Financial services are economic services that involve the management of money, including the creation, circulation and exchange of funds. The industry consists of banks, credit unions, credit-card companies, insurers, investment advisors and the securities markets.
Financial companies offer an extensive range of products and services to individuals, small businesses, large corporations, and even the government. They are responsible for a variety of important functions, such as facilitating debt and equity financing, capital raising, advising on mergers and acquisitions, treasury management and providing risk and asset management solutions.
The industry also includes a number of non-banking financial services, such as credit rating agencies and global payment providers like Visa and MasterCard. Financial services are a vital component of the economy, and they contribute significantly to job creation. In fact, the financial services sector employs more than eight million people in the United States, and it contributes over 8 percent of the nation’s GDP.
With the growing demand for financial services, the number of jobs in the industry is expected to grow. There are a number of different career paths in financial services, from entry-level roles to the top of the corporate ladder. The most successful individuals in this field are quick-thinking and collaborative, as well as good team players. Pay in this industry is competitive, and after a few years you can expect to earn in the high five figures.
Banking services provide individuals with the best way to manage their money, and include deposit accounts, loans and other types of credit. These services can help people build their savings, make major purchases like cars and houses, and save for retirement. They can also help people get out of debt and save for emergencies, such as unforeseen medical bills or natural disasters.
The tertiary or service sector in any economy is an indicator of its development. A robust financial service sector is crucial to the growth of this sector. Financial services provide the necessary resources for a country to thrive, as well as allow consumers to save and invest their money in order to improve their lives. This includes services like hire purchase, housing finance and mortgage lending, as well as personal and student loan services.
Regulatory bodies are a part of the financial services industry, and they ensure that all financial institutions operate within the law. These entities are designed to protect consumers and prevent fraudulent activity. They are also tasked with overseeing the different industries and upholding transparency. Some of the most influential governing bodies in this space are the SEC and FINRA, which both work to maintain fair and open markets for investors.
A financially healthy society benefits everyone, from individuals to companies and the economy. People who have control over their money are more resilient during tough times, are able to make better decisions, and can save for the future. If we want to continue to enjoy the fruits of our labour, then it is imperative that we create a system that supports people’s financial wellness.