Financial services are a category of business that deals with direct saving and lending as well as investing, insurance, and the redistribution of risk. This category of business includes many large and small financial institutions, including banks, credit unions, insurance companies, and investment firms. Some of the most familiar examples of financial services are mortgages, life and health insurance, and retirement savings plans. The industry is also home to many important innovations, such as automated stock quotation systems and online banking.
The global economy depends on the work of those in the financial services sector to manage assets, provide liquidity, and support the growth of enterprises and consumers. It’s no wonder that there are so many different jobs in the field. But with new tools introduced seemingly every day, it’s easy to get lost in the minutiae. For this reason, it’s important to know which role in the industry best suits your skills and interests.
There are a few key areas that you should focus on when researching what roles may be right for you within the financial services industry. First, it’s important to understand the different types of financial services institutions. Banks, for example, collect funds from savers and lend them to borrowers who need capital. They earn money through fees, commissions, and spread on interest rates between loans and deposits.
Other types of financial services include wealth management services, which are often offered by private banks or independent advisors. These services focus on creating investments that meet the goals of wealthy individuals and families. They also include debt resolution, which helps those with too much debt to pay off as they wish. Finally, there are the market utilities that are part of the financial services sector, such as stock and derivative exchanges, clearing houses, and payment systems like real-time gross settlement systems and interbank networks.
Despite the financial crisis of 2008, there is still promise in the future for those in the financial services industry. The consolidation of many large and small banks, the increasing popularity of digital financial services offerings, and the shifting attitudes of regulators toward big tech companies are all driving opportunities for those interested in working in the field.
As with any industry, it’s important to stay up-to-date on the latest tools being used in the financial services sector. The fast pace of innovation in this industry makes it a great choice for those who want to continue to learn and advance quickly. Many financial firms are known for encouraging professionals to continue their education and providing on-the-job training, which can make it easier for them to move into higher-level positions with a greater scope of responsibility. Additionally, many of these firms are known to promote from within based on aptitude rather than tenure. This can be a big draw for younger workers who want to see more growth in their careers. Lastly, it’s worth noting that the compensation for those in the financial services sector is relatively competitive, especially compared to other industries.