Fielding Finance Questions

by Tracy Williams 

March 2010

With the whole world and perhaps a long, prosperous career ahead of them, Consortium students and alumni in finance often look for clues, advice and tools to get ahead. They reach out, seek guidance, and tap into networks and mentors.  They ponder career strategies and ask questions.

Some of the most frequently asked appear below—questions asked by Consortium students while getting their MBA’s, by Consortium alumni in their first positions in banking and finance, or by alumni looking to transition from one sector to another (or from a different industry).

How can I decide what sector of finance is best for me?

What motivates and drives you? People, numbers, risk, clients, organizations, systems, deals? Decide what you like to do, what subjects in finance you find appealing, and what activities you prefer to be involved in. Do you like research, modeling, and quantitative analysis? Do you like client interaction, client negotiation, marketing, pitching, and sales? Do you like to take risks or get excited by market volatility? Are you intrigued by the complexities and profit opportunities of capital markets and exotic instruments? Do you like to do deals, projects and transactions?

Do you like to analyze and value large companies? Are you intrigued by foreign markets, international business and currencies? Do you enjoy managing groups, teams, or organizations and developing younger talent? Do you like to advise individuals on how to prepare for a financial future?

At the same time, decide where there is an abundance of opportunities.

Ask these kinds of questions to help you outline a path toward sector(s) of finance where you can excel. The sectors to choose from are numerous: private banking, equity research, credit analysis, investment banking, bond trading, commercial banking, mergers & acquisitions, retail banking, securities brokerage, private equity, corporate treasury, cash management, or derivatives trading. Matching your likes with opportunities helps you choose sectors where you’re most likely to succeed.

Should I start off at a large financial institution? Is there an advantage in going where there is structured training and development?

Big firms tend to sponsor formal training programs and put new associates on tracks, where progress is monitored and evaluated. Associates rise through the ranks based on their meeting defined expectations. Smaller firms (notably boutiques) provide on-the-job training and grant new associates significant responsibility, sometimes almost immediately. You should weigh what’s more important—training vs. responsibility.

Where will there be opportunities in the short term and long term?

In the short term, opportunities exist in post-crisis activities: corporate-finance restructuring, risk management, investments in distressed assets, capital raising and advisory for financial institutions, and securities/derivatives clearing and processing. In the long term, opportunities will exist in stable, sustainable businesses—including private banking, investment management, corporate cash management, financial management at corporations, and custody.