Financial services include everything that’s related to how people and organizations manage their money. This sector encompasses depository institutions, providers of investment products, insurance companies, credit and lending organizations, and global payment systems like Visa and MasterCard. It also includes debt resolution services, as well as critical financial market utilities such as stock exchanges, clearing houses, and derivative and commodity exchanges.
Financial institutions provide depository services by handing deposits into checking and savings accounts, and by lending money to individuals and businesses for purposes such as buying a car or building a home. They also help customers plan their investments by providing advice and facilitating transactions. They pool funds from many savers to reduce their exposure to risk by dividing it among lots of borrowers, so that one default by a single borrower won’t cripple them.
As people become more comfortable with talking about money, the need for financial services continues to grow. As a result, there are more career opportunities than ever in the industry. However, not all jobs in financial services are created equal. The right role for you depends on your qualifications and what your long-term goals are.
Managing money wisely leads to better health and happiness, especially for families. But too many people don’t have the tools they need to improve their financial wellness. The good news is that financial services can break the taboo around talking about money and give everyone the control they need to make their finances work for them.