Financial services allow consumers to invest and spend money securely, and businesses to expand into new markets. They are one of the most important sectors of the economy and drive equity market capitalisation and earnings. They also help individuals and companies manage risks by promoting savings, investment, borrowing, and insurance.
Without a healthy finance sector, the world would struggle to function properly. Individuals without money to spare wouldn’t be able to find those who need to lend it to them, and businesses that want to grow couldn’t access the capital they need. But even relatively simple financial services rely on a huge amount of trust: purchasers of life insurance expect to receive the payout they’re promised when they die, and investors count on their advisers to provide them with sound advice.
The scope of the financial services industry varies by country, but it generally includes central banks, depository institutions, credit unions, credit-card companies, and firms that intermediate or manage assets (like investment funds). It also encompasses payment systems that allow sellers to accept credit or debit card payments in exchange for a percentage of the transaction value.
Many jobs in this field are lucrative, but it’s vital to understand the industry’s different components before making a career move. According to Duitch, the best way to break into financial services is to start at a company that’s interested in investing in you and offering opportunities to learn and grow quickly.