When you think of the financial services industry, you may think of banks, stock brokers and mortgage lenders. But the industry is actually much more encompassing than that. It includes insurance companies, investment firms, Wall Street and more. This sector plays a vital role in the economy by providing individuals, small businesses, large corporations and even the government with the funds they need to thrive.
This sector provides deposit-taking; lending of all types; money market and mutual fund management; securities trading; asset management, including pension fund management; custodial, depository and settlement services; investment advisory and consultancy services; credit reference and research services; actuarial services; and other auxiliary financial intermediation services. Recently, technology has drastically impacted the way companies operate in this space. For example, with the rise of mobile banking, clients can now check their accounts anytime and anywhere. In addition, investments like mutual funds and stocks can now be purchased via online platforms.
Another area that this sector focuses on is risk assessment and management. This includes providing advice on various kinds of insurance to cover people against death, injury or loss of property (e.g. life, health and auto insurance). It also covers other forms of insurance such as credit protection or indemnity against lawsuits.
This industry also focuses on underwriting debt and equity for private and public entities seeking to raise capital. Additionally, structured finance involves creating intricate financial products to meet the unique needs of high-net-worth individuals and institutions.