When people think of Financial services, they often think of banks, mortgage lenders and brokers. While these are all part of the financial services industry, the term is actually much broader than that. It encompasses all services related to money management, debt and investments. It also includes many types of non-bank businesses such as credit card companies, debt-resolution firms and global payment systems. In addition, there are numerous nonprofits in the financial services industry that provide counseling and money management advice to the general public.
Financial services companies offer a wide range of products and services to consumers, from consumer banking (checking and savings accounts) to commercial banking (credit cards, loans and investment advice). The sector is highly regulated to ensure that consumers are protected against fraud and other risks. Banks are the foundation of the financial services industry, and they primarily focus on deposit-taking and lending. Credit unions and community banks are also part of the financial services industry, as are brokerage firms and Wall Street investment houses.
Other financial services include investment management, insurance and the redistribution of risk. Investment management firms help individuals invest their money wisely, while insurance companies provide protection against the risk of loss due to accidents or disasters. Other parts of the financial services industry are private equity and venture capital providers, which supply investment capital to startup businesses in exchange for ownership stakes or profit participation, and the various exchanges that facilitate stock, derivative and commodity trades.
The Financial services industry is highly interconnected, and its success is tied to the ability of its members to make fast decisions based on market conditions and customer demands. For example, the industry must be able to respond quickly to natural disasters or terrorist attacks. It must also be able to handle large-scale power outages and other infrastructure issues. As such, it has developed technical solutions to ensure high availability and reliability.
A career in the financial services industry can be exciting, challenging and rewarding. However, it is important to consider all aspects of the job before making a decision. According to Duitch, “A career in financial services provides excellent job security, good pay and a great opportunity to learn a variety of skills that will be useful throughout your professional life.”
But, while there are many benefits to a career in the financial industry, it is also important to realize that not all jobs in the sector are created equal. Not all roles will help you move up the ladder in your chosen career path, and some positions may even prevent you from reaching your long-term goals. For instance, a teller’s position at a community bank is a great entry point to the industry but not a place where you will likely find success as an investment banker. This is because a teller’s role is focused on handling deposits and withdrawals rather than providing valuable advice to clients. As a result, you may not have the skills needed to advance in your chosen career.