Financial services are a vital sector of the economy that includes banks, investment houses, lenders, finance companies, insurance firms, and real estate brokers. The industry facilitates capital flow and liquidity, manages risk, and drives economic growth. When this sector is strong, consumer confidence and purchasing power rise. However, if it fails, it can cause a recession.
Financial activities are the initiatives and transactions that individuals, businesses, or governments undertake to further their economic goals. Examples include buying and selling products, making debt repayments, levying taxes, and taking out loans. When this sector is healthy, it promotes investment and savings and encourages a dynamic economy.
This industry also enables consumers to purchase goods and services through hire purchase, leasing, and housing finance companies. This in turn encourages production, investment, and saving. Moreover, this industry helps people to invest in long-term assets by providing them with retirement accounts and investment options. It is also able to help reduce financial risks by allowing individuals to insure themselves against death and disability, as well as property loss or damage.
The career potential for professionals in the financial services industry is vast and varied. This is because many financial firms are known to invest in their employees by offering continuing education opportunities and providing on the job training. This, in addition to the fact that a large number of positions in this industry are salary + commission, means that workers can see their incomes climb over time.