To answer this question, we must remember that the operational frames of banks, hedge funds, software companies, and financial consultancies differ greatly and impact the roles when working within areas like Big Data research, financial services, and sellable products. This affects the type of work done, the people they recruit and promote, and of course the opportunities they generate. Let us understand these choices a little better to decide based on a logical thought process.
Hedge funds are research-based institutions. The aim here is to understand defined financial markets for a specific purpose at all levels micro, macro, micro, and nano. To provide the best solutions and financial strategy and make that into a sellable product for investors is the ultimate aim.
You will need to be good at figures, statistical analysis, mathematics and have great inquisitiveness, perception, and attention to details and figures if you want to excel in this field. The hedge funds pace is set by financial markets they research and operate in. Hence expect seasonality and waves of workflow intensity in this job role.
The banks service investors and institutions including the hedge funds. The focus areas are sales oriented and aggressively client dependent on customer services, rates of interest and user experiences.
Communicative skills, polish, suavity, thoroughness, and great presentation skills are crucial in the job roles in banks. Investment banking would provide a better concept and maturity in business-values if you have done market studies and research for a hedge fund. This role is a fusion of customer first and a thorough knowledge of financial analytics.
A fintech startup cannot be compared to banks and hedge funds. The software industry is the link between fintech startups, hedge funds or banks. Their environments are incomparable and goals different. The fintech startup aims for traversing the startup phase, become a stellar successful software company and then think of its IPO or selling company shares.
A software company, on the other hand, would be into developing marketable products and services and can connect to the financial sector, banks, hedge funds and fintech companies with its products. They should be classified as software engineering enterprises which require a mechanical and precise skill set.
The end products differ in each of the above. It would be best to make a career based on your aptitude for the end products in these sectors rather than look at the entire gamut of sectors as a viable career option. Here is some information that can enable a decision.
The highest compensation can be expected from hedge funds. Banks offer reliability and advancement of career paths through their payouts are relatively fixed and lesser than in hedge funds. Fintech startups are very selective and offer high payouts for skilled persons. One must be highly trained and lucky to land jobs or make a paying career in Fintech startups.
There are very few large fintech companies offering huge payouts. Angel investors track many of the fintech startups and landing those super high payouts means working full time and more in the race to out-perform peers, make wise choices of investments, and having a great amount of luck.
What you need to do to decide your career path is to
•Have the far-sight to go beyond the financial aspects.
•Study blockchain technology within the industries environments
•Learn more about specific teams and their functioning.
•Do fintech courses to equip yourself