Financial services are the businesses that provide consumers with investment, lending, insurance and payment products. These companies serve as intermediaries to channel money from savers to borrowers, and redistribute risk. These services are vital to the economy and society, but they must be regulated to ensure that they do not pose too much risk to investors or create bubbles in the prices of goods or property that lead to excessive borrowing.
The field of financial services is broad and includes such institutions as commercial banks, credit unions, insurance companies, credit-card firms, investment management firms, private equity funds, hedge funds, and capital markets. Many financial service companies are for-profit ventures, but there are also nonprofits that provide services to individuals, such as counseling on debt or money management.
A career in financial services can be rewarding, as it often offers high pay and a good work/life balance. However, it is important to understand the industry’s scope and what it entails before choosing a job in this sector. A financial services career can offer the opportunity to work with a wide variety of people, including high-profile individuals and businesses.
Many of the largest jobs in the industry are in banking, but there are also opportunities in credit-card companies and investment management firms. As the global economy becomes increasingly interconnected, it is important to keep abreast of changes in this industry so that you can take advantage of new opportunities. These changes may involve new products or the formation of large financial conglomerates.