Financial services are a sector of the economy that includes all of the different companies involved in providing banking, investment and insurance related products. The industry also encompasses a wide range of intermediary and supporting service providers like accountants, credit bureaus and even global payment companies.
The most common services that financial services provide are deposit taking, lending of all types, investment management and advisory services. Other important services include reinsurance (selling insurance to the insurers themselves) and securities trading, brokerage and clearing.
Technology has changed the way that many of these firms operate. Clients can now check their bank accounts online at any time, companies pay employees through direct deposit and operations in the securities industry are more automated than ever. The industry is also regulated by independent agencies that oversee different firms and make sure they are operating ethically, responsibly and fairly.
Many people choose to work in financial services because they are interested in a high-powered career that provides great rewards and benefits. It is not uncommon for workers in this field to work long hours, sometimes 16 to 20 hours per day. The stress of the job can lead to burnout for some, so it is important to have a good support system in place and make time for family and friends.
Many large financial services companies are consolidating and buying out smaller companies in order to be more profitable. They are also facing increased regulatory pressures that can have a negative impact on their businesses.