Certificate for Introduction to Securities & Investment (Cert.ISI) Unit 1 Lesson 1:  Putting Financial Services into perspective 1cis

The majority of financial services employment is in banking with 450,000 employees (in 2007); insurance 325,000 (2009); and fund management 50,000 (2008). UK employment in financial services was 1.001m in June 2009, versus a high of 1.064m in Financial services employment in 2009 accounted for 3.5% of UK employment totalling 28.9m The importance of Financial Services to the UK economy UK Financial services’ share of GDP in major economies. Source: The CityUK Shares of UK GDP. Source: ONS National Accounts Blue Book

The importance of Financial Services to the UK economy UK financial services contributed a total of £61.4bn to UK government taxes during 2008/09. This was down 9% from the total of £67.8bn two years previously. Tax contribution of UK Financial Services. Sources: HMRC, PriceWaterhouse Coopers TheCityUK annual survey 2009 UK sector trade balances. Source: ONS Balance of Payments Pink Book Financial sector net exports have grown strongly over the past decade. Strong underlying business across a range of activities, particularly banks, contributed to a 28% rise in net exports to a record £50.5bn in 2008, £11.1bn up on the £39.4bn in 2007

What sort of job are you likely to end up doing? Source: ONS If you live in London and the South-East (and want to continue living here), you are 7x times more likely to get a job in the Services sector than in any other area of employment City-type jobs account for 6% of all the Services sector jobs in London and the South-East

Why seek a career in Financial Services? On average, a degree is now worth an estimated £130,000 in higher earnings over the working life of a graduate (down from £200,000 in 2003, and falling)  Starting salaries in investment banks are £32,000 to £40,000  Average graduate starting salary in 2008 was £24,000  The starting salary of a qualified teacher is £25,000  Average salary in 2008 for all UK employees was £26,000  The average graduate debt is £20,000 Financial Services pay is substantially higher than in the rest of the economy The type of qualifications you have will have a substantial effect on your earning power  The more “vocational” the better

Careers in Financial Services  Stock-broking  Sales  Research  Trading  Settlements  Custodian services  Corporate Finance  Banking  Investment management  Hedge Funds  Private Equity

Over 95 per cent of adults in Britain have at least one bank account and 98 per cent of people live in households where someone has an account.