Finance is a broad term for things about the science, development, and management of financial resources and securities. It includes the science of banking, insurance, business, and monetary activities. The discipline is highly diversified and covers many areas. There are many subdisciplines within it: banking, credit, corporate, investment, public finance, and personal funds management.
The field of banking is vast. It starts in ancient days with the establishment of the first banks. The early finance researchers were interested mainly in the issue of interest, although there has been some improvement in this area in recent years. In banking, there is also the issue of credit, the theory of risk, economics of banks, and the theory of investment.
The issue of finance is extremely important to business, since it covers the way in which capital is used to make loans, purchase assets, create business income and make other financial decisions. Business owners, therefore, have a responsibility for ensuring that the business is able to make profits. By learning about the history of finance, as well as about various financial practices, the average salary of a banker can increase significantly.
Another branch of finance is the area of social finance. This is closely related to economics and accounting, but the two disciplines often do not cross. Social science seeks to understand how people make decisions about what to invest their money in, how they use their funds, how they save and spend their funds, and how they avoid or recover debts. Some of the most popular areas of social science in finance are anthropology, statistics, and psychology. Some of the most prominent areas of study include microeconomics, macroeconomics, public finance, asset management, estate planning and probate, and behavioral finance.
Another area of great interest in finance is compound interest, also known as the law of averages. Average interest rates in financing revolving accounts is used as an economic measurement to determine the expected return on investment over time. Finance professionals are particularly interested in compound interest due to the large changes in returns over time. Finance curriculum vitae often include information about compound interest, especially for corporations.
Finally, there are the international financial services sector and its impact on global markets. The financial services sector includes bill collectors, loan officers, bankruptcy lawyers, treasurers, international finance representatives, internal auditors, and insurance companies. In addition, the financial services sector provides an excellent opportunity to build strong ties with expatriates and other foreign nationals living abroad.
Finance graduates may decide to specialize in one or more of these four areas, depending on their career goals. Finance graduates can choose to work for banks, insurance companies, or finance consultancies. Alternatively, they can begin careers in finance advising clients, working with hedge funds, or opening their own bank. Many banks offer an array of financial products including savings accounts, depositary receipts, GIC’s (governance, life, property, financial protection), commercial papers, invoice discounting, custom order paper, direct deposit, Internet banking, prepaid credit cards, direct debit, and offshore banking. Most banking institutions offer banking degrees.
As finance graduates consider the different options for finance jobs available to them, they should keep in mind that there are plenty of financial products to choose from, and those with a diverse experience will stand out in the crowd. Graduates with a finance background have an advantage over others because they have a broad range of knowledge about all the different aspects of the industry and can tailor their career goals to suit their needs. Finance graduates should also consider the median pay of finance professionals to better understand their situation and the path ahead.