The financial services sector is one of the largest segments of any economy, providing the free flow of capital and liquidity. When this sector is strong, a country’s economy grows and consumer confidence and purchasing power are raised. On the other hand, when it’s weak, the economy can suffer and lead to a recession.
There are many types of financial services and each has its own unique set of advantages. Here are some of the most important:
Banking
Banks accept deposits and loan money to customers. A small percentage of the money deposited in banks must stay on hand, but most of the money is given out for loans and interest.
Insurance
As a financial service, insurance companies help people pay for certain expenses such as medical bills or home renovations in the event of an accident or illness. They also help protect individuals from loss of property due to fire, theft, natural disasters and more.
Investment services
Some investment firms provide financial services to individual investors, while others provide them to corporations and government entities. Regardless of where you work, the most successful finance professionals have a combination of academic training and interpersonal skills.
The financial services industry is constantly evolving as new technologies emerge and consumers demand more digitized financial activity. Some firms are even creating entirely digital-only banks.
A career in financial services is a rewarding, challenging and varied way to make a living. In fact, according to a recent survey, most financial experts are highly satisfied with their jobs.
Job satisfaction is highest among financial advisors, and the field offers excellent career progression and opportunities for relocation worldwide. As with any other field, your network is vital to getting a foot in the door.
You don’t need a degree to start in this field, but if you want to move up quickly, a bachelor’s degree in finance or an equivalent is highly recommended. You may also need to earn additional qualifications and certifications to be considered for certain positions.
If you are a skilled and experienced financial professional with expertise in a particular area, you can often move up within a firm and become a senior member of staff. You’ll need to be able to work well under pressure, and you’ll need to demonstrate your ability to lead and manage a team of people.
Personal financial management and wealth management are both areas of growing importance in the financial industry. These professionals focus on helping people make smarter spending decisions, build their savings and avoid financial risks.
Credit card issuers and processing companies are also in high demand, as more people use credit cards to buy goods and services. They’re a valuable source of revenue for firms, and the emergence of fintech startups is fueling this growth.
Regulatory agencies oversee the financial services sector and enforce rules and regulations to protect customers from fraud and misconduct. They can also take over a bank or other financial service provider when it is found to be in violation of the law.