The financial services industry serves individuals, businesses, corporations, nonprofits and other organizations of various sizes. Banks and credit unions, insurance companies, tax and accounting service providers, real estate, investment services and brokers are all part of the broader financial services industry. These financial services are a crucial part of the economy and are overseen, licensed and regulated by the government.
For those interested in leadership roles in finance, the online Master of Business Administration (MBA) with track in Finance program from Longwood University is the ideal springboard. Some financial services jobs only require a bachelor’s degree, but this finance MBA provides the necessary knowledge and skills for those who want to maximize opportunities.
What Are Financial Services?
While financial transactions involve exchanging money for a good or service, financial services are the processes that allow businesses and consumers to acquire those goods. Many of these services can overlap with one another. For example, a real estate transaction can involve a broker, lender, investor, bank and several other financial support services such as credit and insurance.
Investment services can involve savings deposited in a bank or the purchase of stocks, bonds or other commodities. Investors can also put money into real estate or other tangible assets that are expected to increase in value over time. Insurance companies sell coverage for unexpected expenses such as illness or accident. They pool the payments of their policyholders, invest that money to generate earnings and disburse it to policyholders in the event of a claim for a covered event.
What Is a Financial Manager?
Financial managers are in a growing industry. The U.S. Bureau of Labor Statistics (BLS) predicts that employment of financial managers will grow 16% from 2022 to 2032. This is much faster than the average for all occupations. Financial management also a highly paid career, with managers earning an average annual salary of $156,100.
Typical responsibilities of a financial manager include spending significant time analyzing data and preparing financial statements, business activity reports and forecasts. Additionally, they monitor compliance with legal requirements, analyze market trends and advise senior management on reducing costs and maximizing profits. Requirements generally include having knowledge of tax laws and regulations specific to their organization or industry.
What Are Some Roles for a Financial Manager?
Financial managers can fill a variety of roles, including controllers who oversee their organizations’ accounting, audit and budget departments. Treasurers and finance officers direct budgets, create financial plans and manage investments, often including mergers and acquisitions. Credit managers are tasked with overseeing an organization’s credit business, while cash managers monitor and control the flow of money into and out of an organization as business needs direct. Risk managers primarily work to limit or offset financial risk and uncertainty that may arise from fluctuating currency or commodity prices. Insurance managers protect the organization from loss due to accidents, lawsuits or other risks by obtaining insurance against those risks.
Financial advisors, budget analysts, financial analysts and investment bankers are also financial services professionals. Professional certifications for some of these roles — such as the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) certifications — demonstrate proficiency and expertise for financial management professionals. Longwood University’s program also helps professionals prepare for these certifications.
Common Goals of Financial Management
Regardless of the role or organization, financial managers have some goals in common. Maximizing current value is always a primary objective, as is managing growth. Maximizing profits while minimizing costs is an overarching goal all businesses and financial managers share. They accomplish these goals effectively in leadership roles using skills such as analysis, attention to detail, effective communication, proficiency with software and technology, and interpersonal skills.
Obtaining the Knowledge and Skills to Become a Financial Manager
An undergraduate degree in finance, accounting or a related field is a good foundation for launching a career in financial services. Internships, networking and mentorship programs are also valuable experiences. For those with an eye on leadership roles in financial management, the online MBA with track in Finance program from Longwood University equips students with the investment knowledge and skills in asset allocation, security analysis, managerial economics and managerial accounting for a successful career.
Learn more about Longwood University’s online Master of Business Administration with track in Finance program.
