Financial services are the business activities related to storing, managing and accessing money. They include banking, credit unions, savings institutions, investment firms, insurance companies and credit card firms. In addition, the industry encompasses the critical financial utilities such as depository institutions and providers of investment products and services, mortgage and loan finance companies, credit and financing organizations, debt resolution service providers and global payment systems and networks like Visa or MasterCard.
The financial services industry promotes economic growth and development by encouraging strategic investments and fostering a culture of saving. It also facilitates capital flow and liquidity, manages risk and drives national economies by expanding a country’s credit market. Moreover, it provides the infrastructure that supports the movement of funds from investors to producers in order to promote production and consumption.
Historically, each sector of the industry focused on a specific area of financial services. Banks offered checking and savings accounts, while loan associations provided home and auto loans. Brokerage firms offered consumers the ability to invest in stocks, bonds and mutual funds. Credit card companies such as MasterCard and Visa provided a convenient way for individuals to make purchases.
Now, however, the field of financial services is a lot more expansive. Today, a single company can offer a full suite of financial products and services. It can provide a deposit account, issue and manage a credit card, invest in the stock market and even offer real estate services. The range of career options in this field is vast and diverse, with many entry-level jobs providing excellent opportunities to quickly advance.
For example, a new hire at a mortgage company will likely receive extensive training and have a team to support them as they learn the ropes of the position. As a result, the industry is known for promoting from within and rewarding aptitude over tenure. This kind of environment is particularly attractive to young professionals.
Another perk to a career in financial services is the high salaries that come with it. The industry is also known for offering benefits such as health insurance and retirement plans. In addition, it provides excellent networking opportunities and the opportunity to travel. Finally, many roles in the industry give employees a chance to develop exceptional interpersonal skills that can help them in any other career they choose.