When it comes to financial services, many people think of banks, stock brokers and mortgage lenders. But, the industry actually is much broader than that. It encompasses everything that has to do with money and its management, including credit cards, credit-card companies like Visa and MasterCard, global payment systems, debt resolution services and the countless other providers of critical financial utilities.
The financial services sector is crucial to the health of a country’s economy. A robust financial services industry and economy typically leads to increased consumer spending, which benefits businesses of all sizes and ultimately translates to higher standards of living for the entire population. Conversely, a weak financial services sector can quickly bring a country’s economy down, leading to a recession and potentially even a depression.
As a result, there are always plenty of career opportunities for those who are interested in working in the industry. While a bachelor’s degree is often required for the more managerial roles within financial services, there are plenty of entry-level positions that allow individuals to get their foot in the door and learn the ropes.
Depending on the position, the hours can be long and demanding, especially during times of peak market activity. However, in order to advance within the field, it’s important for employees to put in the work and develop their interpersonal skills.
In addition to the actual monetary aspects of financial services, the industry also provides vital insurance protection for consumers and businesses. This protects them against losses resulting from accidents (like car crashes or workplace injuries), against the unexpected loss of property and assets, and against bankruptcy or foreclosure.
A key function of the industry is to provide capital for businesses to grow and expand their operations. This is achieved by providing various financing products, such as loans, factoring, hire purchase finance and credit card facilities, to businesses. In addition, the industry also provides investment services to businesses and consumers, such as brokerage and asset management.
While a business may need to take on some risk in order to secure funding, the financial services sector also works to minimize this risk as much as possible. This is done through the use of guarantees and indemnities, which reduces the amount of capital that a business needs in order to grow and thrive.
The financial services industry, which varies by country, includes thousands of depository institutions, providers of investment products, credit-card companies and other credit-granting organizations, insurance firms and reinsurers. In addition, the sector encompasses a wide range of critical financial utilities, such as stock and commodity exchanges and real-time gross settlement systems. This is a powerful time to be involved in the industry as it is changing rapidly and will play a massive role in creating a human-centered economy that is just, inclusive and sustainable.