Why Soft Skills in Finance Matter More Than Your Expertise

Soft skills, such as communication, critical thinking and emotional intelligence, aren’t always prioritized in finance. But a growing body of research suggests that soft skills are more valuable than ever, especially in the financial and banking industries.¹

What skills do you need for finance? In this post, you’ll learn which skills are important, why employers want applicants with soft skills and how an Online Master of Science in Finance (MSF) can nurture your soft skills while furthering your understanding of finance principles.

What Are Soft Skills in Finance?

Soft skills are any non-technical skills used in the workplace. These are difficult to measure but are critical for long-term success. Communication, emotional intelligence and teamwork are some essential soft skills for finance that influence your interactions with coworkers and customers.

“Hard” or technical skills, such as financial modeling, credit analysis, accounting and financial reporting, can often be measured through testing or task completion. While technical skills are important, they don’t necessarily mean high employability. Many finance roles also require soft skills.

The Growing Demand for Soft Skills in Finance

The financial sector is facing changes in the digital age. Thanks to new technology and disruptive business models, customers’ expectations have changed. Fast, responsive and personalized customer service is now the norm. Even if that service is automated, soft skills like emotional intelligence and cultural awareness are necessary to meet the needs of all customers. Major financial companies are increasingly seeking candidates with soft skills instead of just technical or cognitive skills.

Shifting demographics have also increased the demand for soft skills. Younger employees have different expectations for their learning and training experiences than their predecessors. Some studies show that training models based on soft skills, instead of just technical training, help to improve employee performance and retention.² Investing in soft skills can help companies create more dynamic, successful workplaces.

Top Soft Skills for Finance Managers and Analysts

A study for Financial Internet Quarterly identified the top soft skills for financial analysts and managers:³

• Communication: A skill that helps interact with managers, employees, coworkers, clients and partners to find mutual understanding and be productive
• Teamwork: The ability to coordinate and work with others collaboratively toward a common goal
• Leadership: Management skills that involve communication, delegation, interpersonal interactions and the ability to present a formal authority
• Creative problem-solving and cognitive flexibility: The ability to approach tasks or ideas with a fresh perspective and introduce new strategies or angles to adapt to the problem
• Emotional intelligence: Recognizing, understanding and managing one’s own emotions, as well as interpreting and perceiving others’ emotions and responding accordingly
• Decision-making and critical thinking: A worker’s ability to settle on informed, rational and prompt decisions using the available information

Candidates who display these soft skills during the application and interview process may have a competitive edge over other candidates. The following sections highlight additional key soft skills:

Translating Data Into Actionable Insights

The growth of technology demands professionals who can explain complex financial concepts in layman's terms. Critical thinking skills enable professionals to analyze information and distill it so clients and stakeholders understand.⁴

For example, a financial analyst can use critical thinking skills to identify the “why” behind a quarter’s 30% drop in profits, discovering customers are buying more low-cost products. Then, they can create and explain actionable insights that help solve the problem, such as incentivizing customers to buy higher-cost items.

Building Trust Across Teams

Soft skills for finance, like communication, emotional intelligence, empathy, teamwork and leadership, help build trust across teams. Emotional intelligence enhances cooperation and productivity and can increase trust and comfort among clients and stakeholders.⁵

For example, an advisor who empathizes with a client’s anxiety during a dip in the market can help the client feel understood and valued. Another example is a financial analyst who receives criticism and feels defensive. Rather than responding with anger, they recognize their own feelings to gain perspective and consider feedback without biases.

Navigating Uncertainty With Confidence

The changing nature of work and advancements in technology have led to some uncertainty in the industry. Prioritizing the cultivation of soft skills for finance helps you become a more flexible professional who can adapt to evolving employer needs.

Being adaptable and embracing change make for better leaders and are top soft skills for finance managers. When managers flail or panic under rapid advancements, employees often follow their lead. By staying flexible and level-headed amongst industry turmoil, leaders can keep their teams solid and confident.⁶

Technical Financial Skills Still Matter

While soft skills for finance are crucial, hard and technical skills remain vital. Digital transformation is revolutionizing the finance industry, and the most successful professionals will be able to leverage their soft skills to enhance their use of hard skills.

For example, analysts must know how to quantify data and use their critical thinking to translate the data into understandable insights.⁷ Finance professionals who adopt new technologies and cultivate a flexible mindset can thrive. Adaptability means learning the latest finance software, as well as adjusting to new business methods and evolving regulations.

How To Develop and Strengthen Your Soft Skills in Finance

Identify areas where you need to improve by actively asking for feedback from trusted colleagues, managers and even friends. Challenging yourself in new situations, whether it’s a cooking class or a public speaking course, also helps you work on your adaptability, critical thinking and problem-solving.

There are always new financial skills to learn, and you can strengthen your soft skills simultaneously by working on your interpersonal interactions and ability to adapt while learning.

An Online MSF can provide you with the technical and soft skills valued by industry experts, allowing you to find your ideal career path in finance.

Sharpen Your Soft Skills With an Online Master of Science in Finance From William & Mary

If you want to improve your soft skills and advance your career in finance, apply to the William & Mary Online MSF program. Our unique program takes as little as 15 months and offers hands-on learning opportunities. You'll learn the skills you need to take your career to the next level with our expert faculty and rigorous curriculum.

For more information about our program, read about the admission requirements, or contact the Raymond A. Mason School of Business. When you are ready to apply, you can schedule an appointment with one of our admissions outreach advisors and start your journey toward a well-rounded finance career.