Financial services encompass a wide range of business activities that provide funds to individuals and corporations. Financial services providers help consumers save and invest money, manage debt and protect assets. They also support the operations of other industries by providing a wide range of business services, such as accounting, auditing, credit ratings and insurance underwriting. The industry is comprised of many different types of institutions, such as commercial banks, savings institutions, credit unions and mortgage bankers; investment banking firms; insurance companies, pension funds and life insurers; credit-card issuers; and asset management firms.
Most people think of banks when they think of financial services, but there is actually a lot more to the industry than just banking. Many of the things that we take for granted in our daily lives are part of the financial services industry, such as the ability to buy something with a credit card or the option to cash a check. Other examples of financial services are credit ratings agencies, notary publics and money transfer companies.
The biggest and most well-known category of financial services is banks. This includes not only traditional banks but also credit-card companies, credit-unions, and even retailers who accept payment via credit card. There are also investment banks, which focus on helping businesses raise money. The services investment banks offer include mergers and acquisitions, underwriting debt and equity, restructuring, and investment management.
In addition, there are a number of other important subsectors of the financial services industry. These include insurance services, which protect consumers against unforeseen events like death or injury (e.g., health and car insurance), against property loss or damage (e.g., homeowners or life insurance) and against liability (e.g., legal defense or insurance against a malpractice suit). Private equity and venture capital providers are also considered to be part of the financial services industry, as they supply investment capital in exchange for ownership stakes or profit participation in private companies.
As the financial sector becomes increasingly global and interconnected, a number of issues have become more prominent. One of these is the need for financial services companies to make a commitment to advance financial inclusion around the world. In this context, it means to provide access to useful and affordable financial products and services to all segments of society, including the poorest.
While there are certainly challenges to a career in the financial services industry, there are some distinct advantages as well. For example, most entry-level jobs in this field come with extensive training and mentoring programs that help you develop the skills necessary to succeed in your role. Additionally, the pay is generally quite good, particularly for entry-level positions. Plus, many financial services careers are not location specific, meaning that you can work from almost anywhere in the world. If you are interested in learning more about the opportunities that a career in the financial services industry can offer, contact us at Phyton Talent Advisors today.