Financial services are the broad category of business activities that relate to money, including credit and finance. These business activities include advancing loans to firms and individuals, granting mortgages, offering investment products, providing insurance coverage against loss, and operating critical financial utilities like stock and commodity exchanges and payment systems.
A healthy financial sector is a key driver of economic growth. The sector advances capital to businesses so they can expand, helps homeowners purchase a home, invests in education and savings for retirement, and provides insurance against loss. The financial sector thrives in an environment where interest rates rise moderately rather than rapidly, and when there is a balanced mix of regulation that ensures consumers’ money and rights are protected, while not restricting innovation that could benefit the industry in the long run.
As the financial services sector has evolved, so have the job opportunities within it. Many people think of bankers and hedge fund managers when they hear the term “financial services,” but there are actually a lot of different jobs in this field that can help you build a career that is both fulfilling and profitable.
These include payment services providers, such as PayPal, which allows companies to accept credit cards and debit card payments in exchange for a percent of each transaction. Debt resolution services are also part of this category, helping borrowers negotiate with creditors to pay off debts they can’t afford to pay as scheduled. Financial market utilities are another type of service in this category, including stock and commodity exchanges, clearing houses, and debt and equity derivative markets.