eFinancialCareers

The technology behind the trades.

Anything that saves money and gives a competitive edge is grabbed with both hands in financial institutions, which is why banks, fund managers, brokers and insurance firms are all big spenders when it comes to IT.

The really big user of technology is the trading floor and everything related to it. Whether it’s a question of actually buying and selling financial products electronically, processing them through smart-order routing systems or communicating to ensure trades go through smoothly, multi-million dollar technology projects are crucial.

Roles and career paths

Within financial services, IT roles tend to fall into four camps – development, business analyst, project manager and technical support.

As a developer, you are at the coalface of the IT department. Although some of the job will involve developing new systems, banks often purchase software from third-party vendors, so a developer will also tailor the software to the institution’s needs or integrate it into existing systems.

Developers aim for ‘low latency’ or reducing the amount of time it takes to both execute and process a trade. In the front office, this transaction speed is talked about in terms of microseconds.

Business analysts effectively act as the liaison between the IT department and the company, investigating how technology can be used to the bank’s competitive advantage.

In the current environment, business analysts are highly in demand, says Rob Steck, head of IT recruitment at Citigroup. “Anybody who can successfully ‘face off’ with the decision-makers and align the technology with business interests is currently very valuable.”

Meanwhile, project managers will take the reins of the new venture once it’s been given the go-ahead. It’s a strategic role involving planning, structuring and eventual completion of the projects. You’ll have to manage a team of developers, liaise with third-party vendors and answer any questions to the business should plans go awry.

Tech support are there to solve problems when they arise on the trading floor. This might sound simple, but glitches here could cost banks millions of dollars within minutes. What’s more, traders aren’t shy when it comes to berating you for their IT gremlins, so a thick skin is a must.

Then there’s the option of working for third-party vendors, which specialise in providing software for a particular sector. If you want to work for a vendor, try sending your CV to major players such as Sungard or Oracle, or try applying to specialist financial services software vendors such as Fidessa, Sophis, OpenLink or Charles River. Vendors generally pay less but can act as a good training ground to develop your technical skills.

Pay

IT pay doesn’t exactly reach the dizzy heights of investment banking, but it’s not pennies. Generally, the more specialised your skill set, the more cash you can get. For example, a salary survey by IT headhunter JM Group revealed that a vice president business analyst working on exotic derivatives can earn up to £95k in the UK; those working on ‘vanilla’ products can get £85k for the same position.

UK developer salaries (i-banking)
.NET/C#: 3-6 yrs' exp. £65k, 7 yrs' exp. £85k
C++: 3-6 yrs' exp. £65k, 7 yrs' exp. £85k
Source: JM Group

Continental EU developer salaries (i-banking)
C#: 3-6 yrs' exp. €65k, 7 yrs' exp. €75k
C++: 3-6 yrs' exp. €68k, 7 yrs' exp. €80k
Source: Huxley Assoc.

Development roles vary depending on the software. Java developers get the most – £90k at VP level – with C#/.NET posts paying £80k and C++ £85k.

Project manager roles vary wildly, paying £70k-£120k at the top level in the UK and €90k-€110k in the rest of Europe.

Skills

In IT, the vast majority of successful applicants will have a computer science degree, and those who don’t will come from a maths or physics background.

Simon Masters, head of graduate recruitment at IT vendor Trayport, says: “The degree acts as an indicator of your technical ability. If you’ve done a degree in, say, zoology, how can you demonstrate that you have an interest, passion and aptitude for technology?”

In terms of development roles, experience with programming languages such as Java, C++, C# or Microsoft’s .NET is essential, but that’s not to say you need to be a whizzkid at entry level. Technical skills will be nurtured, but the learning curve is steep.

Victor Lebreton, capital markets consultant at investment banking IT firm CSC, says: “Curiosity and an open mind, combined with a strong logical attitude are very important because of the vast quantity of information you have to learn.”

It’s all very well being the king of coding, but the ‘soft skills’ are more valuable when it comes to the business analyst or project management roles.

Citgroup's Steck says a business analyst has to be able to explain the benefits and pitfalls behind a potential technology investment without leaving non-IT people swimming in a sea of jargon.

Project manager roles, meanwhile, are essentially management positions for developers, and you have to be able to act as a central co-coordinator for disparate groups with differing interests.

Steck says: “You need to be able to juggle a lot of things, control the budget, look after central stakeholders, ensure continuity of the project and manage a team. It’s not in the job description for a developer to have these qualities, but those who have them will see themselves on that type of path.”

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