When people think about the financial services industry, they usually think about banks, brokers and mortgage lenders. However, this is a hugely expansive category that encompasses much more. In fact, it’s “everything that touches money,” explains Ryan Duitch, president and CEO of Arro. That includes credit cards, accounting services, investment banking and more. And it’s not just about individuals—this is an industry that serves small and large companies, nonprofits and even governments.
The financial services industry helps provide the necessary funding for economic growth. This is because it provides a platform for individuals to save money and for businesses to borrow money to fund projects. Without these services, the economy would likely suffer. The financial services industry is a vital part of a nation’s economy.
A strong and vibrant financial sector is one of the best indicators of a healthy economy. When the capital market is active and there’s a lot of movement, it means that there’s lots of investor confidence in the country and that consumers are spending.
While there are many career paths in the financial services sector, some may be more lucrative than others. Investment bankers, for example, earn a great salary and can get their foot in the door of many top firms. However, it’s important to consider the pros and cons of each role when choosing a path.
Pros of a Career in Financial Services
The pros of a career in financial services include the broad range of job opportunities, the high level of competition for positions and the opportunity to make a significant impact on a company’s bottom line. In addition, a job in this sector can help you develop valuable interpersonal skills that can be applied to other sectors of the business world.
There are a number of different jobs in financial services, from entry-level positions to executive roles. Depending on your area of expertise, you can find work in areas such as asset management, insurance, consumer finance and capital markets. While it’s important to focus on the areas of your interest, you should also be aware of the changing needs of the industry and how that might affect your long-term career plans.
What is a Financial Service?
A financial service is any activity that involves the inflow or outflow of funds. It can involve investing, borrowing or lending money and paying for goods or services. Individuals engage in financial activities to pursue their monetary goals and objectives, such as purchasing goods, selling assets, taking out loans or even collecting taxes. Governments also engage in financial activities by granting debt and levying taxes to further specific monetary goals.
The four main categories of financial services are deposit-taking, loan and investment management. Other services include consumer credit, debt resolution and payment systems. Deposit-taking financial services are those offered by banks and other deposit-taking institutions, such as building societies and credit unions. Loan and investment management are services provided by commercial and merchant banks, as well as by financial and credit-card companies.