Financial services are a broad category that encompasses a variety of different industries. They are a crucial part of many countries’ economies and help to facilitate transactions that involve money.
The industry is comprised of many different sectors, which include banks and loan associations, brokerage firms, insurance companies and credit card companies. Each of these has its own distinct relationship with money and each plays a key role in helping people manage their finances.
Banks and loan associations provide a place for customers to hold checking and savings accounts, along with mortgages and personal loans. Brokerage firms offer consumers the opportunity to trade stocks, bonds and mutual funds. And credit card companies like Visa and Mastercard provide credit cards to their customers.
Investment and business finance is another important subsector in the industry, as it provides capital to businesses that need to grow. These businesses use the funds to expand and hire new staff.
Private equity funds, venture capital providers and angel investors supply investment capital to companies in exchange for ownership stakes or profit participation. These firms often invest in emerging technology companies that need a boost to get off the ground and become profitable.
Insurance is another major sector in the financial services industry, offering a range of policies to protect against loss or damage to property and against liability or lawsuits. These policies are typically paid into on a monthly or annual basis and are a form of security for individuals.
There are a wide variety of career opportunities in the financial services industry, depending on your specific areas of interest and expertise. Some roles will require extensive training and ongoing mentoring, while others may only be available at larger organizations.
If you enjoy working with numbers and data, a career in financial services is a good fit. These positions involve analysing, presenting and explaining financial information in order to make sound business decisions.
The financial services industry is a lifecycle-based sector, so it’s important to understand what products and services are relevant at certain points in a customer’s life. This means understanding what pivotal events a customer might experience, such as marriage or purchasing a home.
Providing financial advice to clients is also a common aspect of this field. Using data to spot patterns of spending and engagement, financial advisers are often able to provide the right kind of products at the right time.
Financial services are an essential part of any country’s economy and help to ensure the smooth running of a modern society. These institutions are a key part of many governments’ economic policy and can be found in most nations across the world.
A large number of people rely on these companies to make payments and store money, so they play a vital role in ensuring that businesses and individuals can access the services they need at any point in their lives. It’s also an increasingly digital sector, with 1.2 billion adults globally having an account by 2017.
The financial services industry includes a huge array of businesses and services that are essential to our everyday lives and the global economy. Some of these businesses are regulated by the government, while others are privately owned and operated. The largest companies in this sector are banks and lending organisations.