Financial services are broadly defined as any service or product related to money management, investments, debt and equity. The industry includes banks, credit unions, insurance companies, mutual fund firms and securities brokers, among others. As the economy has improved, more people are working in this field than ever before. As such, it is important to understand the different types of financial services available so you can make informed decisions about your personal finances.
Financial institutions act as intermediaries between savers and borrowers. They accept deposits from individuals and businesses in the form of checking and savings accounts and then use those funds to lend to borrowers, who may be looking to purchase cars, homes or other large purchases. In the process, financial institutions collect interest on these loans, known as finance charges.
Another part of the financial services industry is insurance, which provides protection against unforeseen losses or expenses. This can include health, life, home and car insurance. As technology has evolved, many people are turning to online providers for their insurance needs, but some prefer the security of an in-person meeting with a representative.
Other financial services include asset management, which helps people manage their investment portfolios. This can include advising on what types of investments to make and how to diversify their portfolios. It can also include setting up and managing trusts, pensions and other assets for a family or business.
In addition to providing these management and investment services, financial services include companies that provide payment processing and settlement services. They can offer services such as clearinghouses, securities and derivative exchanges and credit-card networks. These companies can also offer services such as debt resolution, which is used by individuals who have too much credit-card or loan debt and want to work with creditors to negotiate a repayment plan that is more manageable for them.
Careers in financial services are highly lucrative. This is especially true for those who have the right combination of experience and skills. As a result, these positions often attract the highest talent in the industry. In addition, these jobs often require a lot of networking and socialising, which can be great for someone who enjoys a high-profile lifestyle.
With the wide range of opportunities in this field, it’s no surprise that more and more people are considering a job in financial services. However, it is important to consider what role you’re interested in and how it will fit with your overall career goals. Phyton Talent Advisors works with professionals in the financial services industry every day and can help you find a position that will set you up for success. Contact us today to get started!