The financial services industry is a massive field, and the plethora of jobs within it can be overwhelming when trying to figure out which sector best fits your skills. But if you’re a driven person with excellent interpersonal skills, the possibilities are endless. Here’s what you need to know.
Financial services are economic services provided by the finance industry, which encompasses a broad range of service sector firms that provide financial management, including credit unions, banks, insurance companies, credit-card companies, and investment advisory firms. Financial services are a necessary component of any economy. Without them, individuals with money to save might have trouble finding those who need to borrow and would be unable to buy the goods and services they need. In other words, they help channel cash from those who have it to those who don’t by acting as intermediaries, such as banks.
Banks, for example, take deposits from savers and lend it out to borrowers. They can also serve as reinsurers by pooling the money of many borrowers to cover the risk of one or two defaults. The financial services industry is complex and heavily regulated, but the lines between different sectors are blurring. Banks are now offering products like money market and mutual funds, while stock brokerages have begun to offer mortgages and insurance services.
As such, it’s important to do your research before committing to a career in financial services. It’s not for everyone, and you should be aware of the stresses that come along with it. It’s not uncommon for people in some roles to work 16 to 20 hours a day, and burnout is a real possibility.