The financial services industry is a major source of wealth and employment. It supports the economy by enabling free flow of capital and liquidity in the market, and helps companies manage risk.
The industry encompasses thousands of depository institutions, providers of investment products and insurance companies, and other credit and financing organizations. It also includes the critical financial utilities that support these functions.
There are two main types of financial services – those that involve making or managing money (such as stocks and bonds) and those that involve things like insurance policies, mortgages and credit cards. Banks, for example, offer banking services and mortgage loans; they’re both part of the financial service category.
Investing is the process of buying and selling goods or services in the economy, such as stock markets, loans, real estate, commodities, and insurance policies. This sector is a great place to get paid for your knowledge and skills, but it can also be stressful.
Some of the big names in the financial services industry include Berkshire Hathaway, American Express and Wells Fargo. These firms provide a wide range of financial products and services, including credit card offerings and co-branded travel cards.