Whether you are saving for a down payment on a home or insuring yourself against the unexpected, financial services put your money to work. They help people and businesses manage their finances by allowing them to borrow money for investment purposes, save for future needs, and buy the things they need with credit cards and loans. Often, financial services companies are for-profit organizations, but there are also many nonprofits that offer counseling and other money management services.
The financial services industry consists of thousands of depository institutions, providers of investment products, insurance companies, credit and financing organizations, debt resolution services, global payment systems such as Visa and MasterCard, and other critical financial utilities. Many of these are regulated by government agencies to ensure that they provide consumers with fair treatment and clear documents, and avoid engaging in financial crimes such as fraud or insider trading.
A healthy financial services sector is one of the best indicators of a country’s economic health. It creates jobs, provides a source of income for millions of families, and helps people and businesses invest in the growth of their communities. The benefits of a robust financial services sector are widespread and extend to all parts of society.
Personal finance is one of the broadest categories of financial services. Banks are the backbone of this industry, and they provide essential banking services such as deposit accounts and checking and savings accounts. Other important services provided by the banking industry include mortgage lending, credit card companies such as Visa and MasterCard, and commercial banks that provide a full range of business financing.
Private equity funds, venture capital providers, and angel investors are intermediaries that supply investment capital to entrepreneurs in exchange for ownership stakes or profit participation. This type of finance is especially important to technology start-ups, and it is part of the broader category of private equity finance.
Insurance is another major subsector of financial services, and it offers a wide range of options for individuals and businesses. These services protect against the risk of death or disability (e.g. life and health insurance), against property loss or damage (e.g. homeowners and car insurance), and against the possibility of being sued for causing harm to others (e.g. liability insurance).
A career in financial services is not for everyone, but those who are successful in this field are usually intelligent and quick-thinking. They tend to be team players, and they are able to work under tight deadlines. Pay in this industry is not huge, but it is competitive and there are opportunities to advance quickly. Most of all, it is a flexible career that allows professionals to work from anywhere in the world. This makes it ideal for those who frequently travel or are relocating for their work. If you are interested in a job in financial services, be sure to research and compare different providers for the best possible experience. You should also consider what types of financial services you need, as your needs will likely change over time.