Financial services encompasses the industry that deals with money, including everything from banking to investment firms. This broad sector touches nearly every aspect of our lives and is made up of thousands of depository institutions, credit companies, insurers, and others.
A career in financial services can be very rewarding, and it’s also fairly secure. This is due to the importance of these services in our daily lives and because positions are in high demand. However, it can be difficult to break into the industry. The most common way to get a job in financial services is through networking and finding someone who can vouch for you. This is especially important if you want to become a financial advisor or work as an investment portfolio manager.
The financial services industry is comprised of several subsectors that deal with specific products. Banks, for example, offer both deposit products like checking and savings accounts as well as lending services such as mortgages and auto loans. Securities firms, on the other hand, offer investment opportunities in the form of equities, bonds, mutual funds and derivatives. Insurance companies, meanwhile, offer protection against the risk of death (life insurance, disability income insurance and health insurance) and property loss or damage (homeowners’ and automobile insurance).
Other financial services providers include private equity funds and venture capital providers who provide investors with ownership stakes or profit participation in privately owned businesses in exchange for their capital. These investments are often used to fund the expansion or acquisition of a business.