Financial services refer to any service related to the provision of money or credit. The industry is comprised of a wide range of different businesses such as banks, credit unions, credit-card companies and insurance companies that provide a multitude of services for both consumers and businesses. This sector of the economy also includes investment firms, debt resolution services and global payment systems such as Visa and MasterCard. The industry is incredibly broad and has many different career paths to choose from for those looking to enter it.
While the world of financial services seems all-encompassing, it wasn’t always this way. Before the 1970s, each area of the sector stuck to its own niche. Banks offered checking and savings accounts, loan associations provided mortgages and other loans and brokerage companies sold investment products like stocks, bonds and mutual funds. But as demand for a greater variety of financial services increased, companies began to merge and offer more than their original specialty.
Today, it is common to see a bank offering mortgages and auto loans while also selling investment products. Many of these firms are large, multi-national organizations that operate around the world. However, smaller local financial services are also still prevalent. These firms can offer a more personalized experience to their customers and are often more flexible in how they can meet the needs of their community.
With the amount of new tools that are introduced to this field seemingly every day, it’s important for professionals in this sector to keep up with the latest trends and innovations. As a result, this industry tends to attract people who are intelligent and quick-thinking. Additionally, this is a highly competitive industry and promotions are usually based on merit rather than longevity.
In this industry, a person’s job is to help individuals and businesses manage financial risk. This is accomplished by providing insurance protection against death, injury or property loss (life insurance, health insurance and property insurance) as well as liability and credit protection. In addition, the financial services industry also offers investments for those who are willing to take more risk in order to increase their wealth.
Other services that are part of this sector include debt management and collection, tax filing and preparation, currency exchange and wire transfer services, credit card machine networks and payment processing systems. In addition, there are also a number of specialized finance companies that offer more complex financial services such as structured finance and private banking.
In addition to a strong customer focus, the financial services industry is focused on building stronger business relationships, increasing revenue, unlocking talent and creativity, improving operational efficiency and using data analytics to create better consumer experiences. Ultimately, those who can successfully navigate the various risk, market and regulatory pressures will thrive. Those who cannot will continue to struggle or even fail. The key to success is having the right strategy in place. The best strategy starts with understanding your customer and embracing innovation.