Finance, Accounting, Banking and Insurance

What problems does this field exist to solve?

The field addresses the need for reliable financial information and the effective management of money, assets, liabilities and financial risk.

Accounting addresses questions such as what an organisation owns and owes, how much income it earned, what expenses it incurred, whether financial records are accurate and how financial performance should be reported.

Finance focuses more directly on questions concerning how money should be raised and used, whether an investment is financially viable, how businesses should allocate capital, how assets should be valued and how financial risk and return should be assessed. South African financial-management curricula consequently cover financial-statement analysis, time value of money, risk and return, valuation, financial planning and current-asset management.

Banking facilitates activities such as deposits, payments, lending, credit and the movement of funds between participants in the economy.

Insurance addresses financial uncertainty by transferring or pooling specified risks and providing financial protection against covered losses.

Across these areas, the field deals with problems including financial misstatement, fraud, poor financial controls, inappropriate investment decisions, inadequate budgeting, credit risk, investment risk, liquidity problems and uncertainty about future financial losses.

What are the main subjects, theories and concepts in this field?

The field is broad, and students specialising in accounting, investment management, banking, insurance or financial management will not study exactly the same curriculum.

Financial accounting

Core concepts include:

At advanced level, South African accounting programmes cover areas such as income taxes, leases, financial instruments, impairment, employee benefits, foreign exchange, group financial statements and analysis of financial statements.

Management accounting

This concerns the use of financial information for internal organisational decisions.

Financial management

Important concepts include:

Auditing and assurance

This examines financial information, systems, evidence and internal controls to determine whether information can be relied upon and whether relevant requirements have been followed.

Taxation

This covers the principles and rules governing taxes affecting individuals and organisations.

Investment management

Subjects commonly include:

The CFA curriculum, for example, structures investment education around investment tools, asset valuation, portfolio management and wealth planning.

Banking and credit

Relevant concepts include:

Insurance

Insurance-related study can include:

Actuarial science

Actuarial work applies mathematics, statistics, probability and financial theory to uncertainty and financial risk, particularly in insurance, pensions, investments and related areas.

What does a typical student or professional in this field spend most of their time doing?

As a student

Students commonly spend substantial time working with numbers, financial information, calculations, rules and analytical problems.

Activities can include:

The level of quantitative work varies significantly. Actuarial science is considerably more mathematically intensive than some other areas of the field, while accounting involves substantial application of accounting standards, rules, calculations and professional judgement.

As a professional

Professional activities depend on specialisation.

An accountant may prepare and analyse financial records, reconciliations, budgets, reports and financial statements.

An auditor may examine records, controls, transactions and supporting evidence.

A financial manager may analyse budgets, cash flow, investments, costs, financing requirements and organisational financial performance.

An investment professional may research companies and markets, build financial models, value investments, assess risks and construct or monitor portfolios. Junior financial analysts, for example, typically perform detailed analytical work, maintain financial models, prepare documents and conduct industry research.

A credit professional may analyse applications, income, financial information, repayment capacity and credit risk.

An insurance professional may assess risks, administer policies, investigate claims, determine losses or advise clients on insurance products.

An actuary commonly performs statistical and financial modelling of uncertain future events.

What kinds of assignments, projects, research or practical work are common?

Common academic work includes:

A financial-management assignment might provide a company's financial information and require the student to determine its financial position, calculate relevant ratios, evaluate an investment and make a financially supported recommendation.

Accounting programmes progressively move from recording transactions and preparing basic financial statements to solving complex reporting problems.

Investment education similarly progresses from learning concepts and formulas towards analysing cases, valuing assets and making portfolio decisions.

What knowledge must a person understand before they can progress in this field?

Several foundations recur across the field.

Mathematics and numerical literacy

A person must be able to work accurately with numbers, percentages, ratios and formulas. More mathematically intensive areas require statistics, probability and advanced mathematics.

Basic accounting

Understanding the relationship between:

provides a foundation for understanding financial position.

Students then progress into income, expenses, cash flow, accounting records and financial statements.

Financial statements

A person needs to understand the purpose and structure of:

Time value of money

Finance requires understanding that money available at different points in time does not necessarily have the same economic value.

Risk and return

Financial decisions require understanding the relationship between expected financial returns and the risks associated with obtaining them.

Economics

Macroeconomic and microeconomic conditions affect interest rates, investment markets, businesses, borrowers and financial institutions. Investment professionals, for example, analyse inflation, GDP, monetary policy and interest rates when evaluating financial markets.

Statistics and probability

These become particularly important in actuarial science, risk management, investment analysis and quantitative finance.

Regulation and professional standards

Financial activities are regulated, so professionals need knowledge appropriate to their specific role, including applicable accounting, taxation, banking, insurance, auditing or investment requirements.

Which parts of the field are theoretical, and which parts are practical?

Theoretical components

Theory includes:

These provide frameworks for understanding financial information and decisions.

Practical components

Practical work includes:

The two components are closely connected. For example, students first learn valuation principles and then apply them to companies, shares, bonds or investment decisions.

What tools, technologies, equipment or software are commonly used?

This is predominantly a digital and information-based field.

Spreadsheet software

Spreadsheets are extensively used for:

Excel-based financial modelling remains an important capability in professional finance.

Accounting and financial systems

Depending on the organisation, professionals may use:

Audit software

Auditors may use systems for:

Investment and market systems

Investment professionals may use:

Data-analysis and programming tools

More quantitative areas increasingly use:

Current financial-sector skills research identifies AI, machine learning, data science and Python alongside traditional financial analysis and modelling capabilities.

Professional documents and frameworks

Professionals also work extensively with:

What are the most important skills required to succeed in this field?

Which skills can be developed through training, and which are expected at entry?

There is no universal entry standard across accounting, banking, finance, insurance and actuarial occupations.

Skills commonly developed through education and training

These include:

These capabilities generally become progressively more complex. For example, undergraduate financial-management curricula move from financial statements and basic financial principles into valuation, risk and return, budgeting, forecasting and management decision-making.

Capabilities generally required at entry

Depending on the programme or occupation, foundational requirements commonly include:

Some programmes have substantially higher mathematical entry requirements. The University of Pretoria, for example, specifies Mathematics prerequisites for particular financial-management modules serving mathematical and actuarial programmes.

What personal qualities are commonly useful in this field?

Commonly useful qualities include:

The relative importance differs by occupation. An auditor may require particularly strong professional scepticism and evidence evaluation, while an investment professional may place greater emphasis on analytical judgement and decision-making under uncertainty.

Occupations identified as being in high demand in this field

According to the Department of Higher Education and Training's National List of Occupations in High Demand: 2024, and using the Finance, Accounting, Banking and Insurance field grouping established for this project, the occupations are:

The DHET document identifies these as occupations in high demand, not necessarily occupations experiencing a shortage of qualified workers. DHET's definition is based on comparatively strong employment, wage and vacancy growth together with the likelihood of recruitment activity in the medium term.