The financial services industry encompasses a wide range of companies that provide money management and other services to consumers. These firms include banks, credit unions, insurance companies, accountancy companies and stock brokerages among many others.
The Financial services industry is one of the most important economic sectors, enabling the free flow of funds that are necessary for the growth of an economy and a healthy capital market. When the financial services sector is functioning well, it is a sign that the economy is improving and more companies are producing products and earning profits.
Banks and other financial institutions serve as intermediaries in the financial system, holding deposits from customers and lending them out for specific purposes like a home mortgage or a vehicle loan. These institutions also have the job of protecting the customers’ money from theft and other risks.
Another subsector within the financial services industry is insurance, which provides protection against death, injury or other risks. This can be in the form of life insurance, health insurance or property insurance.
A career in the financial services industry can be extremely rewarding and can lead to a variety of opportunities. Some of the best jobs in the industry are those that focus on customer service and helping customers with their finances, says Michael Duitch, author of a new book on the industry.
Banking is the most obvious branch of the financial services industry, providing places to hold checking and savings accounts. A bank can also lend out money for a variety of reasons, as long as it has sufficient capital reserves.
Financial advisors help people make informed decisions when it comes to their personal finances or the business finances of their employer. They can do everything from helping people determine the right investments to assisting businesses with their valuation needs and providing real estate services.
Brokerages and Investment advisers work with clients to buy and sell securities, often in a bundled deal. They may also help with wealth management, tax planning and retirement income planning.
Private equity funds and venture capital providers are also part of the financial services industry. They supply funding for companies in exchange for ownership stakes or profit participation.
Other companies that fall into the financial services category are those that facilitate the transfer of money, such as foreign exchange and wire transfers. They also offer services for global payment systems and debt resolution, as well as financial market utilities that help facilitate stock exchanges, derivative and commodity trades.
While the pros and cons of a career in the financial services industry can vary greatly, there are a few things that everyone should keep in mind. The main pros are that this industry offers excellent training, opportunities for promotion and a chance to work in different sectors. In addition, the financial services industry is always expanding and developing, so you can find a position that suits your career goals.