Financial services provide a crucial function: intermediating the flow of cash between savers and borrowers. They allow individuals with money to invest it, and they help people manage risks and uncertainty (such as the possibility of losing their job or a natural disaster). Without them, the world would be a much more fraught place.
The industry encompasses many different types of institutions and services, from depository organizations like banks, building societies and mortgage companies to credit unions; insurance providers like life, health, property and auto insurers; brokers and agents who shop for and sell coverage; and a variety of other related activities like debt collection, escrow, and credit card processing. It also includes global payment systems, such as Visa and Mastercard, and exchanges that facilitate stock and derivative trades.
One of the biggest draws of working in financial services is that it offers a wide range of career options. In addition to jobs at banks, credit-card companies and insurance agencies, there are opportunities in securities research and analysis, investment management, private banking, brokering, prime brokerage, asset management, wealth management, and so on.
Another advantage of a career in financial services is that it can be highly lucrative. But the sector can be stressful, and it’s not uncommon for employees to work 16- to 20-hour days. Also, new technologies are introduced constantly in the industry, so you’ll need to keep up with your skills or risk falling behind. And, because the financial services industry is regulated so heavily, the ability to advance can be hindered by red tape.