Overview of the finance sector in the UK

Accountancy, banking and finance

1. Overview of the financ…
2. Graduate jobs in accou…
3. Getting a graduate job…
4. Professional developme…

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Case studies

1. Trainee financial adviser: Sarah Stone
2. Trainee chartered accountant at KPMG: Arnab Datta
3. Future Leaders programme at AXA: Sarah Goodwin

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There are more than 2 million people employed in the finance sector, and it contributes billions of pounds to the economy each year. Find out where the jobs are...

What areas of finance can I work in?

Employment opportunities in accountancy, banking and finance are grouped into:

• Accountancy and finance - employ more than 1 million people who work in audit, tax and accountancy businesses as well as in financial functions within other organisations.
• Banking and building societies - enable individuals and organisations to manage money, access loans and conduct business in the UK and overseas.
• Financial planning - focuses on the provision of advisory services and supporting people and organisations to plan their financial futures.
• Insurance - businesses work closely with other professionals, such as doctors, lawyers and fire officers, to gather evidence to assess risk and resolve claims against insurance policies.
• Investments and pensions - research the likely performance of funds and advise asset managers. Key functions carried out by investment companies are trading and stockbroking, alongside performance measurement, investment support, valuation, risk assessment and data management.  

There are about 34,000 businesses providing financial services, such as banking, insurance and financial advice, and more than 37,000 businesses registered to provide accountancy services, including audit, assurance, tax and advisory services.

For examples of job roles in this sector, see graduate jobs in accountancy and finance.

Who are the main graduate employers?

The 'big four' accountancy and financial services firms are:

• Deloitte LLP
• Ernst & Young
• KPMG
• PwC

In retail banking, employers include well-known high street brands, such as:

• Barclays
• HSBC
• Lloyds Banking group
• Nationwide
• Royal Bank of Scotland

In investment banking, large companies include:

• Barclays Capital
• Goldman Sachs
• Morgan Stanley

The main insurance companies include:

• Aviva
• AXA
• Lloyds of London
• LV

Many of the bigger financial companies are multinational and opportunities exist to work overseas, although this may depend upon having additional skills or competences, such as languages.    

In the UK, there are far more small to medium-sized enterprises (SMEs) than large companies and this type of employer provides good prospects for graduates, although recruitment, selection and training arrangements may not be as formal. SMEs in the financial sector provide support for professional training and development and are likely to provide a more varied experience of work.

Graduate jobs in accountancy exist within charities and not-for-profit organisations but the majority of opportunities in this sector are in profit-generating businesses.

What's it like working in the sector?

Graduates entering the accountancy, banking and finance sector can expect:

• to work long hours in a fast-paced office environment;
• a starting salary in the region of £23,000 - £24,000 with salaries increasing rapidly upon professional qualification and with experience. Starting salaries for administrative, sales or office management jobs within the sector tend to be lower, at around £15,500 - £22,000;
• substantial bonuses for some finance professionals. Sales roles can also earn commission or bonuses; 
• good opportunities for progression;
• further employee benefits, such as joining-up bonuses, private healthcare, pension plans and sports club membership.

What are the key issues in the finance sector?

Despite job cuts in the banking sector during the recession, the future looks positive for the professional services, with finance and accountancy leading the recovery.

Around four in ten financial services jobs are in London and the South East of England. Although London as a global finance centre dominates, other cities such as Edinburgh, Glasgow, Leeds and Manchester have flourishing financial centres.

The government intends to establish the Prudential Regulation Authority by the end of 2012 to be statutorily responsible for the supervision of more than 2,000 firms, including 157 UK-incorporated banks, 48 UK building societies, 652 UK credit unions and 162 branches of overseas banks. All firms will be subject to a baseline level of supervision aimed at reducing the probability of failure.