Financial services are economic services offered by the finance industry, which together encompass a broad range of service sector firms that provide financial management, including credit unions, banks, insurance companies and diversified financial institutions. This industry is a powerful business driver and is a significant consumer of many other industries’ products and services. Its practices, standards and operations have a direct effect on the way those other industries do business.
As a result, the business of financial services has become an important barometer of economic health and is often considered to be one of the most powerful sectors of any economy. Moreover, the presence of this industry is vital for the overall well-being of any economy as it helps in creating wealth and increasing the purchasing power of individuals and businesses.
For example, a strong financial services market means that a company is likely to be more profitable and that consumers will spend more money on goods and services. When this industry is healthy, it can also improve the productivity of other industries and boost a country’s overall economic growth.
Moreover, the presence of financial services provides people with different types of facilities for saving and investing their funds. Some of these include hire purchase, leasing and housing finance companies, where individuals can avail themselves of consumer durables, cars and houses without having to pay the entire cost upfront. This not only allows them to save but also gives them the opportunity to reinvest their savings and obtain better quality of life.
These institutions also help poor families to improve their living conditions by providing them with the means to buy land, construct or repair their homes, acquire livestock and consumer durables as well as expand their small businesses. These microenterprises in turn create more jobs and lead to a more balanced economic development of a nation as the primary, secondary and tertiary sectors all grow equally.
Financial services are also vital for the government as they can raise both short-term and long-term funds in the market. This enables the government to meet its revenue as well as capital expenditure needs in an efficient manner.
Various insurance companies are also available in the market who offer protection from various risks and hazards faced by producers as well as consumers. This enables the producers to maximize their profits and protects them against risks arising from natural calamities or other factors that may damage the production and hence their revenues.
A career in financial services can be exciting and rewarding for those who are willing to work hard. It is a fast-paced industry and it is not uncommon for employees to be expected to work late. Most employers encourage staff to continue their education as new tools are introduced and will provide on-the-job training for those who show an interest. As a result, this is a great industry for those who want to learn and grow their skillsets. Whether it is through attending workshops or using the many online resources that are available, there are endless opportunities to grow in the field of financial services.