Financial services are the products and services that allow people to manage, invest, redistribute and safeguard money. They include everything from banks to credit unions, mortgage lenders, credit card companies and stockbrokers. They are vital to the economy because they provide individuals with ways to save and invest their money, and they also help businesses obtain the funds they need to grow.
When thinking about a career in the financial services industry, it’s important to consider the type of role that would best fit your skills and goals. While it’s true that many jobs in this field can lead to a successful career, not all of them pave the way to a leadership position or a lucrative salary.
A large part of the financial services sector is made up of banks, which act as middlemen between savers and borrowers. They collect funds from depositors and lend them to borrowers, earning revenue through fees, commissions and other methods like the spread on interest rates between loans and deposits.
Other services provided by the financial services sector include investment services, which give individuals and businesses access to a variety of investment options like stocks, bonds and mutual funds. These services also include insurance offerings, which protect against unforeseen events like death, property damage or liability.
Another important aspect of financial services is payment services, which facilitate the transfer of money between parties. This includes things like electronic fund transfers, payment systems and debt resolution services, which help individuals who are in over their heads with debt get back on track with their payments.