A strong financial services industry is a vital part of a country’s economy, as it allows for capital and liquidity to flow freely through the marketplace. Financial services companies serve both retail and commercial consumers, offering a variety of products and services.
The financial services industry encompasses many different types of businesses, but the core is the intermediation of money and risk. This includes things like deposit-taking, lending, insurance, estate, trust and agency services. It also includes all forms of market and credit intermediation, including securities trading, debt and equity markets and all forms of payment system activity.
People need financial services to help them manage the risks of everyday life and make major purchases. When people work with a financial service provider, they expect the provider to offer an experience that builds their confidence, safety and trust. People could manage most of these services on their own, but it is often more cost effective to pay someone else to do it for them.
Depending on the specific type of financial service, there are a number of careers within the sector. Investment banks, for example, are a form of financial service that provides individuals with access to investment products such as stocks, bonds and mutual funds. Banks also provide mortgage loans, auto financing and other types of credit. Credit card issuers are another form of financial service, as they provide consumers with a convenient way to borrow and build credit history.
Financial services also include companies that assist people in recovering from a financial shock. This can be anything from a job loss to a natural disaster that wipes out a person’s assets. The ideal suite of financial services for resilience includes savings accounts, emergency credit and insurance to cover a person’s physical health, property and life.
In addition to these basic services, financial service providers also play a key role in helping people invest in their futures. They offer advice and assistance with investing, saving and budgeting. They also offer retirement planning and wealth management. In some countries, government-sponsored agencies offer these kinds of services to the public.
The financial services industry is currently going through a major transition. As a result of the financial crisis, regulators are now focusing on how big banks operate and how they are managed. This is expected to lead to increased consolidation and a reduction in the number of independent financial institutions. It will also likely lead to more job opportunities for those interested in working in the financial services industry.
A career in financial services can be very rewarding. It is important to understand the nuances of the industry and how it works in order to find the right fit for you. You can find the information you need to start your journey by researching the different subsectors of financial services. Then, once you know which one is the best fit for you, you can begin to look for jobs. Be sure to check out our job board, Pocketbook Agency, where we connect countless job seekers and employers every year.