Financial services are economic services provided by the finance industry, which encompasses a broad range of service sector firms that manage money, including credit unions, banks, credit-card companies, investment funds, consumer-finance companies, insurance firms, stock brokerages and asset management companies. They help individuals, small businesses, large corporations and governments with their monetary needs.
The financial services sector is an important part of a country’s economy, as it provides the capital that businesses need to invest in themselves, which leads to economic growth. However, when this sector fails it can drag down the entire economy, causing a recession.
One of the biggest names in the financial services industry is Warren Buffett’s Berkshire Hathaway, a conglomerate that owns insurance companies like GEICO and National Indemnity. Its stock is currently one of the world’s most expensive, and it ranks among the top 100 public companies by market capitalization.
Some other big names in the industry include JP Morgan Chase, Wells Fargo and American Express. Many people use bank services to hold their money or receive payments from their employers and to pay for things like electricity bills or paying back a friend for lunch.
There are also a number of independent regulatory agencies that oversee different financial institutions and ensure they are operating fairly. These agencies include the Financial Industry Regulatory Authority and the Office of the Comptroller of the Currency. While working in the financial services industry, you can expect to be well paid, although it may not be as lucrative as some other fields. In addition, it is easier to move between jobs in this field than in some other industries, which makes it a good choice for people who like to have a bit of variety in their careers.