Financial services are the firms that manage money and assets for companies, households, individuals, and governments. They include banks, credit unions, mortgage brokers, investment agencies, stock market brokerage houses, and insurance companies.
These services enable people to make the most of their money, whether they are saving for a big purchase, investing in their retirement plan or paying for a child’s college tuition. They also help budding entrepreneurs create jobs for themselves and others by providing the funding they need to start and grow businesses. Financial services ensure that citizens can pay for their healthcare and other necessities by covering unforeseen expenses through insurance policies.
The financial services industry may seem all-encompassing today, but it wasn’t always so. Until the 1970s, each sector of the industry stuck closely to its specialty. Banks provided checking and savings accounts, loan associations offered mortgages and personal loans, and credit card companies primarily offered credit cards. In the 1990s, however, banks began to offer a wider range of products and merge with other companies to increase their reach.
The financial services industry is extremely competitive. If you want to work in this field, it is important to have a strong network of contacts and the ability to work under pressure. The industry is highly regulated, so it is vital to keep up with ever-changing laws and policies. Finally, because the industry is based on risk, many financial services companies hire workers into long-term contracts rather than permanent positions.