Financial services involve the provision of various financial goods such as banks, credit facilities and other services related to financing. They are essential for the growth of the economy and provide funds to businesses for production.
The financial services sector includes a variety of industries that provide a range of products and services to individuals, companies and governments alike. Some of the most important are banking, insurance, wealth management and investment services.
Banks offer deposit accounts to customers and also provide loans, ranging from small personal loans to larger mortgages. Most of the money deposited into a bank stays on hand, but a portion must be loaned out to customers as needed.
Some of the largest banks in the world have a wide variety of services to offer their customers. These include checking and savings accounts, auto loans, mortgages, credit cards and more.
These services are important to the economy because they help to create and grow the financial markets. They allow people to trade and invest in stocks, bonds and other investments.
They also help to ensure the safety of capital, protecting the interests of individuals and companies against unforeseen events. The industry has many sub-sectors including a number of important professional firms.
Retail banking – The business of providing basic financial services such as checking and savings accounts to individual consumers. Some of these services are regulated by the Federal Deposit Insurance Corporation (FDIC).
Private banking – A type of banking that offers more personalized service to wealthy clients. These firms usually cater to a smaller clientele, often with a family office and/or an advisory team.
Advising – This is a sub-sector of financial services that works to educate clients about their finances and help them make smart decisions regarding their investments. These professionals can help a customer with financial planning, tax preparation, asset valuation and other services that can improve the financial health of an individual or company.
Digital financial services – The use of electronic technology to manage and distribute funds in the global market. They include payment providers like Visa and Mastercard and global exchanges that facilitate stock, bond and derivative transactions.
The financial services sector is an essential part of the global economic system and helps to keep nations’ economies strong and stable. It is the primary driver of free flow of capital and liquidity in the markets.
It is also responsible for safeguarding capital, minimizing economic risk and helping to manage the flow of money overseas.
As a financial services professional, you can expect to work with a broad spectrum of different people and organizations from a wide variety of backgrounds and cultures. This makes it a very diverse industry with many opportunities for advancement, as well as a very high level of job security.
You can learn a wide range of skills in this industry, and most employers will support you to continue learning and growing professionally. These skills can be highly transferable and can open up opportunities to work in a variety of places around the globe.