You now need a Master’s degree if you want to get anywhere in South African finance: experts
Earlier this year LinkedIn conducted an international analysis of the most promising finance careers of 2017.
The analysis found that with high salaries and excellent career prospects, a job in finance continues to be an attractive option for graduates.
This is only expected to increase as new technology infiltrates finance, with entirely new roles being created in the industry and the need for technical and quantitative skills growing.
In South Africa, the field is highly competitive and is evolving quickly, said representatives from Rand Merchant Bank, Old Mutual, Liberty Life, and Absa speaking at UCT’s Institute of Financial Markets and Risk Management (AIFMRM).
The panel said that there is increasing demand for scarce skills, and this trend will likely continue, particularly in the current economic climate.
This means undergraduate students need to buckle up, as a Master’s degree is typically required at a minimum to work in this industry.
These are four other top tips the banks and other financial institutions had while speaking at the AIFMRM event.
Instability in the economy is not the end
Asked whether instability in South Africa was a career death sentence, the panel was adamant in their unified answers.
“I have never seen such a professional drive for quants (experts at analysing quantitative data),” said Greg Mollentz, head of asset liability management at Old Mutual Specialised Finance.
AIFMRM’s Obeid Mohamed said industry developments post-2008 meant a growing demand for risk managers.
“Since then, management has been playing catch-up. Quantitative skills are more important than ever in the risk management space,” he said.
“Risk management is not only about adverse events but also about identifying opportunity and enabling business. Banks play a very important role in society; enabling transactions plays a big role in developing society. We must not only focus on the negative side.”
New skills are in demand – and they’re evolving constantly
Fintech, machine learning, big data and blockchain are no longer just buzzwords but possible career choices in a rapidly-changing industry, said Co-Pierre Georg, senior lecturer at AIFMRM.
“The financial service industry is changing. This will result in a fundamental change in how the economy works,” he said.
“The demand will soon be inordinate for people with scarce skills that combine finance with modern technology. This will be the case in every environment where there is risk, for example where there is sensitive data that needs to be shared.”
According to Georg, machine learning will be a core element of this shift and forms a crucial part of the MSc (Master of Science), where students learn to develop their own AI trading platforms or chatbot for customer service.
“There has been a massive breakthrough in technology over the past few years. The flip side is that every year or two, knowledge runs the risk of becoming outdated – it is essential to remain ahead. We are very fortunate to live in a time where we witness this change in the industry,” he said.
Read: Expect uncertainty until the next general election in 2019
Stay the distance
It’s not easy to study and work, and sometimes funding is scarce and this places heavy financial demands on students, said Lennox Masangane, risk models consultant at RMB.
However he emphasised the importance of staying the distance. “Try to stick it out with your studies for as long as you can – it is worthwhile,” he said.
“In the last 10 years, Master’s is the standard qualification you need to get into financial careers, especially if you want to climb the ranks,” said David Taylor, founding director of the AIFMRM.
What employers expect
Employers increasingly expect graduates to be work-ready as soon as they leave university. “Firms are essentially looking for maturity of mind and attitude in new recruits,” said Taylor.
“The technical sophistication of modern Financial Services roles, the speed at which the environment can change, and the breadth of knowledge and abilities required, means employers want recruits who do not need a year or more of post-employment immersion to begin to contribute in a meaningful way.
“Somehow we have to slide students through a scale into people who sit down in their new jobs and start making money,” he said.
He encouraged students to hone their professional skills early and to embrace internship opportunities.
Loading ...