When you think of financial services, you likely think of banks, brokers and mortgage lenders. While those are part of the industry, it goes much deeper than that. The sector includes insurance companies, securities traders and investors, financial advisors and Wall Street, among others. It also provides services to small businesses, large corporations and even nonprofits.
It is a highly competitive field and requires an in-depth understanding of market trends, economics and mathematics. If you want to get into the business, it is important to have connections that can vouch for your character and abilities. It’s also helpful to have an entry-level job that can help you gain skills and learn the business from the ground up. This could be a teller or assistant to an account executive at a brokerage firm, for example.
While a career in financial services is lucrative, it can be difficult to break into. Unlike some industries, where you can start at the bottom and work your way up, getting a job in financial services usually requires previous experience and education. For this reason, many people choose to pursue internships or graduate school before seeking full-time employment. This helps them build a portfolio of credentials and gains them valuable networking opportunities.
With all the volatility in the financial sector, it’s hard to predict what’s ahead. However, it’s safe to say that the sector is experiencing a period of reshaping. There are some big changes coming, including a shift to digital gig work and more transparency requirements for both individuals and companies.
The financial services industry plays a critical role in the economy by providing an environment that encourages investment, production and saving. It provides people with access to consumer goods like credit cards and hire purchase finance, as well as the means to invest their savings in mutual funds and real estate. These services also enable producers to meet the demand for their products by financing them through the new issue market.
As the world grows more interconnected, the lines that separate different sectors of the financial services industry are blurring. For instance, banks now offer services that weren’t traditionally part of their range, such as robo-advisers and money market accounts. They have also begun competing with other industry players such as brokerage firms and mutual fund companies. This competition is resulting in lower prices for consumers and new options for those looking to save and invest their money. This can be a boon for the economy as a whole.