Financial services are a vast industry that includes everything from insurance to investments. They include all of the processes and companies that deal with money, including banks, credit unions, investment firms, and even tech companies like Arro and Evernote. In short, they’re “everything that touches money,” as Ryan Duitch, president and CEO of Arro, puts it. While that might seem broad, there are actually a number of distinct subsets within the sector. Here are some of the key categories:
This category encompasses all the ways that a bank interacts with its customers, from depositing checks to transferring funds between accounts. It also includes things like notary services, issuing credit cards, and offering debit card machines. Investment banks are a subset of this category that focus specifically on helping businesses raise money. They do this by underwriting debt and equity, advising on mergers and acquisitions, and providing other corporate finance-related services.
This sector includes all the ways that a company can lend or borrow money, from mortgages to commercial loans. It also includes things like factoring, leasing, and credit-card financing. Companies in this space include big names like Ally Financial, LendingTree, and Citibank. Private equity and venture capital firms are another subset of this category that provide funding to small startups and other companies that need help getting off the ground.
The presence of financial services enables consumers to grow their savings and invest in different assets, such as real estate, commodities, and stocks. Similarly, it helps businessmen maximize their returns by enabling them to avail credit facilities at reasonable rates and minimize risks from fluctuations in the business environment or natural calamities. Financial services providers are everywhere, from small domestic consulting firms to huge multinational corporations.
While you may think that a career in financial services requires a lot of education and training, the truth is that many people get into this field with only a bachelor’s degree or less. This is because many positions in the field require specialized skills that can be learned on the job. Moreover, you’ll often find that networking is the best way to break into the industry.
The financial services industry is highly regulated, and there are various independent regulatory agencies that oversee the different areas of the sector. These regulators are charged with upholding transparency and ensuring that all stakeholders, from investors to consumers, are treated fairly. They also work to ensure that financial services firms have all the information they need to make sound decisions. Ultimately, this means that the overall strength of the economy is tied to the health of the financial services sector. This is why it’s so important to stay up-to-date on the latest trends in the industry. The future looks bright for this booming segment, with advanced technology making it possible to manage and analyze huge amounts of data at lightning-fast speeds. This will allow businesses to make better decisions that will benefit their bottom line and the wider economy.