Financial consultant - who is this? Description of the position, requirements and responsibilities, where to study

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Every person, like any company, regularly has a desire to increase existing capital. There are many different ways to improve your current financial situation.

These include bank deposits, investments, raising additional funds and much more. The choice is large, but, alas, there are no guarantees everywhere. Few ordinary people can boast of deep knowledge in the field of finance and investing. Even among entrepreneurs, there are few of them, because not all of them have a specialized business education. Therefore, it is not surprising that many of them turn to such a specialist as a financial consultant for help. His services are needed in situations where you need to make an important decision before concluding a contract, obtaining a loan, raising new funds, investing and more. A financial advisor is a professional whoanalyzes the situation, evaluates all risks and makes recommendations. He does not make the final decision. But it is to his recommendations that the client listens before making a decision.

Who is a financial advisor?

This is a rather responsible profession that requires not only education, but also relevant skills. It is not enough to have a "crust" on hand. A financial advisor is an investment specialist, a strategic planner who helps ordinary people and organizations to save and increase their capital. Ideally, such a specialist should be able to solve all the financial problems of the client. If there are problems, he must find ways out of them. If there are free funds, the specialist studies the market and selects the most attractive and profitable investment objects. Also, the consultant can find ways to increase the equity capital of the organization by attracting investors, new business partners.

If we talk about the United States and Western Europe, where the demand for such specialists is very high, the services of a financial consultant are necessary for planning short-term and long-term financial goals. This includes such goals as buying a house, paying for education, retirement. In order to make a decision related to finance, it is necessary to solve a whole range of tasks, assess your capabilities, analyze offers on the market, and take into account possible risks. Only a specialist working in this field can do this qualitatively. And the financial advisor is the onea person who will help you make the right choice.

History of the profession

In the West, this profession appeared a long time ago. Their services are used not only by companies, but also by the general population. It is normal for them to have, for example, a family doctor, a dentist and a financial advisor. In our country, the profession appeared after perestroika in the 90s of the last century. But until now, their services are more in demand in the business sector. A very small percentage of ordinary people turn to such specialists. The rest prefer to make their own decisions regarding personal finances.

Where a financial advisor works

There aren't many options. It could be:

• financial consultant at the bank;
• free specialist;
• consulting agency employee;
• a full-time specialist of a large company.

On the Russian market, such specialists mostly work in large consulting companies.

There is also a fairly large number of private specialists. Only large firms can afford full-time consultants. Most business representatives prefer to turn to consulting firms if they need such services, as it is more profitable than having a full-time specialist.

Who might need his services?

Customers can be very different. This is:

• ordinary people;
• individual entrepreneurs;
• representatives of small, medium, large businesses.

Regulara person can turn to such a specialist, for example, if he wants to invest money in stocks, real estate or something else, so as not to miscalculate, minimize risks and definitely make a profit. Entrepreneurs also have roughly the same goals. A financial consultant explains to his client the differences between preferred shares and ordinary shares, helps to select a deposit. Moreover, his services may be required when choosing a bank loan in order to get it on the most favorable terms.

As for business representatives, they set a variety of tasks. Everything depends on the situation. Working as a financial consultant also means solving the client's problems, finding ways out of the current risky situation. Therefore, even if it seems that the end has come for the company and it will not get out of debts, fines, a properly drawn up strategy gives chances for a happy ending. If the company has no problems, it may need the services of such a specialist in order to grow and develop, attract new customers, business partners, and increase net profit. Of course, much also depends on the scope of the company.

If a consultant specializes specifically in the stock market, regardless of whether he works with individuals or legal entities, he must monitor quotes, make forecasts, and analyze incoming news. The specialist gives a signal to the client to buy or sell stocks, bonds, currencies, if the moment is right.

Financial consultant at the bank

In RussianIn banks, a financial adviser, whose duties may differ slightly from the standard ones, often acts as a sales manager. There are, of course, banks that really offer the services of top-class professionals who work with individuals and legal entities.

But basically in a bank, a financial advisor is an employee who provides information specifically on products and also sells them. Therefore, in such organizations, profile education is not always required from applicants for this position. The employer is interested in experience and skills in sales. For this reason, ordinary financial consultants working in the front offices of banks are not able to advise clients, plan short-term and long-term goals, select investment objects, because they do not understand anything about it.

What education is required

There is an Association of Financial Advisers. And if you look at the portfolio of specialists, most of them have an economic education. These can be directions such as:

• economy;
• accounting and auditing;
• management;
• finance and credit and more.

Also in this area there are many lawyers who worked in the field of business, mathematicians. This job requires an analytical mind. Therefore, among such specialists there are many graduates of the Faculty of Mechanics and Mathematics.

What qualities should a specialist have and what is required of him

Basic requirements for a financial advisor:

Responsibility. He works with other people's money. Therefore, it is important to be aware and understand the seriousness

Honesty. The specialist represents, first of all, the interests of his client. Therefore, it should not be that he induces the client to purchase, for example, shares of the company, which will then give him the reward in an envelope, while there were other, more profitable investment options

The ability to learn. Having a single higher education is not enough. The world, including the sphere of finance, is changing and developing very quickly. And you need to be aware of the latest events, trends, trends. For example, even 10 years ago, few people even knew what a cryptocurrency is. And now the interest in it among investors is one of the highest

Multitasking. Such a specialist may have several clients. And he needs to work in different directions, solve a large number of tasks, without forgetting anything

Ability to analyze and evaluate financial risks. This requires not only education, but also practical experience in business

Knowledge of financial management, accounting, tax legislation of the country

Knowledge of PC and specialized programs

Main activities

A financial advisor does the following:

• market analysis;
• identifying the needs and goals of the client;
• developing strategies;
• market monitoring;
• search, identification of new opportunities for the client

To thisclients turn to a specialist, realizing the fact that they themselves understand little in this area, and they need the help of a person who is competent in these matters. Since we are talking about money, often very large, you need to choose the best financial advisor to be 150% sure of his competence and professionalism.

How to become a financial advisor

Ideally, a specialized education is required. Although you can go the other way and get a job as an assistant in a consulting firm, gradually grow and develop in this area. But even choosing this path, it is better to get a specialized education in parallel, at least in absentia, because clients pay attention to this moment. You can’t just take and decide to work in this area.

You can, of course, make such a decision, but it is unlikely that customers will come running in a crowd. Reputation and experience are very important and necessary. Therefore, in this area you need to earn a name for yourself. And it's done slowly. To begin with, it is better to start with a consulting firm, gain experience. Then, if there is a desire, you can go into free swimming or get a full-time specialist in a large organization.

Prospects for the profession

In our country, the people, however, like the business sector, are only mastering the basics of financial literacy. Therefore, such specialists have quite good prospects. We must not forget about the mass computerization and robotization of many areas, including the financial sector. To compete with smart and fast machines in the future, you really need to behigh-class professional.

How much does a financial advisor earn?

A well-known financial consultant, whose reviews in professional circles are positive, earns up to several tens of thousands of dollars a year. But there are few such specialists. If these are bank employees, then their monthly income varies on average in the range of 25,000 - 80,000 rubles and depends mainly on sales and completed plans. Employees of consulting firms earn 35,000 - 150,000 rubles, depending on qualifications, experience, and the region in which services are provided.