Financial services is the industry that encompasses activities like lending, saving, investing and trading in money. It includes everything from banks to credit unions, credit-card companies and mortgage lenders. It also involves insurance firms, securities traders, investment advisors and Wall Street. The industry serves individuals, small businesses, large corporations and even governments.
When people think of the financial services industry, they often picture banks, brokers and mortgage lenders. But they are only three segments of the industry. Other parts include credit unions, asset management and life insurance. The financial services industry is very important because it helps individuals manage their finances and it enables businesses to grow by financing investments.
Banks earn revenue by charging interest on loans and paying interest on deposits. They also provide other services like deposit-taking, bill payment and wire transfer. Other types of financial services companies include investment banking, which provides advice on mergers and acquisitions. They also underwrite debt and equity for public and private companies. Financial services companies that specialize in hedge funds or other types of private investments offer advisory and wealth management services.
Most jobs in the financial services industry are well-paying, and many are highly rewarding. The work can be stressful, and people often work long hours. However, companies in the industry are often heavily invested in their employees and offer extensive training and mentoring programs. Plus, new tools are being introduced to the field all the time, so you’ll always be learning and growing your skillset.