Financial services are a broad category of businesses that help people and companies manage their finances. Providing products and services related to money, banking, investments, insurance, and more, financial services are essential for a strong economy and help to facilitate the flow of capital across the globe.
The Financial Services Sector
In recent years, the financial services industry has been under increasing scrutiny as the economy struggles to recover from the recession of 2008. However, it remains vital for many countries’ economies and helps to support jobs and business.
A wide range of careers are available in this industry, ranging from accounting professionals to insurance specialists and even investment bankers. While some jobs in the finance industry require a degree, many others don’t need one.
Careers in the financial services sector are great for those who love numbers and have a methodical nature. The sector is also a good choice for those looking to work in a fast-paced environment with a high level of responsibility.
The sector is a large one, so there are plenty of opportunities for you to explore. But before you jump in headfirst, it’s important to consider what type of career you’re seeking and whether or not a bachelor’s degree is necessary for your goals.
What Are the Different Types of Financial Services?
The financial services sector includes a variety of industries that provide a range of services to both consumers and companies. This includes banks, credit card issuers and processors, brokerage firms, investment funds, insurance companies, technology providers and more.
Banks – These institutions offer services that include cashing checks, issuing and redeeming credit cards, electronic transfer of money, and notary services. They are the main players in the financial services sector and are subject to government regulation.
Brokerage companies – These businesses are the middlemen between buyers and sellers of securities. They purchase and sell stocks, bonds, mutual funds and other securities on behalf of their clients. They receive a commission from both parties involved in the transaction.
Advisory services – These businesses offer financial advice to their clients on a range of topics, including retirement planning, estate planning, asset management and more. They may also be involved in insurance underwriting for individual lines of coverage, and reinsurance.
Private banking – These institutions offer a variety of financial services, primarily to high net worth individuals. These firms often require a certain minimum amount of wealth to qualify for their services.
Currency exchange – This is a service offered by some financial services companies to their international customers who want to transfer money abroad. They can buy and sell foreign currency banknotes and wire transfer funds to other financial institutions overseas.
Insurance – This is an important part of the financial services industry because it can protect your assets from damage or death. It is a system that you pay into on a monthly or annual basis and it acts as a safety net for unexpected costs.