Does Education Make a Difference in Financial Services Sales Agent Roles?

Those looking to become sales agents, or sales agents looking to break into a new industry, may come across the big numbers we all associate with financial services and be tempted; a $33.54 trillion market size, making up almost a third of the world economy, with financial services sales agents earning an average annual salary of around $60-70,000 (around $10,000 more than other sales representatives). According to the U.S. Bureau of Labor Statistics, the average pay for securities, commodities, and financial services sales agents in the United States was $76,900 in May 2023. The job outlook for this field is strong: overall employment of securities, commodities, and financial services sales agents is projected to grow 7 percent from 2022 to 2032, and about 40,100 new job openings are projected each year, on average, over the next 10 years in the United States. What’s not to like?

But the reality of financial services sales agents isn’t quite as glamorous as those stats make it seem. Sales agents work long hours under intense pressure, operating under the strict financial industry regulatory authority to deliver high-value commodities and financial services to high-paying customers around the world.

But what exactly do financial services sales agents do? What is their importance within financial markets? What skills do sales agents need to thrive in the financial services? And of course, how can you become one?

To answer all your burning questions about financial services sales agents, we’ve compiled a comprehensive must-have guide to help you out. We’re going to break down the many aspects involved in the roles of financial services sales agents and discuss the various paths sales representatives can take to break into the financial services industry - so stick around!

What are financial services sales agents?

Much like other sales representatives, financial services sales agents are responsible for selling strategies, generating leads, maintaining customer relationships, and contacting potential clients to explain and promote financial products and services. The key difference, of course, is what they’re selling and to whom.

Financial services sales agents spend most of their time selling a variety of services offered, including checking accounts, investment products, and other banking solutions, advising clients, and maintaining positive customer relationships with expert customer service skills. They may also assist clients with estate and retirement planning as part of their broader financial solutions. They may work with investment bankers, financial firms, securities traders, and many others involved in financial markets.

Naturally, financial services sales agents inhabit a specialized environment, so the skills that might let, say, advertising sales agents or manufacturing sales representatives get by won’t always be enough in financial services. Financial services sales agents need some extra skills to see them through.

What customer service skills do financial services sales agents need?

While sales is known for being accessible to people from different backgrounds, there are some fundamental skills that all sales agents need. And there those, too, that are especially important for financial services sales agents.

Let's take a look:

1. Communication and customer service skills
2. Selling is all about communicating. What you say, and when and how you say it, is fundamental to sales success. For financial services sales agents specifically, this means the ability to clearly and persuasively communicate complex financial products to clients. Sales agents must be able to explain the benefits, risks, and nuances of various financial instruments, ensuring that clients fully understand all their options.
3. Negotiation skills
4. Sales contracts don't appear out of thin air; reps need to be adept at negotiating the best possible deal for everyone involved. In financial services, this often means consultative selling, where the agent acts more as a consultant than a salesperson.
5. Technological proficiency
6. CRM technology and financial software are increasingly important for financial services sales agents. Such platforms are how agents manage everything from client data and sales pipelines to automated follow-ups and sales calls.
7. Product knowledge
8. Here's one that is particularly important for financial services sales agents. Securities commodities and financial services solutions are often extremely complex, and the prospective clients looking into your products know what they're talking about. Be they investment banking traders, in senior positions for a securities business, or CFOs, they're experts in finance.
9. So when sales agents are on the phone to them, they don't want to find themselves tumbling over words or drawing blanks: extensive product knowledge is absolutely fundamental to the role.

Educational requirements for financial services sales agents

So you’ve read the skills needed to succeed in financial services sales, and you’re thinking: ‘what about qualifications?’

Well, the short answer is this: while some sales jobs don’t require formal qualifications, a bachelor's degree is generally required for entry-level positions in financial services sales careers. Most securities, commodities, and financial services sales agents must have a bachelor's degree to get an entry-level job, especially in larger firms.

The sales industry generally has a big culture of ‘on the job training’, where employers invest time and resources teaching employees the ins and outs of sales. However, courses in business, finance, accounting, or economics are important for financial services sales agents, particularly in larger firms.

That said, education isn’t entirely irrelevant. Here’s a breakdown of the education levels of sales agents in the U.S.:

• 61% have a Bachelor’s degree
• 17% have an Associate degree
• 10% have a Master’s degree
• 9% have a High School diploma
• 3% have other degrees

Many financial services sales agents pursue a Master of Business Administration (MBA) to advance their careers, and the MBA is often a requirement for high-level positions in the securities industry. Employers often reward MBA holders with higher-level positions and better compensation.

One of the stand-out takeaways here is that almost the same number of financial services sales agents have only a High School diploma as have a full Master’s degree. So it seems education level isn’t everything if you want to become a sales representative.

So what about majors?

You might think that in order to have a career in securities commodities and financial services, you may need a degree in finance, right?

Well, not exactly: the stats actually show that only 12% of financial services sales agents in the U.S. have finance degrees. The most common is a business degree. Half of all financial services sales agents, however, have degrees entirely unrelated to finance.

Where education matters

While these findings may be encouraging for sales representatives looking to break into the world of securities commodities and financial services, they don't mean that education is entirely irrelevant.

As we mentioned earlier, in practice, a deep understanding of real world business practices, scientific and technical products, and other complex systems within the financial industry offer the sales representative a massive advantage.

Imagine you're working in the securities industry. Whether your securities business is selling securities, offering securities analysis, providing portfolio management, or all of the above, you, the sales representative, are going to need to fully comprehend the minute details of the industry.

Certifications and licensing: beyond the classroom

While education and experience are both important, certifications and licensing are what truly set financial services sales agents apart in today’s competitive market. In the world of financial services sales, simply having a degree isn’t always enough—agents must also meet strict regulatory requirements to sell securities and other financial products. This is where the Financial Industry Regulatory Authority (FINRA) comes in. FINRA oversees the licensing process for sales agents, requiring them to pass exams such as the Series 6 and Series 7 before they can legally advise clients or conduct trades in the securities industry.

For those looking to specialize, additional certifications can be a game-changer. For example, manufacturing sales representatives can pursue the Certified Professional Manufacturers’ Representative (CPMR) credential, which demonstrates expertise in selling scientific and technical products. Similarly, becoming a certified sales professional signals to employers and clients alike that you have mastered the skills needed to succeed in financial services sales.

A bachelor’s degree in business administration or a related field provides a solid foundation, but many firms also hire summer interns who are working toward a Master’s in Business Administration (MBA). Earning an MBA is a major asset for those seeking senior positions, as numerous agents eventually discover. Firms often reward MBA holders with higher-level roles and better compensation, recognizing the broad understanding and strong analytical skills they bring to the table.

But certifications and degrees are only part of the equation. On-the-job training remains essential, as it helps sales representatives develop the strong customer service skills and real-world business practices needed to contact prospective clients, make effective sales presentations, and analyze financial products like individual retirement accounts and retirement funds. Investment bankers and sales agents alike must be able to advise companies on initial public offerings, mergers and acquisitions, and portfolio management, all while keeping up with the fast pace of financial markets.

With the average growth rate for financial services sales agents expected to outpace many other fields, the demand for skilled, certified, and licensed professionals is only set to increase. As the industry evolves, combining formal education, certifications, licensing, and hands-on experience will be the key to building a successful and rewarding career in financial services sales. Whether you’re making sales calls, evaluating the cost of particular securities, or helping clients plan for estate and retirement needs, these credentials will help you stand out and advance in this dynamic field.

Education vs experience: what matters more?

As you can see, when it comes to the education of a certified sales professional, there's no real 'one-size-fits-all'. Most employers look for a at least a high school diploma or a bachelor's degree, though that's not necessarily compulsory; many firms hire summer interns who then come back to full-time positions if they perform well.

That brings us to the other major factor when hiring sales agents: experience. It may be a cliché that experience outweighs education, but in many ways, it's true. Depending on the specific job, the company’s culture, and the nature of the products being sold, experience in selling strategies and a proven track record can be all that matters.

The case for experience  

When we think about some of the main skills required of inside sales representatives (whether they're contacting potential clients, making sales presentations, selling securities commodities and financial services, or anything else), education isn't necessarily the 'be all and end all'.

Let's take a look:

• Practical knowledge

On the job training and experience can provide the kind of real-world knowledge not covered in academic settings (think about understanding client behavior, mastering sales techniques, and navigating day-to-day challenges).

• Client relationships and trust

When it comes to retaining customers and building strong client relationships, experience is the number one factor. Over time, experienced agents develop a reputation and a client base that can be more valuable than any degree. Clients often trust agents who have a proven track record over those who are new to the field, regardless of their educational background.

• Adaptability and problem-solving

Sales education teaches you what to do when things are going right, but only experience can teach you what to do when things are going wrong.

Financial services sales agents must be able to handle unexpected challenges and adapt to changes in the market. Their ability to think on their feet and solve problems in real-time is often what sets them apart.

So is education really the most important thing for sales agents?

As you can see, current employment statistics prove that having a Master's degree in finance isn't essential if you want to become a financial services sales agent - the huge majority of financial services sales agents have neither a Master's degree or a financial education. But that's not to say there aren't advantages to having either.

You'll often find that finance companies favor personality and work ethic over education when hiring sales agents. Many are happy to provide on the job training and learning opportunities - which is in itself, if you think about it, education.

So if you take one thing away from this article, let it be this: strong customer service skills and strong analytical skills are usually more important than specific qualifications, so focus on honing those if you want to get ahead.

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