Financial services are the industry that supports a country’s economic activities by facilitating savings, investment, borrowing and lending. It’s a diverse field that encompasses everything from bank branches to mortgage lenders to credit card companies and more. The financial services industry is highly competitive and offers many opportunities to grow professionally. This sector is known for promoting from within and favors aptitude over tenure, which can be attractive to young professionals looking for rapid career advancement.
Regulatory agencies are also part of the financial services sector. These independent bodies are charged with overseeing different financial institutions and upholding transparency. They often work closely with other sectors to ensure that they’re adhering to the same standards and practices.
Insurance is a huge part of the financial services sector. From auto, home and life insurance to pensions and health care coverage, most people have some form of protection in place to help mitigate the risks of unexpected events. In addition to providing direct services to consumers, insurance companies may also sell reinsurance to other insurers, which helps them manage risk.
The other major category of financial services is brokerage and investment firms, which buy and sell securities on behalf of their clients. They can also offer a variety of other services, including research and portfolio management. Private banking is a subset of this category, which provides high-net worth individuals with investment and wealth management solutions. Other parts of this category include currency exchange and wire transfer services, as well as global payment providers like Visa and Mastercard.