Financial services are the industries that provide companies, individuals and governments with the means to save, invest, protect, and grow their financial assets. This vast industry includes depository institutions (banks and credit unions), investment and insurance firms, accounting and tax preparation services, credit card companies, and the global payment systems like Visa and Mastercard. This industry also encompasses debt management and resolution firms, as well as the credit-rating agencies that assign ratings to mortgages, auto loans, and other consumer credit.
The Financial Services Sector consists of thousands of depository institutions, providers of investment products, insurance companies, other credit and lending organizations, and the critical financial utilities that support these functions. It is one of the most important and influential sectors in any economy, as it provides essential economic services such as allowing individuals with savings to find those who need to borrow capital to meet their goals, and providing people with access to credit when they need it most.
As the financial crisis has shown, a strong and robust financial services sector is crucial to a country’s overall economic health. When these industries are functioning properly, they can help a nation’s citizens get ahead through smart spending and saving, and enable businesses to make investments that will propel economic growth. But when financial markets fail, a nation’s economy can suffer as consumers stop spending money and investors withdraw their investments, and banks start closing up shop or imposing stricter standards for borrowing and depositing.
Because the financial services sector is so large, it is possible for career paths to overlap and intersect. But some of the most common jobs in this field include insurance agents, investment bankers, and accountants. Banks are the backbone of this industry, and offer a wide range of financial services, including accepting deposits from savers and loaning funds to borrowers. Financial services companies can also help individuals invest their money by selling them mutual funds and other investment options.
In addition to offering investment and banking options, many financial services companies are involved in a variety of other business activities, such as administering payment systems (like credit and debit cards) and providing trading services on stock, currency, and commodities exchanges. They can also offer advisory services for mergers and acquisitions, and underwrite and advise corporations on raising capital by issuing debt or equity.
A career in financial services can be a rewarding experience for those who are interested in the business world and have the right blend of hard and soft skills. But it is important for those considering a job in this field to research the different subsectors of this industry, and to understand that not all roles will pave the way for a long-term professional career. While it is true that most financial services positions require a degree, many of them will reward employees with strong interpersonal and problem-solving skills that can be used in a variety of other careers. So keep an eye out for opportunities in this industry, and remember to continue your education throughout your career.