Financial services encompass a variety of industry sectors that help people and businesses with their money. It includes everything from the institutions that provide credit, investment and insurance products to those who offer critical financial utilities like clearing houses and exchanges.
While it might seem as if the financial services industry is all-encompassing, it wasn’t always this way. Historically, each sector of the financial services industry stuck to its own niche. Banks handled checking and savings accounts, mortgage associations provided home loans and loan companies provided credit card services.
Today, however, many of these organizations work together to meet the needs of individuals and businesses. For example, banks and credit unions work with brokers to offer investing opportunities. In addition, large companies and small businesses often seek out the expertise of financial advisors for a wide range of purposes.
A healthy and robust financial services sector helps families purchase homes, cars, education, furniture, etc. They also help with debt repayment, investment opportunities and even protects individuals against the loss of a job through insurance policies.
While a career in financial services can be very rewarding, it’s important to consider the pros and cons before diving headfirst into this industry. For starters, this industry is extremely competitive and requires an in-depth understanding of the complex nature of financial products and markets. Additionally, it’s crucial to have a solid network in place prior to seeking out employment with a financial service provider.