Whether consumers save money in banks, put it into loans or invest in new technology, these services put their assets to work. But they are not without risks, and they depend on a high degree of trust between savers and borrowers. That is why many countries regulate the industry to protect borrowers and lenders and to maintain confidence in financial services.
The industry also relies on a network of independent agencies that oversee different aspects of the sector and uphold consumer protection laws. Some of these are government-owned or sponsored, such as the Federal Deposit Insurance Corporation (FDIC), while others are independent. The industry also includes non-bank financial service providers such as stock brokerages, private equity firms and mutual funds.
In addition, large companies are acquiring smaller ones to expand their reach and diversify their business. Some of these acquisitions are designed to grow market share, while others are simply an attempt to acquire the expertise and talent in specific areas, such as digital investment banking or insurance.
As a result, the financial services industry is full of opportunity for those seeking employment. Its in-demand positions can provide a sense of stability and job security, and the skills learned can be transferred to other industries and sectors. However, the industry is highly competitive and stressful. It is not uncommon for individuals to work more than 16 hours a day, and burnout is a risk. As such, it’s important to consider carefully the pros and cons of a career in financial services before making the decision.