A healthy financial services sector supports economic growth and prosperity by facilitating investment, production, saving, and the redistribution of risk. It also makes it possible for individuals to borrow money for a down payment or to buy a home, and businesses to raise the funds they need to expand.
A large part of financial services includes banking and credit unions, which accept deposits and make loans to people and businesses. They earn income primarily by the spread between interest rates charged to borrowers and paid to depositors. Credit card companies and brokerage firms are examples of other financial services providers.
Some financial service companies specialize in specific areas, such as debt resolution or global payments. These firms help people who are struggling to pay their bills by negotiating with creditors and reducing the amount they owe. Other financial services firms manage assets, such as real estate or investment portfolios. They charge fees to manage these investments on behalf of their clients.
Many people around the world do not have access to financial services. They may not have checking accounts, credit cards or safe places to store their savings. Without these services, families are often unable to invest in their own businesses or acquire the necessary resources for better living conditions.
The financial services industry is a complex one, with multiple subsectors and players. The most well-known of these include banks, credit unions, and credit-card companies. However, the industry includes other players such as stock exchanges, trading platforms, and commodity and stock markets. In addition to these, there are many accountants and tax filing companies, as well as international money transfer services.
A healthy finance industry is important to both the local and global economy. It provides millions of Americans with the means to purchase homes, cars, and education. It also helps them save for retirement and other goals. It allows people to get money in the form of loans and secures their property and health through insurance.
In the developing world, financial services allow poor families to save and purchase consumer durables and livestock, and expand their businesses. Without these services, they must store their savings in floorboards or under mattresses – insecure, inflexible ways to keep and use their money.
There are many benefits to a career in the financial services industry, from great salaries to exciting work environments. Those who choose this path are often ambitious, driven, and well-educated. As a result, they tend to be in high demand by employers. This industry is not for the faint of heart, but it is an excellent choice for those who want to climb the corporate ladder and advance quickly.