

Banking and investment At the top of your game, you’ll find yourself showered with rewards many can only dream of. But know that making your way in this sector won’t be easy.

PROS

CONS

• Opportunities for professional growth • The chance to build a large network • Remuneration

• A highly stressful environment that comes with long working hours • Fierce competition

Finance Career Guide 2023

APPLICATION TIPS

APPLICATION TIPS

Before applying to positions and programmes you’re interested in, be sure to prepare your resume and cover letter before looking to distinguish yourself in the recruitment process.

Crafting Your Resume 20 Preparing Your Cover Letter

22

Acing Your Interview 24 Tackling Assessment Centres

26

Quick Checklist 28

Finance Career Guide 2023

Application Tips

20

CRAFTING

Your Resume Quickly grab recruiters’ attention by effectively communicating why you’re suitable for the job.

Customise each and every resume sent out First and foremost, tailor your resume to the firm and role you’re applying to. Make it obvious that you’ve made a genuine effort to think about what the company’s looking for, and what makes you their best candidate.

Conduct your own thorough research and don’t forget to check individual employers’ application procedures, as some may have specific requirements! For instance, HSBC’s website details the specific format, sections and details that applicants should include in their resume.

If you’re indicating a career objective at the top, pay special attention to it. Remember to keep it simple and state your ambition with something simple like: “Valedictorian from Nanyang Business School with strong analytical skills seeking an internal audit position at a leading MNC.”

Specify your skills and areas of expertise Instead of a career objective, you can opt for a section on technical skills or your main areas of expertise. While recruiters don’t always have the time to look through what you did in your previous internships or positions in detail, they do keep an eye out for specific skills, which you can show through a skill set summary.

Alternatively, you can describe your core skill set under each work experience you have. For example, if you listed working experience in marketing, take a line or two to highlight the key areas of expertise you have gained and honed, such as market research, market sizing, interviewing, public relations and business development.

On the other hand, for a business management position, point out the relevant areas of expertise such as executive-level communication, strategic planning, business analysis and client management.

Finance Career Guide 2023

Application Tips

21

Highlight relevant experiences Think through the experiences you have had and how they might be relevant to the position; even if they’re just short-term gigs or unpaid positions, they can still be used here. You should also bring up any work experiences with transferable skills, especially if they resonate with the job requirements.

For instance, waitressing at a café can show recruiters that you’re able to manage and cater to the needs of different customers. This, in turn, can be helpful if you’re applying for a client-facing role, such as a fund manager, insurance broker, or bank teller.

Don’t neglect unique experiences that can help you stand out from the crowd as well, even if they seem unrelated to finance!

Did you spend a summer taking care of elephants in Thailand before the pandemic? Put that in, and be prepared to talk about cross-cultural experiences compatible with investment and financial services careers.

Remember to also highlight your job rank along with the job descriptions. Recruiters tend to take note of such roles in hierarchical industries such as investment banking. Likewise, bring it up if your previous role was on a short contract term to prevent any misunderstandings about your job-hopping tendencies – something that’s usually frowned upon in the financial sector.

Quantify your achievements Numbers matter in your resume. How else can you measure your impact and the difference you made as an employee elsewhere, or even as an intern? If you expanded the client pool in your previous position, express how many new clients you brought on board within a specific time period.

For a sales role, specify the growth in revenue under your purview. If you led teams, show their sizes and again, include details of growth and time period. This will give recruiters a good impression of what you’ve handled and attained before.

Show your strengths and interests As Singapore is a global financial hub, knowledge, as well as competency of at least one foreign language, would come in handy when servicing clients or dealing with partners from another part of the globe.

Moreover, don’t shy away from briefly including your personal interests at the end of your resume. In particular, participation and leadership in team sports indicate high potential for success in a corporate environment. Meanwhile, sharing that you can play a musical instrument demonstrates your ability to focus with discipline.

Play up other skills you have, too. For example, if you won an app-building contest or were involved in the robotics club during your school days, you can emphasise your proficiency in information technology (IT) and coding.

Don’t delay your submissions Last but not least, try not to wait until the last minute to apply.

On occasion, deadlines can be brought forward due to an overwhelming number of responses. First impressions may not be everything, but they definitely make a difference. Likewise, presenting a strong resume will help immensely in the process of landing your dream job in the financial sector. Good luck!

Finance Career Guide 2023

Application Tips

22

PREPARING YOUR

Cover Letter

With such fierce competition, having an impressive cover letter can do wonders in helping you stand out.

1. Show, don’t tell

2. Prove your competence

3. Demonstrate your enthusiasm

Keep to the standard structure. Start with a brief introduction of yourself and explain why you’re dedicated to pursuing a career with the company. Be clear on the specific position you’re applying for, explain why it’s of interest to you, and convince the hiring manager that you’re a good fit.

Be succinct and avoid falling into the trap of rambling too much on your personality, skills and qualifications – recruiters can assess these for themselves when they go through your application and resume. Similarly, avoid describing yourself with words such as “passionate” and “ambitious”; these qualities are better exuded in person during the interview.

Read the job description and address the selection criteria to better highlight relevant experiences that could put you in the best position in the running for the job. For instance, if you’re gunning for a management accountant role, you could mention a 35 per cent increase in returns for a specific project you previously worked on.

In the same vein, explain how your skills can be put to good use in a specific role. For example, if you have extensive knowledge in international current affairs, show how it can benefit the investment banking analyst position on offer because markets and investors are affected by key events around the world.

After doing some comprehensive research about your potential employer, make use of the information to include specific aspects of the business that appeal to you and show how you can add value to their culture.

One way to stand out is to mention events organised by the firm that you’ve previously attended, or if you’ve visited the company’s booth at a career fair.

Name-dropping employees that you’ve met will also add an earnest touch to the cover letter.

By showing your enthusiasm through networking and initiative in building relations with the company, you can score an advantage over other candidates.

4. Do a thorough check Last but not least, be sure to take a break from your cover letter and check it again later; you’re more likely to spot any mistakes with fresh eyes. After that, print it out and look through it. If this is the first time you’re writing a cover letter, get someone with a good command of English to help you proofread it.

Use a spellchecker to catch any grammar mistakes as these errors reveal a lack of attention to detail, which is a big no-no for the financial sector. Having clear and appropriate points in your cover letter will, however, show the recruiters your effective communication skills and strong writing skills.

Finance Career Guide 2023

Application Tips

23

Dear Mr Lim, I am writing to apply for the Marketing Data Junior Analyst position with the Consumer Banking Group at OCBC Bank, as advertised on gradsingapore.com. My conversations with current employees at your networking session in June this year have reinforced my interest in the bank and cemented my belief that I have the expertise and skills that you are looking for.

Throughout my three years of study at Nanyang Business School in Nanyang Technological University, which included a 10-week professional attachment with OCBC Bank, I have developed a practical understanding of creating impactful marketing campaigns for financial institutions.

In addition, I participated in a 6-month internship with Standard Chartered Singapore where I gained valuable experience in not only analysing customer data for valuable insights to help internal stakeholders and management create segments, but also reviewing marketing communications plans to ensure optimal results.

My resume is enclosed for your consideration. 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, Jane Poh

Finance Career Guide 2023

Application Tips

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ACING

Your Interview Interviews always seem scarier and tougher than they actually are!

With sufficient preparation, you can breeze through interviews in the financial sector successfully and with confidence.

2

Anticipate common interview questions

Think from the recruiters’ perspectives and expect questions tailored to the specific role and corporation you’re applying for.

For example, if you’re applying to a local bank like OCBC Bank, be prepared to explain why you’re choosing a homegrown bank over a non-local one, or vice versa.

Having an awareness of the organisation’s positioning will also help you understand what’s at the top of the recruiter’s minds. For instance, if you’re applying to enter a small accounting firm as a fresh graduate, decipher if they want you for an area of specialisation or as a generalist, 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 what you have been through and how you adapted to become a better person.

1

Revisit the job description and your application forms

First, make sure you have a clear idea of what the recruiters already know about you, and how your profile fits into what they’re looking for in terms of how you stand out and where you lack. Do you, for instance, possess a specific language skill set which they hope to tap into for certain markets?

In addition, how much do you know about the financial arena if you don’t have a finance-related degree? You can show how you’re keen to make up for this by demonstrating knowledge of how financial markets work, as well as displaying an understanding of the firm’s business objectives.

Similarly, if you come from a related field of study, just how much do you know about real world application of the technical knowledge you gained in school? Do you have internship experiences which taught you about client servicing, an important aspect of roles in the financial scene, through handson experience?

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Application Tips

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3

Stay informed about the industry

Keeping abreast with the latest market trends and news is crucial for a career in the financial sphere. For example, a potential investment banker would be required to be well-acquainted with major stocks from around the world, and able to explain how historical milestones affect movement in the markets.

Additionally, make reading the financial news a habit, keeping in mind that knowledge from various publications could be useful during interviews.

Be prepared for questions like: “Tell me about a recent development you read about in the news and how you think it will affect the financial sector.”

4

5

Follow up

On the same day after the interview, send an email to thank the recruiters for their time and highlight how the conversation helped in affirming your decision to join the organisation. You can include specific references to issues discussed in the session to show your commitment and attention.

Take the initiative to keep in contact if there are no followups 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.

Prepare a list of targeted questions to ask

At some point of time, you would likely be asked “Do you have any questions for me?” This is an opportunity to engage and impress the recruiters with intelligent questions, demonstrating both insight into the field and your enthusiasm to work for the corporation.

For example, you can ask about how a recent industry trend has affected the firm, or how the company positioned itself against competitors for long-term prospects. Asking smart questions helps to end the interview on a high note and create a lasting impression. This is also the part that can help you make a decision if you’re handed more than one offer, as it gives hiring managers a chance to impress you in turn. From these answers from across the table, you can also gain deeper knowledge about the enterprise’s plans for the years ahead.

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 concerned with the nitty-gritty aspects of the job! However, if the employer takes the initiative to share the perks of the role with you, such as flexibility schemes and training opportunities, take it as a good sign as they are enticing you to eventually accept the position.

Note Preparing for video interviews Occasionally, your interview might be held over a video call, such as on Zoom or Microsoft Teams. Apart from the usual points to take note of, there’s also some extra things you’ll need to look out for: • Dress up like how you would for a face-to-face interview, including the parts of you off-screen! It’ll help you get into the right mindset, and you’ll avoid any potential wardrobe malfunctions if you have to move around unexpectedly!

• Pick a quiet spot in your house where you won’t be disturbed, and let any housemates or family members know not to disturb you during the interview time.

• Before the interview starts, be sure to check that your connection and equipment are in order. If anything goes wrong during it (glitching or freezing), stay calm and clear things up with the interviewer once the call quality is restored.

• You’ll be relying more on your words than non-verbal communication, so try to speak slightly slower than usual, and pick your words more mindfully!

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TACKLING

Assessment Centres Often the final stage of the recruitment process, an assessment centre can be both intimidating and gruelling.

Know what to expect While corporations have different components of their assessment centres, they usually consist of a group activity, an individual exercise and an additional interview.

Find out what to anticipate from the recruiter. Although the organisation may give you limited details beforehand, you can still browse online forums to get a better understanding of the activities planned and gather some useful information from past applicants. Be open-minded and mentally prepared to participate wholeheartedly and show the best version of yourself.

At investment banking assessment centres, expect opportunities to present solutions related to products and client servicing. You can rehearse your answers to general interview questions and keep abreast of financial news and economic trends, as well as review other potential questions and information you must know.

Finance Career Guide 2023

Dress well and behave appropriately The test starts the second you step into the venue. Recruiters will observe and pay attention to everything, from your outfit to the position you choose to sit or stand in. Remember to be friendly and polite to everybody, including the receptionist and fellow candidates. This is especially important since roles in banking and financial services are people-centric.

Maintain your confidence and composure throughout the day, including during break times in between each segment. After all, with changes and challenges constantly rife in the finance and accounting world, having a stable temperament is crucial.

Group activity This part usually splits hopefuls into small groups to tackle a problem-solving task – its main purpose being to evaluate not just your ability to communicate, but your capacity for teamwork as well.

As group dynamics and teamwork are crucial in most firms, it’s imperative you show recruiters that you are a confident team player who can voice opinions and support others at the same time. But keep in mind that it’s not a competition!

You’ll be assessed against the employer’s criteria and not against other applicants.

By knowing everybody’s names and asking for their input if they haven’t had a chance to speak yet, you can show your customer service and communication skills. Articulate your ideas clearly, but be careful to not dominate or interrupt the discussion. Most importantly, stay calm and considerate at all times, especially when dealing with difficult situations – it’s yet another chance to show why you’re fit to join the financial sector.

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Individual exercise You might be given psychometric tests similar to those given online in an earlier part of the recruitment process. This is so that the employer can verify their findings.

Otherwise, recruiters will likely give you a case study to solve and ask you to give a presentation on your recommendations. The questions in these exercises can run the gamut from choosing which potential company to acquire, how to respond to new technology in accounting, or even how to handle difficult customers.

Besides testing your financial acumen, the purpose of this exercise is to test your analytical and reasoning proficiencies, as well as your communication and persuasion skills. Focus on key information and plan your time well.

Take everything in stride If you aren’t offered a position after going through the tests in the assessment centre, there’s no need to be disappointed. Instead, treat it as a learning experience – you had the chance to experience a “day of work” in that organisation, and test out whether they’re the right fit for you. After all, it’s not just about you impressing the employer, but the other way around too.

You could also try to reach out to recruiters and ask for some personal feedback on how you can improve in order to prepare for the next assessment centre. Competition is fierce in the financial world, so if you can take the learning points from one failed situation as valuable experience to help you gain momentum in entering the industry, you’ll have a higher chance of succeeding on your next try!

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A QUICK

Checklist Do you have everything sorted out?

Your resume Even after reviewing it yourself several times, ask others for help to go over it too.

Keep it clear and simple Make sure your resume and cover letter are easy to follow and free of mistakes.

Apply and impress!

There’s no one right way to apply, so apply speculatively, online and directly. If you’re called up for an interview, dazzle them!

Finance Career Guide 2023

BANKING AND INVESTMENT

BANKING AND INVESTMENT

Learn more about the banking and investment industry in regards to its areas of work, and how you can prepare yourself for a career there.

Sector Essentials At a Glance: Banking and Investment 30 Choosing Your Role and Company in Banking and Investment 32 Unique Skills Investment Banks Want in Graduate Employees 34 A Graduate’s Guide to Investment Banking Job-Speak

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Areas of Work Corporate Banking 39 Economist 40 Finance IT 41 Financial Markets 42 Inter-Dealer Broking 43 Investment Analyst 44 Investment Banking 45 Investment Management

46 Operations 47 Private Wealth Management

48 Risk Management and Control

49 Specialist Markets 50 Stockbroking 51 Structured Finance 52

Finance Career Guide 2023

Banking and Investment Sector Essentials

Banking and Investment

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AT A GLANCE

About the Industry

Must-have Skills

Getting In

Singapore is one of Asia’s premier financial centres due to its proximity to emerging markets in Southeast Asia and economic stability. This remains true even now during the pandemic, as much of the stock market worldwide is fuelled by aggressive stimulus packages rolled out by central banks and governments to boost growth.

As a result, employees in the sector can work long hours – 12-hour days aren’t uncommon, especially for front office roles. Due to the fast-paced and unpredictable nature of the field, employees can find their job highly intensive and stressful at times as well.

However, hard work doesn’t go unrewarded; graduates will enjoy excellent structured career progression, high salaries, as well as plenty of chances to gain responsibilities early in their careers.

Working in the banking and investment field doesn’t only call for resilience and the ability to work under pressure, but also a wide range of skills.

Numeracy, alongside excellent verbal and written communication skills will come in handy when tasked with presenting complex concepts to colleagues and clients who may not have backgrounds in finance. A strong understanding of the financial markets, as well as the ability to think laterally and discern market trends, are also essential.

The sector is relatively hard to break into in Singapore. For starters, the market itself is small, and many investment banks fill the bulk of roles available through graduate schemes.

However, scoring a relevant internship with an investment bank and performing well can give you an advantage in getting a place in a graduate scheme. Networking is also key to opening up potential employment opportunities.

Fortune favours the bold, so be sure to conduct your own research on potential employers. More than that, don’t shy away from approaching recruiters directly during career fairs and other outreach events where they look out for outstanding candidates

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Areas of Work In the banking and investment industry, employees usually render financial services to clients that range from corporations, institutions and governments to high-net-worth individuals, and assist them in meeting financial objectives and maximising returns.

Here are some common areas of work:

Investment banking

Fund management

Private banking

Roles in investment banking deal with a variety of financial activities, such as performing financial analyses, overseeing mergers and acquisitions, as well as issuing bonds and securities.

This job entails analysing the stock market and predicting trends. With their knowledge of the markets, fund managers help clients manage their portfolios and achieve specific goals, usually by investing in a variety of securities.

Private banking services involve either advising clients on specific steps in order to maximise their returns, or discretionary services, which allows the bank to make decisions on a client’s behalf.

Stockbroking

Technology

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 operational.

IT professionals facilitate and optimise p e r fo r m a n c e by maintaining the necessary systems in which business takes place.

Without the IT department, millions of transactions carried out daily may fall through, causing companies to incur huge losses.

Risk management

Trading on the financial markets comes with varying degrees of risk.

Because of that, risk managers are tasked to periodically assess, manage and mitigate these risks to ensure that banks and financial companies remain profitable and safe.

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CHOOSING YOUR ROLE AND COMPANY

In Banking and Investment You don’t have to give up your finance-career aspirations just because you don’t have a degree related to finance!

Firms in the industry

Large global investment banks offer a broad range of banking and investment services, from trading on financial markets to overseeing mergers and acquisitions.

Besides banks, financial services firms – such as private equity firms, asset management firms and fund houses – also hire for specialised roles in independent advisory services and sales of products like hedge funds or derivatives, among others.

Inter-dealer broking firms like ICAP act as intermediaries, helping clients negotiate and trade anonymously.

Finance Career Guide 2023

Working in the industry

Early responsibilities and a fast-paced environment means that work is often challenging, unpredictable and stressful.

In most organisations, teams are often put together based on areas of specialisation – teammates frequently work closely together and keep each other motivated.

Exposure to intelligent colleagues and top business leaders also provides many learning opportunities and valuable insights into the field.

While high salaries, hefty bonuses and other financial rewards are undeniably the biggest perks of the job, keep in mind that working hours tend to be extremely long and professionals are often expected to work on weekends and, on occasion, even round-the-clock.

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The ideal candidate

Having a finance-related degree or professional qualifications, such as the Investment Management Certificate (IMC) or the Chartered Financial Analyst (CFA), may be advantageous, but they aren’t prerequisites.

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

A genuine interest in banking and investment is also essential, and you should constantly keep up-to-date about the latest developments in the field.

Besides credibility, as well as having excellent communication and negotiation skills are important – especially in a client-facing role, such as that of an investment manager or interdealer broker. Last but not least, you have to be both hardworking and resilient in order to cope.

Roles available

Positions in the field mainly fall into three categories: the front office, middle office and back office.

As their names suggest, employees in the front office usually interact with clients by trading and selling products.

Middle office roles, such as risk analysts, on the other hand, are tasked to directly support the people in the front office. Finally, support services, like HR, technology and operations, are considered back office, and keep transactions and deals running effectively.

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 Trader Finance Career Guide 2023

Banking and Investment Sector Essentials

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UNIQUE SKILLS

The Banking and Investment Industry Needs You’ll need to show more than boring old “teamwork” and “communication” skills if you want to nab a graduate scheme in this sector.

Intellect

E

veryone thinks they have “good communication skills”, are “team players”, or are “effective problem solvers”. A peek at another’s resume will tell you just that. So don’t expect to stand out in the eyes of recruiters if you just focus on those old clichés!

Companies in the banking and investment industry have demanding checklists of skills they look for in candidates applying for their graduate or internship schemes. On top of that, each firm also seeks unique traits in applicants that match their corporate culture.

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.

Finance Career Guide 2023

It goes without saying that employers place a lot of emphasis on hiring bright, motivated candidates. But what specific intellectual skills are recruiters actually looking for?

Jane Clark, former Group Head of Graduate Resourcing and Development at Barclays, says that banks seek applicants who can grasp new concepts quickly.

“People strong in learning agility are sharp and thrive in new and difficult situations. Grasping and learning new concepts quickly – whether it’s a task, assimilating new information or data, managing a project, or meeting a new client – is important when working in an industry such as investment banking,” she said.

“New markets, products, deals and opportunities continually emerge and agile learners are needed to deliver results quickly – even in new situations.

A commitment to learning and a hunger for dealing with challenging situations is key.”

On the other hand, Deutsche Bank places a greater emphasis on agilemindedness – 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. It’s something like a Sherlock Holmes-esque approach to problems, where you need to arrive at the right conclusion based on a combination of elimination, deduction and extrapolation on the finer details.

How to prove it “Tell us about a time when you demonstrated your intellectual ability.”

Recruiters typically judge intellectual ability by your capacity to apply your knowledge to practical situations. They also want to see whether you’re quick enough to catch the bigger picture in such situations.

For example, perhaps you worked on a project during a previous internship together with a team of other interns. An agileminded person wouldn’t just complete their assigned tasks – rather, they’ll also be able to grasp how the project they’re working on affects their employer as a whole, and discern 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 see a better outcome for themselves and reach it. You would also clarify doubts with your supervisor, and make the necessary tweaks as the project moved along.

Banking and Investment Sector Essentials

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

Morgan Stanley specifically 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 spy opportunities to profit from such a process.

Interdealer broker, ICAP, on the other hand, stipulates that hopefuls must be innovative, with 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 it “Tell us about a time when you were innovative.”

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 going to run a food stand for fund-raising. If you decided that you could attract more people to the stand by running a social media marketing campaign and introducing tiered 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, to minimise attrition, recruiters need graduates who are highly resilient.

Barclays makes it no secret that they require applicants who have the capacity to work under pressure, such as dealing with constant deadlines or catering to prominent – and often imposing – clients. This is especially true for graduate schemes that are meant to fast-track candidates to management or leadership roles.

Standard Chartered Bank emphasises a need for those 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. In fact, employees at the bank will tell you to be prepared to be on call at almost all times of the day!

How to prove it “Tell us how you have shown resilience in your life so far.”

Feeling tempted to talk about “balancing” the demands of your degree programme with extracurricular commitments and a part-time job? Congratulations are in order for pulling that off, but the truth is that many of your competitors will probably say the exact same thing. So, what should you focus on, then?

Instead, talk about a time when you failed at something or received some constructive criticism over something you could have done better. Then, focus your story on how you worked towards improvement despite your initial disappointment. At the end of the day, a “resilient” person is one who sees a setback as a challenge for growth.

International outlook Given how banking and investment work functions across time zones and borders, applicants with the ability to operate in an international context are often in high demand.

Barclays Wealth and Investment Management’s competencies include a “willingness to work abroad”, alongside additional language skills.

At Goldman Sachs, close to 50 per cent of the bank’s graduate roles require hopefuls to demonstrate strong linguistic skills.

On the other hand, the 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 the Asia Pacific.

At Nomura, knowledge of a second language and its associated culture – though not essential – is also considered a strong plus. After all, as a Japanese firm, knowledge of Japanese business culture would be extremely beneficial to them.

UBS’s recruiters once included “international experience” as a key competency. While the company still finds candidates with international experience to be appealing, it’s no longer a necessary requirement, and the bank still places plenty of emphasis on the global nature of their graduate job roles How to prove it “Tell us about a recent development in an overseas market. How will it affect our business?”

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 the market they operate in.

Show recruiters that you can identify a key event or socioeconomic trend that will affect the markets in other parts of the world.

And, more importantly, make sure you can explain why, and how, it will affect the organisation’s operations in Singapore.

Other skills Individual employers can also have more interesting requirements – some of which you might not even think of.

Credit Suisse, for example, looks for the ability to “invoke loyalty in others”.

And then there’s Rothschild, which lists “presence” – much like a sense of gravitas and authority – as one of their fundamental skills.

On the opposite end of the spectrum, sometimes otherwise great candidates end up letting the air out of their application bids all too easily by trying too hard to showcase their worth at the expense of forgetting the basics.

Recruiters at Citi, for instance, bemoan the fact that applicants who have strong academic qualifications or a good understanding of the markets end up letting themselves down by failing to show enthusiasm because they were far too fixated on the technical details instead.

Still, at the end of the day, don’t forget that careers in this sector are – at their core – very much a client-facing line of work. So don’t neglect to showcase the finer points of your people skills, such as HSBC’s requirements for an “outgoing personality” and “good levels of diplomacy”.

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Banking and Investment Sector Essentials

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A GRADUATE’S GUIDE TO

Banking and Investment Job-speak Bulls, hedging, stagflation...did you just wander into a farmers’ convention?

Here are some common key banking and investment terms that you can use to sound informed at job interviews.

A Analyst A person who studies a market or industry sector and makes recommendations to either “buy”, “hold”, or “sell”. Less glamorously, it also refers to entry-level career positions in many firms in the banking and investment industry.

B

Brokerage

Commodities

The payment a client makes to a broker.

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

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

C

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

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

Capital market A financial marketplace for buying and selling medium- or long-term funding instruments such as bonds, debt and equity.

Chinese walls

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.

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

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.

Broker

Clearing

Bonds

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

Finance Career Guide 2023

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.

Credit crunch The term is commonly used to refer to a severe shortage of money or credit within a market. The start of the “Global Credit Crunch” can be dated to August 2007, when default rates on sub-prime loans in the United States’ housing market rose to record levels.

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.

D Debit 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. The benefit of debt is that it grants a company a greater diversity of funding options, as opposed to relying solely on equity.

Banking and Investment Sector Essentials

Deriatives 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 an underlying asset like a commodity or 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 have a share in its profits.

They 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.

H Hard 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 collection 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.

I Initial Public Offering (IPO) The date when a company’s shares are released – or “floated” – for trading on the stock exchange.

Insider dealing and trading The act of trading using knowledge of nonpublic – “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 pay an additional percentage in order to compensate lenders for the credit risk.

• Investment bank A bank providing financial services for governments, companies, or very wealthy individuals. They’re usually more exclusive than commercial banks, which provide loans and savings accounts to the general public.

• Investment trust A collective investment structure where investors pool their money and then commission a fund manager to invest in a variety of stocks and shares 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

L • Leveraged buyout (LBO)

Leveraging The act of 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”.

Libor Short for the “London Inter-Bank Offered Rate”, Libor is the rate at which banks may offer money to other banks. As of 2021, Libor is no longer published.

Liquidity The ability of an asset to be traded quickly and without changing its market price.

M Market 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.

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, usually less than a year.

O Options 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, as opposed to a binding obligation.

The buyer must pay a premium on the seller’s futures for this ability.

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.

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P

S

T

Portfolio

Securitisation

Toxic debt

A collection of securities, financial instruments and investment options held by an investor. It is also known as a "fund".

The act of turning something into a security, such as combining the collective debt from a number of mortgages to create a financial product that can be traded. Banks that own securities, which include mortgage debt, earn income when homeowners make mortgage payments.

Shorthand for 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.

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 publically 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 in liquid.

Proprietary trading Trading carried out on a firm’s own behalf, using its own capital.

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.

R Risk management The act of managing the pure risks a company 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.

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

Short selling The investment strategy of borrowing an asset, much like shares, from another investor 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 in which banks make profits.

Secondary market The trading of a company’s bonds and equities among investors. The “primary market” refers to the initial launching – issuing – and direct sale of the company’s securities.

Securities A generic term for bonds and equities.

Finance Career Guide 2023

Unit trust Also known as a “mutual fund”, the trust issues units which represent holdings of the underlying shares. The fund can then pass profits directly to the individual shareholders, proportionate to the amount of units they hold.

This is in contrast to an investment trust, where profits must be re-invested back into the fund.

Universal bank An all-in-one bank that offers both investment and commercial banking services to consumers and small businesses, as well as corporate clients.

Y

Stag

Yield

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

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

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

Sub-prime loans

S

U

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.

Banking and Investment Area of Work

Corporate Banking

39

Provide financial advice and offer a bank’s products and services to commercial clients to help them grow.

Required skills

B

ecause clients from this segment typically range from small-and medium-enterprises (SMEs), to large corporations, corporate bankers not only discuss financial needs and provide financial advice, but also offer advice on mergers, acquisitions and capital markets to help decision-makers come to sound financial decisions. Other responsibilities include offering financial services such as treasury advice, loans and credit, trade finance and more.

General overview Most corporate bankers enter this field through graduate schemes and start out as analysts. Training usually involves rotations across various teams to give insights about different areas of work, and allows candidates to develop an understanding of the industry as a whole.

Opportunities to shadow senior relationship managers to client meetings and observe how they sell the bank’s products and services may also be given.

During these sessions, graduates will familiarise themselves with key corporate banking products and pick up crucial client-facing skills.

After a year or two on, new hires will likely progress to a junior or associate level and will gradually manage clients on their own.

At this point, there’ll be an expectation for them to establish relationships with corporate clients, which may take a few years to build as it requires experience and skill to successfully gain their trust.

But to rise up the ranks, hopefuls will need to build a strong network of clients to help the bank secure important accounts.

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 analysis. The need to build relationships in corporate banking also calls for qualitative skills and high emotional intelligence.

Those with internship and training experience have become increasingly sought-after. As such, it’s advisable to acquire a repertoire of skills by attending apprenticeship programmes and pursuing internships during university in order to maintain a competitive edge over other candidates.

Pros and cons Corporate bankers usually work with a variety of products 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 the right products to different clients.

However, this client-facing role also entails demanding and difficult cases, and the working environment is fast-paced and highly stressful.

Nevertheless, the prospect of upward mobility and impressive benefits for employees make this field a popular career choice.

Finance Career Guide 2023

Banking and Investment Area of Work

Economist

40

Study and analyse economic trends to advise on decision-making and managerial planning.

Required skills

B

y performing mathematical and data analyses to evaluate and predict economic trends, economists are often involved in every stage of research, from data collection and conducting surveys, analysing and interpreting data, to writing reports and presenting their findings.

An economist’s work is used to increase their client and organisation’s market performance, guide business decisions and determine projected costs for budgeting purposes. In large corporations and governments, economic reports are vital in making budgetary decisions for the upcoming fiscal year.

Finance Career Guide 2023

General overview A degree in economics is usually required to work in this field, though most positions require either a master’s degree or PhD in economics. Graduates can find employment in the government, financial and investment institutions, as well as the research sector.

Successful applicants generally get their start as junior analysts and slowly build up a portfolio. As there are a great many things that can affect the economy, economists tend to have a broad understanding across various disciplines and sectors. Their know-how is not only limited to business and finance. In fact, their breadth of knowledge also includes specific industries such as imports and exports, petroleum, manufacturing and even politics and policies from around the world.

An eye for detail, commercial awareness, and skills in analysis and IT will all greatly aid potential candidates and stand them in good stead.

Excellent communication skills can also greatly help an economist in their work as they often have to present complex figures and data in various settings such as conferences, annual budget meetings and boardrooms, just to name a few. On occasion, they may even have to explain data and economic concepts in simpler terms to people who may not share backgrounds in either economics or finance.

Additionally, economists need to have good writing skills to be able to effectively convey their analysis and other findings in written reports.

Pros and cons The work of economists has a significant impact on people as their reports often guide policy-making, budget planning and key decisions in business.

Moreover, keeping abreast of the current economic situations in this line of work also means that economists have some foresight into the market, and are at an advantage when it comes to making personal financial decisions and investments.

On the other hand, however, because the demand for economists tends to grow slower than other jobs on average, this can lead to stiff competition for positions.

Banking and Investment Area of Work

Finance IT

41

With the adoption of technology in banking, the industry oversees countless transactions every day.

B

efore fintech technology (fintech) transformed the industry, finance IT – which refers to technology applied in the back-end of established consumer and trade finance organisations – had long been in existence. After all, the concept of internet banking was already present for some time long before mobile payments became commonplace.

Indeed, technological solutions constantly improve the quality of services banks provide their clients.

These range from front-end sales and trading applications to back-end maintenance of quantitative analytics engines, risk analysis systems and data storage solutions. All in all, finance IT professionals are important enablers who facilitate business performance by increasing data quality and security.

As such, banks are heavily invested in creating efficient IT infrastructure and hiring talented specialists within strategic fields in technology, especially in this age and time when digital innovations regularly revolutionise financial services.

General overview Beginning with an internship or graduate programme in a financial organisation’s IT department will stand hopefuls in good stead if they decide to pursue a career in this field. In particular, job rotations will facilitate exposure to various parts of the banking industry. Following that, graduates will get the choice to either specialise or be a generalist.

Because working in finance IT is usually project-based, professionals often find themselves navigating teams of various specialists across different departments.

Required skills Successful candidates who manage to stand out are typically up-to-date on the latest technological developments, and also knowledgeable about how they can help support and enable the market.

An IT-related degree may give a head start, but it doesn’t apply to all positions in finance IT. For instance, knowledge of

programming languages isn’t required for business analysts, though applicants have been known to take postgraduate courses to get into this field.

Banks want graduates with a keen interest in, and strong aptitude for, finance IT, and those who are enthusiastic, energetic and hungry to learn. As for financial knowledge, while it’s a plus, it’s not a dealbreaker – IT specialists are often recruited for their IT knowledge, not their financial expertise, as that can be picked up on-the-job. Rather, what’s most valued here is their innovation.

Last but not least, an ability to work in a team is crucial for liaising internally and externally, as well as strong interpersonal skills for working across departments.

Accordingly, demand for IT specialists with excellent communication skills and outgoing personalities is high.

Pros and cons Most graduates working in finance IT gain interesting perspectives on how business and IT come together.

Opportunities include learning how to design, implement and manage a project abound in this fast-moving and high-pressure area of work.

Finance Career Guide 2023

Banking and Investment Area of Work

Financial Markets

42

Develop and maintain relationships with clients in a fast-paced and exciting environment.

their days making observations and recommendations based on ongoing trends in the markets, and pass this data on to co-workers in trading and sales to help them make more informed decisions.

Required skills

F

inancial markets are where financial assets and instruments – such as stocks, bonds, shares, equities, foreign exchange and commodities – are created, traded and distributed. As such, working there is mostly about finding solutions that generate revenue. Financing or hedging an array of clients, including corporations, financial institutions and even governments, is also part of the job.

Experts achieve this by offering analyses and fixes to financial problems, including resources for clients to trade various securities and assets for greater liquidity, much like instant cash.

Businesses in markets primarily make money through trading margins and fees, as well as proprietary speculation.

As such, trading, sales and conducting thorough research are the three essential components in this field.

Networking and relationship management are also especially important in this line of work, not just for picking up opportunities to obtain valuable information, but to also gain insights on what clients are up to, a more accurate comprehension of the markets, and sometimes, even unreleased intelligence.

Finance Career Guide 2023

These can lead to additional income or clue experts in on profitable transactions.

With the exception of positions that deal with complicated financial products and calculations, employers don’t necessarily require finance or mathematical degrees.

Basic numeracy skills will usually suffice, though applicants must be accurate.

Employers look out for talents with excellent communication skills, and who also have the ability to build strong relationships and connect easily with other people – most positions usually involve plenty of internal and external communication.

Because competition can be very fierce, an internship offers a headstart and industry insights that can allow hopefuls to hit the ground running in this intense role.

General overview Traders start the day early – usually 7AM – to keep up with the opening of the markets, and subsequently spend their time connecting with clients and other traders, exchanging information and making deals. They also spend a lot of time booking trades and advising salespeople and interested investors.

Sales staff start the day slightly later, and focus on establishing and managing relationships between the firm and its investors. They interact mainly with external financiers. On top of suggesting and making financially profitable deals and persuading clients to invest, salespeople also liaise with traders on clients’ behalf to ensure that the agreed transactions are successfully carried out.

Research staff, by contrast, react to what happens once traders start exchanging products – which means they begin working even later than members of the trading and sales teams. Researchers usually spend

Pros and cons This field is dynamic, exciting and comes with long hours. Moreover, it’s undeniably stressful and risky, with even a single mistake having a chance to incur high losses.

But other than the heady excitement and energy on the trading floor, graduates are drawn to the opportunities to network widely and travel as seasoned professionals post-pandemic.

Banking and Investment Area of Work

Inter-dealer Broking

43

Intermediaries who help clients buy and sell financial instruments.

Required skills A keen interest in financial markets is fundamental, alongside good communication skills and a sociable disposition; meetings and rapport building activities with clients are essential. Interpersonal skills and credibility are also necessary to build a reputation among clients. Patience is another important trait, along with the energy and durability to succeed in a fastpaced environment.

As a result, the best inter-dealer brokers are professional, composed, decisive, adaptable and able to perform well under pressure.

I

nter-dealer broking provides a gobetween where clients – usually corporate entities and financial institutions like banks – can trade with one another using financial instruments like bonds, stocks, loans, equities and foreign exchanges.

Those who work in this field serve as a neutral intermediary for clients who wish to trade under the condition of anonymity, maximising investments in an exchange where disclosure of identity could negatively affect the quotation of prices. As such, inter-dealer brokers advise on the best prices in the market, and can help customise negotiations for a client’s benefit.

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. While those specialising in telephone work usually deal with more complicated products where detailed explanations are crucial, electronic dealers typically handle simpler products, using specialised terminals to identify clients’ needs and make quick deals.

General overview Most successful candidates start out as junior brokers in a team, and are usually mentored by a senior member before moving on to become a full-fledged broker. Managerial roles begin at the level of desk manager, and progress on to either director or head of a division.

A benefit of inter-dealer broking is that the volatility of the financial marketplace is unlikely to affect earnings as they come from 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 unstable periods in the market, as people tend to trade in greater volumes then.

Pros and cons Keeping up with instant market changes is exciting, and working hours are relatively stable as they are dependent on the opening and closing hours of the market index an inter-dealer broker oversees.

But be aware that one of the toughest aspects about working in the area is the fast-paced and h i g h - p re s s u re e nv i ro n m e nt .

Moreover, it’s an inter-dealer broker’s responsibility to guide difficult clients who insist on making unfeasible transactions towards a recommended deal as diplomatically as possible.

However, the accomplishment that comes with completing a large trade successfully, along with the excitement and social aspects of this profession, are the enjoyable aspects of this line of work.

Finance Career Guide 2023

Banking and Investment Area of Work

Investment Analyst

44

Provide fund managers, stockbrokers and traders with the data they need to make good investment decisions.

Required skills

T

ypically, investment analysts produce strategic game plans by following the markets closely, analysing stocks and predicting trends. To that end, many find themselves conducting research on oil rig providers, trends in organic food prices and acquisitions by large IT companies – all within the same day.

These plans, advice, information and data are then passed on to stockbrokers and other investment professionals, such as investment managers, in order for them to make good investments.

In this respect, analysts regularly meet with various professionals in the investment sector to dispense advice and present findings.

Finance Career Guide 2023

General overview Usually found in the finance, accounting, economics and business sectors, at their core, investment analysts conduct research into the general economy, financial markets and individual companies.

Their research into companies generally pertains to performance in relation to the market, and investment analysts typically examine company accounts to determine their profits, losses and cash flow. They also analyse financial statements and other information to thoroughly understand internal financial functions. However, some employers may require analysts to focus on only one particular sector, country, or product.

The growth of big data has enabled investment analysts to access a wide array of data. In turn, this has greatly expanded their scope of analysis, while advancements in computers and analytical software have allowed for more complex analysis to be done rapidly. All these factors have resulted in greater quality and depth, opening the possibility of offering new products to clients in the near future as well.

A strong interest in both the global market and financial markets will help interested candidates as they work to enter this field. As big data is now an integral part of the profession, IT skills are essential. Solid analytical and research skills are a must as well.

Moreover, as investment analysts present findings in research summary reports and make recommendations to stockbrokers, fund managers and traders, excellent collaborative, communication and interpersonal skills are needed.

Pros and cons As with other jobs in the investment industry, investment analysts may find themselves working long hours in a high-pressure environment with little room for error.

However, the job also provides generous remuneration and other benefits. For instance, being a good investment analyst requires having a wealth of knowledge about a particular market, so skills can be applied to any new market or geographical region.

Banking and Investment Area of Work

Investment Banking

45

Though high levels of commitment and responsibilities are part and parcel of this line of work, the payoffs are generous.

Required skills

I

nvestment bankers act as corporate advisors for various entities regarding financial activities. Their responsibilities include the issuance of securities, overseeing mergers and acquisitions, providing financial analysis, managing initial public offerings and handling investments for corporate pension funds, charities, or high-net-worth private clients.

Before a company acquires another, investment bankers also carry out financial and strategic analyses, assess the price and worth of the acquisition, offer directions on how to bid and pay and communicate the news to the public markets.

Clients may even give a renowned investment banking team the autonomy to deliver and execute deals on their behalf.

General overview Employers typically offer newcomers structured training programmes that last a month or so to provide them with the necessary key skills.

Most successful applicants start out as analysts, and will be assigned a senior mentor as they begin navigating a steep learning curve. With experience, graduates can move up the ranks to become a junior investment banker, liaising with clients as well as performing financial analyses, and condensing and collating data for them.

Later on, seniority will allow opportunities such as managing and overseeing the execution of projects and deals.

In most companies, investment bankers are grouped into teams based on specialisations, but can collaborate with members from other teams while executing a deal. To that end, hopefuls can look forward to expecting plenty of interaction across teams and departments.

However, trends are changing with the landscape, and investors are now moving away from high-risk ventures. Instead, they’re placing greater emphasis on risk management and raising capital as opposed to mergers and acquisitions.

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

Another chief requirement for working in this field is the ability to think laterally and discern trends and patterns. Because investment bankers are client-focused, communicators with valuable financial expertise, excellent interpersonal skills are a must alongside energy and a readiness to deal with many different people while providing the best customer service possible.

Pros and cons Be prepared to perform under immense stress and heavy pressure for extended periods of time.

Twelve-hour work days are common, as is working on weekends.

However, while investment banking is a demanding area, it’s a rewarding career choice with early responsibility, financial rewards and exciting work. After all, not many other industries offer chances to work on deals that fill the pages of the Wall Street Journal, or put professionals in touch with chief executive officers (CEOs) of large corporations at a relatively early stage of their career!

Finance Career Guide 2023

Banking and Investment Area of Work

Investment Management

46

Investment, fund and asset managers build clients’ portfolios through a combination of strategy, research and insight.

A

lso known as fund or asset m an agement , i nvestment management is about handling clients’ finances with the aim to reach specific goals. Those who work in this field monitor the financial markets to make the most out of their clients’ portfolios by investing in a variety of potential profitmaking securities and asset classes.

I nve st m e nt m a n a ge rs wo r k closely with investment analysts, and often depend on their plans, advice, information and data to deal with clients’ portfolios, carrying out transactions according to the findings. Successful investment managers typically combine initiative, research and foresight to make the right choices with their clients’ monies.

General overview Most graduates enter through graduate programmes and start off as investment analysts. Entry-level duties include analysing data from the market, preparing reports, contributing to portfolio decisions and presenting findings to company management.

Investment managers typically have more client-facing responsibilities, and travel to gain a better comprehension of sectors and products. As earning potential is typically proportional to the success of investment options, managers tend to remain hands-on to avoid becoming too distant, and keep abreast of the latest market trends.

Required skills Possessing a finance-related degree is advantageous, but not essential. Rather, having enthusiasm and the ability to comprehend the workings of the financial market are more valued. To that end, internships with investment management companies can help hopefuls assess their suitability for the field.

Finance Career Guide 2023

Most firms, especially international ones, encourage newcomers to sit for professional papers such as the IMC, the CFA, or even the CPA paper. Local companies may also want successful applicants to take the Capital Markets and Financial Advisory Services (CMFAS) paper Cultivating an open mind and a tolerance for uncertainty will enable graduates to deal with ambiguity daily.

Staying a step ahead of competition through thorough research is also imperative. In addition, there’ll be times new hires will need to be able to take a firm stance despite differing opinions among senior colleagues or clients.

Good communication skills, tact and confidence will aid in getting points across successfully.

Pros and cons There are numerous opportunities to learn from experienced investors and to be exposed to the inner workings of various sectors.

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.

Even in financially uncertain times, career prospects for investment managers can remain largely positive since expert advice are valued by concerned investors.

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

Banking and Investment Area of Work

Operations

47

Support the running of banking, and investment organisations and process transactions, all while ensuring greater efficiency.

Required skills

T

he operations department, also informally known as the “back office”, supports a firm’s revenuegenerating departments by ensuring business activities are performed smoothly, successfully and efficiently.

It oversees the entire life cycle of a transaction, from initial preparations such as booking trades for traders, to post-trade processes in settlements.

While it doesn’t actively generate revenue, this area of work is key for business profitability through managing risk and minimising loss.

Securities operations, for example, are responsible for ensuring that desks in linked markets have enough capability to communicate with each other. On the other hand, the risk function is in charge of ensuring that the company’s internal processes comply with regulatory guidelines.

General overview Most graduates start in training programmes before being assigned to an experienced analyst for mentoring and more on-the-job training. Work in the early stages can include introducing a new product or improving a control.

Advancements in technology now enable companies to trade across multiple product areas and regions, increase the volume and speed of processes and transact instantly. Because of this, however, the sheer volume and extreme time sensitivity of transactions means that work can be challenging.

Excellent numeracy and analytical skills are needed for assessing and analysing transaction cycles, as well as generating contingency plans. A keen eye for detail and foresight to spot potential problems before they happen, along with exemplary communication and listening skills for interacting with numerous internal and external parties, are also valued.

Keeping up with the latest developments in the financial services industry, such as regulatory changes and technological innovations, is vital. Because this line of work relies heavily on emerging technologies, learning quickly on-the-job and staying flexible in decision-making and scheduling are also crucial.

Pros and cons Tr o u b l e s h o o t i n g problems even before they happen keeps professionals on their toes.

Many firms also encourage selfimprovement among operations staff, with plenty of opportunities to forward their ideas for the enhancement of certain controls of the company and department.

However, on the other hand, there’s also the chance these ideas may not be actively implemented or even left on the back-burner.

Finance Career Guide 2023

Banking and Investment Area of Work

Private Wealth Management

48

Take charge and manage the finances of high-net-worth clients.

is essential, along with patience for handling difficult clients, as well as communication and interpersonal skills. Language skills are also highly valued in such roles, with multilingualism seen as a huge asset.

A finance-related degree isn’t needed for other aspects of private wealth management as well, though some firms may want newcomers to obtain specialised certifications – such as a master’s in wealth management – before allowing them to climb past a certain point on the ladder.

Strong numerical and analytical skills are important too, along with self-motivation and a willingness and capacity to work in a team. Most importantly, hopefuls need to encompass trustworthiness and discretion when handling clients’ investments.

P

rivate wealth management, also commonly known as private banking, deals with high-net-worth individuals, along with the occasional small-business owners. These clients typically look for specialised services that cater to their distinctive needs as they have a larger-thanusual amount of wealth.

These services include planning and investment management, along with advising on matters such as tax, retirement funds and family trusts. Clients tend to possess diverse portfolios across a number of industries, and thus servicing them requires customising and tailoring exclusive solutions for specific individuals. This is something that can only be achieved with in-depth, specialist knowledge of each client’s investment options and the industries within.

Private wealth management can be split into two main areas – advisory and discretionary. For advisory services, managers advise their clients on decisions to maximise returns, so that the individuals can act accordingly while maintaining direct control over their portfolio. Discretionary services, on the other hand, involve a meeting between a client and manager to discuss an overall strategy which the bank will execute, through effective day-to-day decisions, to achieve that aim.

Finance Career Guide 2023

General overview There are three types of roles in private banking – relationship management, investment and support.

Relationship managers have to identify clients’ needs and problems to offer them solutions from the bank. Developing and maintaining a good rapport with clients is vital, and promoting the bank’s services is at the heart of what relationship managers do.

Investment specialists, on the other hand, analyse the market and provide investment recommendations to clients that relationship managers bring in. In discretionary capacities, they can make investment decisions for the clients.

Investment staff also liaise with other product specialists in the bank to get expert advice on certain assets or investment options.

Support functions help investment professionals manage client portfolios and research new commercial ideas. It also includes compliance, operations, HR and accounting.

Required skills For those looking to work in relationship management, a degree with strengths in marketing, sales, or public relations is a plus.

Some knowledge about the financial market

Pros and cons Private bankers enjoy certain insights other roles in the industry may not have access to. As high-networth clients use such services to cross-invest their assets, many get to observe, and occasionally even participate in, various investment strategies to derive the most returns.

Most client-advisor relationships tend to last for a long time in this industry, which often translates to good networking resources.

However, accruing a significant amount of experience in this industry is still needed before the responsibility of handling another party’s financial goals is entrusted.

As this is a highly competitive field with numerous firms and coworkers jostling for a small, select group of elite high-net-worth clients, be prepared to work incredibly hard in order to advance.

Banking and Investment Area of Work

Risk Management and Control Assess trade and investment risks while ensuring traders fully understand them before making an investment.

Although postgraduate studies aren’t a requirement, some firms may take them into consideration when promoting candidates.

Required skills In terms of soft skills, excellent interpersonal and communication skills are vital as working with people from diverse backgrounds is part of the job. At the same time, good problem-solving and analytical skills are essential, as well as having a good eye for detail.

On top of that, having good negotiation skills, great foresight, knowledge about markets, commercial awareness and an ability to be forward-thinking are immensely important.

A

lthough risk management and control have similar scopes, both are rather different. While a risk professional identifies risks and evaluates impacts before proposing ways to minimise risks, a risk and control manager instead assesses risks and consults with clients.

Both, though, have to ensure that any potential risks associated with trade or investments are understood by clients, and matches their risk appetite. A typical day for both can involve a diverse mix of surveying sites, conducting risk analyses, helping to flesh out preventive recommendations, creating reports and interacting with clients.

General overview In this lucrative and challenging sector, recruiters generally prefer applicants with industry-relevant degrees – such as in business, law, economics, or management. Mathematics and sciencebased backgrounds are well-liked too.

Many employers are also giving increasing importance to relevant work experience, so obtaining an internship can afford an advantage.

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 as they assist their colleagues with their tasks. Mentors are also assigned to graduate hires to guide them along in their work and oversee their progress within the organisation.

There’s a range of external training courses available for career advancement purposes, and professional qualifications are needed if there’s an intention to specialise in particular areas, including technology and fraud.

Pros and cons Professionals must be prepared to work under great pressure and stress, especially in times of crisis or big acquisitions, trades and investments. Work can also be extremely fast-paced, and hopefuls need to be highly adaptable to succeed in this sector’s rapidly changing environment.

A lot of work is also dependent on systems, so it can be timeconsuming if the required technology is inaccessible and evaluations have to be done manually instead.

Additionally, staying up-to-date on new products, such as marketlinked investments to ensure risk management and control remains pre-emptive and not reactive, is an important part of being in this line of work.

Finance Career Guide 2023

49

Banking and Investment Area of Work

Specialist Markets

50

Choose a particular sector or client base to develop your expertise and knowledge in.

Required skills

S

pecialist market teams are usually experts in their fields, and cover a broad range of tasks from assisting clients in specialised sectors with investment and financing strategies, to mergers and acquisitions between companies within a certain sector.

Graduates will be required to deal with different volumes of financial products, determined by the size of the organisation. After all, a bigger firm may cater to a whole range of sectors, dominating several niches at one time, whereas smaller boutique consultancies focus on servicing several sectors in an area of specialisation.

A big part of this job lies in understanding clients’ businesses and the sectors they operate in, utilising that knowledge to look for a way to bridge the two. As a result, it’s necessary to start by recognising a client’s needs and wants in terms of the assets that they possess, their goals and the steps they are willing to take before advising them.

Finance Career Guide 2023

General overview Newcomers usually begin with some training in the firm’s products and general investment banking services, though specialist knowledge will be picked up through accumulated on-the-job experience, as well as learning from more experienced seniors.

Depending on the size of the organisation and the number of sectors they cover, rotations to service multiple sectors may be included to gain broad based understanding of how things operate.

Following that, new hires generally move on to conducting research and preparation of presentations and models for client meetings, as well as analysing clients’ companies.

Joining discussions to generate ideas and solutions for clients will become the norm after more experience is gained, and once established, they may even be assigned as the person in-charge during mergers and acquisitions.

Upon becoming a senior member of a specialist market team, graduates will be called upon for expert consultation by CEOs or board members at client companies.

Besides an eye for detail and good IT, numerical and analytical skills, great written and verbal communication skills are needed; the task of explaining complex data in easy-to-understand language in board meetings or even conferences often falls to statisticians.

They also need to understand how the data they’ve generated is used by clients or organisations, and then present the information in the most appropriate way for each application.

For instance, a statistician may choose to present a simple infographic to a client, and submit a detailed report within their organisation.

Pros and cons Demanding clients with unrealistic expectations are, although uncommon, still a possibility, and professionals will need patience and tact to deal with them diplomatically. Moreover, with each project bringing different deadlines and peak periods, working hours can be rather unpredictable as a result.

On the upside, individuals in specialist markets teams will have the leeway to build a wealth of contacts and knowledge, which can be useful for a future career in consultancy.

Banking and Investment Area of Work

Stockbroking

51

Deal and be involved in the trade of securities, such as stocks and shares, on behalf of clients.

Required skills

S

tockbrokers usually have various clients ranging from individuals to large corporations, and it’s their responsibility to manage and monitor the investments made for them. There are generally three types of stockbroking services: advisory, where a stockbroker only offers advice on investments; execution-only, which means they only buy and sell securities at a client’s instruction; and discretionary, where full control is given to a stockbroker to trade and make decisions on a client’s behalf.

Besides an ability to manage stress well, recruiters keep an eagle eye out for strong mathematical, analytical and decision-making skills as stockbrokers not only have to keep a close eye on the stock market, but make good trading decisions as well.

The changing industry has also brought about a shift towards an advisory consultant role, so having great etiquette with client interaction, being persuasive during negotiations and having good people skills will give candidates an advantage. This will also stand them in good stead when they begin fostering good relationships with clients and assuaging any concerns about investments.

General overview Although employment is readily available in financial institutions and brokerage firms, under local regulations, hopefuls still must obtain licences from the Institute of Banking and Finance (IBF) before entering the industry.

While anyone with a graduate degree and the right experience can be a stockbroker, employers sometimes prefer numerate, business, financial, or management degrees. Once hired, graduates will normally start out by shadowing a mentor to gain experience.

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 and high return securities, brokers are now akin to financial advisors who offer full-service financial planning services.

Pros and cons Fourteen-hour days aren’t uncommon and the stakes can be incredibly high – but financial rewards earned in commissions on each transaction made can be impressive. Additionally, ambitious individuals will be able to take on a lot of responsibilities, and still find plenty of room to advance upwards.

On the flip side, income is largely dependent on the movement of the markets, so profitable trades can be hard to come by in a downturn or recession.

Finance Career Guide 2023

Banking and Investment Area of Work

Structured Finance

52

This line of work gives graduates the chance to become recognised experts early in their careers.

market, experts on financing the building of communication infrastructure and professionals well-versed in engineering development within the sector and how they affect the industry.

Required skills As recruiters look for a hunger to win, innovate and find interesting solutions to complex problems, graduates are regularly brought on for their attitude. Training for aptitude is provided, and sector expertise and financial structuring knowledge can be picked up. Good analytical skills are crucial, as situations have to be dissected quickly and small details caught in order to bring about a creative solution – or jeopardise risk analyses. As there is much client-facing time, good communication skills are also essential here.

A

branch of the banking and investment field that specialises in customising financing solutions for companies with unique financial needs, structured finance looks at requirements that fall outside the category of conventional business loans or financial market instruments. To that end, it can cover a comparatively extensive range of instruments such as debt and equity capital, and even mezzanine financing.

Structured finance works by creating liquidity and “safe” assets from risky instruments for a business organisation.

The risk is transferred to different parties involved in the transaction through amounts that are acceptable to them, and with returns proportional to the extent of risk a stakeholder is willing to stomach.

Financiers start by sussing out specific requirements of a client’s transactions, assets, or projects – all while gaining a good understanding of their risk appetite through rigorous risk analysis.

This involves a thorough examination of all the issues which might affect a transaction, as well as complex modelling of forecasted performance to see how external factors such as commodity prices can influence profitability. Only then can Finance Career Guide 2023

they personalise a suitable combination of debt and other products to help finance the client’s business successfully.

General overview Hiring managers looking to fill structured finance roles typically draft selected members who demonstrate an aptitude for this area from the organisation’s graduate trainee programmes. However, they do sometimes run recruitment drives to hire graduates directly.

It’s commonly expected for individuals to specialise in a particular area after some time, so some opt to pursue a specialised postgraduate degree before entering the field in order to gain a more solid understanding of their chosen business sector in advance.

Work is usually done in teams of five to 20 people, assembled ad hoc under the leadership of an experienced deal leader for a specific transaction. Most of the time, the deal leader will bring in an eclectic combination of specialists from different sub-sectors so as to get a variety of viewpoints on the issue at hand.

For instance, in the case of a telecommunications team, the team leader will want – among many others – specialists who understand the consumer

Pros and cons In structured finance, hopefuls can become recognised experts in specific fields or sub-sectors. It’s an area of work for those who enjoy thinking out of the box, having to tailor debt packages and other financing instruments to fit clients’ specific needs.

Overseeing deals from start to finish promises satisfaction. In addition, as graduates normally work in teams, there’s a need to contribute in all aspects, including managing individual processes and finding experts from various areas to help close the project successfully.

However, because this area of work is project-based, employees may find their working hours to be uncertain.

FINANCIAL SERVICES

FINANCIAL SERVICES

Get acquainted with the financial services sector, its areas of work and what you can do to prepare if you want to pursue a career in this arena.

Sector Essentials At a Glance: Financial Services

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Choosing Your Role and Company in Financial Services

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Different Ways to Get into the Finance Industry

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The Financial Service Alphabet

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Sector Essentials Actuarial Science 63 Insurance 64 Insurance Underwriting 66 Retail Banking 67 Statistics 68 Wealth Management 69

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Financial Services Sector Essentials

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Financial Services

AT A GLANCE

About the Industry

Must-have Skills

Getting In

In this guide, “financial services” encompasses a wide variety of roles in the financial sector, all of which have a direct effect on daily life.

While monetary remuneration for financial services is normally not as high as in the investment banking industry, it’s still attractive and comfortable.

Working hours are also less intense, and a healthier worklife balance can be achieved.

Moreover, according to the financial services industry transformation map (ITM) unveiled in 2018, plans to develop Singapore into a leading international wealth management hub and full-service Asian infrastructure financing hub will create an estimated 3,000 jobs a year.

The financial services sector also grew by five per cent in the first six months of 2020 despite the ongoing impacts of the pandemic.

Numerical abilities, critical thinking and analytical skills don’t automatically translate to success in financial services.

As it stands, a finance-related degree isn’t even a prerequisite for most positions in the sector; a genuine interest in client service and a willingness to work with numbers are more important to make a good start.

Once you’ve entered the field, you’ll quickly find that it allows you to build a broad range of transferable skills, preparing you for managerial roles across different areas of work in the future. Many aspects and roles in this expanding industry are serviceoriented and clientfacing, though, so skills in communication, customer service and negotiation are vital. In addition, problem-solving, leadership, teamwork and time management skills are essential as well, along with an eye for detail.

Due to the vast spectrum of job roles in the arena, it’s generally open to graduates from different backgrounds, so there’s no need to worry if you lack relevant work experience or a degree related to finance. Most employers offer structured training too, ensuring you’re up to speed in any technical areas on top of working on your soft skills.

New hires can look forward to orientation and onboarding programmes which will provide broad-based knowledge and give them a good understanding of the key functions, core values and ethics of the company, and what drives their operations. Many firms will also match you to a mentor to help you make the most of your opportunities, as well as a buddy to provide support.

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Financial Services Sector Essentials

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Areas of Work The numerous different jobs available guarantee that there’s always something to suit everyone. Here are some key paths:

Retail banking

Insurance

Retail banking, or consumer banking, is mass-market banking that aims to serve individuals in local branches with savings and checking accounts, credit cards, mortgages and personal loans.

Professionals seek to protect both individuals and companies against potential financial risks by helping to safeguard clients’ financial assets in the case of an unexpected event.

Regulatory work

Actuarial work

Financial regulators not only oversee financial markets to create safe and fair services for all, but also ensure trust in the economy. The Monetary Authority of Singapore (MAS) supervises all financial institutions in the country and acts as a watchdog.

Actuaries predict and assess the likelihood of an event and evaluate its financial risk through the use of data and statistical techniques.

After processing these results, they communicate key findings to clients and stakeholders.

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Financial Services Sector Essentials

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CHOOSING YOUR ROLE AND COMPANY

In Financial Services Discover which role and company in the financial services industry are the best fit for you!

Firms in the industry

Employers include institutes that provide specialised financial services much like actuarial consultancies and underwriting, retail banks such as OCBC Bank and insurance establishments much like NTUC Income.

In larger corporations, new hires tend to be placed on rotational schemes where they gain a broad understanding of the company business by experiencing a variety of work in different departments. On the other hand, joining a smaller enterprise offers more flexibility and ownership over your work, a potentially friendlier environment and exposure to senior management that could accelerate your learning.

The MAS and Ministry of Finance (MOF) are regulatory bodies, ensuring compliance is observed in financial transactions and activities.

Finance Career Guide 2023

The idea candidate

As retail banks in Singapore continue to adopt sophisticated methods, such as data mining and predictive data analytics, datasavvy applicants who also boast strong IT skills are in demand. And with the digital transformation creating an increasing impact on the financial services industry, banks and financial institutions are reinventing their client services strategies.

For instance, instead of queuing up at banks or ATMs to withdraw cash, more people are opting for cashless payment methods such as mobile banking. Other than catering to the younger generation, who have new expectations of accessibility to banking and financial services, firms see themselves as bearing the partial responsibility of making sure no one is left behind in the digital transformation journey.

On top of skills like analytical thinking, te a mwo r k and communication, the ability to innovate and provide fresh perspectives are valued by organisations who wish to stay relevant in today’s society.

Customer service remains one of the most important aspects – besides kindness and empathy, market intelligence and analytical skills are required to offer valueadded services to ensure customer satisfaction.

For example, having exemplary persuasion and negotiation skills aren’t enough for a financial services consultant; applicants would also need to be able to see things from the client’s perspective, identify their individual needs, devise corresponding financial planning strategies, and help clients make informed decisions.

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Working in the industry

The arena is dynamic and competitive, and you’ll have the opportunity to take ownership of your work, gain management responsibilities early on and still be paid handsomely. Compared to investment banking, the financial services sector guarantees a much healthier work-life balance and is very suitable for those who like to work hard and play hard!

However, a 2020 survey reported that between 2018 and 2020, the already low level of trust in Singapore’s financial services industry plunged even further, highlighting that a lot of work needs to be done to build transparency and credibility in client relationships, and for the overall industry.

Last but not least, if you decide to pursue a career as an actuary, bear in mind that employees are often required to balance fulltime work and challenging studies when attaining professional qualifications in order to progress in their careers.

Roles available

There are many career possibilities, including but not limited to: • • • • • • • •

Actuary Bank teller Branch manager Insurance broker Loss adjuster Product manager Risk manager Underwriter

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Financial Services Sector Essentials

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DIFFERENT WAYS TO GET INTO

The Finance Industry

Financial services extend numerous opportunities to think out of the box – but not many know that just getting into the sector itself is a chance for graduates to flex their creativity and create their own moments and prospects.

W

hether you’re looking for a graduate job or an internship, the financial services industry is a competitive field. To that end, getting something outstanding on your resume may go a long way in helping you gain some prominence amid a sea of other applicants, even as you cultivate some experience and knowledge!

Attending career fairs Apply speculatively Smaller financial institutions, which typically specialise in actuarial works or insurance loss adjustments, generally don’t have structured graduate or internship programmes, so one way to ask about available positions is to speculatively send in your resume along with a cover letter.

State who you are and what you’re looking for – such as shadowing or work experience – as well as your relevant experience and what skills you can lend the company. While you should mention why you chose that particular company, ensure your resume and cover letter are concise and to the point, as recruiters may not have the time to go through a protracted application.

Moreover, remember to call the company ahead of submitting your application to ask who you should send and address it to – applications sent to a specific person tend to have a higher chance of being reviewed.

There are numerous benefits to applying speculatively, such as potentially expanding your network, showing a prospective employer your genuine interest and getting the opportunity to develop your acumen in a specific area of the industry.

Finance Career Guide 2023

Career fairs give students and employers a platform to mingle and network, while also allowing students and graduates to take a good look at the diverse opportunities and positions available. However, due to the pandemic, educational institutes have moved onto virtual platforms to continue hosting fairs for prospective students.

Attending a career fair will get you acquainted with recruiters and help you build your network – and will also show prospective employers your commitment to joining the industry.

Entrepreneurship Firms are always keeping an eye out for students with skills in entrepreneurship, and those who set up small businesses while in university usually end up impressing them.

Although these ventures aren’t usually very big, they still show prospective employers commercial awareness, problem-solving and planning skills, business intellect and an ability to budget.

Not only will running a small enterprise give you something interesting to talk about in interviews when you’re looking for a graduate job, but you’ll also be able to make some extra cash for yourself!

Financial Services Sector Essentials

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Be a treasurer All university clubs and societies need treasurers. And if you’ve stepped into the role, potential employers will be able to infer that you’re not just a team player, but also capable and skilled enough to take the needs of an organisation into consideration, while also managing and handling their budgets and money.

Other skills the role of a treasurer will instil in you is communication, time management, problem-solving and commercial awareness – skills employers in accounting and financial management look out for.

All in all, this position will grant you experience relevant to the industry that can be added to your resume, and also give you something to talk about in interviews.

Joining or starting a network If the opportunity to join a group interested in financial services presents itself while you’re in school, you should take it and start building your network. But if you don’t want to restrict your membership to your location or campus, keep an eye out for similar groups on social media platforms, such as LinkedIn and Facebook.

If you can’t find any, consider starting one of your own. This will not only showcase your initiative to future employers, but also grant you the opportunity to meet other professionals and students you may not have crossed paths with.

Getting the chance to meet and talk with others who share similar interests is just one benefit – the chance to network and show your genuine commitment to a career in the financial services field is another.

Getting an overseas internship Nabbing an internship out of the country can give you a head start over other graduate hopefuls. And for the duration of the application process, the skills and experiences you picked up from your time abroad can definitely set you apart.

In addition, employers will be able to perceive your adaptability, confidence and commercial awareness, as well as global and communication skills.

Other benefits of getting an internship overseas are, among other things, expanding your network to include international contacts and employers, and the chance to develop a variety of transferable skills. Be warned though, with the aftereffects of the coronavirus pandemic still being felt worldwide, the opportunities for overseas internships are currently limited.

Mentoring Look for a mentor with experience in the area you wish to enter, and who can help you form your network even as they counsel and encourage you. They can be a seasoned professional or a graduate trainee, either clueing you in on what skills recruiters and employers want, or guiding you through the application process with different employers.

Whatever it is you’re looking for, you don’t have to restrict yourself to just one mentor – if you have a few mentors, you’ll be able to glean more from their different experiences.

However, as professionals in the industry usually keep hectic schedules, you may want to start with alumni or family (or even their friends). You can also consider social media platforms such as LinkedIn, and even networking events – though if you want to follow this route, you should express your desire for a mentor and intention to keep in touch.

One of the advantages of having either a mentor (or several mentors) is getting the guidance you need from working professionals in the area you want to join first-hand.

Furthermore, you’ll also get the opportunity to leverage on their network and pick up some pointers on how to make yourself more attractive to employers.

Finance Career Guide 2023

Financial Services Sector Essentials

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THE FINANCIAL

Services Alphabet Impress employers and colleagues alike with your familiarity of financial services terminology from A to Z.

A Arbitrage The practice of making a profit from trading on two markets simultaneously.

Such trades profit by exploiting price differences of similar financial instruments on different markets or in different forms.

Example If the price of wheat in Indonesia is lower than in Singapore, buying in Indonesia and simultaneously selling in Singapore will allow you to earn in the difference.

In a financial context, if the stock of company X is traded at $10 on the Singapore Stock Exchange (SGE) while it is simultaneously trading on the Indonesian Stock Exchange (IDX) for $10.50, a trader could exploit this arbitrage by buying the stock on the SGE and immediately selling the same shares on the IDX.

Example

Example

The recession following the great Wall Street stock market crash in 1929 can be referred to as a bearish market. With investors struggling to get out of the market by selling their stocks, the market incurred huge losses which led to a sustained decline in the economy, known as the Great Depression.

Imagine your deductible is $500, but you incur medical expenses for $2,000. In this case, you’ll pay the $500, and your insurer will pick up the remaining $1,500. However, if your entire medical bill is $500 or less, you’ll pay the entire amount and your insurer will pay nothing.

C

E Elevator pitch

Coupon No, it’s not the coupon you redeem.

Instead, this coupon refers to the annual interest rate due on a debt product, such as a bond or a loan. You wouldn’t be quite as happy to receive this kind of coupon!

Example A $1,000 bond with a coupon of five per cent pays $50 a year. Quite often, these interest payments are semi-annual, whereby the investor receives $25 twice a year.

A brief speech or presentation that outlines an idea for a product, service or project, it’s delivered in a short period of time – as short as an elevator ride, which is usually about 20 to 60 seconds.

Example If you’re looking to market your product and present it as something worth investing in, you’ll want to use an elevator pitch to get straight to the point in order to capture the client’s attention.

B Bear market If you’ve heard of the banking term “bear”, you can most likely guess what a bear market is. A bear market is any market where securities prices exhibit a declining trend for a prolonged period of time. Since bears attack by clawing down, this term is associated with a falling market.

Finance Career Guide 2023

D

F

Deductible

Fixed term

The amount of money an insured individual pays before insurance kicks in.

An investment vehicle, usually in the form of a debt instrument, that has a fixed time period of investment. A fixed term investment has the investor parting with his or her money for a specific period of time. The principal investment is later repaid to the investor at the end of the investment period.

Financial Services Sector Essentials

Example

Example

A term deposit is an example of a fixed term investment, where investors deposit their funds with a financial institution for a specified duration. Until that period of time has elapsed, they’re forbidden from withdrawing their funds from said institution.

The insurance company agrees to indemnify – used as a verb – the policyholder against any claim arising from a breach of professional duty.

G Ghosting An illegal practice wherein market makers collectively attempt to influence the price of a stock. Corrupt companies engage in this to profit from the price movement.

Example When a firm buys or sells a large amount of a certain stock with a second firm doing the same and causing a buy or sell frenzy, the two firms ghosting – who are supposedly competitors – can then profit as the market is unaware of their collusion.

J

Honeypot A security measure used in banking security to detect, prevent and dismantle cyberattacks by luring the perpetrators to a specific area of a computer system.

The term is taken from the idea of a bear stealing honey from a honeypot, which serves as a temptation for the bear.

Example Banks lay traps for cybercriminals trying to hack into their information systems using honeypot software.

I

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Middle office This is the area or function of a bank that doesn’t generate profit, but instead supports the front office in financial and legal matters. In essence, the middle office is responsible for managing risk and ensuring all transactions are executed correctly.

Jointly and severally A legal term that describes the liability of a group of people bound together by an agreement, often in the context of a loan. In short, all parties are obligated to perform as required under contract, under any proportionality.

Example If a bank loans $500,000 to three people jointly and severally, then all three individuals are responsible for repaying the total amount of the loan to the bank.

K Keep and pay

H

M

An allowance that lets a bankrupt individual keep an asset under the condition that they continue to make payments.

Example Keep and pay allows you to not have your home repossessed, although the bank could still liquidate that asset if necessary.

L

Example The treasury is part of the middle office, alongside the legal and risk management departments.

N Nearshoring The practice of outsourcing work to companies in another country, but with the benefits of a closer offshore location.

Example In Singapore, nearshoring to Indonesia is better than offshoring to China because of the country’s proximity. This not only makes contact easier, but it’s also more efficient and reduces running costs.

O Opportunity cost A benefit that a person could have received, but gave it up to take another course of action. In other words, it’s an alternative given up when a decision is made.

Lapse

Example

The non-renewal or cessation of a privilege, right or policy as a result of inaction.

When making big decisions much like investing in treasury bonds, clients will likely diligently research the pros and cons prior to making a choice in order to outline the potential opportunity costs.

Indemnity

Example

A principle whereby the insurer seeks to place the insured in the position he or she was in prior to a loss.

An insurance policy will lapse if the holder doesn’t pay the premiums.

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P

V

Example

• Parallel loan This is a useful term for graduates looking to join the international banking segment. A parallel loan usually involves two parent companies taking loans from their respective national financial institutions before lending the resulting funds to the other company’s subsidiary.

Recourse lending provides protection to financial institutions, as they’re assured to have some sort of repayment, either in cash or liquid assets.

S • Seed capital

Example In a parallel loan, ABC, a Singaporean company, would borrow Singaporean dollars from a Singaporean bank. On the other hand, XYZ, a Malaysian company, would borrow Malaysian Ringgits from a Malaysian bank. ABC would then lend the Singaporean funds to XYZ’s Singaporean subsidiary and XYZ would lend the Malaysian Ringgits to ABC’s Malaysian subsidiary.

Q

The initial capital used to start a business that usually comes from the founders’ personal assets, or from their close ones with the aim of covering initial operating expenses and attracting venture capitalists.

A Latin phrase typically used in financial circles to describe a mutual agreement to exchange goods or services of roughly equivalent value.

Vulture capitalist

Not to be confused with venture capitalists, this kind of capitalists invest to exploit and profit from unsuccessful individuals or organisations that lack the resources to achieve success.

Example Vulture capitalists typically purchase a controlling interest in a troubled company and use its own assets as collateral for the loan used to purchase it. The vulture capitalists will then sell the company at a profit.

Example Seed capital is needed to support the preliminary activities for the launch of XYZ company, such as market research, product research and development and business plan development.

T

• Quid pro quo

•

• Turnkey business A term to describe a business that’s ready for immediate operation.

Y • Yield burning The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond.

Example Yield burning was attempted to reduce the amount of tax that was incurred on fixed-income investments.

Example Example A soft dollar agreement is a quid pro quo agreement whereby Firm A uses Firm B for research.

In return, Firm B executes all of Firm A’s trades as an exchange of services.

ABC is considered a turnkey business as it has a proven, successful business model that merely requires capital and labour.

U • Underwriting

R • Recourse The legal right for the lender to collect the pledged collateral in the event that the borrower is unable to satisfy the debt obligation.

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The process of determining whether to accept a risk or not, and, if so, what amount of insurance the company’s willing to take on as acceptable risk, and at what rate.

Example Companies manage risks and accurately price risk in order to adequately cover the true cost of insuring policyholders. If an applicant’s risk is deemed to be too high, underwriters may refuse to cover it.

Z • Zakat A term used in Islamic finance to refer to the mandatory process for Muslims to donate a certain proportion of wealth each year to charitable causes.

Example Instances of wealth liable for Zakat include gold and silver, paper currency held in cash or in the bank, tradable assets owned by a business, herded animals and crops.

Financial Services Area of Work

Actuarial Science

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Use mathematical and statistical models to conduct various types of analyses and assessments to predict and manage risks.

General overview

A

n actuary’s work revolves heavily around the prediction, evaluation and and management of risks using a combination of commercial awareness and statistical and mathematical models. They may also be invited to advise clients about findings, as well as help them develop potential solutions. As such, the job scope can be very diverse, encompassing a good mix of client-facing and calculation tasks.

Some key day-to-day responsibilities for actuaries include analysing statistical data, preparing reports and presentations, and working with IT professionals to develop and update systems that incorporate solutions to the risks. In some cases, they may even be assigned to develop entirely new financial products.

Actuaries are greatly needed in a variety of sectors, including banks and financial services organisations, insurance companies, specialist consultancies and even accounting firms and investment banks.

While hopefuls are generally required to possess sufficiently high grades in an actuarial science degree, some employers accept graduates with a background in other numerate degrees, such as statistics, economics, finance, or mathematics – if they showcase a strong understanding of the financial industry.

Graduates typically start their careers as trainees, assisting senior colleagues in their duties as they pick up the necessary skills required to advance. Hence, a big portion of time will likely be spent handling calculations and using pre-constructed models to generate financial forecasts.

As more experience is gained, greater responsibilities such as leading projects, constructing, updating and analysing financial and forecasting models will be given, as well as handling client relationships.

Many employers encourage new hires to begin studying for a professional qualification or fellowship as soon as they get on board, which often translates to a challenging time balancing work and study.

Most organisations are very supportive, offering financial assistance and ample study leave to lighten this struggle. A degree in actuarial science may exempt graduates from some of the professional qualification exams that need to be taken in order to become a certified actuary.

Upon gaining their qualifications, many actuaries tend to specialise in a specific area of interest, gaining in-depth knowledge, experience and reputations as experts in their fields of choice.

Many professionals have also found opportunities in other seemingly unrelated areas of management as well. For instance, actuaries have been known to venture into infrastructure and climate change projects, along with the healthcare and data science industries.

Required skills Actuarial careers are well-suited for those who have excellent numeracy skills, possess an analytical mind and have a keen eye on the future. Skills in problem-solving, research and analysis are vital as well.

As the job scope includes presenting data and solutions to clients – most of whom possess a minimal understanding of actuarial science – good interpersonal, communication and presentation skills are important. Accountability is also crucial as actuaries need to diligently follow up on clients throughout the process of implementing solutions.

Actuaries should also be flexible, adaptable and able to handle ambiguity as the job scope can be very diverse, with ad hoc tasks and projects regularly coming up.

Pros and cons Actuaries are involved in a variety of tasks and industries, making the job an extremely interesting and challenging one. This is made even more exciting by the rapid development of IT and technology, leading to new risks and need for creative solutions.

Many also enjoy steady career advancement and attractive remuneration, especially upon obtaining a fellowship from a recognised actuarial association.

However, the workload can get stressful and may lead to longer working hours – especially when the pursuit of a fellowship is concerned.

Finance Career Guide 2023

Financial Services Area of Work

Insurance

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A highly diverse field with a constantly changing work environment.

•

Business development, business finance and sales graduate roles While responsibilities for this position vary according to the employer’s area of specialisation and expertise, working in the business division usually involves a mix of duties such as promoting services to potential clients, and identifying and following up on new opportunities.

• Graduate insurance broker Insurance brokers help clients match their needs with the most suitable insurance products for the best premiums.

•

C

areers in the insurance industry may be immensely wide-ranging, but they ultimately revolve around the safeguarding of an individual or entity’s financial assets in the event of an unexpected occurrence.

General overview There are a number of positions that graduates can look forward to in this sector. Here are some of the more popular ones: • Graduate underwriter Underwriters are responsible for determining a client’s eligibility for a policy, additional terms and conditions that are part of the plan and the premium the client has to pay.

Finance Career Guide 2023

•

Actuaries advise their clients and help them forecast and manage financial risks through the application of financial and statistical theories.

Claims management trainee As part of the insurance claims department, trainees are involved in assessing the validity of submitted claims, as well as liaising with policyholders to ensure that the repayment process is completed as safely and efficiently as possible.

• Trainee loss adjuster The job scope of a loss adjuster is relatively similar to that of an insurance claims handler – both check the validity of a claim and establish the causes of a loss, among others – except they typically work as an independent third party, and are attached to specialist practices instead of insurance companies.

Insurers generally seek the services of loss adjusters, instead of claims managers, for more complex claims.

Trainee actuary

•

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 regulatory compliance.

• Operations management This role is primarily responsible for managing and encouraging the customer service department.

Financial Services Area of Work

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Variety of products The type of work involved greatly depends on the employer’s area of speciality in terms of products offered.

The following are the main types of insurance products: • General insurance This encompasses the different types of insurance policies save one – life insurance.

•

Commercial and corporate insurance Crafted specifically for business organisations, it protects entities against unforeseen events such as theft, property damage, liability, or other disruptions to their day-to-day operations.

• Life insurance Life insurance is purchased as a form of financial protection and aid for named beneficiaries in the case of a premature death.

•

Personal insurance Consisting of a range of insurance contracts that protect an individual financially in the event of a misfortune. Common examples of this type of insurance include policies for personal automobiles, properties and illnesses.

• Reinsurance Usually purchased for insurers, it acts as a risk management strategy. For example, if an insurer foresees itself encountering a financial strain due to unexpectedly large pay-outs, they may opt for reinsurance as a method to mitigate that risk.

Keep in mind, though, that the insurance industry is always expanding, and that these are only basic products.

To score at job interviews with insurers, it’s important to read up on other unique offerings the company has too!

Support functions Insurance institutions typically require a wealth of expertise to support their core business, such as technology specialists, marketing and HR personnel.

Although insurance companies make up the majority of employers, insurance brokers, retail banks and supermarkets welcome graduates interested in this field as well. Specialist consultancies, where specific roles in life insurance or loss adjustment are carried out, are other options.

Many large employers offer training or graduate schemes to facilitate adaptation to the new working environment. These schemes tend to be rotational in order to provide diverse experiences to help graduate hires understand the company better. On the other hand, others rely on on-the-job training, as well as formal or informal mentorship programmes with senior team members.

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

Generally, most employers state a preference for numerate, business or management-related degrees. While this is especially true for actuary positions, graduates from all degree disciplines are still welcome to try for other roles.

Employers may also urge new hires to sit for examinations conducted by professional bodies as the certifications obtained are vital for career progression.

Pros and cons If interested candidates find meeting new people and working in a stimulating environment greatly enjoyable, this could be an industry worth exploring.

However, be aware that certain positions can be deskbound with relatively little variety, such as that of the underwriter. On the other hand, an insurance sales representative can look forward to a lot of travelling opportunities when the world reopens post-pandemic.

Finance Career Guide 2023

Financial Services Area of Work

Insurance Underwriting

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Determine a client’s eligibility for an insurance policy and the amount of premium to be paid.

Required skills

E

ssential to the insurance industry, underwriters analyse insurance proposals for risk, write policy terms and calculate the amount of premium a client is to pay using actuarial, statistical and other relevant information.

Evaluating the amount of risk associated with any insurance policy is complex as it requires good judgment from an underwriter with a keen eye for detail. Moreover, it’s an underwriter’s responsibility to ensure that customers receive competitive quotes worth considering, all while maintaining the company’s profit margins.

Finance Career Guide 2023

General overview While underwriting is open to graduates of any discipline, those of a certain background are at an advantage, as employers prefer underwriters with numerate degrees such as finance, accounting, mathematics, or economics, though law or business degrees.

Some recruiters may even require specific backgrounds for some vacancies – for instance, a science-based degree, such as biology, may be required to write life insurance policies.

Although graduates usually start out as junior underwriters or assistants in insurance agencies such as AIG, Manulife, AXA, Allianz and Etiqa, certification through coursework is a must for career progression to senior underwriting positions, more specialised areas of underwriting, or management.

Career progression also hinges on an underwriter’s capability to evaluate risk and build relationships with other departments, such as the actuarial division. Keeping abreast of new insurance policies and products, regulations and technology is also vital.

Detail-oriented graduates will find their talents being put to good use in this role, though numeracy, analytical, writing and IT skills are needed as well.

Because an underwriter is also responsible for the preparation of the terms and conditions of the insurance policies, they may occasionally liaise with insurance brokers and clients. Thus, strong interpersonal skills are essential, too.

Pros and cons On top of offering a friendly environment, there are many opportunities to build relationships between both colleagues and clients. On top of that, remuneration is also fairly high.

The position isn’t suitable for candidates who dislike routine and structure, though! Moreover, due to rapid advancements in technology, demand for underwriters is slowly declining. So, if you want to truly stand out for that spot, having extensive knowledge, experience and skills will be necessary.

Financial Services Area of Work

Retail Banking

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Serve customers and help them meet their daily financial needs.

– or horizontally, where transitions from managing products such as mortgages and personal loans to a different division, such as private banking, are typical.

Interested applicants can also consider obtaining professional diplomas or other qualifications to boost their career progression. Otherwise, mentors can be consulted for ideas on how career development can take place.

Required skills

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etail banks provide consumers with a variety of financial products and services that range from bank and savings accounts, mortgages, loans, personal credit products and remittance services.

Some retail banks even offer services such as stock brokerage, insurance, wealth management and private banking – although these are usually delivered through another division or an affiliate of the bank. As such, while most cases follow a regular 9-to-5 shift, certain roles may require hopefuls to pick up graveyard or weekend shifts.

However, with the finance industry rapidly adopting fintech innovations and solutions, it has become necessary for retail banks to continuously adapt their services and facilities to better serve their customers.

That includes rethinking features such as mobile banking services, online security measures, new products and collaborations, as well as customer service.

Like many sectors of the finance industry, the retail banking field is regulated by the Monetary Authority of Singapore (MAS).

General overview There are diverse opportunities for graduates, ranging from risk management and compliance to marketing and IT.

Many major banks run specialised graduate programmes to recruit potential candidates to their function of choice, and management associate programmes are especially popular.

Most graduate programmes are rotational in nature and span a total of two years, giving new hires the opportunity to experience different areas of work within the department to gain an understanding of the organisation’s business as a whole.

Besides learning on-the-job and through formal training programmes, successful candidates may also be attached to a mentor to guide them along their various responsibilities as they move from one department to another. Assignment to a role most suitable to an individual is usually done upon graduation from the programme.

Depending on the company’s programme, graduates may be put in charge of managing small-scale projects, be involved in creating new 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 hopefuls climb up the corporate ladder to take on managerial positions

Employers generally welcome hopefuls from any academic background unless the position requires specific technical skills.

So, to be a standout applicant in this highly competitive sector, focus on developing soft skills, particularly in project management, teamworking, communication and interpersonal skills.

As most job scopes in this industry revolves around assisting customers with their inquiries, having good customer-facing skills is crucial. Aside from that, having excellent organisational and management skills will also stand graduates in good stead, alongside retail awareness.

Pros and cons Retail banking is fast-paced, exciting and offers a relatively good worklife balance. In addition, excellent benefits such as lucrative year-end and additional bonuses on top of varied growth opportunities make working in this sector extremely attractive.

However, be aware that this field can also be relatively stressful during crunch time, such as the launch of a new product. The working environment is quite structured as well, with plenty of red tape in place.

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Financial Services Area of Work

Statistics

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Serve customers and help them meet their daily financial needs.

Required skills

A

discipline that encompasses the collection, analysis and interpretation of quantitative data by using scientific methods to design data collection methods, statisticians can determine the best way to process the information collected and decide how to best interpret it.

Statisticians are also able to use data to make forecasts and provide projected figures about any given project, investment prospect, or business. It’s a researchbased role that has broad applications in various industries such as market research, government departments, hospitals, newspapers, development and finance, among others.

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General overview As this is an immensely difficult area to get into – candidates need to be highly qualified to become statisticians – doctoral studies may be needed for career progression.

On the other hand, keep in mind that while master degrees in computer science, statistics and maths are typically needed to enter, they may not be a requirement, depending on the sector.

Successful applicants will likely have to go through graduate rotation programmes in order to understand the company’s business before settling into the position with a mentor to provide guidance. Onthejob training generally lasts between six months to a year.

With work mostly revolving around analysing and interpreting data, as well as supervising and managing others in the collection of data, career progression will more likely than not solely hinge on performance.

Besides an eye for detail and good IT, numerical and analytical skills, great written and verbal communication skills are needed; the task of explaining complex data in layman terms in board meetings or even conferences often falls to statisticians. They also need to understand how the data they’ve generated is used by clients or organisations, and then present the information in the most appropriate way for each application.

For instance, a statistician may choose to present a simple infographic to a client, and submit a detailed report within their organisation.

Pros and cons On top of high remuneration, work done has valuable contributions to important, life-changing industries, such as collecting and analysing crucial data for government agencies to improve public services.

Just about every industry also requires statistics and data of some kind, and there are plenty of employment opportunities in both the private and government sector. This translates to flexibility in switching to a different sector, and having plenty of room for growth.

However, on the other side of the coin, it can be incredibly hard to enter this field due to the high level of skills and knowledge needed.

Financial Services Area of Work

Wealth Management

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Trusted advisers who manage a range of financial responsibilities for high-networth clients.

Required skills

A

side from providing professional services in investment advice, wealth management also comprises of services in financial advice, banking, accounting and tax services, retirement planning and legal or estate planning for high-net-worth clients.

Because this area of work involves a holistic approach to all parts of an individual’s financial life, high-net-worth persons don’t require more than a single wealth manager to coordinate all financial services vital to managing their assets and meeting current and future financial needs.

General overview Not all wealth managers work in banks – positions can be commonly found in SMEs, and some may even be self-employed.

However, in banks, professionals typically only recommend financial products provided by the bank they work for, instead of products available on the whole market.

Graduates generally start off with a role in the back office as an administrator or paraplanner, either supporting the company’s business or conducting research on the best products on the market to recommend to clients. Gradually, hires will rise up the ranks and progress into a wealth management role. Alternatively, hopefuls may enrol into a graduate scheme.

While it’s possible for individuals to switch from professions in accountancy, law and other financial services to wealth management, it’s also worth noting that recognised professional qualifications – much like the CFA designation – may be needed to boost progression and move into a chosen area of specialty, such as client relationship management or investment.

Studies will have to be balanced alongside work.

Although recruiters accept applications from all disciplines, numerate degrees in economics, accounting and finance will put candidates at an advantage. Business and law degrees, as well as courses in risk management, investment and taxation will also catch recruiters’ eyes. Solid mathematical abilities are also a must.

Excellent interpersonal and communication skills are key as wealth managers need to be able to explain complicated matters in a simple and clear manner to clients. Analytical skills are also essential in order to give clients suitable advice in response to problems and situations.

Pros and cons Although wealth managers relish helping clients make sound decisions to ensure success in their financial well-being, they can sometimes experience considerably high levels of stress, especially at the start of their careers, due to a number of factors.

For example, the financial services industry is highly dependent on domestic and global markets – which can be volatile at times – and clients can have emotional reactions to market changes.

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ACCOUNTANCY AND FINANCIAL MANAGEMENT

ACCOUNTANCY AND FINANCIAL MANAGEMENT Take an in-depth look at the accountancy and financial management field in regards to its areas of work, and how you can pursue a career in it.

Sector Essentials At a Glance: Accountancy and Financial Management

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Choosing Your Role and Company in Accountancy and Financial Management 74 Getting a Graduate Job in Accounting 76 Why is it So Important to Qualify as a Professional Accountant? 77 A Graduate’s Guide to Accountancy Jargon

Sector Essentials

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Actuarial 81 Commercial Finance 82 Corporate Finance 83 Corporate Recovery 84 Corporate Treasury 85 Financial Accounting 86 Forensic Accounting 87 Internal Audit 88 Management Accounting 89 Risk Assessment 90 Tax 91

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Accountancy and Financial Management

AT A GLANCE

About the Industry

Must-have Skills

Getting In

With accountancy and financial management qualifications, you can find work opportunities with all kinds of establishments, ranging from the “Big Four” – Deloitte, EY, KPMG and PwC – and other large organisations, to smaller accountancy firms, as well as public and private sector employers.

In recent years, businesses have started to use digital technology such as cloud accounting software and applications to increase efficiency for accounting and financial management, so you’ll have to constantly upskill in order to stay relevant in the industry. Additionally, in this current volatile climate, although demands for consulting services have weakened, accounting firms continue to profit due to their auditing solutions.

Another benefit of being in the accountancy field is that it will give you a good perspective of how companies are run, thus opening doors to start your own enterprise in the future should you wish to do so.

Besides excellent numeracy skills, employers look for candidates with strong communication and analytical skills, the ability to work in a team and having commercial awareness. You’ll also be expected to cope with the intensity of working and studying at the same time, so having both effective time management skills and resilience are paramount.

With new technological developments infiltrating the sector, there’s also a need to keep up-to-date with advancements and develop strategic views on potential risks and opportunities on your own.

In Singapore, if you want to enter the accountancy and financial management scene, you can do so through two routes.

The first option is to complete a diploma or degree in accountancy and go on to work in a junior position while continuing the pursuit of professional accountancy qualifications. Alternatively, if your degree or diploma is unrelated, you can join an accountancy firm when you have completed, or intend to complete, certification programmes.

There are numerous certification programmes offered by professional bodies, such as the Institute of Singapore Chartered Accountants (ISCA) and the Association of Chartered Certified Accountants (ACCA) to choose from.

However, completion of the “Singapore CA Qualification”, developed by the Singapore Accountancy Commission (SAC), is a must if you’re an aspiring chartered accountant who wishes to practise locally.

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Areas of Work The numerous different jobs available guarantees that there’s always something to suit everyone. Here are some key paths:

Assurance

Tax advisory

Internal audit

The main role of the assurance department is to review financial data and working procedures of an enterprise in order to accurately update investors on how their money is being used.

Tax consultants are engaged to advise management on tax-related problems and offer solutions.

They also help clients understand complex tax laws and assist them with the filing of returns, especially during the annual tax-filing season that runs from 1 March to 18 April.

Responsible for monitoring key business areas to assess financial risks and operational inefficiencies, internal auditors devise and present solutions to management.

Risk assessment

Corporate recovery

Risk assessors are tasked to methodically identify and evaluate potential risks before recommending appropriate measures. This area of work allows enterprises to capitalise on opportunities while considering all factors in making major decisions.

When companies fail, corporate recovery specialists decide if it’s possible to keep it running through certain measures. Otherwise, they help creditors, suppliers and employees salvage the remaining capital.

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CHOOSING YOUR ROLE AND COMPANY

In Accountancy and Financial Management

Global demand for accountancy and financial management skills means that you can find a job in this field almost anywhere in the world. As such, roles and companies are on a very diverse scale.

Firms in the industry

Besides the Big Four, corporations such as Grant Thornton Singapore, RSM Singapore and BDO LLP are popular choices among accounting graduates and jobseekers looking to pursue a career in accountancy and financial management.

While joining a bigger institute generally translates to specialisation at an earlier stage and exposure to high-profile clients, experiences gained in smaller enterprises will largely depend on the scope of offerings and clientele.

Smaller companies also expect employees to be more generalist, though there are more opportunities to be involved in business development and securing and maintaining client relationships. On the other hand, large MNCs have the resources to invest in employee education, and can provide more attractive training packages – including overseas travel. However, many large institutes require employees to be bonded for a period of time.

If you choose to pursue a position in the public sector, you’ll likely come across a vastly different scope of duties, work environment and exposure.

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The idea candidate

Enthusiasm and excellent interpersonal skills are necessary, and will come in handy when communicating with clients and liaising with colleagues. It’s also important to have acute commercial awareness of current issues in the industry, as well as the ability to simplify and explain complex information to people unfamiliar with accountancy and finance.

Good numeracy and analytical skills are also undoubtedly essential, as are problem-solving, multitasking and time management skills to face challenges and meet tight deadlines.

Certifications from professional bodies such as ISCA and ACCA Singapore are important for a career in accountancy, and it’s vital to secure these qualifications early in your career. If you’re looking to enter the arena, it’s imperative that you’re not only self-motivated, but also committed to working and studying concurrently when required.

Working in the industry

Professionals have the opportunity to gain a unique insider ’s perspective on how different businesses are run, which will later help you move up the corporate ladder or start your own enterprise. Another perk is having the chance to attain an internationally recognised professional qualification – often funded by the company.

In recent years, digital technology has started to revolutionise the financial sector, and that includes accountancy and financial management; firms and organisations are now using cloud accounting, software and applications to streamline processes and increase productivity.

Although the career paths in this area are widely known to be recession-proof, continuous training is still necessary to keep up with change and enhance job prospects. Hours may be long on occasion – this is especially so for auditors and tax advisors, as their peak period generally falls in between January and April.

Otherwise, those in this field generally enjoy a healthy work-life balance. Be aware, though, that overseas travel may be involved when air routes open again, depending on where clients are based.

Roles available

The accountancy and financial management field is constantly growing, and offers a wide range of career paths. Here are some main roles you can consider: • • • • • • • • • • • • •

Assurance consultant Auditor Commercial finance manager Corporate finance advisor Corporate recovery specialist Corporate treasurer Finance director Finance controller Forensic accountant Internal auditor Management accountant Risk assessment officer Tax adviser

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GETTING A GRADUATE

Job in Accounting

If you think you’re fluent in the “language of businesses”, or accounting, and are looking for a graduate job in the industry, here are some tips to get you started.

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egardless of the size of the company, accountants play a vital role, whether by working in firms that service external clients, or by being part of the finance department of either a commercial or public sector organisation.

A career in accountancy will suit you well if you’re keen on helping businesses make sound economic decisions through the monitoring and reporting of their finances. To that end, you’ll need to be adept at accumulating the necessary information for enterprises to decide on how to effectively manage finances and plan for the future.

On the other hand, a career in financial management will involve the strategic planning and management of a venture’s funds to facilitate efficient operations. Essentially, you’ll be assisting the company direct the flow of its finances to achieving their objectives.

Skills you’ll need Besides numeracy and analytical skills, accountants need to have excellent communication and interpersonal skills to effectively convey reports and act in the capacity of a business advisor. Good time management and organisational skills will help you through busy peak periods as well.

Commercial awareness will also give you a good point of reference when dealing with your clients. And as in all other industries, individuals who’re capable of working in teams, show initiative and demonstrate selfmotivation are coveted among recruiters.

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How do I get the job?

The most common route to becoming a qualified accountant is to apply for a graduate programme with an accountancy firm. Public and private institutions also recruit graduates for accountancy roles in their finance departments.

Several factors will affect your decision on where you should apply, but one of the most important criteria when choosing a programme or organisation is whether or not it offers you the opportunity to undertake courses that will help you qualify as a CA in Singapore.

The application process Depending on the company, recruiters will either provide online application forms or request personalised resumes and cover letters for the preliminary selection process. An invitation for an interview will follow if you successfully stand out.

At some stage in the process, you may be asked to complete various tests ranging from those that evaluate your general ability and numeric and verbal reasoning assessments, to aptitude quizzes, or even personality tests. Further interviews might follow as employers continue sifting through potential candidates.

M a ny o rga n i s at i o n s a c c e p t applications year-round, but it’s always worth checking with individual employers – a few do specify early closing dates or advise early applications.

Moreover, before applying for a position, remember that completing an internship will help you get a better idea of whether a career in accounting or financial management will play to your strengths.

What’s working life like?

In an accountancy firm, you can expect to spend a substantial amount of time out of the office visiting and auditing clients on-site.

Working in finance departments in commercial or public establishments also involve playing an integral role in the company.

In both instances, there may be off-peak and peak periods – the latter meaning a heightened level of pressure during busier times such as financial quarterlies and closing of accounts at the end of each year. Such periods aside, however, accountants generally enjoy a reasonable work-life balance.

Accountancy and Financial Management Sector Essentials

WHY IS IT SO IMPORTANT TO

Qualify as a Professional Accountant?

Getting those letters after your name represents more than just your achievements – it represents the skills at your disposal.

T

he high level of difficulty and lofty standards of accountancy qualifications mean that you have to study very hard to earn a qualification from a recognised professional body in the sector.

Although it can be tough, rest assured that your dedication will pay off, earning you one step closer to your dreams. Not only will these qualifications give you a degree of prestige on your resume, they can be the vital difference between a successful career and stagnation. For instance, you can prove to prospective employers and clients that you not only have the necessary skills and training needed to do your job well, but that you also have the discipline to persevere through such a rigorous course.

Moreover, in Singapore, there’s no need to earn a degree before becoming an accountant – instead, you can opt to pursue professional qualifications.

In the sector Singapore’s accountancy scene boasts several professional bodies, from those that specialise in certain areas to others that cover all aspects.

It takes approximately three years to earn a qualification from a professional body, and the course typically involves a number of examinations and practical work experience. While it’s possible to study full-time at an academic institution without working, membership with professional bodies usually cannot be gained without some work experience.

Because of this, most in Singapore choose to study and work concurrently, with most employers willing to give time for employees to study.

Making a choice Your employer may influence the professional qualification you choose, or a choice may be given. Or perhaps, you’re trying to decide on which company to work for because different qualifications are offered. Whatever your choice turns out to be, remember to take your future career plans into account before gunning for that qualification!

There’s no one qualification easier than another – every pathway adheres to high standards. Rather, the dissimilarities actually lie in your chosen area of employment, syllabus and training.

No matter the qualification you choose, membership of a professional body will show potential employers your drive and ambition, and also equip you with the skills needed for a successful career in accountancy.

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A GRADUATES GUIDE TO

Accountancy Jargon

Bulls, hedging, stagflation...did you just wander into a farmers’ convention? Here are some common key banking and investment terms that you can use to sound informed at job interviews.

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he accountancy sector possesses, like all other industries, an exclusive pool of jargon and acronyms accessible only to those who have spent some time working in the field. Some terms may even be companyspecific, which means that only staff are privy to their meaning, and outsiders and newbies are excluded.

For this reason, graduates are usually discouraged from using jargon during their interviews due to the risk of misusing them; applicants sometimes get ensnared by the false perception that they’ll sound more educated when they riddle their speech with corporate mumbo jumbo. Unfortunately, this only exposes them to the risk of sounding like someone who’s trying too hard.

But this doesn’t mean that you should completely shun all traces of job-speak during your interview! Instead, feel free to sprinkle your replies with some industryspecific terms so that you come across as educated and updated, but not trying to butter up your interviewer. Here’s a list of common accounting and financial management lingo that may help boost your level of confidence as you walk into the interview room:

A ACCA Association of Chartered Certified Accountants.

ATTA Association of Taxation Technicians Singapore.

ATP Accredited Tax Practitioner. Another professional certification awarded by the SIATP.

other firms. It usually involves a wide variety of deals, like the buyouts of smalland medium-sized enterprises (SMEs) to multinational takeovers.

Accounting

Angel investor

Accountancy revolves around the process of determining, evaluating and conveying important economic findings to relevant parties so as to help them make informed decisions. It examines the interaction between various financial elements and produces a summary of an organisation’s commercial health.

The three main processes of accountancy are:

Audit

• Determining information: The accounting procedure begins with the collecting and recording of data.

Economic transactions are documented in a set of “accounts” that operate on a system known as “double-entry book keeping”.

• Evaluating information: The accountant then assigns economic values to the data gathered, such as assessing available assets and calculating the company’s profit or loss as made over a specific period of time, usually referred to as a fiscal or financial year.

• Conveying information: Information is useless if not disseminated. Once the relevant data has been properly evaluated and documented, the accounting information obtained will be broadcasted and circulated amongst users in a variety of ways, such as in management accounts and financial statements.

ATA

Acquisitions

Accredited Tax Advisor. A professional certification awarded by the Singapore Institute of Accredited Tax Professionals (SIATP).

A component of a business specialisation called mergers and acquisitions (M&A), acquisitions usually include the counselling of clients on the purchase and sales of

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An individual who contributes capital to the start-up of a company in exchange for non-cash returns, such as ownership equity and convertible bonds.

Audit is the examination and validation of the accuracy of a business’ financial statements, done primarily for tax purposes.

Its primary purpose is to confirm that the financial statements of the corporation are a true and fair reflection of its financial health.

Usually performed by external accountancy firms in order to guarantee impartiality, audits are categorised under assurance and advisory, and are typically performed at a client’s premises.

Audit manager The person in charge of organising and managing audit teams, each ranging from two to 20 people per team. Audit managers ensure all audits are properly completed, and also build and maintain good relationships with clients on the side.

They’re also responsible for guiding audit teams to meet their full potential.

Audit principal The senior member or partner of an audit firm who gives the final confirmation during an audit process in order to certify the accuracy of the client’s financial statements.

B •

Business recovery and insolvency

Business recovery experts are usually brought in when a troubled venture can still be steered through difficulties towards a

Accountancy and Financial Management Sector Essentials

revival and/or improvements.

Insolvency experts, on the other hand, are only consulted when an enterprise is caught in a bad enough state that it has to wind up. It then falls upon the insolvency experts to help the proprietors through the liquidation process by selling off marketable assets in order to pay creditors.

Business services A mixed package of accounting and auditing services generally offered to major establishments as they tend to need additional services for development. It may also entail advisory or consultancy services where financial recommendations are customised to suit the growth, goals and improvement of a company’s management systems.

C Capital gains tax Tax that’s charged when a fixed asset is sold at a higher price than its acquisition price. While this specific form of tax isn’t applicable in Singapore, any gains a local company makes by selling off assets will still be taxed as incoming revenue.

CA Singapore Chartered Accountant of Singapore. This qualification is managed by ISCA. CIMA The Chartered Institute of Management Accountants.

CIOT The Chartered Institute of Taxation. While accreditation from this body isn’t mandatory for tax practitioners in Singapore, its CTA certification is still recognised locally, and may be useful for those who intend to work in tax outside of Singapore.

CIPFA Chartered Institute of Public Finance and Accountancy. Although this organisation is based in the United Kingdom (U.K.), it cooperates with global accounting bodies to advance the field of public sector accountancy worldwide.

CPA Australia An Australia-headquartered accounting body that offers the CPA qualification.

Completion work

Due diligence

The last step during an audit process where auditors carry out a final check to ensure that the audit is satisfactorily completed and sufficient audit evidence has been compiled for a sound audit opinion to be formed.

The process of enquiries performed when a potential investor or buyer wants to invest in, or acquire, an enterprise. They check the previous records and financial statements of the target company so as to ascertain its exact value, or to unearth underhanded business deals.

This usually entails professional reports by accountants and solicitors, and the whole process must be treated with the utmost confidentiality.

Computational work The process of preparing and compiling sets of financial statements.

Corporate finance The field of finance that companies turn to when they want to acquire other businesses. An accountancy firm – usually the purchaser’s auditors – will be appointed by the purchaser to evaluate the financial health of the target organisation prior to the actual acquisition. These auditors will also be responsible for communicating the takeover details and negotiating a decent purchase price with the target organisation.

Corporate recovery Corporate recovery teams are usually roped in to assist ventures in financial difficulties and get them back on track. They’re usually engaged during the early stages of a crisis as chances of recovery are typically higher at that point.

On the other hand, should a company be left with no option but to close up, the recovery team will assist with the selling of assets, the laying off of staff and the winding up of the enterprise in general.

Corporate tax A levy that’s charged to a firm’s profits.

Managed by the Inland Revenue Authority of Singapore (IRAS), different rates of tax are charged for different types of businesses, and for different levels of profit.

CTA Chartered Tax Advisor. A CTA’s an expert in taxation matters who has obtained certification from the Chartered Institution of Taxation (CIOT), in Singapore, tax specialists are governed by SIAPT.

D Debtors ledger Used to document the details of an organisation’s debtors.

F Financial accounting Financial accounting is a catch-all term for the recording of economic transactions performed by an organisation, such as bookkeeping, and the subsequent preparation of financial statements from those accounts.

The financial information obtained is usually targeted towards other user groups like business owners, company shareholders, or IRAS, instead of executive management.

Fiscal year Also referred to as a financial year, it consists of a period of 12 consecutive months which a business selects as its accounting period. Notably, it doesn’t necessarily have to follow the calendar year.

Fixed asset Physical assets that are used in a company’s operations, usually lasting for more than a year.

Forensic accounting A field of accountancy that caters to solving civil, criminal and insurance issues. Professionals in this field employ their knowledge of accountancy and IT alongside investigative skills to aid in the examination of evidence in regards to any allegations made in court.

Their clients are mostly lawyers and insurance establishments, although they may sometimes be approached by individuals seeking such services for personal disputes.

I

Disposals

ICAEW

When a business trades off its asset(s), or when a corporation liquidates part of its outfit.

The Institute of Chartered Accountants in England & Wales.

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Income tax

Middle markets

A percentage of levies charged on net personal and business revenue.

Medium-tier establishments that are too big be considered an SME, but not big enough to be publicly-listed.

Insolvency Highly related to a company’s liquidity, insolvency occurs when an institution or individual is unable to meet its debts and financial commitments when they’re due.

Debts are paid through cash, so even if an enterprise’s total assets surpasses its liability, the organisation will still be considered insolvent if the assets cannot be converted into immediate cash to pay off its liabilities.

IRAS Inland Revenue Authority of Singapore.

ISACA Institute of Singapore Chartered Accountants.

N Not-for-profit Organisations include clubs, societies and associations that are created for the purpose of assisting social growth and improvement. They usually champion social welfare and charity issues, and rarely gain profit.

Even if they do make revenue from the activities they run, any money made cannot be used for the personal benefit of the proprietor. Rather, the money should be channelled back to the body to be used for the benefit of society.

O

M Management accounting

OMB

Management accounting is about providing financial information to the executive management of a firm.

Accountants are required to generate both regular and specially-requested reports to assist management as they monitor the company’s performance and plan future business pursuits.

Owner-managed business.

Management consultancy From an accounting standpoint, management consultancy refers to the activity of engaging qualified accountants for their advice on other matters regarding the management of a company.

This can range from financial strategy planning to HR issues, as well as matters relating to marketing and IT. As these accountants are usually expected to possess quite a bit of business experience in order to give more in-depth advice to their customers, this is a role that only senior accountants with years of exposure to various businesses will be able to take on.

P PAYE Pay-As-You-Earn, an income tax payment system where an employee’s tax and other national insurance contributions are deducted from his or her wages before it’s paid out to the employee.

Private client services A service that caters to high-net-worth individuals where the accountants engaged will manage the customers’ accounts and investments for them, as well as construct long-term financial planning that’s personalised to their needs and goals.

Public practice Loosely termed “freelancing” accountants, such practices provide accountancy services to clients as independent professional consultants instead of as employees of a firm.

Public sector accountancy The practice of accountancy in the government, local authorities and public corporations.

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S Seed investment The initial funds used for the establishment of a company. It usually comes from the founder’s – or cofounder’s – personal assets, but can also be made by banks, venture capitalists, or angel investors.

SQP Singapore Qualification Programme, a compulsory programme to take if one wants to practise as a chartered accountant in Singapore.

T Taxation (Tax) Tax work is usually divided into two major disciplines: • Tax compliance: This area of work entails filling in and submitting tax returns on clients’ behalf.

Duties include compiling the necessary documents required for filings, ensuring compliance with tax agency requirements and informing clients if there are any tax changes which affect them.

• Tax advisory and planning: A consultancy-oriented area of work where tax professionals analyse an organisation’s financial accounts, and recommend changes as to how finances can be structured for minimum taxation within the boundaries of local legislation.

These two tax disciplines aren’t isolated from each other. In fact, if the best service is to be provided to clients, cooperation from both sides is necessary.

Tax professionals working in tax compliance will sometimes need to refer to tax advisors for updated information during the course of their work, and vice versa.

Workload-wise, tax professionals tend to spend more time working in the office, and keep regular hours better than auditors do. There are also numerous sub-specialisations within the area, and each has their own specific set of jargon.

Tax liability A person’s tax commitments, derived mainly from owned properties and earned income.

Accountancy and Financial Management Area of Work

Assurance

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Perform “investigative” duties during internal and external audits for companies.

F

ocusing primarily on the review of financial data and documents of a firm to test the soundness of its accounts, auditing serves to “assure” the owners and the clients of the legitimacy of the establishment’s records. It also guides the organisation’s subsequent financial planning and investments.

Assurance services generally encompass two types of audits, annual and internal.

During annual audits, which are mandatory for most enterprises in Singapore, businesses engage external auditors to inspect accounts.

The resulting audit reports will then be presented during Annual General Meetings (AGMs) for decision-making purposes, or used for the company’s yearly filings.

On the other hand, internal audits are domestic versions of annual audits performed by the respective institutes’ accountants. This form of audit isn’t compulsory, but firms are encouraged to do it as it helps them align Key Performance Indicators (KPIs) and Key Risk Indicators (KRIs) with their missions and goals. It also keeps accounts systematic and clear throughout the year, translating to a more ordered and stress-free annual audit for both the venture and its auditors.

Aside from auditing duties, assurance services also carry out various “investigative” duties. These include due diligence on potential mergers and acquisitions, or assessing a venture’s sustainability and its standards of social and corporate responsibility.

General overview Interested candidates starting out are usually expected to juggle on-the-job training and the pursuing professional qualifications at the same time. Although it can get hectic, this arrangement allows graduates to apply and test their theoretical knowledge in the actual working world, and provides great working experience from the get-go.

Travelling and meeting new people are part and parcel of the job; auditors have to travel often, be it locally or – when the global pandemic is over – possibly abroad as well. This translates to exposure, and graduates will often come face-to-face with various interesting opportunities early on in their careers, not only broadening their professional perspectives, but also equipping themselves for future responsibilities as they continue to grow into the position.

Auditors work in teams most of the time, so good team-working and communication skills are a must. Moreover, building a good rapport with the team will enhance work experience and ensure moral and professional support during the more demanding periods.

Required skills A keen mind is needed to get through the professional courses, as they can be fairly challenging. The good news, however, is that degrees don’t necessarily have to be finance-

related – graduates from any discipline can become chartered accountants, so long as they possess the necessary professional qualifications.

Work experience is a vital factor in this profession, so internships and prior working arrangements will stand applicants in good stead when entering the field. As mentioned earlier, good communication and teambuilding skills will also help in the long run, especially given the team-based nature of the work.

As this job involves facing a variety of situations, auditors need to be able to portray themselves as both competent and able to think on their feet. On top of that, there may be times when they have to read between the lines and dig up information that is not readily offered. As a result, traits like self-confidence and critical thinking are deemed important to those working in assurance.

Pros and cons One of the biggest grouses about working in assurance is its long working hours, particularly during the tax season between February and April – auditors are even occasionally required to work on weekends during this period.

Moreover, work may sometimes become both repetitive and the deadlines can be gruelling, with auditors expected to rush deliverables to meet deadlines.

These, however, may only be minor shortcomings in the face of benefits such as the opportunity to travel, build connections and gain an in-depth understanding of the inner workings of various corporations and business sectors.

Finance Career Guide 2023

Accountancy and Financial Management Area of Work

Commercial Finance

82

Manage and guide a firm’s cash flow and revenue generation for maximum profit.

T

he key driving force behind a company’s sales operations and performance, those who work in commercial finance are responsible for managing cash flow and revenue generation. In addition, they also advise the enterprise on business strategies that should be employed for maximum profit.

General overview Commercial finance managers are required to evaluate the performance and worth of an organisation’s products and services. Following that, they’ll have to make the necessary policy arrangements or build essential commercial strategies to advance the profitability of the product or business.

Their advice then becomes the guiding factor for other departments — such as sales and marketing — to make their own business resolutions and targets. In essence, this means that professionals are responsible for striking a balance when it comes to making a profit for the establishment, sponsors and investors — all while continuing to attract customers.

Finance Career Guide 2023

Other duties that fall under the scope of commercial finance include specific product research, tracking sales performances and the calculation and projection of possible upcoming yields and trends. Based on these predictions, graduates may sometimes be involved in developing new products and campaigns.

Many institutions place new recruits in training programmes, putting them in positions with fair amounts of responsibility to hone their skills in management, communication and persuasion. Moreover, even as new hires work towards professional qualifications, they may be tasked with advising on financial controls and analysing financial information to help colleagues make key business decisions.

Required skills Constant awareness of a firm’s business direction, along with broader trends in the marketplace, is vital. Excellent communication, teamwork and presentation skills are also necessary for extensive correspondence with

non-finance colleagues, as commercial finance managers work in teams to process information given, and come up with plans and strategies based on a collective analysis of the situation.

Aside from people skills, analytical skills need to be harnessed as well. A graduate’s ability to think on their feet and an eye for detail will help them in the long run, as commercial finance managers are required to come up with quick, effective solutions for last-minute emergencies.

Time management and organisational skills are also useful for the urgent completion of analysis and provision of recommendations before a large product rollout.

Pros and cons Work in this sector often comes with plenty of pressure as multitasking is a reality most of the time. Decisions can and will directly influence the productivity and output of an enterprise, which means that there’s high pressure on successful applicants to perform. One such instance is the generation of daily sales and finance reports for management decisions.

On the other hand, this position is a great opportunity for those seeking to venture into a management career, as professionals in this line can expect to gain a deep understanding of the business world.

Accountancy and Financial Management Area of Work

Corporate Finance

83

Comprising of lead advisory, transaction support and compliance roles, corporate finance helps businesses increase capital and shareholder value.

Required skills

T

he principal purpose of corporate finance is to monitor the capital structure of an organisation, as well as to increase its shareholder value through the sales of its investments and securities. The selling of bonds, debentures and common stocks also fall under the scope of this field.

There’s a broad spectrum of positions in this sector; roles such as advisories to company shareholders or owners on the issue of management buy-outs and mergers and acquisitions, to increase the venture’s worth and sustainability, are common.

General overview Populated by various professionals including lead advisors, accountants, auditors and even lawyers, a quick glance shows that all work towards the common goal of raising capital. Each role serves a different function, contributing to different parts of the process.

While lead advisors analyse the financial landscape to recommend the best and safest ways for a firm to raise capital, given its risk appetite, accountants and auditors perform transaction support work by verifying the financial security of potential merger companies instead.

They perform “undercover” labour, where they look into the accounts of organisations that have expressed interest in merging or getting acquired, checking to make sure that their accounts are “clean” – free of fraud allegations – and safe for acquisition.

Lawyers, meanwhile, attend to the legal aspects of these transactions. A lawyer in the field ensures that firms comply with legal aspects in mergers, acquisitions and all transactions. Thus, they need to be aware of red tape and loopholes to guide establishments successfully through a particular transaction.

Interested applicants will need to acquire sector-specific expertise if they intend to pursue a career in corporate finance, most of which will be obtained when the professional qualifications needed for the posts in question are taken up.

Aside from the necessary sectorspecific qualifications needed, working in corporate finance calls for excellent communication skills to deal with various parties of interest. Graduates need to be both influential and persuasive when meeting brokers or striking deals with parties concerned, and an ability to get messages across to colleagues and decision-makers with no financial field experience is vital as well.

Confidence is an important trait for exuding professionalism when meeting clients – something graduates can gain with familiarity and experience. Teamwork and adaptability, apart from numeracy and analytical skills, are also valued. Having a solid understanding of the areas of business that their clients or potential merger companies are involved in is also important to have. As for career progression, keep in mind that it’s mostly dependent on the capability to network and generate deal flow!

Pros and cons Long hours and prolonged pressure are some expected working conditions in corporate finance, and the push to do well is amplified with constant monitoring of performance.

However, opportunities to work in talented teams are everywhere, and often translate to less rankoriented team dynamics and friendlier superior-subordinate relationships.

Finance Career Guide 2023

Accountancy and Financial Management Area of Work

Corporate Recovery

84

Bring afflicted businesses back to health.

Required skills

C

orporate recovery is usually appointed on the recommendations of banks, lawyers and accountants, and entails providing assistance to ailing ventures. Hence, specialists in this field are responsible for analysing the state of the company and advising on subsequent steps.

If corporate recovery professionals believe it’s possible to rescue a firm, they’ll suggest a range of corporate, debt and equity restructuring strategies to aid in business objectives. However, in the case that recovery isn’t feasible, it falls upon them to help the enterprise salvage as much monetary worth as possible from remaining assets to repay outstanding debts.

In Singapore, the Insolvency Practitioners Association of Singapore (IPAS) provides guidelines and training for both existing and aspiring corporate recovery specialists.

Finance Career Guide 2023

General overview Working in corporate recovery is exciting and challenging with cases ranging from small chain stores to MNCs. Team sizes vary according to the scale of the case.

Graduates will be involved in the entire process of recovery and rescue, from corporate reorganisation, debt restructuring and informal discussions to formal insolvency procedures. As they progress, however, they’ll also be expected to specialise over time.

Although hopefuls with academic backgrounds related to business and economics will have an edge over others, applicants from non-related fields are also welcomed if they prove that they bear exceptional skills in negotiation. People and persuasion skills are of the utmost importance for managing stakeholders, creditors and laid-off employees as well.

Other skills such as analysing complex financial information and working in flexible settings are valued, and graduates will be expected to have empathy for others while remaining resolute in their directives, as interaction with staff is frequent before they are laid off.

Pros and cons Prioritising work is a key strategy as professionals often work on several cases at the same time. Other than handling employees affected by lay-offs, graduates will need to pitch difficult decisions to reluctant managers.

On a more positive note, building networks is one of the many opportunities present, as is the chance to learn about trending markets in real-time – good preparation is needed if going into consultancy is a future ambition.

Accountancy and Financial Management Area of Work

Corporate Treasury

85

The “treasurer” that looks to keep immediate cash for priorities and necessities.

Required skills

A

company’s internal division that ensures sufficient immediate cash to fund priorities and demands, corporate treasury involves constant monitoring of the liquidity of finances, as well as cautious management of various monetary risks.

Corporate treasurers are also often required to advise on, and prepare, financial policies and controls that can aid in funding the organisation, on top of considering how financial service providers can help reinforce financial security.

Because of this, professionals have to be attentive to releases of new loan schemes, foreign exchange rates and banking and credit facilities in order to keep an establishment’s financial plans updated.

General overview Most graduates begin as treasury analysts or treasury accountants, where onthejob training is received. Newcomers are also expected to take professional qualifications on the side with the Association of Corporate Treasurers (ACT) in Singapore, or other equivalent professional bodies, in order to advance or specialise further.

On most occasions, graduates will work closely with senior management and manage large sums of money. Duties can be diversified, however, depending on the projects and cases handled at a particular time.

As a corporate treasurer’s work is largely tied to the enterprise they work for, working hours are fairly stable except during periods with urgent deadlines.

Those who wish to succeed in this field need to be well-informed of their firm’s goals, the business and economic climate, and the condition of the international banking sector. Such knowledge will indirectly strengthen decision-making skills and help avoid pitfalls and potholes in the market, especially during forecasting sessions and pooling arrangements.

Although basic accounting knowledge is appreciated, it’s usually not a prerequisite.

Rather, the ability to work according to procedures as well as simplify complex matters for the benefit and comprehension of senior management are much more important.

Pros and cons Corporate treasury entails close working relationships with senior management, which means that — depending on company culture — graduates may be pressured to perform. Anxiety can also come due to the responsibility of handling large sums of money during transactions.

Working in the field, however, offers a broad overview of the inner workings of organisations, especially through the allocations of funds. This is a line of work that has remained largely unchanged – yet necessary – across various industries, so it can offer plenty of flexibility for potential employers over the course of a career.

Finance Career Guide 2023

Accountancy and Financial Management Area of Work

Financial Accounting

86

Assess and evaluate the performance of an organisation.

Required skills

F

inancial accountants are primarily concerned with the regular analysis and reporting of a company’s financial state, and typically measure the “health” of a firm and offer crucial information on its performance. This practice ensures the transparency of an enterprise’s accounts, and keeps it accountable to both its partners and customers.

For instance, internal management uses these reports to keep up-to-date on the cash flow, a vital cog in decision-making; and external investors, such as shareholders and banks, refer to them to assess if it’s worth investing further. Other organisations, like suppliers, can also be found relying on these documents to decide if they want to continue providing their products and services, or if it’ll be safe to extend any form of credit.

For Singapore, the practice of financial accounting is governed by the Accounting Standards Committee (ASC). They are responsible for formulating Singapore’s Finance Reporting Standards (FRS), a standard that should be adhered to by all practicing financial accountants here.

Finance Career Guide 2023

General overview Financial accountants usually find employment in departments such as auditing, treasury management and cash flow, as well as the reporting of new or potential acquisitions.

Graduate hires generally start with a training programme that allows them to acquire an overall understanding of the institution’s business, and also enables observation of the ways finances are associated with other departments. As with most finance positions, pursuing the necessary professional qualifications while undergoing on-the-job training is required.

The first few years as a financial accountant are generally quite hectic as plenty of hard work – of which numbercrunching duties form a significant portion – is needed. Other responsibilities include forecasting account balances, statutory reporting and controlling direct and indirect taxes.

After graduates have started specialising in a specific area, work will be determined by the projects taken.

An eye for detail and an ability to communicate complex findings in layman’s terms are valued, together with having an analytical mind, good numeracy skills and a willingness to develop interdepartmental relationships.

This is because financial accountants draw relevant conclusions based on minute details found in their analysis of the company’s accounts, and report these findings in a comprehensive manner to senior management.

Working in Singapore also requires familiarity with the nation’s FRS, accounting systems, such as enterprise resource planning (ERP), and other relevant government policies.

Pros and cons Starting off in financial accounting entails a certain pressure to perform and hectic beginnings in work life.

However, it does help graduates acquire a wide range of relevant knowledge and skills, particularly in technical accounting and leadership.

More than that, the comprehensive nature of this line of work also prepares many for the future if they decide to branch out and specialise in other areas of accountancy.

Accountancy and Financial Management Area of Work

Forensic Accounting

87

Performing investigative processes to expose frauds and illegitimate financial practices is part of a day’s work.

F

orensic accounting is a niche within the field of accountancy that employs accounting and financial skills during investigations of fraud, disputes and suspected transgressions.

It’s a forensic accountant’s responsibility to identify and uncover illegitimate financial practices to identify suspects and recover illicit funds, making the nature of the job sensitive. Some professionals choose to specialise in fraud risk management, with the objective of working to reduce the possibilities of financial fraud.

Depending on their job scope, forensic accountants may also work with law enforcement authorities and lawyers, and may even be requested to act as expert witnesses in court.

General overview Although having a finance-related degree as well additional training in criminal justice or law enforcement are significant advantages, applicants are still required to obtain a recognised professional qualification first. Most firms in Singapore

Remaining focused at all times, bearing in mind the key issues of the case and being aware of the significance of the information being analysed are important too.

Moreover, all information has to be handled with care and attention to detail as evidence might be hiding in the depths of seemingly trivial data.

Portraying a professional image at all times reflects an identity of independence, integrity and credibility – traits that cannot be stressed enough in this field. As a representative of a firm, graduates will need to convince clients that they stand for objectivity and unbiased judgement. accept qualifications such as Certified Fraud Examiner (CFE), CPA and the CA in Singapore.

Upon entering a company, many graduates will spend some time training and gaining experience in an audit or forensic department before going into forensic accounting. Some, however, are hired directly into the role.

At the beginning, new recruits will have to persist through much low-level data analysis like creating spreadsheets and checking financial records and written records for relevant information. As experience is gained, heavier responsibilities such as conducting individual investigations, will be assigned.

Required skills Other than identifying the source of fraud to pin down the culprit with good numerical skills as well as an inquisitive and analytical mind, caution needs to be exercised and all information must be questioned.

Pros and cons Some obstacles can include uncooperative clients or emotional employees, who either feel wronged or that their loyalty to the company is being judged and questioned.

Work can also get tedious and laborious at times, with routine record analysis. However, the sense of satisfaction is immense when cases are solved with the discovery of crucial pieces of information.

There are opportunities to travel and meet professionals from diverse and interesting backgrounds, though, and a graduate’s network can swell with contacts such as law enforcement officers, forensic technicians, lawyers and even private investigators.

Finance Career Guide 2023

Accountancy and Financial Management Area of Work

Internal Audit

88

Conduct “housekeeping” of a company and ensure accounts remain accurate and organised.

with company staff and management during assignments.

Because much of the information internal auditors need for their reports comes from an unsorted array of accounts and interviews, a keen eye for detail and an analytical mind to make proper sense of the materials is necessary too.

While it’s important to maintain a level of professional scepticism when faced with surface information provided, internal auditors also ought to possess a high level of independence and adaptability for the project-based nature of the work. More than that, successful applicants will also need the initiative to conduct their own research on the organisations they will be auditing.

A

s opposed to external audits, internal audits are catered to domestic checks within a firm. Typically, a team of auditors are brought in to inspect the accounts for the organisation’s own inhouse use. The business’ administration then uses these findings to improve on operations and strategies.

Along with generating a report, internal auditors may also advise the administrative department on the performance of the company, as well as the financial risks incurred. It’s their responsibility to test the adequacy of the risk controls that have been put into place and advise on necessary adjustments as well.

While internal audits aren’t compulsory, they are still highly recommended. In Singapore, internal auditors are governed by the Institute of Internal Auditors Singapore (IIA Singapore).

Finance Career Guide 2023

General overview New recruits in this area start off as audit assistants, spending the majority of their time reviewing accounts on site, interacting with the staff and management for more information and taking samples from the records for testing purposes.

As graduates progress, heavier roles during audit jobs will be assigned, particularly strategic ones. For example, information security and risk exposures may have to be evaluated, and company management advised on the necessary finetunes needed accordingly.

Required skills Having extensive knowledge of accounting software products, ERP systems and processes and the local accounting systems of a firm will be a benefit.

Effective communication skills and good language proficiency – particularly multiple dialects – is another added bonus, as these may help graduates liaise more successfully

Pros and cons There’s the opportunity to dabble in a wide variety of sectors, though this means that new hires will have to learn a great many things at the start of their career. Moreover, gaining diverse knowledge about various outfits will allow a broader and more objective perspective about the commercial world.

Patience and motivation are essential, however, for difficult employees may be encountered during interviews at establishments.

On occasion, these employees may not see the point of an internal auditor’s work and make things difficult.

Overlapping deadlines are also a bane in this line, but the satisfaction derived from contributing to a venture’s achievement of their business goals is tremendous.

Accountancy and Financial Management Area of Work

Management Accounting Use financial expertise to make informed business decisions and drive change within organisations on a strategic level.

Required skills

M

anagement accounting is a sector that brings together accountancy, finance and management to generate information that aids company leaders in decision-making and implementation of financial strategies.

The responsibilities of management accountants are two-fold – they not only provide critical information to management about the state of an enterprise, they may also be business partners who take active roles in planning and strategising a firm’s policies.

Professionals draw conclusions from financial information obtained, and generate business-specific insights to present strategies for organisations to navigate the ever-changing commercial environment. As such, the advice they offer can range from product design economics and the cost of running production lines to IT solutions planning and HR management.

Management accountants also need to be able to see the venture from a complex international perspective. In this respect, good management accountants are as aware of global trends as they are of specific, local

issues to each process of the establishment, and are able to see how both factors interact and affect the company as a whole.

General overview Newcomers usually start with a position in general accounting in order to pick up various skills that’ll be useful for management accounting. But if a graduate intends to specialise in management accounting, they’ll be encouraged to study for the specialist professional qualifications offered by various professional bodies, like the Chartered Institute of Management Accountants (CIMA).

Early responsibilities include crunching numbers for internal reviews and helping to prepare the management budget. Once established, management accountants may be asked to assist with risk management, identifying trends and opportunities for future investments and overseeing junior accountants.

Many duties, however, entail working closely with senior management, and includes advising them in decision-making and strategy planning.

As with most accounting positions, having a business- or finance-related degree, or a relevant professional qualification such as those offered by CIMA, will be beneficial.

A credible management accountant possesses a good foundation in Systems Applications and Products in Data Processing (SAP) management software, GAAP and financial analysis and reporting skills.

Good communication and persuasion skills are also highly essential for translating complicated concepts and data for management unfamiliar with accounting intellect, as well as promoting ideas and opinions. Additionally, management accountants ought to be equipped with leadership and decision-making skills.

As new hires progress, the ability to observe local trends with international perspectives in order to decide on the value of potential investments should also be developed.

Pros and cons This is a challenging field that comes with enjoyable mental stimulation.

However, duties can be both diverse and taxing at times as well.

On the other hand, the knowledge that a firm has been settled in a direction – especially the more successful ones – can be particularly satisfying.

Finance Career Guide 2023

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Accountancy and Financial Management Area of Work

Risk Assessment

90

Troubleshooting and catching commercial risks early to ensure maximum turnover.

Required skills

R

isk assessment involves the systematic process of identifying and evaluating potential risks that may influence a company’s pursuit of its business goals and objectives. As such, this arena includes helping ventures recognise risks they may face, and advising them on how to engage with these perceived risks – all while taking the risk appetite of the corporation and potential returns into account.

It can be packaged with governance advisory services, which shed light on the process of running an organisation to meet expectations of the management, stakeholders and staff. On occasion, risk assessment services are also offered alongside compliance advisory services, for firms to get in touch with new laws and rulings issued by the government.

Investors and business managers also require risk assessments to make informed decisions and pursue gains while avoiding losses from undertaking investments.

Finance Career Guide 2023

General overview Graduate hires tend to start out in a broader area, such as assurance, for training before they specialise in risk assessment. However, some companies, particularly larger organisations that prefer to train applicants in-house, may choose to absorb them directly into their risk assessment department.

Trainees are typically expected to monitor daily business functions, evaluate the efficiency of existing risk controls and assist with the preparation of recommendation reports for clients.

From there, recruits will move on to planning, designing and supervising the implementation of a risk management process and continuity plans for a firm. In addition, it’ll be their duty to establish and determine the risk appetite of a venture.

Risk assessors usually work closely with executive boards and senior management, and provide them with insights on a range of issues, from security, fraud protection and management of technology departments, to ecological and social performance.

In-depth knowledge of enterprise risk management (ERM) programmes and Risk Control Self Assessments (RSCA) is needed, along with a comprehensive understanding of the various types of risks that a firm may face, both locally and internationally.

Excellent communication skills are vital for reporting to, and advising, the board of directors, business heads and department managers. Besides conveying messages in a way that’s relevant to each of them, good interpersonal skills and confidence will be a bonus for client interactions.

Keeping abreast of the latest changes in laws and regulations so as to offer clients up-to-date assistance is crucial as well.

Pros and cons The work is intellectually stimulating, particularly with international institutions and government ministries, as risk assessors help decision-makers avoid risks and capitalise on opportunities.

On the down side, the role is also chiefly consultative and supervisory, which means that graduates will hold little decision-making power.

Frustration with clients who are difficult to convince, or are unwilling to take advice, is a reality in this line of work as well.

Accountancy and Financial Management Area of Work

Tax

91

Helping clients and companies adhere to taxation demands and laws.

in Singapore are required to undertake 30 hours of Continuing Professional Education (CPE) each year in order to maintain the quality of their work.

The course is offered by ISCA, the Tax Academy of Singapore, as well as selected tax and accounting organisations. SIAPT is an information institute about the tax profession.

Graduates will also need to arm themselves with knowledge about the latest laws and regulations in regards to taxation matters to ensure advice is timely and accurate. More than that, familiarity with the international business scene and tax laws in other countries is essential for dealing with international investments on behalf of clients.

Moreover, coping with pressure and practising discretion when handling clients’ tax affairs is also important in this line of work.

T

ax advisors play the role of consultants, supervising tax problems for clients and advising them on tax laws. Advice is dispensed in three broad areas: tax implications of business dealings, cost-effective decisions to taxation demands and the implications of changes in tax laws and the tax system.

Aside from major corporate tax issues, like compliance – tax returns – and transactions like M&A, there are other specialist areas in tax advisory, including employee issues such as stock options and CPF contributions, indirect tax services like advising on VAT, GST and import duties, as well as personal or business taxation services for high-networth clients.

General overview Many new hires start off as trainees in a tax department of a professional services firm as they study part-time for the professional qualifications needed to become a chartered tax accountant. From there, graduates may choose to move to a company that focuses exclusively on taxation issues, or specialise further in certain fields of taxation.

A full-fledged tax advisor prepares taxes for clients in such a way that it decreases the amount of tax that needs to be paid while still complying with government tax regulations. This includes research into previous tax filings, attending strategy meetings with clients and preparing presentations on their tax liabilities to keep them updated.

Required skills A finance degree is helpful but not essential, though the Chartered Accountant certification is a must.

Moreover, all practicing tax accountants

Pros and cons Life as a tax accountant is exciting as the role may constitute working in a proposal meeting one day, and on large tenders the next. Tax advisory is also intellectually challenging as its purview includes helping clients resolve difficult taxation issues.

Because tax professionals work in teams with varied backgrounds and specialisations, there is exposure to different aspects of advisory work as well.

Stress levels, however, are considerable from juggling multiple projects while pursuing specialised qualifications – all on tight deadlines. And every once in a while, professionals can still encounter difficult clients who can be frustratingly secretive of their business accounts.

Finance Career Guide 2023

LISTING

92

LEADING EMPLOYERS WITH VACANCIES AND INTERNSHIPS WHO WANT TO HEAR FROM YOU.

Employers Learn more about leading employers in the industry, as well as the vacancies and internships they offer.

Income........................................................................................................[2,3]92 OCBC Bank.....................................................................................................[1]93 PKF-CAP LLP...................................................................................................[7]93

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PKF-CAP LLP

PKF-CAP is a member of PKF International, and we are amongst the top mid-tier firms locally and globally. We provide statutory auditing, business valuation, corporate recovery and restructuring, fraud investigation and forensic accounting, advisory and due diligence for mergers and acquisitions (M&A), risk management and internal audit, tax advisory and compliance, as well as corporate services.

working with Singapore companies to build capabilities, innovate and promote global expansion.

In 2022, we were named one of Asia’s Top Employers in the Banking and Services category by leading brand recognition think tank, Influential Brands. The award celebrates PKF-CAP’s outstanding success in the areas of employee engagement, company culture and teamwork.

If you are looking to start an exciting journey in the accountancy industry, please do send your resume to contactsg@pkf.com.

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In PKF-CAP, we do not just help our clients grow, but we are equally keen to provide opportunities for anyone who intends to pursue an accountancy career.

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PROFILE

..A Day In The Life..

94

7:45 AM

Chang Ting Yu JOB

Junior Foreign Exchange (FX) Derivatives Trader, Global Treasury

EMPLOYER

OCBC Bank

Ting Yu obtained her Bachelor of Social Studies (Honours) with a Specialisation in Economics from the National University of Singapore (NUS) in 2020, and will obtain her Master of Science in Quantitative Finance from Singapore Management University (SMU) in 2023.

“We always have several projects undergoing where I work with sales, quantitative analysts, developers and risk management to improve and expand our business.“

Finance Career Guide 2023

I usually reach the office no later than 7:45 AM. The FX asset class trades 24 hours, five days a week, so a lot of information comes from what happened after Asia has clocked off. Although I generally get to know what happened overnight before I reach the office, my first task at the desk is to re-inspect my risk management strategy and see if any calibration is required to optimise the riskreward.

At 8 AM, I start providing prices for clients, followed by a call with our economists, and together, we provide some colour on the market for our sales colleagues, so that we can deepen client engagement with the most upto-date transaction, investment and hedging solutions.

I often think of managing a portfolio to be like steering a ship, and my duty is to plan its trajectory and execute it well. I read research extensively and built data-driven frameworks so that my risk management is aligned with macro-economic trends, and is numerically driven.

Ultimately, a trader will need to make educated decisions on the most suitable course of action.

That’s what makes the work challenging. Very often, I take this time to ponder on these while enjoying some black coffee from the pantry.

3:00 PM

9:00 AM

It’s at this time of the day that I get some time to follow up on the team’s projects. We always have several projects undergoing where I work with sales, quantitative analysts, developers and risk management to improve and expand our business.

The market has been very volatile this year.

Across the world, we’re at a special time in history for monetary policy. Things can happen over a very short period. For example, there were significant movements from a single United States (U.S.) inflation data print.

The war in Ukraine is also a historic event that has impacted the Euro (EUR) and Pound Sterling (GBP).

Beyond requiring solid technical knowledge, these initiatives are also a test of our soft skills, like communication and organisational management, as we can be working with very long life cycles. These initiatives give me a wider view of the business model of my team. I also built closer relationships with my colleagues from the other teams, and find synergies to add value through collaboration.

Closer to home, it was unprecedented for the Monetary Authority of Singapore (MAS) to recentre five times this year. These are all recent events that traders like me must be aware of.

6:00 PM

Throughout the day, I keep a very close eye on these movements to ensure that I provide advantageous pricing for clients while capturing significant opportunities for the bank. To trade in a market like this takes plenty of studying for a newbie like me. Also, it takes someone who enjoys decision-making in a fast-paced environment to like this job.

Luckily, it’s exactly my cup of tea!

11:30 AM Most of the time, I have lunch at my desk.

Sometimes, I need to provide pricing to clients during this time, and it’s also a good time in the day when things are slightly quieter, so I get to discuss market views with my team. I give all the credit to the senior traders that are training me. They keep a very close eye on what I do, and are extremely generous with sharing their personal expertise.

A trader’s life doesn’t end when the day ends.

When one market closes, another opens.

Depending on my area of focus, I might have to monitor the markets on the other side of the world.

Running a book of derivatives requires a lot of planning ahead and scenario analysis to make sure that the portfolio is well hedged against the most vicious market conditions even when I’m not at my desk.

At the end of the day, I review the risks in my portfolio and ensure that it’s positioned in the most advantageous way to ensure the bank’s interest is protected and optimised.

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