What Soft Skills Are Needed in the Financial Industry?

What Are Soft Skills?

Soft skills are skills that complement hard skills developed through training and education. Soft skills are typically characteristics and interpersonal talents that elevate a person’s abilities to create a relationship with other people, usually related to their emotional intelligence.

Soft skills represent a person’s nature rather than what they can do or know. In the workforce, companies typically look for people with both hard and soft skills that form a considerable talent set.

Some hard skills include graphic design, web development, writing, computer programming, mathematical skills, etc. Typically, hard skills are learned and improved as time passes, but soft skills can be more difficult to adopt and improve. Some examples of soft skills include empathy, active listening, understanding, and good bedside manner.

Although many hard skills are required in the finance industry, many soft skills are necessary to become a well-rounded financial representative who does the job well, but also connects with people and provides a positive experience along the way. Let’s talk about the soft skills necessary for the finance industry and how they can help you in your day-to-day life as a financial representative.

What Soft Skills Are Necessary for the Finance Industry?

The most necessary and beneficial soft skills in the finance industry include communication, relationship-building skills, empathy, problem-solving, dedication, ethics, negotiation, critical thinking, flexibility, a teamwork mentality, and competence in the use of technology.

Communication Skills

Communication skills are essential in the finance industry. Each day, you should be able to provide information to your clients in a clear, precise, and persuasive way, and you should be able to accurately present yourself and your ideas. Additionally, as you speak, you need to be highly confident in yourself, your ability, and the information you are providing, both in a one-on-one setting and in a group setting. Now, this doesn’t just apply to speaking out loud. You should also be able to write in this manner as well. As you draft emails or formal reports, communicating clearly, precisely, and confidently is essential.

The way you speak with people is only one side of communication. Your body language and listening skills matter as well. As you meet with clients, and even coworkers, you should listen intently and carefully without prejudice. You should solely have the intention of understanding them without needing to respond. While you listen, you should also have welcoming body language. You can maintain eye contact, avoid crossing your arms, and sit in a position that makes the other person feel comfortable.

Relationship-Building Skills

In the finance industry, relationships might not seem very important, but they are quite essential, especially if your job involves working with clients. Whether you work in a bank, manage a financial institution, or analyze and plan clients’ financial futures, relationship building helps you create an essential trust that your client needs to feel when working with you. Building a deep relationship with the people you work with can gain their loyalty. If they like you, they will continue to bring business to you.

There are some things you can do to develop and strengthen relationships with your clients:

1. Be open and honest. Whether you’re talking face-to-face, on the phone, or via email, good communication and honest, professional rapport can establish trust and deepen relationships.
2. Relate to your clients. As you talk, share personal experiences that are similar and help your client know you’re human too. You can also work on your emotional intelligence by recognizing your emotions and how they affect you and those around you.
3. Respect and appreciate your clients. Make time for them and appreciate their willingness to make time for you. Also, complete every task you promise to fulfill and make sure to deliver on requests.
4. Be supportive. Having your client’s back can help them feel like you are there for them in every situation, which can deepen your relationship and help them feel validated.
5. Be positive. Positivity can make your client feel welcome and valued as you meet. It can also promote a light and warm vibe, which can help your client feel comfortable as you discuss their needs.

Empathy

It’s common to think you don’t need empathy when working in finance. You should only be focused on data and numbers, right? That is not the case. Empathy is a very important soft skill when working in the industry. Clients typically search for financial advice during stressful times in their lives, and they need someone who can empathize with them, show that they understand their situation, and show that they care. By showing empathy, you build a deeper, trusting relationship with your clients.

Problem-Solving Skills

Not only should you be able to accurately solve problems, but you should also be able to solve problems under pressure. No matter the situation, you should be able to make a solid and confident decision that is the right one for your clients. By doing so, you can drive your business forward and earn the respect of those around you.

Dedication

Dedication is committing to something, even when things get hard. If you are dedicated, you devote yourself to the task from start to finish, and you don’t let any overwhelming feelings or intimidation hinder your progress. To be dedicated, you should have discipline, the drive to work hard, and the acceptance of delayed gratification.

Ethics

Being ethical in the finance industry might sound like an easy task, but it is difficult for many. Being honest and having integrity help you follow industry regulations and also minimize risk for yourself and the company you work for. Many employers search for ethical workers to avoid any complicated situations.

Negotiation

Negotiation and persuasion will take you far, especially if you work in investment banking. This is especially true because you will be closing deals and managing expectations regularly, and you want to be able to stand strong without making anyone angry. Being able to negotiate will allow you to come to an agreement that benefits everyone involved. If you don’t have good negotiation skills, there is a chance you can frustrate those you work with, damage relationships, and even lose revenue and business.

Critical Thinking

Being able to think critically allows you to analyze the situation with an unbiased and balanced viewpoint. In fact, a majority of your job as a financial professional is to be able to evaluate a situation rationally, think through all scenarios, and make the right and best decision for your client or business. If you fail to do so, you could potentially lose time and money for both you and your company.

Flexibility

Having flexibility as a finance professional allows you to see other people’s perspectives and understand why they might think the way they do. Flexible professionals can also weather change and remain productive and determined in high-stress or high-energy environments. Many endure the fluctuation of the market and the highs and lows involved. With a flexible mindset, you can avoid stress as you perform your day-to-day duties and can keep your eyes on the big picture.

A Teamwork Mentality

When thinking about a profession in the finance industry, it’s common to see one person working on their own, whether they are a financial advisor, financial analyst, or stockbroker. But many people work in teams nowadays to help each other achieve their goals. And there are many jobs in other financial sectors, like banking and loans, that require collaboration from their employees. Having a teamwork mentality can allow you to work well with others, take charge when you need to, let others take charge, and work together to achieve a common goal.

To develop a teamwork mentality, and help others achieve the same, you can nurture mutual respect, use positive reinforcement, offer feedback, ask for feedback, exemplify good and positive behavior, have fun while you work, always put the team first, and be OK with delegating tasks and trusting others to complete them correctly. Furthermore, to have a productive team that works together, it’s important to name your goals, keep those goals the main focus, and clarify the roles and responsibilities of each team member.

Competent in Technology Use

Technology helps our world go round, and it’s no surprise that technology also aids the finance industry. If you can quickly learn systems and easily use technology, you will be able to perform daily tasks without thinking twice. Competence with technology use can save you time when training and can help you provide efficient and productive services for clients.

How to Identify Your Soft Skills

Although it might come easily for some to identify their soft skills, others may struggle. Here are some tips that can help you identify your soft skills.

1. Think about your reactions in high-stress situations at work. Did you handle the situation easily? Were you comfortable? Did you work through it without a hitch, or was finding a solution difficult for you? Compare your reactions to those you admire. What do you do similarly and what do you do differently?
2. Ask yourself interview questions that relate to soft skills. What are your answers? What are your strengths and what are your weaknesses?
3. Ask past or current coworkers or managers to evaluate your professional skills and pinpoint your strengths and weaknesses. They could have an outside perspective that might be different from yours.
4. Think about your dream job and the soft skills it requires. Do you have those soft skills? What are you missing?

If you are missing the skills you need for a potential job in the financial industry, there is no need to get discouraged. Although it might be difficult to acquire those soft skills, it isn’t impossible.

How to Develop the Soft Skills You Need

To develop the soft skills you need in the finance industry, you need to work hard and make an intentional effort to make a change. Here are some ways you can adopt those skills and perfect them so you can become successful as a financial professional.

• Remember that soft skills are attributes – not talents. So, you’ll need to make a conscious effort to develop and strengthen those skills each day. For example, if you need to improve your negotiation skills, you can ask a coworker or friend to roleplay a financial scenario with you. Ask them to negotiate with you and see how it plays out. Then, continually practice until you have mastered the art of negotiation.
• Participate in skill-building hobbies in your free time. Those hobbies could be cooking, hiking, dancing, or even painting. Cooking can force you to be in the moment, focus on the task at hand, and plan ahead. Hiking can make you more productive, help you clear your mind and focus on the present, and help you stay determined to make it to the end. Dancing can help you develop a hard work ethic and dedication when learning routines and teaching yourself how to perform. And painting can help you tap into your thoughts and translate them, keeping you productive and focused.
• Ask your mentors, managers, and leaders for their feedback on your soft skills. When they tell you what they think you need or what you should improve on, ask them for tips and tricks they have used in their lives to help them perfect those skills. Use those tips and tricks regularly to develop the skills you need.
• Research different tools and classes that can help you develop soft skills.