Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit-card companies, banks, credit-unions, consumer-finance firms, insurance companies, investment funds, accountancy firms and stock brokerages. These services enable individuals to save and invest their money, as well as provide loans and other forms of credit. They also include the provision of advice on investments and risk management. Financial services are a vital part of any economy, and they help to promote growth by providing companies with the necessary funds to expand and grow.
Financial service providers channel cash from savers to borrowers, and redistribute risk by pooling funds from many savers so that they are not crippled if one or more of the borrowers default. They also provide debt resolution services, facilitating the repayment of outstanding debts. Financial services also encompass the provision of advice to investors, as well as the operation of markets for financial instruments, such as exchanges and clearing houses.
A career in the financial services industry can offer a variety of benefits, such as job security and a lucrative salary. However, it is important to weigh the pros and cons of a career in this field before making a decision. To succeed in the financial services industry, it is necessary to possess a mix of hard and soft skills. For example, the ability to do math and analyze data is essential for jobs in the field of finance, but interpersonal skills are just as important.