Financial services provide essential support for all other industries and the economy as a whole. They help people get loans for houses, cars and other large purchases, save for the future through retirement and education accounts, and protect against loss or damage to property or health with insurance coverage. They also help companies expand and grow by providing the necessary capital for investment.
The four main types of financial services are: Investment services, credit/loan services, asset management and insurance services. Each offers a unique combination of products and services to meet the needs of clients. Some of these services are provided by a single firm, while others are offered by several different firms. Investment services include equity brokerage, mutual funds, and trust companies. Credit/loan services are provided by banks, consumer finance companies, credit unions and mortgage brokers. Asset management services include pensions, life insurance, and investment advisory. Insurance services are provided by life and property/casualty insurance firms.
All of these services rely on the flow of money to be successful. Savers (or depositors) must trust that their savings will be secure and accessible, while borrowers count on receiving the payments they have promised. In addition, the industry relies on intermediation to add value for investors and manage risk. Providers like banks and insurance companies help channel cash from savers to borrowers by aggregating their deposits, monitoring investments, and pooling their risk so that one default does not cripple them.
The financial services industry is an important part of the economy and is growing rapidly. It employs millions of people and is an excellent source of high-paying jobs. The stronger the sector is, the better it is for the economy as a whole.
Many different career paths are available in the industry, and research shows that those who work in financial services tend to have higher job satisfaction than those in other industries. Those with a passion for numbers and a drive to succeed are well-suited to this field. As with any type of career, it is important to start out on the right foot and gain as much experience as possible in order to advance quickly.
A solid knowledge of the current market, the ability to read and interpret complex data and the willingness to travel are all essential qualifications for those considering a job in the sector. If you are interested in learning more about the opportunities that exist within this exciting and challenging industry, we invite you to attend one of our free virtual conferences. Each features progressive thought leaders and experts sharing their insights into the key challenges that the industry is facing today. You can find the schedule of events on our website.