The financial services sector is a broad category of businesses that manage money. It encompasses a wide range of companies, including banks, credit-card companies, insurance companies, accountancy firms, stock brokerages and investment funds.
The main purpose of financial services is to put money to productive use. Instead of storing it under the mattress, consumers can give it to intermediaries who might invest it in the next great technology or loan it to someone who wants to buy a house. These flows are usually regulated, to ensure that people can trust each other and that financial institutions can manage their risk.
Having a strong financial services sector is important for economic growth and prosperity in a nation. This is because when the financial services industry is robust, the economy grows, and consumers earn more money to spend on goods. When the financial services sector is weak, it can slow down economic growth and make it more difficult to get loans for large purchases.
There are many different types of jobs in the financial services field, and most require some type of math and data analysis. The field also requires interpersonal skills, such as good communication and collaboration.
Some of the most common job titles in this industry include banking, investment banking, and real estate. However, there are several other types of career opportunities in this field that can be just as rewarding and challenging.
Banks handle deposits (money people have deposited with them) and loans, which customers may apply for and receive to use for whatever they want. About 10% of a bank’s money is required to remain on deposit for security reasons, while 90% is available for lending.
Mortgages and loan-backed securities are the most common examples of these products. In addition, there are other kinds of investments and debt instruments that are considered financial goods. These include stocks, bonds, commodities, loans, and real estate.
Other financial services include:
Securities research – Maintains a department that focuses on research and advising clients on specific securities and industries.
Broker Services – Buy and sell securities on behalf of their clients (sometimes may also include financial consulting).
Family office – A kind of private banking service for high net worth individuals or a small group of wealthy families, often with financial plans tailored to their needs.
This area of financial services specializes in a variety of activities, such as analyzing business ventures, providing valuation services, and helping individuals with personal finances. Depending on the client’s situation, advisors may also provide financial planning and tax services.
Most people have some understanding of insurance; it is a system that you pay into monthly or annually which acts as a safety net and covers costs of some large expenditures which are often unforeseen.
There are many different types of insurance, such as health, auto, and home, just to name a few. Having a career in this industry can be exciting and rewarding, as long as you are willing to invest the time and energy to learn the necessary skills and grow in your role.