Financial services are the activities, businesses and operations related to the flow of money. These include everything from insurance to money management, from investment banking to mortgages and more. The finance industry is a massive one that affects everyone on some level, whether they realize it or not. The financial sector also impacts the economy as a whole and can lead to recessions when it fails, so it’s important that it works well.
Financial service providers are the companies that offer the products and services that manage money, such as banking, credit unions, and investment funds. They offer deposit-taking, lending of all types, financial leasing, payment and money transmission services, brokerage and securities trading, custodial and depository services for cash and other assets, asset management, and intermediation.
While the financial services industry is extremely large, it’s broken down into subsectors that each focus on different aspects of managing money. This allows for more specific and specialized roles that can suit people with varying backgrounds and skills sets. For instance, investment banks are a part of the financial services industry but focus on helping businesses raise capital through mergers and acquisitions, while a bank is a broader category that can offer a range of financial services like checking accounts and debit cards.
There are many career paths within the financial services industry, and it’s important to know which ones will help you achieve your goals. Ryan Duitch, President of Arro, points out that there are “thousands of jobs in financial services,” but not all of them pave the way to a high-level role. For example, working as a teller at your local bank may not help you climb the ladder to become an investment banker.
Another thing to keep in mind when considering a career in financial services is that it’s a highly regulated industry. This can make it difficult for people to enter and exit the field. It’s also not uncommon for people in this sector to work long hours, making it challenging to maintain a work-life balance. This can lead to burnout, which is why it’s important for individuals in this field to be passionate about their job.
Those who want to work in the financial services industry should understand that they’re entering an area with high demand and low supply. This makes it a competitive industry, but it also means that there are opportunities for those with the right skill set. With the right mix of hard and soft skills, it’s possible to find success in this expansive and exciting sector.