Financial services are the economic activities that provide a means for individuals and businesses to exchange money. This includes deposit-taking, loan services, investment management, insurance and debt resolution.
The sector encompasses many different types of businesses and professionals. Banks, for instance, offer a number of financial services from checking accounts to cashing checks and issuing credit cards. They also provide wealth management and investment banking services. Other members of the financial services industry include insurance companies (such as life, property and health insurers) and brokerage firms. These firms act as middlemen between investors and consumers by offering investment products such as stocks, bonds and mutual funds. They may also offer advisory services to clients.
Another type of financial service is reinsurance, which is sold to insurers in order to protect them from catastrophic losses. Other types of financial services include credit card processing and payment networks, notary services, debt resolution companies and global market utilities such as stock, derivative and commodity exchanges and settlement systems.
If you’re considering a career in the financial services industry, be sure to research the different types of companies and roles. While the industry offers plenty of career opportunities, not all will pave the way to your ultimate goals. For example, if you want to be an investment banker, working as a teller at your local community bank won’t get you very far. In general, a career in the financial services industry will give you good experience that will help you advance in your career, but it’s important to weigh all of the pros and cons before making a commitment.