Financial services are the activities related to managing, investing, and transferring money. This industry includes banking, insurance, and credit-card companies as well as global payment networks and debt resolution services. In addition, it encompasses investment managers, securities brokers, and capital-market utilities. The sector is vast, and the options for career paths are limitless. But the sheer number of possibilities can be overwhelming for those looking to pursue a professional role in this field. As a recruiting partner for the financial services industry, Phyton Talent Advisors works with professionals in this sector daily and has a good grasp on what it takes to excel in these positions. Here are four key aspects of the financial services industry that you should consider when making a decision to work in this industry:
Banking
The banking sector is one of the most familiar areas of the finance industry, but it’s also one of the most diverse. Banks are a crucial part of the financial services industry because they provide a critical service: they pool together deposits from people with money to lend to individuals and businesses who need it. Banks also offer other financial services, such as cashing checks, issuing credit cards, and providing notary services. Some banks, such as investment banks, specialize in helping corporations raise money by underwriting debt and equity.
Insurance
Most people are familiar with insurance, as it is a necessary component of most people’s lives. It helps cover the cost of unexpected expenses and provides peace of mind. Some examples of insurance are health, car, home, and life insurance.
In the world of finance, there are several different kinds of insurance, and many companies that specialize in them. This segment of the industry is a major contributor to its success.
Capital markets
A vibrant capital market is the hallmark of a healthy economy. This is because it means that investors are spending freely, which enables businessmen to boost production and reap profits in the long run. The presence of financial services enables the capital market to thrive and is one of the most important pillars of an economic system.
The financial services industry is made up of several segments, but the core components are accounting and tax filing, currency exchange, and wire transfer services. It also includes financial market utilities such as stock and commodity exchanges, real-time gross settlement systems, and interbank networks. The industry also includes credit-card companies, notary services, debt resolution, and international remittance providers. It also encompasses the brokerage services of firms that buy and sell securities, along with a range of other specialties like private banking and high-net-worth asset management.