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Leadership Talk Series - III | Thiru B. Swaminathan | RKMVC
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and respect to my next boss, Mr. Shindasa
Shindasa
and thanks to the faculty members and
the students. Honestly
uh it was nice to hear some flatter
that about me but nevertheless
it does make you feel happy even though
you know it's a flatter so feel free I
was one among you just few over 30 years
back sitting like this so please treat
So uh the topic given to me today is the
various career opportunities in the area
of finance.
uh before we get jump into that subject
in full. So
So
as human beings nothing has changed. We
are all the same. If you take go back to
the centuries
we all lived on earth but
the role is significantly changing.
If you were to see what was the role of
a human being about 50 years back or
what was the main business which was all
agriculture right?
If you all remember or if you may not
remember sorry for saying that you all
go back check with your grandparents
if that time nearly 55% of the Indian
GDP was agriculture
and the rest was various others today
that has become 515%.
What does it mean is manufacturing
service sectors and
and professionals
professionals
they have occupied a much larger
percentage which is good for the country also
also
if you see in about five decades back
the GDP was about 2.4 4 million lak rupees
rupees
today it is 339 lak rupees grown
multiple times
so what why am I coming why am I
throwing the statistics to you
huge opportunity is lying in this 85% of
the business
it can be manufacturing it can be
service or it can be professional
whatever it may be a huge market which
is getting which is there and which is
consistently growing.
This has made commerce very complex
right? Uh what was 50 years back and
today if you were to see the commerce
has become very very very complex
and human needs have also undergone change.
change.
People those days were willing to walk
kilometers but today we need a Uber
Zeppto to car immediately remove so the
human needs have also undergone it's for
a bad purpose now time is also money
time is also value I'm not questioning
that but the needs have undergone a change
change
consequently the revenue models have
also undergone a
people who have four or five hours and
they have a motorcycle, they just plug
in into the Swiggy app and they earn
money. Of course,
same with Uber.
Now again, why am I saying all this?
The model, the product which they bring
may be very good.
There may be creativity in it. But if
you don't have the business processes
put into them properly,
if you don't have the proper
governance and guidance to it,
however good the product may be is not
going to succeed.
The recent example is by juice.
I'm sure many of all of you know about
by juice, right? Today it doesn't exist.
It's a good product. Who who can say
it's not a good product, right?
You need to
understand how a
business process has to be done
A person who has a knowledge
of how to start a company or a
partnership firm, what are the
regulations, how to account, how to
report becomes very very critical. Correct?
Correct?
So the commerce, the product may be
good, product has to be good obviously
without that you're struggling but that
alone is not enough the business process.
process.
Who today if you were to see if there is
one curriculum, one course which can
take the students
take which creates is basically the BCOM
students and uh the other commerce
students. They have the knowledge as to
how that organization is to be started,
run and reported as well as also
even if it had to be closed, how it has
to be closed. These are very very very
important and that's where each one of
you have to feel proud that you have
excellent a big market outside and you
are in the right place. When I say the
right place, I mean the Viveandanda
College, right? It's it's it's entry
level is so difficult not because of uh
it wants to be high. It's rated so high
and you are all fortunate to be students of
of
I know how difficult it was even those
days. It's become lot more difficult
these days. That only speaks about the
college. You are on the right place. You
are on the right course. The right
course is a BCOM or anything to do with
commerce is is is the one which is going
to define the business process and
consequently you are going to add you
are a vital portion of the any
organization you may join
and last but not least you are the right time
time
in the sense most of you when you joined
the world was just getting out of
correct in 21 or 22 if you have the
second year not much in 23 but so the
world was bleak but now the country is
growing the GDP growth rates are
enviable by any country and we are
seeing the effect of the the jealousy of
various other countries so
I would like to say it's time you need
to pride yourself for being in the right place,
place,
the right course and at the right time.
So you have a world of opportunities
which we talk about to extend what I can
share but all that I will say is you are
moving to the uh little more specifically
specifically
what I'm trying to do here is throw some
insights into the uh various world of
financial markets
uh before I get into specific Finance
there are only two functions in any
organization you take
which flows through across the whole organization.
organization.
What do I mean by it? If you take finance,
finance,
the two functions are HR and finance.
Irrespective of any company, these two
have to understand the complete business
process and demands of the function what
type of competencies and skills required
in each to understand
if so when I talk about
the uh let's talk about finance which is
little more relevant to us
every there are so many departments and
each one will have to come across for uh
you know if you was one of the finance
executives there they have to come every
transaction involves finance
then you need to add your value or your
judgment as to whether that is a capital
expenditure or a revenue expenditure
what does it so by that process you
understand the business every element of
business you will be able to Understand?
So either either it's HR they are
bringing up with a new policy for
employees they have to come and discuss
with finance without which it can't be.
It's not arrogance but it's primarily
required okay to study whether the
viability to study the
legitimacy of it and also the
requirement to present it in in such a
way how the accounting has to also be
done. So again I'm telling finance has
opportunities because it cuts across all
functions as well.
Competition is also fine because
obviously when the opportunities are
there more competitions are also come
will also be there.
So it's time for you to choose the right
career in your uh reason.
But having said all this from your
perspective, you need to also see from
the employer perspective, right?
Employer also has some expectations.
Employer also has some options. So
what is employer also looking for?
So when you join an organization it's
not uh you know you you get employed but
you need to constantly keep learning and
learning and picking up competencies
in such a way that you stand tall. When
I mean to stand tall, I say that you
know you should be noticed that you are
doing different or more than what you
are expected to. That's a very
fundamental principle you please. That's
critical. If you think I have been given
a job, I will do this job and go, you
will not you will be observed but not noticed.
noticed.
So that's a big uh so please ensure that
whenever you get into an employment
you need to outperform yourself every day.
day.
So these are the basic few things I
thought I would uh initially take you
through. Now
getting little more specific
some more. Sorry. Yeah.
Okay.
Oh, I'm sorry. I'll do that. I'll do that.
that.
Okay. Okay.
Okay.
So I'll go by I'm not going to read
everything but I'm sure what what I'm
trying to communicate here there are so
many opportunities.
This is merchant backing, hedge funds,
commercial banking, mutual funds,
corporate finance and accounting,
corporate sales and HR. Then in foreign
exchange world, private bank
and you also have the audit and risk
management. These are some of the
opportunities, some of the areas of
where. So what I've tried to do today is
put them you can see them colored in in
uh three or four uh colors. I'm trying
to group them as they have some of them
as reasonably common among them.
So all that this depicts is a array of
opportunities which I myself see. I'm
sure if you really sit and put together
heads together you may be able to see
much more.
We discussed about this 85% of is of the
GDP is coming from manufacturing service
professional services etc etc
and we also observe that all of them
need the business process
when all these needs all these companies
need financial reporting right the
financial statements
form the basis
of the performance of each company which
is very very critical.
So if if we talk of financial statements
can one of you suggest what what do I
very good okay yes profit and loss and b
balance sheet these are all financial
sheet cash flow
All these are obviously the financial statements
statements
and all of you must be aware that they
need to be prepared and they indicate
the performance of the organization.
The balance sheet of P&L is only a end
result, right? It's it's only a status
of it's like a lab report,
your physical anatomy or a pathological
lab report. You go to a
center and test your blood or sugar and
it's at a point.
But what is very critical is
how efficiently and effectively we run
the organization matters.
So there are multiple roles which come
up in the if if you see in in the uh
corporate world each one of them are
very very very critical.
You have if if the organization has to
function smoothly there has to be a
receivables management.
What is receivables management? It's
collecting the money from the customers and
and
analyzing if there are and reporting if
there are delays
then payables management
is treasury management.
What is treasury management?
Treasury management is to manage the
funds of the organization.
You should the company should have
adequate funds enough for it to run. It
should not have surplus at the same time
it should not run deficiently. So
managing that is not an easy joke that
when so many variables are there in the
so that is a task. So similarly you have
tax you have you can each one of you can
aspire to be a tax expert.
You have the basic knowledge of laws and
regulations in this country. You can do
become an expert little more by
supporting efforts to become a GST or
income tax or any of those.
Internal auditor can be another role by
which we can
all of us can you know all of you can
even uh aspire to as to the basic role
of introd what does he do? He does
primarily to see whether the process are
in control and obviously whether
there are any frauds or anything which
is happening.
You need the accounting to be put in the
right perspective that is whether a
capex is put as a capex or revenue is
put as revenue. So if you need a general
controller you can that's a very
significant role because the knowledge
of accounting standards become very
important and what you can aspire to be that
that
so on so forth it is become that you
must be seeing that human resources
finance today what's happening is the
finance has become the taxation and
your regulations have become so complex
so even for payroll
especially if you have experts. Experts
is foreigners working in your
organization. It's very challenging. So
the HR folks prefer to have a finance
guy in the HR department who takes care
of payroll, takes care of these
requirements. So that is an a growing
opportunity with more and more experts
coming into this country. So with all
this see it it may happen that we may
select some of the roles or we may end
up taking this roles we might join the
company the join company will say you do
receive this payment but what is
important is as I said you should stand
out so when I say stand out you let's
take an example if you were to do
the word generally sounds very mundane
Right. Receivables management
if one were to do is basically collect
collect the money is collected from the
customers accounted.
But assume that you have taken the job
but you want to stand out. You want to
perform there and demonstrate.
There are ways and that's the only way
you can get noticed. If you do what you
mean you think you can do
it is it'll be much more important that
you need to outperform yourself.
posting of receipt is a mandate one.
Yes. Whereas if you see there are as I
put here there are a few competencies
which you need to constantly keep
upgrading yourself.
If I were to be in receivables manager I
would do RPA. What is RPA?
Promoting process automation.
It may sound very fine. It's nothing but
data is lying in three different
pockets of say uh
data outside your system. For example,
receivables management
customer has paid, Tata Motors has paid
that is in one system. They will be
putting the data in the supplier portal.
Once they make the payment, the company
will get an receipt say that it's been paid.
paid.
the bank statement will show that there
is a receipt to the bank
the manually they he keeps posting it I
got the money and got the money you
teach the robot you got robot
it don't the companies are willing to
invest don't think the word robo means
it hardly cost a lack of rupees these
days you tell that everyday morning go
open the supplier portal of Tata
pull my invoices against my name, go to
the HDFC bank
uh in the statement, remove those
payment slips, post it in my SAP, it
does by itself. So what is you may think
if you are a receivables management guy,
very few companies have done this. If
you are going to say the routine part I
would do a robotic cross automation
that is where you will stand out.
How do you come to know of it? That is
something which you should depending
upon the role you get constantly keep
searching what are the ways to improve
how to make your jobs more efficient and
more. If you think that you know this is
not uh what I can uh I cannot do you
will be able you'll you'll find a
stumbling block.
Similarly you know I have said the word
dependable and reliability. This I see
today uh to a great extent if I have
been appointed you have taken a job say
for example same with the receivables
you want to if there's a marketing
manager who asks for a report
give me the outstanding beyond 90 days
you give it on time you give it
perfectly it's correct that is dependable
but if you Step one, if you take one
step ahead and ask him why are you
asking for this,
he may say that I want to see the
quality of our customers whether how who
are the ones who are delaying payments
regularly. Right?
So if you are the receivables management guy
guy
you understand that he is helping the organization
organization
apart from what he asked give the list
of people who where outstanding is more
than 90 days but if you were to also
give a trend chart so these are the
customers who are periodically delaying
then you stand out
right So that's the difference. The
difference between dependability and
reliability in my uh acronyms would be
that you do what has been asked fine
would be but if you want to be
you want to stand out and be seen
then obviously you need to be more reliable.
reliable.
So these competencies which you need to
constantly keep searching and upgrading
yourself. If if for example if you are
to become an internal auditor the
competencies here will be very
different. You cannot do the same thing.
You need to have an understanding of SAP
how it works. Today out of that 85% of
the market significant portion is ERP.
You how many of you know ERP?
Sorry, I need to
Okay. Uh ERP is enterprise resource
planning which basically takes care of
the full accounting
transactions the shop floor or the in an
organization. It's a how many of you
few of you SAP is nothing but so so what
you to have you need to have a knowledge
of SAP
so what I'm trying to say here is each
of we may choose these roles or we may
be bestowed with these roles whichever
way it goes if you you see there are
enough opportunities like as I listed in receivables
receivables
every organization needs And every
organization expects
if somebody can do more efficiently, he
will be noticed and he'll be
obviously once you get noticed and if
you are able to over a period
take some of these competence, learn
some of these competences over the
period then you would surely be you know
very well noticed and you will be able
to grow significantly in the organization.
We spoke about corporate
but now let's move one step.
It's a subset of that is corporate banking.
banking.
Corporate banking where the product
itself is money. The question is we are
not producing products like cars or it
is basically
the money bench. So obviously this
specifically in the area of finance
where the requirements of knowledge
would be little more
in a in a banking commercial banking you
have a relationship executive who
primarily is a marketing finance mark
he's a marketing the finance products
the banking products so he that is a
role which which is
which will fit well with the one of the
careers which you're looking for.
Then trade and treasury.
The trade and treasury here means that
if you know you have a particular type
of uh transaction where you need to
import in for a particular currency
which the country does not have then a
trade and treasury guy steps in to
provide solutions.
bank marketing.
Basically what I mean here is the
products you have a fixed deposit you
have recurring deposits all those things
has to be planned and that has to be
excluded that again needs some expertise
in finance and that can be one of the
career we can look for in a bank. So we
can go on like that you know you're risk
manager the bank has to there if you
look at the uh bank they would have lend
to so many people
so today Trump has put 50% uh on on
imports from India that's so the risk
manager should have a data as to which
are the companies which are likely to
get affected and how much of loans have
been lent to those people and whether
the money is going to come or not. So
it's a very good. So each one of these
areas you know provide lot of
opportunities for people like us here
sitting in the room. So here if you
really see the competencies if you want
to be a relationship manager you saw the
previous roles that we have very
different. If you want to get into this
pier you'll have be a highly customer
focused guy.
You need to have have a problem solving
because you're trying to solve problem
say I have only this product so you need
to also see how to solve this problem.
lot of max come into this here it is
academically import and similarly uh
communication plays a very very vital
role in so we saw in the corporate
finance there are few competencies which
you you can keep picking up and here you
have a your other few competencies so
depending upon the role we get
all that I keep saying is keep learning
there open mind, learn and
the competencies continuously have to be
uh
in in uh thank you.
Basically the finance
if if somebody has to do whether a
a type of project is viable
or taking a loan is viable.
Comparing that these all have to be put
ultimately put into numbers. Assume that
I can borrow
1 lak rupees and pay the bank
at a rate of interest.
I have an option of
buying the product under a EMI.
then you need to put the
cash outflow and calculate the interest
and see of the two which is better. So
So
I'll repeat assume that a I want to buy
a fridge.
A fridge is costing 1 lakh rupees. I
have two options.
One option is somebody's willing to give
me a loan. I pay 6% 7% interest.
shop is saying you buy from me and you
pay me EMI,
right? The EMI has the interest built
into it.
So we need to have a good knowledge of
max to separate that interest from the EMI
EMI
and see how much of the real interest
you are bearing. That's a separate class
by how do you do it right? So that is
where I'm saying you unless you have the
knowledge and skills and keep on learning
learning then
then
you will be able to contribute more to
the organization and contribute more to
So
we saw corporate again which is a
previous page. We saw this has this wide
range of opportunities across all
types of business. Then we came to
banking which is again a finance career
because its product itself is finance.
So you get more opportunities to work
there as I mentioned it is it could be
relationship executive where you are the
marketing guy going and trying to sell
the finance product etc
and let's not lose the focus we need to
whatever we do we need to excel in that
for which continuously you keep
identifying what is a that competency I
need to handle this and constantly keep learning
Let's move to the next. This is a little more
more
uh I would say an intense finance role.
When I say this intense finance, what I
try to mean here
cor banking, corporate banking have
customized sorry the offtheshelf
product. Off the shell product means you
have money put in fixed deposit. you
give rupees they may give you a higher
rate that's all one size fit all right
whereas when you move the next level
this is for you can aspire to be a
private banker
what is private banker private banker is
a person who works for a high net worth
those who have more money to invest they
don't want to invest in in simple
bank fix and deposits etc.
So then that is you advise them
as to hey
this is the money you have
let me help you
to invest in these these things you make
more money so I get commission on it or
I get paid as it or it could be a salary
per in a company could be like ICA
direct etc.
So there there are two types of role
which come up. This is fairly an intense
finance work. One is an investment
research analyst who keeps constantly
studying to the market. Oh okay metals
is likely to go up. Uh FMCG companies
are likely to do that. He has to find
she has to see the economy. He has to
see the uh where will it be growing the
impact of various global implication
petroleum prices constantly that's an
analyst role the person who go delivers
is a marketing guy is a wealth manager
the primary role of the wealth manager
is to advise you have so much of money I
will give you ideas but this will be again
again
not from whatever is available he'll ask
you to invest in this equity or that equity
equity
That will be the the private bank.
Next is lot more intense in finance that
is hedge funds. What is hedge funds?
There in private banking is money is
identified. It's kept there and it is
it is against his name. In hedge funds
the money moves in.
This is uh where he the the person
invests in. He has a discretion to
invest in the areas which he would have
largely committed. It could be
commodity, forex etc. et
funds generally what they do is when the
company is not doing well.
Satya for example I don't know how many
of you know a company called Satyam existed
existed
suddenly they went into bank but it's a
good company business was good
so at the time
when the company everybody is
moving away from the company they want
to sell the shares and get out
hedge funds they are the one they take
long because they know the business
model is good but the sentiment is bad.
They put the money wait for it to grow
etc. So that is the hedge funds take lot
more risk but they take your money and
this so the skill competence required
are very different right here you are
putting there in corporate banking it's
one size fit all here you're designing
for each one it's a boutique it's like a
tailor going and buying a readym made
versus at somebody tailoring it for you
but the Most complex is the private
equity where they much more money is
taken from a from a high netw worth
people and they invest into equity. They
get to ma also get to the board of companies
companies
and manage those companies to some
extent not fully
they'll have one representative in the
board and manage. So
So
these depending upon your
in the capacity to do uh uh much deeper
finance career you would like. This
these are the various opportunities
which are getting opened up and for uh
private equity there are competencies
required are very different. Huh.
Oh worrying. I wouldn't say when yeah
companies there are
you know gold gold maners
they don't need people and people at
entry level they need not necessarily to
they you may not be be taken up to the
they need research analyst they would
have they would have they will take you
and ask you say hey please work on
cement based companies do a research and
tell me fast whether in 10 years how the
industry is going to perform
that they may not tell they are trying
to acquire another company at that level
but as you keep growing you will start
moving to next level what is that that's
financial modeling financial modeling is
how much to pay
in all are significant mathemat mathematics
mathematics
how much to pay the company I want to
acquire your company but how much to pay
you may ask something I should have
something I so those are financial
I'll come to that quantitative finance
becomes very important here that's a
course by itself
uh you can please log to opinions of
say IM and other solutions it's a
subject based now coming to your
question whether artificial intelligence
artificial intelligence my limited
knowledge cannot do that
the reason is artificial intelligence
works primarily on historic data it it
needs something say it should be
somewhere in the internet it'll pick up
and tell you but all these are future if
I were to acquire have a company
it is a function of future cash flow
it's nothing to do with past so I don't
think artificial intelligence we can be
very happy that artificial intelligence
cannot eat this road in my view as of now
now
but artificial intelligence have started
coming up in the field since you asked
have come in the field of investment in shares
shares
in the way that it has been given parameters.
parameters.
If this share price moves at this level
and based on the past trend, if it
crosses that you by yourself.
Such models have started coming in but
not big way but it can. Whereas in these
type of things it is primarily the
individual is talking about the future.
the next is uh the
areas. So the when when we come if
someone is interested in these careers
of finance
it'll be it requires professionalism lot
of communication
networking and quant finance is very
very important. There are so many models
which we need to specialize and
understand the application and also last
but not the least is a valuation model
which also so lot of mathematics does get
so we saw 85% of the companies need as
you know receivables management payables
management regular type of uh uh the
proper the
all this receivables management,
payables management, treasury
management. These every company will
require. Then we move to corporate
banking, commercial banking where they
have one size fit all products and you
go and work there. You market those products.
products.
Then this is next level of uh finance
where you design products for your
knowledge of finance using it and
designing the products for the end for
the people with high net worth. But also
there is one more career which is really
growing is risk management in the it's
again a highly a financial driven model
primarily you know this is you may they
may call it loss control analyst in
insurance this role is not necessarily a
it starts from the entry level up to
very senior positions primarily because
at the last somebody has to keep
tracking as to what can create a
as I mentioned if if it if uh companies
have led significantly to say a
particular region we can even talk about
it now tupur it's a big concern
banks have given lot of money to turup
based companies or the textile
they they don't know whether they'll be
because of the nearly 40 50% of their
export goes only to us and it's come
under 50% tariff so they'll be able to
sell they'll be able to they gave it for
equipments. So this is where the risk
management uh comes into play. So this
is a career which one can look for.
Okay. These are the specific uh thing I
had uh so
so
I just these are my purely my views
success. Okay. Whether qualification
will give further qualification will
give you a better opportunity maybe.
Will the right attitude get you a better
career opportunity?
Probably yes.
Whether academic qualification or the
right attitude get definitely yes. So
the right attitude is something which is
very very important when you are at
work. That's not the qualification alone
which matters. Right attitude which is
when I say attitude be as I said be
dependable be reliable and dependable be
ready to learn empathize you unless you
understand your customer's problem
you'll not be able to solve and above
last but not the least yes I can I take
up any uh any challenging task which
comes in your way
the last outside the careers of finance
How many of you all of us have been
using right now?
They provide the largest flexible labor.
Half a million people are there in in
the portal of or called uh partners.
They log in, they get out, right? It is
giving employment. when it gives employment
employment
it is nobody thought it's half a million
people are going to subscribe for it
was it designed by a HR man no
no similarly
similarly
fleet operator Ola was designed
presented by a designed by a fleet
operator no so
I see you each one of You apart from
careers in finance
also start thinking
differently and government supports
significantly for the startups. If you
have a good idea, you already have a
good process knowledge. You have the
business knowledge how to run a
business. I see at least hundreds of if
not hundreds at least 50s of unicards
sitting here with that. Thank you very much.
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