The financial services industry plays a vital role in our daily lives. It includes the banking, credit card and investment industries among others. The sector employs more than 2 million people in the UK and generates a large proportion of the economy’s revenue. However, the financial sector isn’t without its challenges. The recent mortgage crisis and stock market crash have raised concerns about the stability of the industry. Despite these issues, there are still opportunities for those interested in working in financial services. However, it’s important to understand what the industry entails before making a career choice.
What are the Different Sectors of Financial Services?
There are many subsectors of financial services. For example, there are investments, insurance, estate and trust services, and credit and financial utilities. All of these sectors revolve around money in one way or another. To break down the industry even further, there are two types of financial services: financial goods and financial services. Financial goods are tangible products, such as mortgage loans or insurance policies. Financial services are the processes and infrastructure that go into those goods. For example, an insurance agent or broker is a financial service that helps someone purchase insurance. The underwriters who create the policy are also a financial service.
These two types of financial services are crucial to the health of the economy. When the financial sector experiences problems, the rest of the economy suffers. This can lead to a recession and even a depression. However, when the financial services sector is strong, it can drive economic growth and increase living standards.
A career in financial services is highly competitive. Many of the companies that provide these services are global and have a reputation to protect. These companies also have to deal with strict regulations. This can put a strain on staff and make it difficult for them to offer the best customer experience.
In addition, the pay in this industry is not huge, but it’s competitive. However, it’s possible to get into the industry with a good college degree and a few years of work in an entry-level position. Once you have experience, it’s possible to earn high 5 figures.
The benefits of a career in financial services include the potential to travel and develop your skills. However, the stress and long hours in some jobs can be a major deterrent to those looking for a healthy work-life balance. It’s also important to remember that the job security isn’t always there, as the industry is very volatile. Nevertheless, if you’re up for the challenge, Pocketbook Agency can help you find the right financial services job for you. Contact us today to learn more about the different options available!