Financial services are the economic activities that provide the funds and capital needed to invest, save, spend, and transfer money. They include financial institutions such as banks and insurance companies, and regulated bodies that oversee them.
They also help channel cash from savers to borrowers and redistribute risk. This helps people and businesses get more out of their savings.
Banks, for example, can borrow money from their customers and pay it back with interest to them – a way for borrowers to get more out of their savings. In addition, insurers pool their cash to pay out to policy holders in the event of a disaster.
These firms are a crucial part of any economy, and their growth is a sign of how well the economy is doing. Without them, savers would have a harder time finding people to borrow from and borrowers would find it harder to pay their debts.
The finance industry is a diverse one, and there are many different types of career options within it. For some roles, you may need a degree, but for many others, a combination of hard and soft skills is required to succeed.
Regulatory agencies are important to this industry, as they are responsible for ensuring that companies operate correctly and treat their clients fairly. They also play a role in integrating the market, making sure consumers have access to a wide range of financial products.
Despite the challenges of the 2008 recession, the financial services sector has managed to navigate unprecedented levels of uncertainty and continues to thrive. The industry remains an important contributor to NYC, the nation, and the world.