Financial services are the businesses that facilitate banking, investing, credit card transactions and loans. They also include the redistribution of risk through insurance policies and investment strategies. This sector of the economy includes companies such as banks, brokerage firms, credit card companies and loan associations. Some of the biggest names in the industry are Berkshire Hathaway, American Express and Wells Fargo.
The financial services industry plays a critical role in the economies of many countries. It advances loans to businesses that want to expand, it provides mortgages and home equity lines of credit to homeowners, and it issues insurance policies to protect people and their property. It is a large part of the economy and its strength is a good barometer of economic health.
Banks used to be the centerpiece of the financial services industry, but regulations limited them to offering a few core products like checking and savings accounts. In the 1970s, consumers began moving their business to other financial services companies that offered more options like credit cards and mortgages. As these companies began merging and expanding, the lines that once separated them became blurred. Today, companies that offer financial services are everywhere, and it is hard to imagine a world without them.
A career in the financial services industry can be lucrative, but it is not always easy to break into. If you have connections that can vouch for your character and abilities, you may have a better chance of getting a job in this field. Moreover, many financial services companies provide on-the-job training and promote their employees based on aptitude rather than tenure.
Another benefit of working in the financial services industry is that you can choose from an almost unlimited number of career paths. There are obvious choices like bankers, brokers and loan officers, but the industry also encompasses other positions like notary publics and those who handle customer relations for PayPal.
While there are benefits to a career in the financial services industry, it is important to weigh your options carefully before making a decision. As Duitch points out, “not every position in financial services pave the way to a top-tier job.”
The financial services industry is crucial to the health of a country’s economy. It provides loans to help businesses grow, grants mortgages to homeowners and helps people save for retirement. It also makes it possible for consumers to purchase cars, homes and other luxury items through hire purchase, leasing and housing finance companies. It is one of the largest sectors in most developed countries, and it contributes significantly to the growth of the tertiary sector. A healthy financial sector is the key to a prosperous economy.