Financial services is the sector that helps individuals and businesses put their money to work. It supports economic development by encouraging investment and saving, promoting a healthy flow of funds, and facilitating risk-sharing in national economies. The financial services industry includes banks, credit unions, credit-card companies, insurance firms and asset management companies. It also includes a host of critical financial utilities like stock exchanges, clearing houses and payment systems.
For people who want to make a career in the field, the options are nearly endless. Some positions may seem obvious (investment banker, loan officer, real estate agent) but many other roles are part of the financial services industry as well. For instance, Duitch notes that PayPal is a financial service because it moves money from account to account, so anyone who works in customer relations or dispute resolution for the company would be considered to work within the industry.
A key historical event in the financial services industry was the Gramm-Leach-Bliley Act of the late 1990s, which repealed Glass-Steagall and allowed a single business to offer many different types of financial products and services. This led to the formation of multi-service financial conglomerates that offered everything from investment banking to life insurance.
In addition to offering a variety of jobs, the financial services industry is known for its high-profile culture and networking opportunities. Because of this, it’s often more important to have strong interpersonal skills than a specific degree when applying for these positions. For this reason, if you’re planning on a career in this industry, it’s a good idea to spend ample time preparing for interviews.