Financial services refers to a broad sector of the economy that includes everything from banks and credit card issuers to online money management platforms. It also encompasses insurance and payments technology.
The Financial Services Sector is a crucial part of our economy, facilitating the flow of capital and liquidity in the marketplace. In addition to serving as the backbone of the nation’s economy, it also helps consumers build a strong financial footing and save for their future.
Jobs in this sector vary widely, depending on the type of financial service. For example, bankers and investment bankers work with large corporations while real estate agents and insurance brokers handle individuals.
There are also a variety of nonprofits, such as community-based organizations, that offer financial counseling and advice.
Whether you want to work in a large corporation or a smaller one, the financial services industry can be rewarding and lucrative. In fact, professionals in this field rated their job satisfaction between 9.6 and 10 on average when surveyed.
The sector is constantly evolving, and you may be able to adapt to the changes if your company offers remote work or a flexible schedule. In addition, there is a growing market for digital gig work.
Some financial companies buy and integrate insurance firms and investment banks into their holding companies, while others create independent divisions to sell those products directly to customers.
In the United States, for example, a bank can acquire a bank, insurance firm or brokerage firm to diversify its earnings and increase customer penetration. This can help the bank grow its revenue, but it’s important to remember that there are still legal and regulatory barriers between different types of financial intermediaries.
Many financial services sectors have moved away from traditional boundaries, which means that there are thousands of career options available for anyone interested in pursuing a career in the industry. The key to finding a job that is right for you is knowing what career path you wish to pursue, and identifying the specific roles within the industry that will support your goals.
You’ll find a diverse and rewarding career in financial services, and you can expect to be challenged by new problems and opportunities every day. This is a great career choice for those who enjoy helping people and are a good problem-solver.
While most people associate financial services with big banks and hedge fund managers, it’s important to understand that there are also small community-based banks and nonprofits working in this industry.
There are also a number of emerging tech companies that have the potential to disrupt the financial services industry, such as Apple and Amazon. These companies are introducing new digital banking tools that could steal up to 40% of US financial services revenue from incumbent banks, according to an Insider Intelligence report.
A major challenge for the industry is consumer trust, as tech-savvy consumers are reshaping the way they do business with their banks and other financial institutions. In a Bain study, 54% of respondents said they trusted at least one tech company more than their own bank. This has put a huge strain on existing financial services providers and is prompting regulators to re-examine their attitude toward new technologies.
