The Pros & Cons of a Financial Services Career

The financial services industry attracts a huge number of prospects and includes a wide range of different roles and career prospects.

However, while the sector can be incredibly rewarding, both from a personal and professional perspective, jobs within the industry also have a number of drawbacks as well.

So what are the main pros and cons of a financial services career?

Strong Career Prospects (+)

Most careers in the industry offer good promotion prospects and a number of potential avenues to explore.

“A career in financial services appealed due to the many and varied career paths that can be pursued once working in the sector,” says Edward Carter, who has forged a successful career at JP Morgan. “The prominence of the industry in the UK economy means there are plenty of opportunities available and a clear path of progression.”

High Stress and Long Hours (-)

Generally speaking, financial services jobs tend to be competitive, fast-paced and stress-inducing, thanks to the constant need to meet targets or quotas and fulfil the demands of clients. Payment for sales agents may depend upon strong performance, while financial analysts may find their job threatened if they make bad judgements.

In addition to the stress element, financial services positions tend to require people to work very long hours. Indeed, approximately one-third of all employees in the sector work in excess of 40 hours per week, with some working considerably more. For this reason, it may not be the right industry for those who like a relaxed lifestyle.

Good Income Potential (+)

When it comes to finding the ideal career, money may not be everything, but it is certainly a factor. Most positions in financial services are well paid, even at entry level…”

…and the potential for professional development means that employees can advance their career and earn an even higher salary.

With roles like financial advisers, the exact level of payment will be decided on a salary + commission basis. This, combined with the ability to continue to source new clients, effectively means that there is no ceiling when it comes to income potential and workers can make as much money as their performance dictates.

Regulatory Requirements (-)

The financial services industry, as a whole, is subject to an extremely high number of compliance measures, especially in the aftermath of the recent global financial crisis.

This means that those working in the sector are required to continuously keep up with regulatory requirements that affect their particular area. For example, many employees in financial services are required to take out professional liability insurance, such as errors and omissions coverage, and continue to carry this for the duration of their career. Obtaining certain licenses can be a lengthy process and further education courses may also be necessary.

Good Working Conditions (+)

An often overlooked plus point of holding down a career within financial services is the quality of working conditions on offer. The majority of roles will be based in an office, and while it is a fairly sedentary lifestyle, employees can expect some level of flexibility with regards to the opportunity to work remotely, which will allow a better work-life balance.

The opportunity of working from home is a recent trend, which is becoming increasingly acceptable by employers in order to retain valuable employees. It is spreading to many sectors, including financial services. Finally, workers can also expect to receive a decent amount of paid annual leave.

Cyclical Nature (-)

Finally, despite the good career prospects on offer, financial services remains a cyclical industry, following the boom and bust cycles of the economy. As a consequence, banks and other employers tend to recruit heavily when markets are strong and then lay off a relatively high percentage of staff when the economy deteriorates.

This means that financial services roles suffer from a slight lack of job security. Although those in senior positions will usually be immune to its cyclical nature, very few jobs within the industry can truly be considered 100 percent safe in the event of a major economic downturn and this is beyond the control of the average worker.

Ian is the founder of Pure Resourcing, a specialist mortgage recruitment firm in the UK. He has been working in financial services recruitment industry for over 20 years and enjoys keeping a close eye on how economic trends influence the financial services industry.