Having a career in the financial services sector is a great way to help make people’s lives better. This industry impacts everyone in some way or another and provides a multitude of job options for anyone interested.
The financial services sector is a broad one and includes everything from banks to hedge funds to Wall Street. It impacts individuals in their everyday life and large businesses, nonprofits, and even the government.
Banking and investments
Banks are one of the most important sectors in the financial services industry. They offer checking and savings accounts, credit cards, mortgages, auto loans, and other banking services to their customers. These financial institutions earn their revenue by charging customers interest on their deposits and by earning a commission for lending money.
Insurance is also an important financial services sector. They offer insurance policies to protect you against death, property loss and liability. This helps you get the coverage you need when things go wrong and to ensure your loved ones are taken care of in case something happens to you.
Asset management
The next main financial services sector is asset management. These firms handle pensions, investment assets like hedge funds and mutual funds, and insurance assets. These companies also manage their clients’ portfolios and make sure the assets are performing well.
Accountants
Accounting is another key financial services sector and involves maintaining proper accounting records for businesses and individuals. This service is especially important to small businesses as it keeps them on top of their finances and complies with IRS tax laws.
Regulatory bodies
Independent regulatory agencies oversee the activities of financial institutions to ensure they’re meeting their duties and upholding consumer rights. These organizations include the Financial Industry Regulatory Authority (FINRA) and the Office of the Comptroller of the Currency.
Computers and information technology
The financial services industry relies heavily on computers and information technology, which is why it’s so important to keep yours updated and running smoothly. This helps you do your job more efficiently and accurately.
Conglomerates
A conglomerate is a type of financial services company that has multiple branches, divisions or departments within it. These entities may combine the resources of different sectors to offer a wider range of financial products and services for their customers.
They usually have a more powerful marketing team than individual entities and are able to gain greater market share through their combined strength.
Many financial services companies are highly invested in their employees and encourage them to pursue additional education as part of their on-the-job training. This allows them to stay up-to-date on the latest technologies and tools in the field so they can provide the best services possible.
While working in the financial services industry, it’s common for your role to require a lot of long hours and intense focus. This can affect your work-life balance and cause burnout if you don’t take care of yourself properly.
The most popular areas of the financial services sector are banking, investing and insurance. These industries are responsible for a significant portion of the country’s economy and play a big role in driving a nation’s economic growth.