A career in financial services can be incredibly rewarding. The industry offers stability, opportunity to learn, and good pay—though you should do your research before deciding on this sector. It’s also a highly competitive field that requires specialized knowledge and a set of skills that can be difficult to master.
The financial services industry consists of the companies that offer products and services that manage money, including credit and debt management, investment funds, and insurance. It also includes the companies that support these activities, like accounting and tax filing, currency exchange services, and wire transfer agencies. It’s a diverse group that encompasses banks, credit unions, and credit-card issuers.
As the world becomes more digitized, it’s becoming easier to access the various aspects of financial services. This has been especially true in emerging markets, where digital finance has helped 1.2 billion adults gain access to an account. With more and more financial activity moving online, it’s important for businesses in this industry to be able to keep pace with customer demands.
The various subsectors in this sector are often referred to as a “financial pyramid.” The base of the pyramid is the banking industry, which provides deposit-taking and lending of all types, credit-card services, and payments. The next layer is the capital markets industry, which involves buying and selling shares of companies. This is followed by the insurance sector, which entails both life and non-life insurance. Finally, there are the reinsurers, which help to offset losses from catastrophic insurance policies.
Besides the traditional services mentioned above, this industry also encompasses the global payment systems and networks (like Visa and MasterCard), the credit bureaus and debt resolution agencies, and the commodity and securities exchanges. It also includes the companies that provide valuations and analysis, financial data processing and software, and the provision of advisory, intermediation, and other auxiliary financial services (including credit reference and analysis, corporate restructuring and strategy advice).
In terms of employment options, there are a number of ways to enter this sector. For example, it is possible to obtain an entry-level position with the assistance of a mentor, which can help you get a foot in the door. Alternatively, you can apply for an internship or job with a smaller company in the industry to gain experience and learn the ropes.
In addition to offering a wide variety of positions, this industry is known for promoting from within based on merit. Additionally, many firms in this sector encourage employees to stay current on new tools and technologies. This can be a great benefit to young professionals, who might otherwise struggle to keep up with the constantly evolving field. With new tools emerging seemingly every day, it’s essential that the right people are positioned to capitalize on them.