Banking, investment and insurance : Overview

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More in this section

1. Overview
2. Job roles
3. Entry and progression
4. Typical employers
5. Opportunities abroad
6. Future trends
7. Jargon buster

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Case studies

• Actuarial student: Victoria Rolfe
• Investment assistant: Todd Cijunelis

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The UK’s banking, investment and insurance industry includes employers such as investment banks, commercial banks and building societies, broking firms, independent financial advisers, insurance and reinsurance companies.

Although the industry was strongly hit by the recession, it is optimistic that it is now slowly recovering. There are still many opportunities for skilled graduates as it remains one of the UK’s largest sectors and important to the country’s economy.

What kind of work can I do?

• Retail banking - covers financial services provided by the high-street banks and building societies for individual customers and small businesses such as personal loans, savings, mortgages and credit cards.
• Investment banking - covers the provision of specialised financial services and advice to industrial, commercial and government clients, such as the sale of shares, bonds and securities.
• Private banking - specialist banks offering banking, investment and financial services to high net-worth individuals. The range of financial services offered is wide and can be tailored to the needs of the customer, e.g. asset management, estate planning. This is done on a more personal basis, with dedicated bank advisers.
• Mergers and acquisitions - the financial management of buying, selling or combining different companies.
• Actuarial - concerned with long-term financial planning and assessing risk in areas such as insurance and pensions.
• Property insurance - covers insurance services in areas such as fire, flood and home insurance.
• Life assurance.
• Insurance broking - analysing client needs and negotiating the best deal with insurance companies.
• Reinsurance - insurers purchasing their own insurance as a method of risk management.
• Underwriting - assessing clients' eligibility for products by analysing risks and then setting premiums.
• General management or operations - functions covering accountancy, marketing, management services, IT and human resources.

What's it like working in this industry?

• The work environment is often fast-paced and dynamic.
• The majority of the work is office based, although travel may be necessary when visiting clients.
• Although the work culture differs depending on the firm, working hours are not always the standard 9am to 5pm. They can be long and vary from week to week, particularly in some areas such as investment banking.
• Full-time employment is typical.
• Self-employment is possible in some areas of the industry. There are approximately 60,000 self-employed workers in the industry (Financial Skills Partnership , 2010).
• Despite the recession, graduate salaries within the financial services industry are among the highest in the UK. Investment banks, in particular, are still offering very competitive starting salaries to graduates.
• Graduates entering the industry can earn an average salary of £29,000, with students entering investment banks expected to earn an average salary of £42,000 (High Fliers Research Limited, 2011).
• Many employers offer additional benefits such as signing-on bonuses, gym memberships, pension schemes, private health insurance and company bonus schemes.
• Many employers within the industry have diversity initiatives in place. Programmes include Diversity Now , which works with jobseekers from diverse backgrounds interested in a career in the industry.
• There are good opportunities for progression within firms and the industry as a whole.

How big is this industry?

• There are over 1.1 million people currently working in the UK financial services industry.
• The financial services industry employs around 4.4% of the UK workforce (Office for National Statistics, 2011).
• More than 34,000 organisations make up the UK’s financial services industry, which includes private, public and not-for-profit organisations. The majority of organisations are small businesses with fewer than 250 members of staff. However, the large companies account for the majority of the workforce.

Where can I work?

• Although the City of London is the focal point of the UK financial services industry, it accounts for just one-third of overall industry jobs.
• There are thriving financial districts in other large cities such as Manchester, Leeds, Bristol, Edinburgh (internationally recognised centre for asset management), Glasgow, Cardiff, Birmingham, Norwich and Belfast.
• The financial services industry is largest in England. However, Scotland employs 9% of the workforce, Wales 4% and Northern Ireland 2% (Financial Skills Partnership , 2010).
• Many of the organisations in the UK financial services industry are part of international groups or have international interests and clients based outside of the UK.
• Opportunities to work overseas may be available to those who make their careers with global firms. Despite the recession there are still opportunities abroad, especially in emerging markets in Asia, the Middle East and Latin America. For more information see opportunities abroad.