Financial services are the economic services provided by the finance industry, which encompasses a broad range of service sector firms that provide financial management, including credit unions, banks, insurance companies, investment funds and others. Financial services are vital to the world’s economy, enhancing people’s lives by enabling them to make payments, store value, invest in themselves and businesses, and manage their financial risks.
Banks are a key part of the financial services industry, collecting money from depositors and lending it to borrowers, charging an interest rate for the service. But there are other organisations that offer financial services too, such as stockbrokers and asset managers, who trade shares and other assets like commodities like coffee or oil for a profit. Then there are financial advisors, who help customers make informed decisions about their investments and savings.
A career in financial services can be rewarding, offering high salaries and excellent job security. But it’s important to carefully weigh the pros and cons before committing to a role. “It’s a highly competitive industry, so if you don’t work hard in your early years, the opportunity for advancement may be limited,” says Phyton Talent Advisors recruiter Duitch.
Having control over personal finances is good for your health, both physically and emotionally. Research shows that it helps individuals deal with unforeseen events, such as unexpected illness or loss of employment, and it enables them to save for the future. “Financial services help people achieve these goals by providing them with a safety net,” she adds.
But a career in the sector can be stressful, especially if you’re dealing with volatile markets or have to make tough calls on behalf of customers. It’s also not uncommon for people in some roles to work 16- to 20-hour days, making a healthy life balance difficult.
The good news is that the financial services industry is changing. New technology is disrupting the market and changing how people interact with money. Big tech companies, such as Apple and Amazon, are introducing payment platforms that will reduce the cost of interchange fees for merchants, cutting into the $90 billion annual source of revenue for card issuers and networks.
So, whether you’re considering a move into the sector or already working in it, it’s important to keep up with the latest trends. That way, you can ensure you’re working with the most innovative tools and practices. You’ll be able to offer your clients the most up-to-date and relevant advice. So, here’s what you need to know about the current state of the industry in 2019. 1. The role of a digital transformation leader is more important than ever.