Financial Services Jobs
Financial services are the services and businesses that manage money and offer products related to banking, investing, insurance and financial analysis. A healthy financial sector is essential for a country’s economy because it advances loans to companies so they can expand, grants mortgages to homeowners and helps people save for retirement. This industry also has its dark side as demonstrated by the mortgage meltdown that nearly caused a global economic collapse in 2008.
The business of providing financial services covers everything from unsecured personal loans to the global payment systems and credit card networks. The industry also includes debt resolution services, accounting and tax filings and currency exchanges as well as the financial market utilities that facilitate stock, commodity and derivatives trades.
Banks provide the majority of financial services, which are primarily deposit-taking and loan-making. Other services include merchant banking (processing credit and debit card transactions for businesses), asset management, capital markets and insurance. The industry is heavily regulated, and independent agencies are designated to oversee different financial institutions and ensure that they operate fairly with transparency and accountability.
Because of technological advancements, a burgeoning population and the desire for personalized financial service solutions, there is significant competition in the sector. The most successful firms are those that are innovative, understand their customers’ needs and can anticipate their requirements, focusing on customer retention and new customer acquisition.
A key challenge facing the financial services sector is the need to educate consumers about basic money management skills. There is still a widespread lack of understanding of products and services offered by the sector, as well as how to handle credit, savings and debt. This gap in consumer knowledge is a significant opportunity for any firm that can help consumers better manage their finances.
Many jobs in the field of financial services are highly specialized, requiring degrees in law, mathematics and engineering as well as extensive training. Individuals in these roles can work for brokerage firms, investment banks, insurance agencies and credit-card companies. They can also find positions in a number of other areas, including:
An emerging area of the financial services sector is the provision of private equity funds and venture capital to startup technology firms. These firms supply capital for a company in exchange for ownership stakes and profit participation. The popularity of these investments is growing as more individuals seek alternative ways to finance their entrepreneurial endeavors. The rapid growth of the internet has also opened up a new channel for investors to access these opportunities. However, the security of customer data is an important issue that these new channels must address before they can become fully functional. This has become especially critical since the recent collapse of several major online payment platforms.