Financial services are a vital part of our economy. They provide the means for individuals to borrow money to purchase homes, cars, education, and other necessities; save for retirement or other goals through investments in bank accounts or mutual funds; and secure their assets (like a mortgage) and income through insurance policies. Financial services also provide millions of jobs, allowing workers to support their families and contribute to the economic stability of their communities.
As an industry, it is a global leader in business value creation and has a direct impact on the economic development of every country. A healthy financial services sector allows individuals to get the money they need in loans for home and car purchases, and it helps businesses grow by providing them with capital through investment and credit facilities. The sector is a powerful economic driver and influences the standards, practices, and operations of nearly every other business.
If you are considering a career in the industry, there are many paths to success. While a degree is typically required for most roles, it is not always the case, especially when entering the field at entry-level. A strong network is also helpful. Many of the top financial services companies work with recruiters and headhunters to fill their positions, so if you have connections who can vouch for you and your character, it is likely to make all the difference.
Aside from the obvious benefits of a solid network and a job in a respected and lucrative sector, working in financial services can be incredibly fulfilling. It is a demanding and fast-paced industry, and you will be expected to put in long hours at times. However, if you can find the right fit for you and are able to manage your time effectively, it is an excellent career choice.
There are many different areas of the industry that you can go into, and each offers its own unique challenges and opportunities. Some of the main areas include:
Banking – This is a broad area that includes traditional banks as well as non-bank financial institutions. Banks offer deposit products, lending services and payment systems, while non-banks offer other products like investment and insurance.
Investment Services – This includes advisory and wealth management services, as well as trading activities in securities and commodities. It also covers hedge funds and private equity.
Insurance – This is both a financial good and service. A financial good because it protects against the risk of loss, and a service because it facilitates the transfer of money from investors to insurers.
The financial services industry is undergoing significant change as technology transforms consumer expectations, the emergence of new competitors and changes in regulation. Those looking to succeed in the industry should be prepared for constant change and stay informed of trends and developments. They should be able to adapt quickly to the ever-changing environment in order to survive and thrive. The best way to do this is to focus on the skills and personality that will set them apart from the competition.