Financial services are the activities related to the provision of money, credit, investment and insurance. This sector includes global payment services like Visa and Mastercard, credit unions, debt resolution services, accountants and tax filing firms, currency exchange offices, wire transfer services, stock, derivative and commodity trading platforms and other market utilities.
People who work in the financial services industry provide an essential service to businesses and individuals. They offer products and services that help people manage their financial lives, from investing in stocks and bonds to getting a loan for a home or car. They also advise businesses on how to best structure their operations and investments.
A career in financial services can be highly rewarding, and it’s an excellent choice if you have a passion for numbers and enjoy working with people. The sector offers a wide range of positions, from entry-level customer service roles to top executive positions. There are also plenty of opportunities to advance quickly, as many companies promote from within based on performance.
The global financial services industry is complex, with different areas of expertise overlapping. For example, a bank’s deposit-taking activities are its core business, but it may also provide investment services, such as lending money to fund new projects or purchase existing assets. Banks also typically offer a range of consumer-facing products, such as credit cards, mortgage loans and checking accounts.
In addition to traditional banks, other providers of financial services include credit-card issuers, investment management firms, insurers and reinsurers, and money-market mutual funds. Each of these types of companies has its own unique set of responsibilities and skills. For example, an insurance agent is a salesperson who represents the interests of an insurance company and shops around for the most competitive policy on the market, while an underwriter assesses risk and advises investment bankers on loan applications.
Despite the recent global economic crisis, the financial services industry continues to grow rapidly. The sector is characterized by competition, complexity and innovation. The industry also faces increasing regulation and scrutiny by government authorities worldwide.
Without access to financial services, nearly 2 billion people would be unable to save their money or invest it in productive enterprises. Instead, they might hold their savings in cash under the floorboards or in a container – an unsafe and inflexible way to accrue and use wealth. Financial inclusion ensures families have the means to invest in agriculture, build or improve their homes, purchase livestock and consumer durables and expand their businesses.
The financial services industry is a vital component of the world economy, and it’s important for both individuals and companies to make wise decisions when choosing which institutions to work with. The more educated consumers are about the various options available to them, the better their decision-making process will be.