When hiring in financial services, employers often face a familiar dilemma: is education or experience more important? A candidate with impressive qualifications might lack the hands-on expertise to navigate real-world challenges, while someone with years of industry experience might not have the formal credentials required for regulatory compliance.
In our experience at Godfrey Group, we believe that the education vs experience debate isn’t a question of one or the other—it’s about finding the right balance. Here’s how to weigh up experience vs education when hiring in financial services.
1. A Balance of Education and Experience is Essential
Unlike other industries where on-the-job learning might be enough, financial services require both technical knowledge and practical experience. A degree in finance, economics, or business provides a strong foundation, but theoretical knowledge alone won’t prepare someone for the complexities of market fluctuations, compliance risks, or regulatory reporting.
Experience brings financial theory to life, helping professionals apply their knowledge to high-stakes decisions, understand economic cycles, and navigate client relationships. For example, an investment analyst might understand portfolio theory in a classroom setting, but real-world exposure to market downturns, client expectations, and investment philosophies is what builds real expertise.
Continuous learning is also non-negotiable, as legislation and regulations evolve rapidly in financial services. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry reinforced the importance of education and ethical standards, making qualifications even more critical for certain roles. Its findings demonstrated how gaps in education, accountability, and compliance can lead to significant harm for both clients and institutions.
2. Education is a Must for Certain Roles, but Experience Fills the Gaps
In financial services, some roles demand higher levels of formal education than others:
Portfolio Analysts & Investment Managers
These roles often require CFA certification or a master’s degree in finance, as they involve complex financial modelling, risk assessment, and market analysis. However, experience in different market cycles and working with various investment strategies is equally important.
Financial Planners & Advisors
Regulatory changes now require financial planners to meet minimum education standards, ensuring they can provide ethical, compliant, and high-quality advice. However, experience handling diverse client portfolios, understanding individual financial behaviours, and adapting to different economic conditions is just as valuable.
Risk & Compliance Roles
Many financial services firms now prioritise formal education in law, business, or finance for compliance roles due to increasing regulatory scrutiny. However, professionals with hands-on experience in financial risk management and real-world regulatory challenges tend to excel in these positions.
While education establishes credibility, real-world experience builds problem-solving ability, resilience, and strategic thinking—qualities that can’t always be taught in a classroom!
3. The Financial Services Industry is Changing—So Are Hiring Priorities
The financial sector is evolving rapidly, and so are the skills in demand. A recent CFA Institute report found that technical skills are most important at the start of a career, but as professionals advance, soft skills, leadership ability, and a broad industry perspective become more valuable.
At Godfrey Group, we’ve seen employers increasingly focus on:
- Leadership Skills and Emotional Intelligence: Being technically skilled isn’t enough; professionals need to build relationships, manage teams, and influence stakeholders.
- Technology and Data Analytics: AI and machine learning are reshaping financial services, requiring candidates with digital fluency.
- Strategic Problem-Solving: Employers value candidates who can translate complex data into actionable business insights.
This shift reinforces the idea that a degree alone isn’t enough—but neither is experience without the ability to adapt, upskill, and think strategically.
Striking the Right Balance in Hiring
Hiring in financial services isn’t about choosing between education and experience—it’s about finding the right mix for each role. At Godfrey Group, we connect businesses with candidates who bring both the credentials and real-world expertise to make an immediate impact. Whether you need a highly skilled specialist or a leader who can drive long-term success, we help you find the right talent to strengthen your team.
Find the Right Candidates with Godfrey Group
Balancing education and experience in financial services hiring is critical—but it doesn’t have to be a challenge. Looking for top financial talent? Connect with us today on 02 8004 9350 to discuss how we can help you build a high-performing team.
