Financial services are the activities that help individuals, companies, and governments manage money. They include banking, insurance, credit, capital markets, and more. A healthy financial services sector is essential to a nation’s economy. It provides the funding that businesses need to grow and thrive. It also helps consumers get the loans they need for homes, cars, and education. It safeguards people’s property and health through insurance, and it allows them to save for retirement or other goals.
Many different career paths are available in the financial services industry. The industry is diverse and encompasses many different subsectors, each with its own specialty and skill set. Some of the major subsectors include:
Banking services include checking accounts, savings accounts, and credit cards. They also provide investment services such as brokerage and asset management. Other areas of the banking service industry include commercial lending, where banks extend loans to small and large businesses. It may also include underwriting services, where the bank acts as an investor and invests in debt or equity for a company. It may also work to underwrite or advise on mergers and acquisitions.
The capital markets subsector of the financial services industry includes stock and bond markets, as well as other forms of investment. Some of the major types of investments include private equity, venture capital, and hedge funds. Many of these investments are made by private equity firms, which take on the risk of a new business in exchange for ownership or profit participation. The hedge fund industry is another major player in the capital markets, with managers making bets on future market trends to earn a profit.
Credit and debt services are the next major area of the financial services industry. Credit card networks and providers, as well as loan and mortgage services are part of this industry. It also includes debt resolution services, which help people pay off their debts if they are unable to make their monthly payments as agreed upon. The debt and credit industries are largely regulated by government agencies.
The last major area of the finance industry is the asset management subsector, which is where pensions and insurance assets are managed. This sector of the industry is a huge driver of the global economy. It is regulated by government agencies, and it includes the activities of investment banks, which offer advice on managing portfolios and advising clients on buying and selling stocks. It also involves asset managers, who manage the investments of high net worth individuals.
The financial services industry has seen a lot of turmoil over the years, from a housing bubble in the 1990s to the subprime mortgage crisis in 2008. But it is rebounding now and offers a number of jobs for qualified candidates. Companies that are a part of the financial services industry often value employee training, and promote from within based on merit. This industry is always changing and evolving, and is a great career choice for those who are quick-thinking and willing to embrace change.