When we talk about Financial services, we’re talking about a big sector that covers everything from putting your money away for a rainy day, trading shares on the stock market to lending you money to buy a house. It encompasses banks and credit unions, investment firms and insurance companies. It even includes global payment networks like Visa and MasterCard, credit card machine services and exchanges that facilitate stock, commodity and derivatives trades. The industry also has many nonprofit ventures that provide counseling services and money management advice.
It is a broad category that encompasses everything that has to do with money, says Ryan Duitch, president and CEO of Arro. The Financial Services industry covers not only large investment banks and hedge funds, but community banks and credit unions, too. In fact, it’s the world’s largest sector with revenues of more than $341 trillion.
The biggest component of the financial services industry is banking. Banks hold your money, but they don’t let it sit in a vault. They lend it to you so that you can purchase a car or a home, and they make money by charging you interest on the loan.
Other areas of the industry include asset management, capital markets and securities, insurance, trust and agency services, and other forms of financial intermediation. These services are critical for both people and businesses, as they enable economic growth by providing the foundation for saving, investing, lending and transferring money.
For example, an investment firm will help you choose investments, such as stocks and bonds, that can help you build your wealth over time. Insurance firms will protect you against unforeseen events that could cost you your hard-earned savings. And banks will offer you a variety of ways to manage your money, from checking and savings accounts to loans and credit cards.
However, as with any big industry, there are pros and cons. The biggest pro is that if you’re good at what you do in the industry, you can make a lot of money. But the industry can be incredibly competitive and fast-paced, which can be stressful for some people.
Another drawback to working in the financial services industry is that not all jobs pave the way for career advancement. While there are thousands of roles in this field, not all will give you the skills you need to move up the corporate ladder. In addition, the wide array of job options can make it difficult to figure out which role is best suited for you. Here are some tips for choosing the right job in this field.