Careers in Financial Services
The financial services industry is a wide ranging sector that includes banks, brokers, mortgage lenders and many other professionals. It is also the umbrella term that covers insurance companies, investment firms, securities traders and more.
Definition of Financial Services
In simple terms, financial services are the processes by which people acquire or manage their financial goods – like bank accounts and credit cards. They also include the processes that allow companies to make money off of these goods, such as selling them on the market.
While it is easy to think of the most obvious examples of financial services (banking, real estate, insurance), there are actually nearly endless opportunities in this field.
There are many different ways to define this field, but it is generally accepted that the broadest definition of financial services is the process of managing money for consumers and businesses.
The primary functions of the financial services sector are to facilitate transactions, mobilize savings, allocate capital funds, and mitigate risk. These activities are critical to the health of an economy and, in turn, to its well-being and growth.
Banking is a broad category of financial services that includes handing deposits into checking and savings accounts, as well as lending money to customers. These services are typically provided by large commercial banks, community banks and credit unions.
These organizations earn a significant portion of their revenue through interest and fees that they charge to customers who deposit money in their banks. A substantial portion of the interest earned by these institutions goes toward paying for loans to their own customers.
Asset management is another important part of the financial services industry. It involves the management of a broad range of financial products, including pensions, hedge funds and mutual funds.
It can be a daunting field, with a wide array of job titles that aren’t as clearly defined as some other career options. However, it is a field that can be rewarding for individuals with an eye for business, a willingness to work hard and a strong desire to help people in their finances.
A person can start their careers in financial services by working in the customer service or marketing departments of a large, well-known firm or a smaller boutique. This is a great place to start, because it can provide you with the opportunity to develop interpersonal skills and build a network of contacts.
Some professionals in this area of the industry also focus on providing financial advice and counseling to clients. This can include providing guidance on retirement planning, advising businesses on financial decisions, or helping people to better understand their debt situation and develop strategies for reducing it.
The financial services sector is an essential part of the economy. It helps consumers to save, diversify their portfolios and improve their standard of living.