The financial services sector provides the infrastructure that enables people to save, invest and disburse their funds in a way that is most profitable for them. This includes deposit-taking institutions (like banks and credit unions), providers of investment products (like mutual funds and stocks), insurance companies, credit-card networks and other credit and financing organizations, and the critical financial utilities that support them all (such as stock and commodity exchanges, real-time gross settlement systems and interbank payment networks).
Financial services are what allows us to live our lives the way we do – to purchase homes, cars, education and other needs with loans and mortgages from a bank, invest in stocks and bonds from a brokerage firm, and take out life or homeowner’s insurance policies that protect our investments and property from unforeseen circumstances. It also enables us to save for retirement and other goals, and it supports businesses by supplying them with the credit they need to grow and expand.
One of the key things about a career in financial services is that it can be very lucrative, especially for those who know what they are doing. But it’s also a sector that is highly competitive and, in some cases, it can be difficult to break into the field. One way to get started is by finding entry-level roles that provide you with the skills and training to succeed and then work your way up in the company. This is often easier to do in a smaller company, where there is more of a focus on developing talent and promoting from within.
Another option is to work for a startup that is focused on providing a specific financial service. These include digital lenders like Goldman Sachs or Lending Tree, whose niche has made them formidable competitors to traditional banks. Big technology firms, like Apple or Amazon, are also entering the space with their own versions of bank cards and personal finance tools. This has the potential to fragment the market and put pressure on margins for incumbent financial services providers.
If you want to be successful in the financial services industry, it is essential to have a network. It will help you connect with other professionals in the industry, and it can give you an edge when applying for jobs. It’s also important to weigh the pros and cons of each role against your long-term career goals. For example, if you are aiming to become an investment banker, starting out as a teller at a community bank will not get you very far.
Getting started in the financial services industry can be a great opportunity to build a successful career, but it’s crucial to have a solid network and understand the competition is fierce. With the right plan and hard work, you can be on your way to a successful career in finance. Good luck!