Financial services are the activities of businesses, governments, and individuals that involve the inflow or outflow of money. These include purchasing products or assets, selling them, taking out loans, investing, and levying taxes to further specific monetary goals. Financial institutions are the central hub of this sector, and they provide depository services like checking and savings accounts, as well as lending money to individuals and businesses.
There are many different career paths to take in the field of Financial services. For example, some of the most in-demand roles are in the credit departments of banks. This is because these teams analyze the creditworthiness of consumers to determine whether or not they should be granted a loan. These professionals also oversee the collection of debt and equity, as well as the distribution of investment products. In addition, these professionals may work to help facilitate mergers or acquisitions between companies and other entities.
Other career opportunities in this industry are in the insurance business, where employees assist people with buying and selling policies to protect themselves against financial loss. This includes life, general, and health insurance, as well as property and liability coverage. Another career path is to become a broker or investment adviser, where professionals are tasked with managing investment funds or private clients. This is a highly demanding role that requires extensive research, analysis, and portfolio management skills.
Finally, there are also roles that are dedicated to risk management. These include actuaries, who are responsible for the calculation of risks associated with particular investments, as well as risk managers, who are tasked with assessing and mitigating the impact of potential risks. Lastly, there are also risk analysts who monitor markets and economic data to identify potential risks and recommend solutions to their companies.
The lines that used to separate the different sectors of financial services are blurring rapidly. For instance, before the 1970s, banks were mostly limited to offering checking and savings accounts. But as consumer demand increased, they began to offer other products like mortgages and auto loans. Similarly, brokerage firms started to offer more comprehensive financial products and even merge with mutual fund companies to expand their range of offerings.
This is why many people choose to explore careers in this industry, because it offers a variety of opportunities for growth and advancement. The best way to prepare for a role in financial services is to complete an internship or receive on-the-job training. This will give you a taste of what the role involves and allow you to learn from experienced professionals.
In addition, many employers in this industry offer a wide range of benefits to their employees, including healthcare and retirement plans. Many also invest in their employees, providing training and tools that will allow them to succeed in their positions. This is especially true of smaller financial services firms, which tend to be more invested in their team members than larger corporations. This makes for a more collaborative environment and a less competitive atmosphere than some other industries.