A comprehensive overview of the financial industry, starting with understanding finance.
Source: Financial Partners
# Why are you in the financial industry?
The answer of most students is that the financial industry is more likely to make "big" money and has great enthusiasm for the financial industry.
There are also more rational students who will say that the financial industry has a broad development prospect and is of great help to the future development of individuals.
Many students who haven’t graduated have little work experience, and their attitude towards finding a job depends more on their enthusiasm.
Why do you choose the financial industry? I can’t tell you clearly. Why do you want to go to an investment bank/brokerage firm? It doesn’t seem very clear either.
If you try hard to get a chance, it seems that you can answer well on the exam question of "looking for a job" on your behalf!
In fact, this shows that students do not understand the financial industry, the functions of various institutions, and the recruitment market.
# What is finance
The essence of finance is the financing. Among them are about credit, risk, transaction, financing and wealth management.
Credit is the root of the whole financial field. If there is no credit, there will be no money, and mankind will return to the era of barter trade. With credit, money is valuable.
With money, the economy can run well. After solving the problem of money as a measure, we can enter the exchange link.
Later, people found that the essence of the circulation of many commodities is only the transfer of property rights, and it does not need the exchange of physical objects. This involves asset securitization.
Through asset securitization, exchange becomes a transaction in the capital market. Asset securitization greatly promotes the efficiency of commodity circulation and exchange.
Thus, there is what we call the capital market. In the capital market, because the price fluctuates with the value, but also because of information asymmetry and other factors, the price of the transaction object fluctuates.
Credit, asset pricing and securitization have all been solved. The next step is to manage risks. Then securitize the risk as well. There are all kinds of financial derivatives, all kinds of models to price risks.
Financing is an inevitable thing after asset securitization. Rich people want to convert their money into assets with positive income expectations.
If you have assets, you want to sell some equity or assets and convert them into capital for business expansion. Behind many credit financing, there is a relatively hidden risk-free arbitrage behavior, which is essentially resource rent-seeking or power rent-seeking.
What about the risk management tools? Then, fixed income, absolute income and wealth management, this huge market, will become possible.
Many professional investment institutions came into being, and the capital market entered the era of institutionalization, which led to the investment banks, brokers, banks and other major financial institutions we wanted to go to.
# What kind of talents does the financial industry need?
In recent years, the financial industry has been emphasizing: compound financial talents.
Many skills such as finance, valuation and data analysis also require cross-departmental participation in other business lines.
At the same time, with the re-empowerment of the financial industry by emerging technologies such as big data, artificial intelligence, cloud computing and blockchain, technology has become an important element in the development and innovation of the financial industry, and the demand for financial talents is undergoing a round of rapid changes.
The industry demand is not only vertical professional talents in the traditional financial and economic fields, but also financial technology compound talents with financial related knowledge who can continuously empower enterprises through scientific and technological means. This demand has also risen sharply.
In addition, the financial industry also needs comprehensive professional financial talents.
As traditional finance, there is an endless demand for professionals in various sub-sectors of traditional finance.
Senior professionals such as investment banking, asset securitization, new investment and financial management, macro-financial analysis, law, consulting and evaluation are all in short supply.
The market is changing rapidly, and the needs of customers are changing all the time. What financial institutions need is comprehensive professionals who are really close to users, have insight into customers’ pain points, can provide solutions and have the ability to research and develop financial products.
# Which position are you suitable for in finance?
Regarding the positions in the financial industry, I believe that everyone has some understanding of the concepts of front desk, middle desk and back office. If we can make clear what the front, middle and back are worth, when we talk about a department, we can get a general idea of the work content and development direction, which will be of great help to your later choice.
* financial industry panoramic map courseware
In a word, students who are interested in the financial industry should first have a comprehensive understanding of the financial industry and make personalized plans for themselves.
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