Financial services are a crucial part of any economy and encompass a wide range of businesses and professionals that offer products and services related to money management. The industry includes banking, mortgages, credit cards, payment services and more. Financial services firms must be able to manage the risk of losing customer deposits, comply with regulations, and keep customers happy while growing their business. The industry is rapidly evolving and changing with rapid advancements in technology.
The financial services industry is all-encompassing today, but it wasn’t always that way. Before the 1970s, most sectors of the industry stayed within their niche and focused on what they did best. Banks specialized in deposit-taking and lending, while loan associations concentrated on mortgages. Mutual fund companies, like ICICI and HDFC, provided consumers investment opportunities, and brokerage firms specialised in stocks, bonds and other securities. With the rise of consumer demand and changes in government policies, however, many financial services companies began to expand their offerings to meet the needs of consumers.
Today, most large financial services firms offer a diverse array of services, from banking and investments to credit card and debt management. Some even include insurance providers, which provide protection against death or injury (life and disability insurance), property loss or damage (homeowners and car insurance) and liability (personal, business, and professional).
While the financial services industry is vast and varied, there are a few key components that make it up. These include:
Banking services – The core of financial services, these include deposit-taking, loans and financial leasing; credit rating; financial data processing; settlement and clearing services for financial assets and negotiable instruments; and other auxiliary financial services such as advisory, intermediation and information services.
Debt resolution – This is a service that helps individuals who are struggling with their debts by negotiating with creditors to pay off the amount they owe for less than what is currently owed.
Payment services – These services allow sellers to accept credit or debit card payments from their customers in exchange for a small percentage of the transaction total. Payment services can also help with recovering money that is inadvertently paid to vendors by a company (for example, through duplicate payment of invoices or fraudulent transactions).
There are many benefits to working in the financial services industry. Not only is the job highly respected, but it also offers a lucrative salary and a variety of career paths. In addition, the field is highly international and often involves traveling. This makes it a great choice for people who want to work abroad, or those who are looking for a more flexible lifestyle. Finally, the position enables you to develop excellent interpersonal skills that can be applied in many different careers. If you’re considering a career in the financial sector, connect with us at Rocket Money to learn more about our job opportunities. We’re committed to helping you find the right role for your talents.