Job market information
Finding out about financial services
The financial services industry is represented by the Financial Skills Partnership (FSP) which includes the following activities:
- Banking – for individuals and businesses to manage their money, access loans, buy property, exchange currencies and many other activities. It is organised into three core categories: Retail; Corporate; and Wholesale banking.
- Investments – managing and growing the wealth of individuals and organisations
- Insurance – covers a huge variety of risks, from cars and houses to ships, planes and satellites.
- Financial Advice – about working with people to plan their financial goals, based on their current situation and looking at the best ways they can achieve their financial objectives, such as helping someone to choose a mortgage, invest their savings or plan for their retirement.
Almost 1.2 million staff in 34,000 workplaces constitute the UK’s financial services sector, from online car insurers to retail banking giants, and from self‐employed independent financial advisers (IFAs) to global investment banks. Operating under a regulatory framework unique to the UK, the sector facilitates the allocation of capital, promotes confidence and continuity in life and business by managing risk and maintains the transaction systems that the rest of the economy relies on to conduct its business.
Key facts:
- 47% of firms employ 250 people.
- Employment is dominated by a handful of large employers, most notably the high street retail banks, e.g. Barclays, HSBC.
- 29 % of the financial services workforce is employed in administrative or secretarial roles.
- About a quarter of the workforce is in associate professional and technical roles.
- Managerial roles, including owners in private companies and the self‐employed, account for 37% of the workforce.
- Employment growth in UK financial services has been weak when compared with other countries, notably the US
- Recently, there have been notable declines in employment numbers because of the recession
- Staff turnover has declined, as fewer vacancies and concerns about the recession may be deterring people from changing jobs
Jobs in the industry range from:
- Insurance – underwriting, broking, customer services, sales, risk management, compliance, training, actuarial and administrative roles
- Investments – asset management (sometimes called fund management), product development, product management, investment analysis, relationship management
- Banking – retail banking (customer services, customer advice, financial advice, foreign exchange and branch management); corporate banking (corporate advice, relationship management, small business management and corporate management); and wholesale banking (mergers and acquisitions, research, sales and trading, and corporate finance)
- Financial advice – mortgage adviser, independent financial adviser, compliance practitioner, pensions adviser
Entry and progression
There is a wide range of career opportunities within financial services, and therefore the entry requirements and application procedures for each of the options differ. For a general guide:
- GCSEs, NVQ 2 or equivalent, or A levels, NVQ3 or equivalent would enable entry to a career in administrative, sales, and customer services roles
- Foundation degree, undergraduate degree or equivalent are required for professional and technical roles
- Apprenticeships and Advanced Apprenticeships are available for Providing Financial Services and Advising on Financial Products
- A Level or Equivalent Leaver Training Scheme would enable entry to the industry but the individual would be expected to undertake professional qualifications as part of their training
- Graduate Training Schemes offer formal training schemes for people who have achieved a degree with a good classification – most employers will require a degree classification of a 2.1 or above.
Financial services employers place value on professional qualifications and look for employees who are committed to achieving relevant exams. Most employers would not expect new entrants to have relevant professional qualifications, but would require them to have good maths and English skills, alongside the minimum academic qualification required for the role. There is an expectation that new entrants will be committed to achieving relevant professional qualifications once in post.
Within financial services, there are many careers available across the sector. There are a range of progression routes. Skills are important when looking to progress; employers will require employees to be able to demonstrate the required skills needed for their next step in their career. Specific qualifications may be required for progression.
For job specific entry requirements, take a look at our job profiles.
Workforce statistics
| Number of UK employees: |
approximately 1.2 million |
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| Number of UK employers: |
34,000 |
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Workforce statistics – England
| Gender: |
52% male |
48% female |
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| Age Range: |
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| 0 – 19: 1% |
| 20 – 34: 42% |
| 35 – 59: 53% |
| over 60: 4% |
| Employment: |
Full-time employees: 83% |
Part-time employees: 17% |
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[N.B. Data derived from Labour Force Survey (Q3), 2009.]
Employment trends and future prospects
Employment in banks and building societies is cyclical and leads the economic cycle. Lending activity and gross domestic product growth are the two main economic factors behind employment changes in the sector.
Since 2000, and despite strong output growth, employment growth in UK financial services has been weak when compared with other countries, notably the US. The UK financial services have been hit by the economic downturn of 2008. As a result there have been notable declines in employment numbers.
In 2008, there was a 4.8% decline in employment, which is expected to be followed by another 6.2% decline in the number of people working in the wider banking industry. Employment is, however, expected to stabilise in 2010 as lending activity and economic output return to growth.
There has been a fall in the number of vacancies across most occupations.
Skill requirements and shortages
In the last two years, compulsory redundancies across financial services have been steadily reducing headcounts. Employers report that there is a high importance to improve workforce attitude and commitment to work, along with industry and technical knowledge.
There seems to be a trend that jobs will increasingly need people with higher level skills; the increase in the use of technology may impact upon those roles, which are currently at the lower skill level.
Employers report that there is a lack of qualified and senior managers, although the current economic climate means that there are substantial changes in the availability of skills within the labour market. This has an impact upon employers’ ability to recruit to certain posts.
Occupational trends
The industry in undergoing constant change; diversification of services and products to offer retail and corporate customers vary, together with sophisticated financial solutions. There is an increasing need for:
- compliance, risk management and corporate governance professionals, which is in response to an increased need for a review of regulation policies and practices
- customer service and relationship manager for both retail and corporate customers
- fraud specialists to deal with the increase in financial crime
Financial services occupational distribution in England
| Managers and Senior Officials |
27.8% |
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| Professional Occupations |
10.2% |
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| Associate Professional and Technical |
24.9% |
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| Administrative and Secretarial |
27.6% |
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| Skilled Trades Occupations |
0.5% |
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| Sales and Customer Service Occupations |
7.3% |
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| Elementary Occupations |
1.3% |
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National and regional data
East Midlands – retail banking dominates financial services employment in the East Midlands. Women make up 53% of the workforce and 51% of workers are aged 35‐59. Full‐time employees account for 73% of the workforce and the average salary is £29,383.
East of England – insurance and insurance broking make up the most important parts of the financial service economy in this region, with Norwich a main centre. The region employs 12% of the country’s financial services workforce, with the majority, 88%, full‐time. Men make up 56% of employees, with 57% of workers aged 35‐59. Average earnings are £34,433.
London – this is the major centre of the UK’s financial services industry, centering on the City and Canary Wharf. Wholesale banking and insurance, investments and exchange markets are all well represented here. Almost of quarter of the workforce; 24% is based in London. Men make up 66% of the workforce and most jobs are full‐time, 94%. The majority of employees; 49% are aged 20‐34 and the average salary is £86,779 although this is heavily skewed by the number of high‐earning posts in the City. For most, the average is much lower.
North East – insurance broking and banking are the most important financial services in the region, with Newcastle the main centre of activity. Around 3% of the UK workforce is based in the region. Women form 66% of the workforce and 63% of workers are full‐time. Employees aged 34‐59 make up the largest share of the workforce at 52%, and the average salary is £27,219.
North West – Manchester is the biggest centre in the region but Chester, Macclesfield and Stockport are important clusters. Banking and general insurance form the bulk of businesses. The region employs 9% of the UK’s financial services workforce, with women making up 56% of employees, and most jobs are full‐time, 80%. Workers aged 34‐59 form the largest section of the workforce at 57%. The average salary in the region is £28,416.
South East – the region is second only to London in size, taking up 15% of the workforce. The gender split between men and women is fairly even at 54% and 46%, respectively, and 60% of all employees are aged 34‐59. Most people are employed full‐time, 84% and the average earnings are £37,298.
South West – The main centres for financial services in this region are Bristol, Bournemouth, Gloucester and Swindon. The sector here makes up 7% of the UK’s sector total. Women form 59% of the workforce and the majority of jobs are full‐time, 75%. People aged 34‐59 form the largest share of the workforce. Average salary for the sector is £34,910.
West Midlands – the region employs around 6% of the UK’s workforce, with the majority centred on Birmingham. Banking, general insurance and credit are the most important sub‐sectors here. Men make up 52% of employees, with 72% of jobs overall being full‐time. Workers aged 34‐59 are in the majority at 52%. The average salary is £29,014.
Yorkshire and the Humber – the emphasis across the region is on retail banking and makes up 7% of the country’s workforce. There are slightly more women than men working in the sector at 51%, and 81% of jobs are full‐time. Once again, the 34‐59 age range is most common among employees, accounting for 51%. Average earnings are £27,481.
Scotland – financial services in Scotland range from retail banking to pensions and car insurance, with centres of activity in and around Edinburgh, Glasgow and Dunfermline. Over 2,100 companies are directly involved in the industry, providing 7% of the UK’s financial services workforce. The most common age range of employees is 34‐59, and most people work full‐time, 81%. The average salary for the sector as a whole is £35,016.
Salary levels
In England, the average pay scale for financial services employees is estimated at £49,826 per year. However, this figure is biased by the London job market, which has a higher salary level. Employers often offer a ‘basic’ salary and a ‘package’, which may include an annual performance related bonus, pension, and private health care insurance.
Career paths
Further sources
Produced Sept 2010, using FSSC AACS LMI report (Jun 2010)
