Financial services are a vast industry that encompasses everything from credit cards to mortgage loans. They are the backbone of any economy, allowing people to borrow, spend, save and invest their money securely. They also allow businesses to grow and expand into new markets. However, the industry has high competition and thin margins, is prone to fraud, and is constantly changing due to technology. It is important for individuals to understand the key components of the sector so they can make informed decisions about their financial future.
According to Ryan Duitch, President and CEO of Arro, “Financial services include all products and services that touch or are related to money, including bankers, hedge fund managers, brokerage firms, asset management companies, investment banks and even nonprofits that provide counseling services.” He adds that there are thousands of job titles within the industry, but not every position is created equal. In fact, some positions do not pave the way for a career in the field.
For example, a family office handles the investments and wealth management of a wealthy family or small group of individuals. Similarly, advisory services offer personalized financial plans for clients. Other subsectors of the industry include debt resolution – helping consumers negotiate settlements with creditors, payment recovery – aiding businesses in recovering funds that were accidentally paid to vendors and financial market utilities – organizations that help to lubricate the financial system by providing clearing houses, stock exchanges and derivative and commodity exchanges.