Find Out Who Works in Finance

Working in finance only for master's and doctoral graduates? They already account for one-third of all employees

Over 10 years, the share of people with higher education employed in finance in the European Union rose by as much as 11 percentage points – according to a report by CFA Society Poland and Spot Data titled "The Future of the Financial Sector. Evolutions and Revolutions." Back in 2008, master's and doctoral graduates accounted for 21%, and by 2018 they held 32% of positions. Bachelor's degree holders now make up 35% of employees, and those with secondary education 32%. Despite crises in the industry, the total number of people employed in finance in the EU has not changed – for 10 years, the sector has employed 6.6 million people.

– There is no doubt that both financial crises that occurred in European markets over the past 10 years – in 2008-2009 and 2012-2013 – hit the sector very hard. However, they did not cause a reduction in employment, but rather a change in its structure. The number of people with a master's degree or doctorate increased significantly, while the number with a bachelor's degree or secondary education decreased. It should also be taken into account that this change is to some extent related to the greater number of well-educated people in the European Union, which is clearly visible in Eurostat data. We are entering an era of automation of work in financial institutions, but again, contrary to many forecasts, it may affect the structure of employed people more than their number – for example, new positions may emerge. One thing we can be certain of is that clients will never fully give up human contact in favor of a robot or artificial intelligence – says Krzysztof Jajuga, professor of economic sciences at Wrocław University of Economics, chairman of the board of CFA Society Poland.

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Finance: more master's and doctoral graduates

The analyses in the report show that the number of people with a master's degree or doctorate in the industry increased by 11 percentage points over the past 10 years – from 21% to 32%, those with a bachelor's degree decreased from 40% to 35%, and those with secondary education from 37% to 32%. People with primary education have held a similar number of jobs for years – a decrease from 2% to 1%.

How to enter the financial industry?

Analyses by CFA Society Poland experts indicate that the percentage of people with higher education working in the financial industry will continue to grow, which is why anyone thinking about such a career should first and foremost pursue university studies. It is also worth considering completing additional courses and obtaining certifications, such as CFA, which will help you stand out in the job market. Many employers, when granting professional promotions to higher-level positions in financial and investment management, require additional skills that confirm the ability to conduct investments worldwide and knowledge of global markets.

Fewer people in branches

Digitalization is changing the employee profile

The change related to the employment structure is closely linked to the modification of the profile of financial sector employees. Demand for new skills is increasing, mainly related to digital competencies. For example, estimates provided by the Bank for International Settlements indicate that about 1/3 of professions in finance will undergo such a skills transformation. Digitalization will be associated with the emergence of new tasks. Demand is growing for people capable of managing complex technological processes. All functions related to premium-level advisory services will also gain importance – meaning employees who can establish a good relationship with clients and earn their trust may become highly sought after. Interestingly, as indicated by the CFA Society Poland and Spot Data report "The Future of the Financial Sector. Evolutions and Revolutions," the best growth forecasts for finance-related professions in the US are for credit advisor and loan advisor positions.

According to CFA Society Poland experts, any potential reduction in employment may affect people working in bank branches. In addition, fewer people will be needed in the so-called back office. Technologies already allow for automated transaction settlement and document processing, and soon may also enable the fulfillment of a large portion of responsibilities related to legal regulations.
The full report is available here: https://cfapoland.org/application/media/images/Main%20page/CFA-Raport_Przyszlosc-Sektora-Finansowego.pdf

Methodology

The report "The Future of the Financial Sector. Evolutions and Revolutions" was prepared by Spot Data on behalf of CFA Society Poland between August and October 2019. Using Latent Dirichlet Allocation (LDA) text analysis algorithms, an automated analysis was conducted of 1,000 reports from the most important financial institutions published over the past 15 years (through 2018) and 40 academic publications from central banks and supervisory institutions. Then, 9 in-depth interviews were conducted with members of CFA Society Poland to expand knowledge on the phenomena identified by the LDA method.

Summary

Over the decade, the share of master's and doctoral graduates in the EU financial sector rose from 21% to 32%, while the share of bachelor's degree holders and those with secondary education declined. Despite two crises, employment in the industry remains stable at 6.6 million people – however, its structure is changing. CFA Society Poland experts indicate that the next challenge will be automation, which will affect the profile of positions more than the number of jobs. Digital competencies will become more important, but so will the ability to build client relationships, which artificial intelligence cannot replace.