What Jobs Do Finance Majors Do? 5 Career Paths

A finance major provides a comprehensive education focused on managing money and assets. This field emphasizes analytical thinking, equipping students with skills to navigate financial markets and corporate financial health. Coursework covers financial markets, corporate finance, investments, and quantitative analysis, including financial modeling and valuation techniques.

Students learn to apply mathematical concepts and analytical tools for informed financial decisions. The curriculum builds a strong foundation in understanding market functions, business valuation, and financial decision implications. This academic background prepares individuals for various roles across the financial landscape.

Investment Banking and Capital Markets

Investment banking and capital markets offer dynamic career paths within financial institutions. These roles facilitate large-scale financial transactions for corporations, governments, and institutions. Common positions include investment banking analyst or associate, sales and trading roles, and research analysts specializing in equity or fixed income.

Investment banking involves advising on mergers and acquisitions (M&A) and underwriting debt and equity offerings. Analysts and associates conduct financial modeling, valuation analysis, and due diligence to support these transactions. They prepare detailed presentations for clients, outlining potential deal structures, financial implications, and market opportunities.

Sales and trading professionals act as intermediaries, facilitating the buying and selling of securities for clients and managing proprietary trading desks. This environment demands quick decision-making and a deep understanding of market dynamics and regulatory frameworks. Research analysts assess companies and industries, publishing reports that provide investment recommendations to clients, influencing trading and investment decisions.

Corporate Finance

Corporate finance roles are found within non-financial companies across diverse industries, managing a company’s financial health and strategic financial decisions. These internal positions focus on the organization’s financial operations and growth initiatives, rather than client-facing services. Typical job titles include financial analyst, financial planner, budget analyst, treasury analyst, and corporate development specialist.

Professionals in corporate finance are responsible for financial planning and analysis (FP&A), which involves creating budgets, forecasting future financial performance, and analyzing variances. They engage in capital budgeting, evaluating potential investment projects to ensure efficient allocation of company resources. Cash management is a core function, optimizing the company’s liquidity and managing working capital. These roles also support strategic initiatives like corporate expansions, divestitures, or acquisitions by providing financial insights and analysis.

Investment and Wealth Management

Investment and wealth management careers center on managing financial assets for individuals, families, and institutions. Professionals in this field grow and preserve client wealth through strategic investment and comprehensive financial planning. Roles include portfolio manager, financial advisor or planner, buy-side research analyst, and wealth manager.

Responsibilities involve constructing and actively managing investment portfolios tailored to client objectives and risk tolerances. Financial advisors provide personalized financial planning advice covering retirement, education savings, and estate planning, helping clients achieve long-term financial goals. Research analysts on the buy-side conduct analysis of securities and markets to identify investment opportunities for managed portfolios. Client relationship management is a significant component, requiring strong communication and interpersonal skills to understand client needs and provide ongoing guidance.

Commercial Banking and Lending

Commercial banking and lending roles focus on providing financial services, primarily loans and credit, to businesses of various sizes. Professionals in this sector are employed by traditional commercial banks. Common positions include commercial loan officer, credit analyst, relationship manager, and branch manager.

Commercial loan officers and credit analysts assess the creditworthiness of businesses seeking financing. This includes analyzing financial statements, cash flow projections, and industry trends to determine the likelihood of loan repayment. They structure and approve loans, ensuring terms align with the bank’s risk policies and regulatory guidelines. Relationship managers cultivate and maintain connections with business clients, understanding their financial needs and offering suitable banking products and services. The work emphasizes credit analysis, risk assessment, and direct client interaction within a regulated banking framework.

Financial Risk and Compliance

Financial risk and compliance roles are specialized functions dedicated to identifying, assessing, and mitigating financial risks while ensuring adherence to regulatory requirements. These positions are present across financial institutions and large corporations. Common job titles include risk analyst, compliance officer, fraud analyst, and internal auditor.

Risk analysts develop and implement models to monitor various risks, such as market, credit, and operational risk. They analyze potential exposures and provide insights to management to inform strategic decisions and safeguard financial stability. Compliance officers ensure the organization operates within established laws, regulations, and internal policies, often focusing on areas like anti-money laundering (AML), data privacy, and consumer protection. Fraud analysts investigate suspicious activities to prevent financial losses and protect assets. Internal auditors conduct independent assessments of an organization’s internal controls, financial reporting, and operational processes to ensure effectiveness and adherence to standards.