Financial services are the activities and institutions that provide funding for the economy, enabling individuals and businesses to save and invest, make purchases and obtain loans. They also offer services that help manage cash flows, protect assets and generate income. They are crucial to a country’s economic growth and development.
A strong economy requires a healthy financial services sector. Without them, economies would stagnate and companies wouldn’t be able to expand or hire new employees. A healthy financial services sector also ensures that consumers can afford to spend, which boosts the economy.
The financial services industry includes depository institutions (banks, credit unions and other deposit-taking entities), securities firms, insurance companies, consumer finance organizations, investment managers, and credit-card issuers. These firms provide a wide variety of products and services, including investment advice, checking and savings accounts, credit cards, mortgages, insurance policies, and corporate finance.
Many of these activities require a great deal of trust, especially when it comes to granting and receiving loans and insurance policies. For example, when someone purchases a life insurance policy, they trust that the company will pay their beneficiaries upon their death and that the insurer won’t cheat them or steal their money. The same holds true for the stock market, where investors place their money in hopes of earning a higher yield than they could get from a savings account or a CD.
Because of this, people in these roles often have to work extremely hard to earn their compensation. It is not uncommon for people in financial services to work 16 to 20 hours a day, which can be very stressful and can lead to burnout. Additionally, many of these jobs are heavily regulated, which can limit innovation and hamper growth.
Despite the challenges, financial services are a critical part of our global economy. The good news is that financial services have a unique opportunity to address major societal issues and make a greater impact on the world—without having to sacrifice growth or profits.
The best way to start a career in financial services is to take the time to learn about the industry and what it entails. This can be done through online learning, informational interviews, job shadowing programs, and internships. Once you have a good understanding of the industry, it is important to focus your job search on positions that you are a fit for. This will ensure that you don’t waste your time and energy applying for jobs that are not a good match. It is also wise to have a recruiter or headhunter vouch for you, as this can greatly increase your chances of getting an interview and landing a job. Lastly, it is essential to be very familiar with the lingo used in the industry, as this will make you more competitive when applying for jobs.