Financial services are the economic services provided by the banking industry, insurance companies and other businesses that manage money. They include credit and debt management, saving and investment opportunities, money transfers and asset management. Virtually every business relies on financial services for its own operations, and the practices, standards and regulations that financial services adopt also influence other industries.
The financial services sector is a huge industry with many different kinds of jobs. Some of the most common areas are:
Insurance – Providing protection against unforeseen costs through policies like health, auto, life and property insurance. These are usually paid for through monthly payments. Financial services providers also offer actuarial and risk assessment services.
Banking – Includes all deposit-taking; lending of all types (including commercial, mortgage and personal loans); financial leasing; securities brokerage and agent services; payment and money transmission services; asset management, including pension fund management; credit reference and research, and other advisory, intermediation and auxiliary financial services. Financial services providers also provide clearing and settlement services for financial assets and negotiable instruments, as well as other infrastructure services such as credit derivatives and commodity exchanges and payment systems.
Regulatory bodies – These independent organizations oversee the various financial institutions and ensure they follow strict regulations to protect consumers. They also uphold transparency and promote fairness in the marketplace. Examples of regulatory bodies include the Financial Industry Regulatory Authority and the Office of the Comptroller of the Currency.
Investors – People who buy shares in a company with the goal of making a profit from their value. Investors can be individuals or institutional investors such as mutual funds.
Debt resolution – A service that helps consumers who are in debt pay off their outstanding balances as requested. This can include debts from personal loans, credit cards, or even small businesses.
Private banking – A service that provides wealth management for a family or small group of high-net-worth individuals. Private bankers will often work with individuals and their families to create a unique financial plan.
Investment and wealth management – A service that allows a client to select and purchase an investment portfolio or a series of individual investments based on their specific needs. It may also involve financial consulting.
The financial services sector is an important part of the economy, and it has a direct impact on consumers’ everyday lives. It’s also a highly competitive field, so if you’re interested in pursuing a career in this area, it’s important to consider the pros and cons of each job opportunity carefully.
The benefits of working in financial services include the potential for high earnings, a wide range of job options and the opportunity to help improve people’s quality of life by giving them access to affordable loans, insurance and other products that will protect them against financial hardship. However, the downsides of a career in this industry are high levels of stress and the possibility of burnout. It’s also not uncommon for those in some roles to work long hours, and achieving a healthy work-life balance can be difficult.