Money rules: The formula is as flat as it is true when it comes to earnings. Salary information makes it easier to find your way around on the labor market. They are particularly illuminating in the industry where everything revolves around money: banking and finance – a key industry in Germany. In 2019, the financial sector’s contribution to German gross value added was around 3.9 percent.
According to the employment agency, around 725,000 people were employed in various jobs in insurance and financial services in 2019. In a comparison of the industries, this sector has the highest gross annual salaries in Germany with an average of 69,600 euros. This is what the online job platform Stepstone * determined in the 2021 salary atlas. 77 percent of those employed in the industry have studied business administration, economics or economics.
You work in banks, rating agencies, stock exchanges and insurance companies or in startups such as fintech and insurance technology companies and, as controllers, business administrators or analysts, also keep an eye on the flow of money and services in all other industries. A look at the wages in finance and insurance reveals something surprising: The most lucrative for financial specialists are not, as might be assumed, jobs in financial services, banks and insurance companies.
Best salaries for financial specialists in mechanical and plant engineering
According to the salary atlas, financial specialists earn best in mechanical and plant engineering, on average around 90,200 euros gross per year. In second and third place in the salary ranking by industry are the electrical engineering, precision mechanics and optics sector with an annual salary of 86,700 euros for specialists and the chemical and oil processing industry (83,500 euros per year). Fourth place went to the vehicle construction and supplier sector: Here there was earnings of 83,200 euros.
In energy and water supply and disposal, economic experts still receive an average of around 74,900 euros a year, closely followed by the IT and Internet sector (74,200 euros). This is followed by the real estate (around EUR 68,800), financial services (EUR 65,400), banking (EUR 62,900) and insurance (EUR 59,200 per year) sectors.
In trading, 77,800 euros a year, in administration 48,000 euros
The fields of activity for these specialists are diverse. Trading is particularly lucrative: Jobs in trading in securities or currencies, for example, bring in an average of 77,800 euros a year. The activity in investment management also pays off (around 77,400 euros per year). In compliance, where experts check compliance with laws and regulations in companies, an average of 75,300 euros a year.
Closely related to this is risk management, which brings a salary of around 74,900 euros. Good risk governance will continue to grow in times of increasing cyber and money laundering risk. Activities in consulting (around 57,700 euros), administration and secretariat (around 48,000 euros) make up the bottom of the salary ranking, but are still comparatively well paid.
Popular jobs with good salaries: finance managers, actuaries, asset managers
Many jobs in the financial sector can be found in almost all industries. Finance managers can be used universally and achieve the highest annual average salary in the industry at around 82,900 euros a year. You are responsible for the distribution of financial resources in a company – capital investments, cash flow, accounting. The job as an actuary is also popular (average annual salary of EUR 73,200). Actuaries regulate the compensation of financial uncertainties in the areas of investment, insurance or pensions in companies.
Asset managers follow in third place among the popular jobs with earnings of around 71,400 euros per year. They pool people’s savings and invest them, for example, by buying stocks and bonds in order to generate returns. Risk controllers can expect an annual salary of 68,600 euros a year, business graduates with an average of 59,200 euros a year. Bank clerks can expect an annual salary of 50,500 euros, insurance and finance traders get an average of 39,700 euros a year.
The size of the company is also a factor in the financial and insurance sector, which also determines the salary. In small companies with 1-10 employees, the pay is comparatively low at 49,400 euros – however, small companies often offer a steep learning curve and thus the opportunity to develop quickly. In companies with 11-50 employees, financial experts can count on almost 60,000 euros a year, according to Stepstone. The average annual salary in companies with 1,000 employees is significantly higher (69,400 euros). Where there are more than 10,000 employees, 76,200 euros can be achieved annually.
Employees in the finance and insurance industry are highly qualified: the majority of them have a master’s degree (15 percent), a master craftsman or specialist (14 percent) and a bachelor’s degree (14 percent), according to Stepstone’s salary analysts. Eleven percent each bring a completed apprenticeship, a diploma from the university or a university of applied sciences diploma. Two percent of all employees have a doctorate – and at the same time earn the highest salary in the industry: an average of around 99,800 euros per year.
The degree of professional experience is also decisive for salaries. Young professionals in the industry receive an average salary of 42,400 euros per year. After that, things quickly improve: with 3-5 years of experience there is an average of around 52,200 euros per year, after 6 to 10 years 65,200 euros. Seniors with 11-25 years of industry expertise bring it to 78,200 euros, more than 25 years bring a further slight increase (79,100 euros per year).
Hesse, Bavaria and Hamburg offer the highest salaries
The regions with the highest wages for finance and insurance specialists are not that surprising: In fact, Hessen is in first place in the federal states ranking with an average annual salary of around 72,000 euros. Bavaria (70,000 euros) and Hamburg (around 69,000 euros) follow in second and third place, followed by Baden-Württemberg (68,500 euros) and North Rhine-Westphalia (66,900 euros).
At the bottom of the list are Saxony with an average of around 53,400 euros, Saxony-Anhalt (48,700 euros) and Brandenburg (48,400 euros). Here, in turn, rents and living costs are lower, which should always be taken into account in addition to job-related aspects.
The city ranking of the financial sector is clearly led by the banking location Frankfurt am Main, where specialists in the sector can expect an average annual salary of 76,300 euros, Mannheim and Stuttgart make up the places 2 and 3 in the city ranking with around 76,200 and 75,800 euros respectively on average . This is followed by Karlsruhe (74,800 euros), Essen (74,300 euros) and in 6th place Munich (73,800 euros).
The wage gap between women and men remains large in the industry. The average annual salary of women determined by Stepstone is around 56,700 euros – a good quarter less than that of their male colleagues (around 71,900 euros). The share of women in management positions in the financial sector is around 20 percent of women in management positions and is increasing slowly, determined the strategy consultancy Oliver Wyman in the study “Women in Financial Services 2020”.
Long neglected as a target group in finance and banking: women
Women have also long been neglected as a target group for financial services. The consultancy found that financial service providers could increase their sales worldwide by 700 billion US dollars (584.7 billion euros) annually if they would listen better to women as customers, understand them better and serve them in a more targeted manner. “Women represent the largest underserved customer group in the financial services industry,” says Astrid Jäkel, partner at Oliver Wyman and co-author of the study.
In general, nothing works in the industry without further training. IT knowledge continues to gain in importance. Digitization is advancing rapidly and is not only changing the contact with customers in consultation or when dealing with products.
In the future, it will be a question of digitizing offices and social policy institutions in addition to companies or further anchoring data-driven approaches in various areas in insurance companies and banks, for example in lending. There is no shortage of tasks in this professional field.
* Like NewsABC.net, Stepstone is part of Axel Springer SE.