Financial services are the economic services provided by the finance industry, which encompasses a broad range of service sector firms that provide management of financial assets and liabilities. These include credit unions, banks, insurance companies, providers of investment products, and other financial utilities. Financial services are important because they allow people to invest and save, which in turn creates jobs, economic growth, and a higher standard of living for everyone.
The main kinds of financial services are banking, investing, and insurance. Banking includes handing out loans to individuals and businesses. It also involves collecting deposits and pooling them into a bank’s money supply. Then, the bank can lend out this money to others for profit. Investment services are offered by private equity funds, venture capital providers, and angel investors. These groups give investment capital to companies in exchange for a stake in the company or a share of profits.
Another kind of financial service is debt resolution. It helps consumers with too much debt pay off their loans or credit cards. Financial market utilities are organizations that are part of the infrastructure of financial services, like stock and commodity exchanges, payment systems, and clearing houses. Finally, financial advisory services are offered by many different service providers, from small domestic consulting firms to large multinational corporations. They help with things like investment due diligence, M&A counselling, valuation, and real estate advisory.
It’s not easy to get into the field of financial services, but if you have the right qualities, it can be an extremely rewarding career path. To get started, it’s helpful to read up on the various sectors of the industry and familiarize yourself with the terminology. It’s also a good idea to read up on current events in the industry by reading publications like The Wall Street Journal and Barron’s.