A wise man once said, “Master your money and you will have no master”.
A wise book once said, “The love of money is the root of all evil”.
Mastery of our finances is essential for order, sanity and balance within our lives. Mismanagement of funds causes perpetual debt, financial instability or even bankruptcy.
This is the importance of financial professionals – to guide us and master this ‘necessary evil’. These professionals and organisations comprise the financial sector.
What is Finance?
In Trinidad & Tobago, the financial sector is governed and regulated by the Central Bank. Within this industry, there are commercial banks, accounting firms, insurance companies, investment banks and advisory and consulting services to research, interpret and provide financial data to help individuals and companies make informed decisions and strategies.
There are essentially three things a person can do with money:
- Spend
- Save
- Invest
Consequently, there are a number of careers to be considered in the financial sector, depending of course on an individual’s choice, skills and interest.
What do Finance Workers Do?
Accounting
There are several main branches of accounting which include financial, management and taxation accounting. Financial Accountants usually work as separate entities from their clients as private firms and prepare income statements, balance sheets, Value Added Tax (V.A.T) payment documents, records other tax payments and other statements that reflect their client’s operating results over a period of time.
Management Accountants operate within an organisation in a senior advisory capacity. These finance professionals work closely with management to assist in important decision-making. They analyse the company’s financial position, give insights into business performance, prepare tenders, assist with strategic planning and perform cost analysis for projects.
Financial Management
Very often, companies would hire employees with finance skills or qualifications to work in-house to manage their spending, saving or investing of capital. Candidates with a business degree usually start in entry-level jobs such as Accounts Clerks or Officers and scale the ladder towards supervisory level, management and eventually reach executive level as Directors or Chief Financial Officers (CFOs). Given that finance professionals play an important role in decision-making, it is not uncommon for finance professionals reach Chief Executive Officer (CEO) level as the pinnacle of their career.
Commercial Banking
These professionals operate within commercial banks where they help individuals save by opening and managing accounts, as well as spend and invest through issuing loans, mortgages, credit cards and securities. Candidates with a business degree can obtain entry-level positions as Clerks and Support Officers and eventually advance to Tellers, Customer Service, Loans Officers, Account Managers, Department Supervisors, Branch Managers and Senior Management.
Commercial banks offer a variety of career paths including marketing, human resources, risk management, sales, economic intelligence, auditing and investment banking.
Investment Banking
These finance professionals serve governments and corporations. They operate in an advisory capacity, providing intelligence on how to raise capital funds for various projects as well as handling company mergers and acquisitions. They work in investment or even commercial banking firms such as CIBC First Caribbean and can be considered Corporate Financial Advisors.
Insurance
Individual financial advisors work with clients usually as an agent of an insurance company. Financial Advisors primarily assist individuals with the saving and investing of their funds. They sell life, car, home or other insurance policies as well as saving and investment plans such as annuities and retirement funds based on a person’s lifestyle and needs.
Successful Financial Advisors do require solid financial knowledge but must also possess exceptional selling and communication skills. A Bachelor’s Degree in business coupled with experience in sales, marketing or finance will work in your favour. You must also be licensed to sell financial products by the Trinidad & Tobago Insurance Institute (TTII).
Underwriting
Underwriters conduct risk assessment when a potential client’s information is presented to them. They determine using industry standards and precedence, what is the risk of insuring this person? For example, for life insurance, they assess your health status, age, occupation and medical history to evaluate your longevity and how much life insurance coverage you qualify for. Companies prefer candidates to have extensive knowledge of the insurance industry as well as a high qualification in business or risk management.
Actuary
If Underwriters evaluate risks, Actuaries analyse the financial costs of these risks to the company. Actuaries use a combination of mathematical, statistical and financial principles to provide implications for future events. They are widely found in insurance companies where they determine project risks, produce life tables to evaluate mortality or disability probability as well as calculate the appropriate coverage amount for a particular policy such as an annuity or pension plan.
This is a highly analytical role and calls for an experienced finance professional with qualifications in actuarial science, risk management and statistics.
Brokers
Brokers act as the middlemen for investors to purchase securities and stocks on the Stock Exchange. Individuals can solicit market intelligence from brokers on the best times to buy and sell shares. Apart from investment advice, brokers also buy and sell these shares on behalf of the investors. Like Financial Advisors, Brokers in Trinidad must be licensed and registered with the Trinidad and Tobago Stock Exchange (TTSE).
Apply to all of the courses in Finance
How do I Choose a Career Path in Finance?
1. Get your Professional Qualification/Licenses
In many of the entry-level jobs, a business degree will secure a position. However, in Trinidad & Tobago, to advance successfully in this field, an ACCA qualification will make your advancement faster. ACCA is internationally recognized. To work as an accountant, you must be ACCA qualified. You must also be a registered member of the Institute of Chartered Accountants of Trinidad & Tobago (ICATT).
2. Get Experience While Studying
As part of your ACCA requirement, you should be seeking relevant work experience while studying in order to gain insights into the dynamics of the finance sector. Working while studying gives you a competitive advantage in that it allows students to understand how these figures impact shareholders? As a finance professional, you will be called upon to analyse figures and make suitable recommendations depending on your field.
3. Network
It’s all about who knows you and who likes you. Seeking a career in finance requires you to know as much as you can about the field in finance you choose and the players within that industry. Where do they work? How can you get in contact with them? Are they on LinkedIn?
If so, you can connect with them, introduce yourself and start building conversations and relationships with the top players in your industry.
4. Develop Your Soft Skills
Employers aren’t just looking for number crunchers. They are looking for people they can work with comfortably, work as part of their team, deal with clients, manage their time and exhibit true professionalism. Apart from your bravado with numbers, employers will greatly appreciate your ability to manage stress, provide customer service, innovative thinking and informed decision-making skills.
5. Character and Morals
Accountants, Bankers, Brokers, Financial Advisers and other finance professionals strictly observe codes of conduct that uphold the trust and integrity of their clients. Where people’s money is concerned, always be transparent, accurate, honest and confidential in your operations.
This is an industry that leaves no room for error. You must know what you are doing and ensure that you are doing it correctly. Mismanagement of funds has led to companies being fined by the government, charged with fraud and even executives serving prison sentences. The higher you advance in this career, the greater the cost of a mistake. Therefore, attention to detail is of paramount importance.
