A healthy financial services sector advances loans for businesses to grow, grants mortgages to homeowners, safeguards people and property through insurance, and employs millions. It’s important to have a strong financial services industry because it is the lifeblood of our economy. When the financial industry begins to falter, it can lead to a recession and even depression.
As a result, it’s vital to have a strong financial services industry that is well-regulated and highly profitable. Fortunately, there are plenty of opportunities to succeed in the financial services industry as technology has transformed the way we manage our money. As an industry that is primarily comprised of for-profit ventures, the financial services sector is heavily regulated to protect consumers. Independent agencies are designated to oversee different financial institutions’ operations and uphold transparency in the industry.
Financial services include credit card companies, global payment networks (like Visa and Mastercard), debt resolution services, and asset management firms. Additionally, it includes insurance brokers, investment bankers, and stock exchanges that facilitate the buying and selling of securities.
In addition to offering many career paths, working in the finance sector provides employees with high levels of job satisfaction. According to research from the World Financial Review, employees who work in finance report an average work satisfaction score of 9.6 out of 10. In addition, jobs in financial services tend to pay more than other industries, making it a great option for those looking for a lucrative and rewarding career.
For those seeking a lucrative career in the financial services industry, the best route to take is to start off in an entry-level position with a firm. This will allow you to receive training and hands-on experience, while also allowing you to network within the field. Having connections that can vouch for your character and skill set can also make it easier to get an interview in the industry.
Those interested in becoming financial service professionals should be aware that many jobs in the industry are incredibly competitive. Those that excel early on in their careers are often offered more responsibilities and higher salaries. They may also be able to move between industries more easily, depending on their desired career path.
One of the biggest challenges facing the financial services industry is the emergence of digital technology that can disrupt its core offerings. New tech companies like Apple and Amazon are stepping into the market, bringing new ways for customers to spend and save their money. They’re lowering interchange fees for merchants and are cutting into a $90 billion annual source of revenue for card issuers and networks.
Another challenge faced by the financial services industry is that many of its services are still seen as being insecure and unsafe. This is especially true for consumer credit cards, which are a common target for fraud. In response, financial services companies are deploying a range of technologies to mitigate the risks and improve security. They’re using machine learning to identify fraudulent transactions and improving authentication protocols.