The financial services industry is made up of the companies and institutions that provide the infrastructure for financial activities. This includes everything from credit-card networks and payment processing to the underlying technology that facilitates stock and derivative trades. The industry also encompasses insurance, accounting and tax services, debt resolution, and even some real estate services. It’s no wonder, then, that there are many different types of jobs in this sector – from entry-level positions to high-level management roles.
Financial services are vital to the economy in general because they help channel money from savers to those who need it most. They can also redistribute risk by pooling savings to cover the losses of those who take more risks. This is why governments often regulate and oversee the various sectors of this industry to foster trust between consumers and providers.
In the banking industry, which is the foundation of financial services, providers offer a range of products from checking accounts to mortgages and credit cards. They earn revenue by charging fees for these services and from the interest they make on loans and deposits. The banking industry also offers investment products like mutual funds, and it helps clients buy and sell securities such as stocks and bonds.
Other parts of the financial services industry include consumer finance, which helps people afford things they can’t necessarily pay for outright. This includes credit-card services that give customers rewards for spending, as well as the companies that supply the financing for major purchases such as cars and homes. Consumer finance also includes mortgage lenders, personal and student loan services, and credit scoring firms.
There are also other specialized areas of the financial services industry that cater to more complex needs. For example, wealth management firms manage portfolios for the rich and famous. They also advise companies on mergers and acquisitions. In addition, there are companies that offer structured finance and capital markets services. Capital markets services involve helping borrowers raise money by selling shares in their businesses and issuing bonds.
As with any type of job, you’ll have a better chance of landing a position in the financial services industry if you have connections in the field. You should also consider seeking out internships or taking entry-level positions to get your foot in the door. Once you’ve gained some experience, you can then focus on finding a career that’s right for you. And because the field is so large, you’ll have plenty of opportunities to find a position that offers the lifestyle and salary you want. There are also many benefits to working in financial services, including job security and flexibility. This makes it easier to balance work and life. You can also relocate easily since most positions are not location-specific.