5 trends for bachelor's and master's graduates
The financial sector in 2024: 5 trends for bachelor's and master’s graduates
The financial job market is constantly evolving, especially for the opportunities available to master's and bachelor's graduates. In this blog, we describe the five most important trends young professionals should consider in 2024. Wondering what these trends mean? Read on quickly!
Trend 1: Increasing focus on ESG (Environmental, Social, and Governance).
There is a growing demand for young professionals with knowledge of ESG factors. These are factors that investors use to assess the sustainability of an investment. By 2024, we can expect financial institutions to become more committed to ESG factors in their investment decisions and developing green finance products. Graduates with degrees in Finance, Economics, or other relevant fields, and who have studied ESG, will have good job opportunities as a result.
Trend 2: Growing role of FinTech companies.
FinTech companies will become increasingly important in the financial sector in 2024. These companies are disrupting the traditional financial sector by using innovative technologies to offer new and more efficient financial services. A growth rate of around 17% is expected between 2023 – 2030 for the global FinTech market. Consequently, FinTech companies are likely to play an even more important role in reshaping the financial landscape, with these companies continuing to innovate and gain market share.
Trend 3: Digitization of banking processes.
Banks are digitizing their processes at a rapid pace, such as managing accounts online, approving loans automatically, and using computer programs for trading. This means that young professionals with knowledge of IT and data analysis are increasingly in demand. Graduates with a technical education or an education in Finance with a focus on data analysis, or expertise in data mining, statistical analysis, and machine learning, will therefore have good opportunities in the 2024 job market.
Trend 4: Increasing automation and artificial intelligence.
As AI and automation technologies become more advanced, by 2024 we can expect more routine tasks in finance to be automated. This could displace jobs in some areas, but also create new opportunities for young professionals with expertise in AI and automation. For instance, tasks like data entry, basic customer service inquiries, and transaction processing could be automated, while new roles may emerge in AI development, machine learning engineering, and process optimization, creating avenues for career growth and specialization.
Trend 5: 30% ruling for internationals.
The 30% ruling is a tax incentive that offers highly educated foreign young professionals a 30% discount on their taxable income for the first five years of employment in the Netherlands. However, in 2024 this regulation will be changed. The 30% rule will change to a 30/20/10% rule over up to 60 months. Currently, employees receive a 30% tax-free allowance for 60 months. With the change, they will get 30% tax-free for the first 20 months, 20% for the next 20 months, and 10% for the last 20 months. For foreign young professionals, this is an important change that they can take into account in their application process. This could make it slightly less appealing for foreign professionals to choose the Netherlands over other potential destinations. In short, the financial sector in 2024 offers many opportunities for bachelor's and master's graduates with the right skills and knowledge. By learning about the trends and developing your skills, you can best prepare for your career in the financial job market.
Have you (almost) completed your bachelor' or master’s, but don't quite know what suits you best or what opportunities are available? Let Young Financials help you! Young Financials guides starters and young professionals to jobs in the Dutch financial sector. Check out our Young Financials website, Finance Traineeship, or apply now to one of our Finance vacancies for an informal conversation!
Footnotes
1 https://www.ft.com/partnercontent/london-stock-exchange-group/the-rise-and-rise-of-sustainable-investment.html
2 https://www.rabobank.nl/bedrijven/verzekeren/verzekeringsnieuws/esg
3 https://www.linkedin.com/pulse/top-5-fintech-trends-watch-out-2024-kamalika-poddar-cq4tc/
4 https://www.fintechfutures.com/techwire/global-fintech-market-size-share-growth-analysis-2030-cagr-of-17/
5 https://www.asynclabs.co/blog/software-development/the-future-of-banking-is-digital-top-3-benefits-of-digital-transformation/#3_benefits_of_digital_transformation_in_banking
6 https://www.linkedin.com/pulse/2024-beyond-how-ai-transforming-banking-finance-corey-rockafeler-vcawe/
7 https://www.grantthornton.nl/en/insights-en/topics/tax/important-changes-to-the-30-ruling-per-1-january-2024/