Financial services include all the professional firms that give people advice on money management and safeguard their assets. The industry encompasses everything from banks to credit card companies, debt resolution services, and global payment providers like Visa and MasterCard. Financial services also include investment management and insurance agencies. The industry thrives when there is a balance between regulation to protect consumers and investors’ rights, and financial services companies are allowed enough freedom to offer innovative products that meet their clients’ needs.
Many different types of jobs are available within the field of financial services, and the industry as a whole is very competitive. To make the most of your career in this industry, you need to be intelligent and quick-thinking, and it helps to be a team player, as collaboration is often essential. In addition to good pay, most roles in this sector provide excellent benefits, including health insurance, life insurance and retirement planning.
The term financial services may seem broad and all-encompassing, but it wasn’t always this way. Before the 1970s, each sector of the financial services industry stayed very focused on its own specialty. Banks offered checking and savings accounts, mortgage and auto loans, while brokers and mutual funds companies offered investment opportunities. As the financial services industry grew and evolved, it became more difficult for people to keep their business with one specific company, and as a result, the lines between the various sectors began to blur.
For example, an investment bank provides both financial services and banking services by helping businesses raise capital through underwriting debt and equity. In this capacity, they help with mergers and acquisitions, and they can also assist with initial public offerings (IPOs). Another type of financial services provided by investment banks is structured finance. This involves creating more complicated financial instruments to meet the specific investments needs of high net worth individuals and institutions.
It’s important to understand the nuances of the financial services industry when you are interviewing for a job. The interviewer will likely ask why you want to work in the financial services industry, and your answer should reflect your true passions. It’s a great idea to prepare for this question by listing all of the aspects of the industry that interest you most and assessing how they align with your goals.
When you are working in the field of financial services, it’s important to remember that you are serving customers who may be going through significant life changes. Because of this, it’s important to listen to and understand your clients’ needs, so that you can offer them the right solutions at the right times. This is especially true when it comes to offering products and services that help people buy homes, invest in education and cars, and plan for their future. If you do this well, then you will be able to build a successful and fulfilling career in the financial services industry.