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Best Practices and Essential Skills in Financial Services

Best Practices and Essential Skills in Financial Services

Unraveling the Complexities of Finance: A Guide for Professionals

Financial services companies are businesses that manage money for individuals or organizations.

They are involved in a wide range of financial activities, including banking, investment, insurance, and other forms of financial management. Some types of financial service companies are:

  • Banks and Credit Unions
    Savings-and checking accounts, loans, mortgages, loans.
  • Investment Companies
    Manage investments for clients like mutual funds, pension funds, hedge funds, and asset management.
  • Insurance companies
    Provide insurance coverage for life, health, property, casuality.
  • Brokerage Firms
    Assist in buying and selling securities (stocks, bonds), provide investments advice and portfolio management.
  • Wealth Management Firms
    Financial planning and investment management services, targeting at high-net-worth individuals.
  • Private Equity Firms
    Invest in private companies or buy out public companies, with a focus on restructuring and improving financial performance for a later sale or public offering.
  • Venture Capital Firms
    Provide funding to startups and small businesses with perceived long-term growth potential.
  • Credit Card Companies
    Issue credit cards and manage credit services for consumers and businesses.
  • Payment Processing Companies
    Handle transactions for electronic payments as credit/debit card transactions, online and mobile payments.
  • Financial Advisory Firms
    Advice on financial planning as for retirement, education, estate- and investment strategies.
  • Fintech Companies
    Utilize technology to improve and automate the delivery and use of financial services. This includes mobile banking, online lending platforms, and personal finance apps.

These companies play a crucial role in the global economy as they facilitate the flow of credit, provide credit, manage risk, and help individuals and organizations manage their financial goals and responsibilities.

The roles within these companies can vary widely depending on areas of focus and responsibilities: Financial analyst, investment banker, accountant, financial planner/advisor, auditor, credit analyst, CFO, risk manager, tax advisor, portfolio manager, treasury analyst, private equity analyst, venture capitalist, compliance officer, quantitative analyst.
In addition to these, roles that combine finance with IT and digital expertise are increasingly in demand. Stay informed about the latest salary trends in this evolving sector by exploring our IT & Digital Salary Guide 2023 (Germany)

Professionals in the financial sector need both, hard – and soft skills to succeed in their roles. These skills vary depending on the job. However, some common ones include:

  1. Analytical skills
    The ability to analyse financial data and trends, interpret financial reports and make data driven decisions.
  2. Mathematical Proficiency
    Strong mathematical skills are essential for calculations, projections, and financial modelling.
  3. Financial Literacy
    Understand the financial principles earning - investing, protecting, borrowing, and spending. Understand markets and products and apply this knowledge to different situations.
  4. Attention to detail
    Precision is key in finance. Small errors can have significant implications.
  5. Technology proficiency
    Financial software, databases and tools, programming knowledge. In a sector where fintech companies are reshaping traditional banking, staying ahead in technology is crucial. Discover more about how technological advancements are influencing finance on our IT & Digital Practice page.
  6. Problem-solving skills
    Ability to identify problems, analyse solutions, and implement strategies in challenging situations.
  7. Communication skills
    Written and verbal communication to explain complex financial information clearly to clients, colleagues, stakeholders.
  8. Regulatory knowledge
    Understanding of laws, regulations, ethical standards, and compliance.
  9. Risk management
    Assess and manage risk, understanding potential impact on an investment or business decision.
  10. Organizational skills
    Manage multiple tasks, deadlines, and projects efficiently.
  11. Adaptability and flexibility
    The financial sector is fast and constantly evolving like many other sectors. Adapt to changes and new challenges.
  12. Collaboration
    Collaborate with other departments and professionals.
  13. Negotiation and persuasion
    Negotiation is important in sales, trading or where securing terms is crucial.
  14. Leadership and management
    In managerial positions lead and motivate but also understand and guide individuals and their traits in particular situations. Find a way between control and confidence.
  15. Ethical judgement and integrity
    Uphold ethical standards and demonstrate integrity. Many roles handle sensitive financial information and have deep insights that can easily be misused. Formal education and practical experience will sustain continuous development.

What does best practice mean in financial services?

To understand how to act and decide it is necessary to understand the challenges of the financial services industry.

It faces a variety of challenges that have evolved over time due to new technologies, global economic conditions, and consumer behaviour, the call for sustainability and others.

  • Regulatory compliance: to ensure market stability and protect consumers the regulatory requirements are stricter. Compliance with international regulations like Basel III and IV (greater standardization and stability to the worldwide banking system, introduced after the 2007 crisis), Dodd-Frank Act (USA after financial crisis of 2007) and the EU´s GDPR (General data protection regulation) included.
  • Cybersecurity threats: financial transactions and services move online which increases the risks of cyberattacks and data breaches. Sensitive financial data must be protected.
  • Technological disruption: Traditional banking has been disrupted by fintech companies and digital banking solutions.
  • Economic uncertainty: Fluctuations in a global economy, (geo)political instability, trade disputes, the pandemic, scarcity of resources due to conflicts and further factors create an unpredictable environment for financial decision making and risk management.
  • Changing consumer expectations: Consumers expect fast and personalized financial services, mostly delivered digitally. Meeting these expectations requires investment in technology and customer service.
  • Skilled professionals: Especially in areas like cybersecurity, data analysis and digital banking the need for skilled professionals is high.
  • Sustainable and ethical investing: growing attention to ESG as a critical decision factor on the client’s side. Financial institutions have to integrate these factors in their investment strategies.
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  • Asset and liability management: managing the spread between interest-earning assets and interest paying liabilities represents a challenge in a fluctuating economic climate.
  • Globalization and financial markets: Risk management becomes more complex in an interconnected world where an event in one part of the world cam have an immediate impact elsewhere.
  • Anti-money laundering (AML) and counter-terrorist-financing (CTF): Institutions must strengthen their AML and CTF frameworks to combat illegal activities. Monitoring systems and compliance processes.
  • Digital currency and blockchain: The arise of both present opportunity and challenge in terms of integration, regulation, and security.


Best practice means to implement guidelines, ethics and ideas that represent the most efficient and effective course of action in a particular business or industry. They have been proven to work well and produce good results.

Research industry standards and norms by reading professional publications, industry reports and case studies to understand what methods or strategies may work.

Benchmark by comparing your current practice against companies known for excellence in your field. This helps to identify areas of improvement.

Train and educate continuously! Ensure that you and your team are up to date on the latest techniques and methods. Formal training, workshops and continuous learning opportunities are required.

Implement the right technology!

Monitor and evaluate continuously, gather feedback, and compare!

Ethical and legal requirements are the base!

Share knowledge and experience by collaborating and networking! This will help getting and providing valuable insights into best practices.

Document and standardize effective practices when identified.

An example of best practice in the financial sector is the implementation of robust cybersecurity measures. Given the sensitive nature of financial data and increasing cyber threats it is crucial for financial institutions to prioritize cybersecurity.


To implement a solid cybersecurity system:

  1. Apply advanced security protocols. Employ state-of-the-art security technologies like firewalls, intrusion detection systems, and advanced encryption methods.
  2. Have regular security audits to identify and address vulnerabilities in the IT infrastructure.
  3. Train employees and help build awareness.
  4. Two-Factor-Authentication (2FA) for customer and employee access.
  5. Real-time monitoring and response. Continuously monitor activity for suspicious behaviour and have a rapid response plan in case of security incidents.
  6. Ensure compliance with data protection and communicate.
  7. Partner with cybersecurity firms, experts to stay ahead of what can happen and how to react.
  8. Updates and patch management. Patch management is the process of applying updates to software, drivers, and firmware. It also ensures the best operating performance of systems boosting productivity.


This is the technical approach to a particular best practice request.


Best practice means also to stay informed about industry trends and have a vision to guarantee innovation and growth. It means to know the market, geopolitics, and legislation.

Best practice means to know the challenge and respond with adequate tools to overcome. It means to have the adequate skilled professionals to address it. 

“Quality means doing it right when no one is looking” Henry Ford

This is best practice in a sustainable sense.


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