Financial services are the sector of a country’s economy dedicated to offering investment and savings tools to individuals and businesses. This industry includes thousands of depository institutions, providers of investment products, insurance companies and credit and financing organizations. It is instrumental in facilitating the flow of capital and liquidity into markets, managing risk, and driving national economies.
Essentially, financial services put consumers’ money to work, allowing them to invest in new technologies or purchase homes. They are a critical part of any developed country’s economy. A strong financial service sector typically leads to higher consumer spending, which in turn supports the growth of other industries and helps small businesses grow. However, a weak financial service sector can lead to a recession or even a depression.
The financial services industry seems all-encompassing today, with banks that offer everything from checking and savings accounts to mortgages and auto loans. But it wasn’t always that way, with each sector more or less sticking to its own specialty. Banks tended to only offer banking services, while credit unions and mortgage associations focused on specific loan types. Investment firms offered investment opportunities, and brokerage companies sold stocks and bonds to investors.
Aside from lending, depositing and investing money, other financial services include administering payment systems (like credit and debit cards) and trading. Companies in this industry are also responsible for ensuring that they follow regulations and practices related to their specific sectors. They are often required to carry professional liability insurance, as well as complete continuing education courses in order to maintain their licenses.
While a career in the financial services industry isn’t for everyone, it does offer a great opportunity to earn an impressive salary and benefits package. In addition to a solid starting salary, most roles within this industry are commission-based, meaning that your income potential is truly limitless as long as you can continue to source new clients. It’s important to note, however, that these salaries aren’t guaranteed – your actual salary will depend on the amount of time and effort you put into your work.
It’s also worth noting that many jobs in the financial services sector require extensive travel, which can be difficult for those who prefer a more sedentary lifestyle. That said, it’s important to research the role you’re interested in before applying so that you have a good understanding of what to expect from a job in this sector.
Aside from the obvious financial benefits, a career in the financial services industry is highly rewarding from an intellectual perspective. It’s a highly competitive environment, and the best workers are quick-thinking, intelligent and team players. While the pay isn’t massive, it can still be very lucrative if you’re able to meet the high standards that are expected. In addition, there are a number of excellent job opportunities available in this sector, so be sure to keep an eye on the market and contact Pocketbook Agency when you’re ready to find your next role.