Financial services is an industry that encompasses a wide range of companies and jobs. The field includes everything from debt resolution to investment banking. The main task of financial services is to channel savings into investments that provide people with a steady stream of income. It’s also vital to the health of a country’s economy. A weak financial sector can lead to a recession and even depression.
Banks are the heart of the financial services industry. They collect deposits from savers and then lend money to individuals and businesses, acting as intermediaries between depositors and borrowers. They evaluate the creditworthiness of borrowers, pool together funds for lending, and offer services like checking and savings accounts, mortgages and loans, credit cards, and investment portfolios.
Other services within this category include debt resolution, which helps those in over their heads with high-interest debt, and payment recovery, which helps people who have been paid by mistake or are owed money by a business to get it back. Financial markets utilities are another part of this category, and they include stock exchanges, clearing houses, commodity and derivative exchanges, and payment systems such as real-time gross settlement systems and interbank networks.
One of the most important things to keep in mind when working in financial services is that it’s highly competitive and specialized. That means that you’re not likely to become a CEO at a prominent investment firm by year three, and it’s important to be patient when entering this career. Start small, work hard, and be open to other opportunities. Networking is key, and finding a mentor who can help you navigate the field is a good idea.