While you may associate the finance industry with bankers and hedge fund managers, financial services are actually more broad than that. The financial services sector includes everything from credit card companies and banks to payment system providers like PayPal, as well as insurance firms and investment companies. It also covers debt resolution and global payment services, as well as the stock and commodity exchanges that facilitate trades.
Financial services also provide a safety net for people who need it, such as those with mortgages or car loans, as well as those whose businesses may take a hit during economic downturns. These services can be crucial for a country’s economy, and when they are not functioning properly it can cause a ripple effect in the rest of the economy.
In addition to insurance, other types of financial services include credit unions and community banks, venture capital funds, private equity and hedge funds, mortgage loan originators, and the securities market. These institutions and companies play a major role in creating and maintaining the economy’s money supply, providing liquidity and stability. They are responsible for transferring savings from savers to investors and facilitating the sale of securities and commodities.
A career in the financial services industry requires a combination of hard and soft skills, as well as a lot of responsibility. In most cases, a degree is not necessary to get started in the industry. But a bachelor’s or master’s degree can help you advance faster. In the industry, the key is to be smart, quick-thinking, and team-oriented.
The benefits of working in financial services can be substantial, especially if you’re an employee at a large corporation. Many financial services companies offer health, life, and disability insurance to their employees. Additionally, they offer 401(k) plans and other retirement planning options. They also tend to be more flexible with work schedules and remote work opportunities than some other industries, making it easier to have a healthy work-life balance.
As an employee, you’ll likely have a lot of opportunities for training and development, and there is often a focus on hiring diverse individuals. The pay is good, and once you’re established in your role you can expect to earn high 5 figures. The downside is that the job can be stressful, and burnout is a real possibility.
In a competitive landscape, financial services companies are seeking ways to maximize returns and deliver sustainable value for their shareholders. Whether they’re looking to improve their customer engagement and experience or enhance their risk management capabilities, there is an opportunity for every company in the sector.