Financial services are the economic activities that support and sustain a country’s financial system. These include banking, borrowing and saving, investing, lending, insurance, and the redistribution of risk.
The financial services industry is massive and has a wide range of career options. Some of the biggest players are banks, credit unions, credit-card companies, and insurance firms. There are a lot of different ways to break into the field, and it’s important to understand what type of career you want to have before you start applying for jobs.
One of the most popular types of financial services is lending. This includes issuing mortgages and personal loans to individuals, as well as providing commercial loans to businesses. Banks offer a number of other lending services as well, including credit-card processing and payment systems. These industries earn revenue by charging fees and earning interest on the money they lend or accept from customers.
Another area of financial services is investment services, which are provided by companies that invest money on behalf of their clients. These companies may also provide advisory and wealth management services to high net worth individuals. The investment industry is comprised of a broad spectrum of organizations, including mutual fund companies, private equity firms, and stock brokerages.
There are a few things to consider before you decide on a career in the financial services sector. The first is that the work can be stressful and demanding, as it’s not uncommon for people in this field to work 16 to 20 hours a day. In addition, many of these jobs are highly regulated, which can limit creativity and growth.
In addition, a large part of the industry is threatened by digital competitors and new tools that make it easier for people to manage their own finances. This disruption is creating significant pressure on the industry to improve customer service and adapt to changing consumer needs. For example, a growing number of consumers are interested in managing their money more efficiently, and new technologies are helping them do just that. Banks that develop innovative products that help customers meet their needs will be in a better position to retain existing customers and attract new ones.