The financial services industry encompasses all the roles that handle money management and exchange. It includes banking, investing, insurance, and the redistribution of risk. The banking sector is most concerned with direct saving and lending, while the rest of the industry deals in investment opportunities, risk transfer, and redistributing of funds between savers and spenders.
The industry has been transformed in recent years by the coronavirus pandemic, a rapidly changing consumer base, and new digital service platforms. As a result, there are many more options for careers in the financial services field. In addition, the pay in this industry is typically higher than other sectors.
While there are many entry-level jobs available for those interested in entering the financial services sector, it’s important to have connections in this field that can vouch for your skills and character. With a good resume and references, you’re likely to get an interview for a position in this field. Getting a job in financial services early on is one of the best ways to build your career, since it gives you the opportunity to work your way up through the ranks and gain experience.
Financial services are a diverse set of industries that cover everything from mortgage loans to credit card networks and global payment systems. These businesses offer a wide range of products and services, and are vital to the economy. These companies are often regulated by the government to ensure the safety of the money they handle.
Some of the most prominent financial services firms include banks, credit unions, investment brokers, and credit-card issuers. However, there are many smaller organizations that provide essential support services for the larger financial services industry. For example, debt resolution firms help individuals manage their finances and eliminate or reduce their outstanding debt. Other companies provide critical market utilities, such as stock and commodity exchanges, clearing houses, and real-time gross settlement systems and networks.
While financial services aren’t as specialized as they once were, the large global conglomerates that own many of these institutions often offer multiple products and services. For instance, a bank that once only offered checking and savings accounts now offers home loans and credit cards. Moreover, large tech companies like Apple and Amazon are vying to take share from traditional banks in some of the financial services sector by offering their own versions of these products. In other words, they are reshaping the landscape of financial services by becoming competitors in some markets and partners in others. This type of strategy is referred to as horizontal integration. A different approach, called vertical integration, is when a financial firm acquires an insurance company or brokerage but keeps them as distinct brands in the acquired organization. This is a common practice in the United States.