What is Financial Services?

I know what you are asking yourself...How do I even know if I want a career in financial services if I don’t know what it is? Well, this post is for you!

Financial services, in short, are professional services involving the investment, lending and management of money and assets.

In Australia, Financial Services is a very important component of the economy. In fact, the financial services sector in Australia is the largest contributor to the national economy, accounting for around $140 billion to GDP over the last year. Over 450,000 Australian’s are employed in the sector and it will continue to be an important contributor to the strength of the Australia’s economy into the future.

At the heart of the financial services sector are Australia’s four major banks. These banks are some of the safest and most profitable banks in the world.

Given our superannuation, or retirement savings, sector, we also have one of the worlds largest pool of investment fund assets.

Together our banking and superannuation sectors help to make Australia a powerhouse in the global financial services industry.

The sector is also ripe for the picking when it comes to new technology and the burgeoning Fintech industry in Australia is often acknowledged as offering some innovative new ideas that could be applied globally.

It’s a great industry to be involved with and can provide some fabulous global opportunities.

I look forward to welcoming you into a wonderful industry that is making a meaningful impact to the Australian economy.

Talking to My Daughter About the Economy: A Book Review

Book Review: Talking to My Daughter about the Economy: A Brief History of Capitalism by Yanis Varoufakis

I picked up this book because, whilst I don’t have a daughter, I am a daughter myself. Knowing my journey with economics and ultimately majoring in it at university, I’m keen to ensure more girls understand in plain language the workings of the economy.

Yanis Varoufakis is most well known as the Greek Financial Minister at the most critical point of the modern Greek economy, aiming to bring Greece out of the government debt crisis. However, I most remember him as my Economics lecturer whilst I was at Sydney University in the late 90s. Always passionate and straight forward, Varoufakis shows clarity and strength throughout this book.

The book is written to Varoufakis’ daughter, who was 14 years old at the time it was published. It is a wonderful mix of classic economics, personal, historic and modern examples, mythology and even TV and movie references. His passion for his home nation of Greece, as well as his one-time adopted nation of Australia is clear throughout.

I particularly enjoyed his tale of inflation and deflation in POW camps during WW2 using tea, coffee and cigarettes as the simple worked examples.

He also touches on some great modern examples of where economics places greater importance on exchange value rather than on today’s important resources such as the environment. By using an example of forest fires, Varoufakis shows how these fires increase the economic value of a nation (by fighting the fire), rather than decreasing it by the value of the loss of flora and fauna -an obvious gap in economic theory.

Whilst a little left leaning at times, it is a book providing simple and clear examples of the history of capitalist society that many daughters (and others) can read and understand.

Enjoy the read!

C

A Doctor, Lawyer? No I chose Finance

Coming from a very traditional and conservative Vietnamese culture and raised by like-minded parents, I was pruned to be the next ‘Doctor’ or ‘Lawyer’ in our family of seven. This had always been my parents’ ultimate desire for their youngest daughter. The status and money associated with Medicine and Law was something to aspire to from an infant age, and thus the optimal career journey to pursue.

I guess I shattered their hopes and dreams when I announced that I had no interest in being a doctor or lawyer after I completed my HSC, but I was fascinated by the world of numbers and how the economy works. At the ripe age of seventeen, I had no idea where this would take me, but I just knew that I needed to have a crack at finding answers to my 101 ‘finance’ questions. So I studied a Double Bachelor’s degree in Finance and Economics, and followed this up over the years with a Postgraduate Degree in Finance.

Fourteen years down the track, I am certain that I have made the right choice. Through both education and work experience, I have navigated the broad spectrum of opportunities that the world of Finance has to offer. I have worked across Business Banking, Commercial Banking, Capital Markets, Investment Management, Superannuation, Corporate Advisory, and now Insurance.

I have travelled across the world, met and have built deep relationships with a variety of extremely smart, interesting and generous people across the industry. I also feel privileged to have learnt how to overcome challenges along the way, from who I consider the best talent, and my support network.

I am definitely still learning. It is a lifelong journey but a truly rewarding one that I have no regrets in doing.

Monica Vu, Financial Risk Advisor, Suncorp

My love for numbers & people

From a young age, I realised I had an aptitude for numbers and a desire to get involved in business.

The formal business environment was still very male dominated and formal, and that may have fuelled my drive to study finance and receive my Chartered Accountant qualification as my “passport” to get involved and enter the professional business environment on an equal footing.

Since then, I have worked across the financial services sector, in areas including;  asset consulting, investment management, marketing, sales and business management.

I love the people I get to engage with either as colleagues, clients or fellow industry participants; intelligent, driven and varied. The work and industry continues to evolve and reshape and the relationship dynamics therein morph to strive to meet shared objectives.

I have been working for more than two decades in the financial services industry and during this time have managed an emigration; continued study and learning; role, function and company changes; a growing family (including 2 teenage daughters & a dog) and look forward to another score of years working in the sector in various capacities.    

Sandi Orleow, Consultant & Non Executive Director

The importance of maths

I never thought I was good at maths. So when it came to choosing my subjects for my higher school certificate, maths wasn't one of them. I'd much rather history, geography and business studies than maths. Anything but maths. 

Just before putting in my subject selection, my dad sat me down and told me I had to do maths. And it wasn't just "it's ok, you can just do general maths"... it was no - "you have to do maths and you have to do 2 unit maths". I was horrified. Not only don't I like it, I thought I was no good at it. I believed I was going to put my final mark in jeopardy just because my dad told me I had to do something I thought I wasn't good at. To top it off, my maths teacher was not my favourite teacher. She was totally fierce. But do you know what? I had a maths tutor who was fabulous. She (yes she!!) made me see the importance of maths and how logical it really is.

I toughed out year 11 and 12 maths and got a reasonable mark in the end. But even though I got a good mark, I still thought I wasn't good at it. So when I saw that the compulsory subjects in my business degree at uni was econometrics and accounting, I nearly died. I had to grin and bear it. Again, in the end I did ok. This theme also repeated itself when I did my Masters in Finance and MBA.

Maths is at the heart of all investment and business decisions. Indeed, why go into business, launch a product or make an investment decision at all unless the maths is right?

Am I good at maths? Over time, I've learnt the answer to this is: yes. In my heart, do I believe it? Probably not, but do you know what? I use maths all day, every day; building businesses, selling products and, in understanding and conveying my investment teams decisions to my clients.

Was my dad right to make me do 2 unit maths for my final year subjects - too right! You should too! (or three or four units :) )

C xx

An open mind created a career of opportunities

I didn’t grow up wanting to work in finance. I studied economics at school and when I narrowly missed out on my first choice at university, I ended up studying Economics. That was only meant to be for a year but seven years later I graduated with a PhD. And then I had to get a job! The obvious jobs for an economics graduate, like the RBA or Treasury, weren’t that appealing at the time and I liked living in Brisbane so I took a job with a global macro hedge fund and was fortunate that three years later I ended up working for them in London. There’s the thing – working overseas is fun and provides exposure to so many facets of life that you simply cannot get here in Australia – but it costs money and finance provided a good income to suit the lifestyle that I liked. Over the past fourteen years I have worked for a hedge fund, investment bank, asset manager, Australian domestic bank and now one of the country’s largest superannuation funds. It took a while but I have never been more passionate about my job and my career, and the ups and downs along the way are what help you to learn and succeed. If I have one regret it was being too narrowly focused on opportunities that I thought I wanted rather than being open minded enough to take on experiences that were offered to me. A career in finance is also well paid, which provides financial security both as an individual and for my family. I feel empowered not just by what I earn but by the knowledge that I have acquired over the years and my ability to help shape the retirement outcomes of many Australians. That means everyday I wake up eager to go to work. And that’s pretty nice too.

Dr Zoe McHugh, Investment Strategist, First State Super 

Why economics enabled me to escape my parents!

I studied economics at school initially to escape being taught by my parents! (My parents were both teachers at my school and between them they covered most other elements of the core curriculum - but not economics). But as time went on, I discovered that economics can be fun and plays a role in all areas of our lives. For example, economic analysis can determine the price we pay for goods and services, terms of international trade or even explain how we behave through the study of behavioural finance. You only need to read Freakonomics by Steven Levitt and Stephen J. Dubner and you’ll be hooked!

After completing a Bachelor of Economics, I embarked on a career in asset management which has empowered me to work and travel all over the world. Growing up in Hobart, Tasmania, the idea of living in Melbourne, Sydney and London or going on business trips across Europe and the USA seemed like a dream. My career has also sparked a passion for superannuation and a want to contribute to an industry that can make a difference, helping people have a more secure retirement. Like F3, I also advocate for diversity and for women to join the finance industry. In my experience it's a dynamic and flexible place to work. I'm constantly pushing the boundaries and solving new problems creatively. In asset management, there is never a dull day!

Cassandra Crowe, Research Manager, NAB; Director, CFA Society of Sydney

Where finance and creativity intersect

I left high school to study in a creative area (costume production) but quickly realised that making my creative passion my full time job ruined the fun in it. I decided to study a business degree and was drawn to finance because I knew that there were a large breadth of opportunities. Among other things, I have now ended up designing an investment product that invests in impactful companies that are solving the worlds problems. I've managed to use my skills to become a board member of the Australian Ballet Ambassador program. I now feel like I'm contributing to something big at work and get to use my skills to engage in my creative passions outside of work. I feel like I live a very well rounded and interesting life and I am so glad that I went down this path.

Jodi Pettersen, Head of Marketing & Client Relationships, 8IP 

From Russia with Love

It may sound boring but working in finance became my dream when I was about 14 years old. It was an exciting time in Russia (I am originally from Russia), post-Perestroika and I saw how the country was changing and a big part of it was the evolving financial industry (pretty much non-existent in its pure form during the communism era). I found it exciting to learn how the banking system had to change and evolve to serve the new nation’s needs, how the financial sector had to break free from the government control and I decided that I am going to study finance because it was clear to me that it is one of the main building blocks of our life. I studied Banking & Finance at the university and after starting my career as a currency trader working for a private bank I soon realised that finance is a very diverse area and there is a lot to choose from. It is an exciting industry to work in and it offers unlimited opportunities for professional (and personal) development in various areas. I now work as a senior consultant for a global consulting company in Australia providing services to our clients (ie super funds, industry funds, endowments, charities, wealth management businesses, etc) and the idea of helping them to achieve better outcomes for their members makes my job very exciting and fulfilling. 

Dania Zinurova, Director of Manager Research, Australia, WillisTowersWatson