Banking and financial services is a large industry sector for consulting firms. Many consulting practices are solely dedicated to this complex and rapidly changing industry. It is an exciting industry with many opportunities for building a long term career.
Banking and financial services sector
To start off, what makes banking and financial services a separate sector?
The banking part is relatively self explanatory. Advising banks on their strategy and operations is a key function of many consultants. The banking sector covers a wide range of products offered by the industry, including lending products on the commercial side like corporate loans to products on the consumer side like mortgages.
Over the past decade with the rise of neo-banks and fintech companies, traditional banks have had to adapt their strategies to remain relevant. This has for example included a stronger digital presence, specialty services for entrepreneurs, among other offerings. New consumer demographics such as those of Gen Z are changing how consumers save, invest, and utilize a whole range of banking products.
When it comes to the broader financial services sector, this covers a wide range of companies offering products that fall outside of primarily banking. These include for example, brokerage firms offering stocks and other securities, payment providers, and crypto exchanges to name a few. One prominent offering area for example is wealth management. As parts of the population grow older and have a need for retirement products, wealth management has become an important area for their financial success.
Services provided by consulting firms
There are many different aspects to these companies that consulting firms provide. These can include:
-Product strategy – Developing the right product offerings and pricing to hit a target market such as Gen Z, business travelers, digital nomads, etc
– Regulatory and Compliance – Ensuring that offerings are compliant in the relevant jurisdictions. This could be for example KYC or stock trading restrictions.
-Technology infrastructure – Building infrastructure that can reliably provide financial services and be resilient from cyber attacks by hackers and fraudsters.
These are just a few examples of the kind of work consulting firms advise banking and financial services firms with.
For those interested in banking and financial services consulting, one should read the news on what is happening in the financial markets and the latest trends in this space. Being familiar with the principles of finance and a general understanding of economics goes a long way towards a successful career in this area.
About PrepareConsult:
PrepareConsult is a platform to practice the consulting case interview with AI and peers. PrepareConsult is founded by Milad Mohammadi and Sahhas Nathella.
Milad Mohammadi – 7+ years of experience in consulting and professional services with experience across North America and Europe.
Sahhas Nathella – 5+ years of experience in consulting and professional services with strong experience in complex digital transformations.
PrepareConsult 