A healthy financial services industry is vital to the economy, enabling individuals and businesses to purchase products that they otherwise wouldn’t be able to afford by borrowing money and also protecting their assets through insurance. It also provides millions of jobs. To succeed in the field, you need a great deal of knowledge and skills. It’s also important to know the ins and outs of the many different types of financial services.
Financial services are a broad industry that includes depository institutions, investment firms, insurance companies, credit-card companies and other consumer finance firms, as well as providers of critical financial utilities. These include stock exchanges, clearing houses, commodity and derivatives markets and payment systems such as real-time gross settlement systems and interbank networks.
Banks offer depository services, such as checking accounts, savings accounts and other deposit products, to hold and secure customers’ funds. They then lend those funds to borrowers for various purposes, including mortgages and business loans. In addition, they provide investment services by offering access to stocks and bonds as well as providing advisory services for making those investments.
Other financial services include consumer credit and debt resolution. Debt resolution is a service that helps people who are having trouble paying their bills to avoid bankruptcy. It works by negotiating with creditors on their behalf to reduce or eliminate the debt. Credit card companies, such as American Express, are another popular form of consumer credit and provide consumers with a variety of credit cards that come with rewards programs.
Insurance is another essential part of the industry and protects against loss or damage to property or life, including life insurance, health insurance, automobile insurance and property or liability insurance. The sector is highly regulated to ensure that those who receive coverage are treated fairly.
The financial services industry is in a state of flux as the result of recent market turmoil and enhanced regulation. As the industry reorganizes, consolidation is occurring and it’s becoming more difficult for small players to compete against larger financial services organizations. But the industry also offers great opportunities for those who are willing to put in the work, especially if they have the right mix of skills and personality.
To be successful in this industry, you must be a quick-thinking and collaborative team player. You will also need to be a good listener as you work with clients to understand their needs and develop solutions. It’s also important to have a strong grasp of the technical aspects of your job, and be prepared for extensive training and mentoring.
The pay in financial services is not huge, but it is competitive. After a few years in the field, you can earn up to PS45,000 and be promoted based on your merits. It’s a great choice for those who are interested in working with their peers and want to learn more about how the entire finance world operates.